As a fresh graduate or a young professional in India, you might be curious about the career prospects and salaries in different industries. If you are considering a career in finance management, then this article is for you!
Read on to find out everything about salary trends, growth prospects, education, certification options, and upskilling opportunities for finance managers in India.
Who is a Finance Manager?
A finance manager plays a crucial role in ensuring the financial health of a company. Their work impacts all functions of an organisation, from operations to strategy.
Responsibilities of a finance manager:
- Overseeing financial reports
- Budgeting
- Forecasting and analysing financial data
- Manage financial risks and opportunities
- Liaise with other departments to ensure compliance with regulations and laws
- Identifying areas for improvement or growth
Skills required for a finance manager:
- Analytical abilities
- Communication skills
- Problem-solving skills
- Peadership ability
Finance Manager Salary Trends
As a finance manager, you would play an essential role in any company's financial management. You would be responsible for managing the company's finances, ensuring its stability and growth. In this section, we will explore the current finance manager salary trends in India.
Average salaries of finance managers
- The average salary of finance managers in India ranges between ₹5 to 20 lakhs per annum.
- The starting salary for entry-level positions is around ₹5 to 7 lakhs per annum.
- Experienced finance managers can earn up to ₹20 lakhs per annum.
Compared to other industries, finance managers' salaries are typically higher than those in healthcare or education but may be lower than those in IT or consulting.
Also, when compared to other industries with similar job roles, such as marketing or sales, finance managers' salaries are relatively higher. This high salary range makes it an attractive career option for fresh graduates and young professionals.
The table below shows projected salary ranges for entry-level and experienced finance managers in 2023:
Finance manager salary trends
The finance industry is growing rapidly due to increased globalisation and privatisation. This growth has resulted in an upward trend in finance manager salaries.
The demand for skilled financial professionals is on the rise as companies aim to expand their operations globally. Additionally, regulatory compliance requirements have become more complex, making it more challenging to find qualified professionals to fill these positions.
Factors affecting salaries
Salary ranges can vary depending on various factors that include location, skill and experience level, and company size.
Location:
Location plays a crucial role in determining a finance manager's salary range. For instance, those working in metropolitan cities such as Mumbai or Delhi may earn higher salaries than those working in smaller cities such as Jaipur or Chandigarh.
The table below shows the average finance manager salary in different cities across India.
Skills and Experience:
A finance manager's salary range can also depend on their skills and experience level.
For instance, an entry-level finance manager may earn around ₹6 to ₹9 lakhs per annum, while a mid-career finance manager with five to ten years of experience may earn between ₹10 to ₹20 lakhs per annum.
A highly experienced finance manager with over a decade of experience may earn up to ₹50 lakhs per annum.
Company Size:
The size of a company can also impact a finance manager's salary range. Larger companies tend to offer higher salaries compared to smaller companies due to their greater financial resources and more complex financial management needs.
For instance, a finance manager working at an MNC such as Amazon or Microsoft would likely earn a higher salary than someone working at a small start-up company with limited funding.
Career Paths for Finance Managers
Finance managers can transition into various job roles, such as Chief Financial Officer (CFO), Investment Banker, or Financial Analyst. CFO is the most popular career progression option for finance managers.
Several industries require finance managers, such as IT, Healthcare, Consulting, Banking, and Insurance. The IT industry has significant growth potential for financial professionals due to digitalization and the expansion of e-commerce.
Education and Certification Options for Finance Managers
Aspiring finance managers can pursue a degree such as an MBA or a Master's in Finance to enter the field. These degrees provide candidates with a solid understanding of financial management principles.
Working professionals can opt for certification courses such as the Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA) to enhance their skills. These courses offer specialised knowledge in areas such as investment banking, portfolio management, and risk analysis.
Upskilling Opportunities for Finance Managers
Upskilling provides you with an opportunity to acquire new skills that can make you a more valuable employee. Data analysis tools like Excel or Python and knowledge of regulatory compliance standards like International Financial Reporting Standards (IFRS) are helpful to secure a better job position.
Future Prospects for Aspiring Finance Managers
In conclusion, besides pursuing the right courses, an aspiring finance manager should also be open to learning new skills and upskilling regularly to stay current with changing market trends.
Remember that WIZR is always there to help with your career guidance and education needs.
FAQs
1) Who earns more: finance managers or financial advisors?
Finance managers generally earn more than financial advisors due to their higher level of responsibility and qualifications, although salaries can vary based on industry and experience.
2) Do finance managers need mandatory certification or a licence to work?
While certification is not mandatory, obtaining a professional qualification such as a CFA or CPA can increase your chances of success as a finance manager.
3) Are Indian certifications valid to seek finance manager jobs abroad?
Yes, Indian certifications such as the CFA are highly regarded internationally and can help you advance in your career.
4) Is an MBA required to be a finance manager?
While an MBA is not mandatory, it provides essential skills such as strategic thinking, leadership abilities, and networking opportunities that are highly valued in the field of finance management.
5) Can finance managers work as freelancers?
Yes, freelance opportunities exist for those who wish to work independently. However, most employment opportunities require experience working within an organisation before transitioning into freelance work.
