Introduction
Finance, as an educational discipline, is a broad topic that includes a variety of career opportunities. A financial professional is among the highest paying job in any job market. The knowledge of finance is very much essential for individuals, businesses, and the government for the management of money and other financial resources.
The substantial application of money economics is managed by the financial professional. Finance, as a career, is a lucrative opportunity. Along with opportunities for career advancement and high salaries, a finance career requires a strong academic background, attention to detail and the ability to work under pressure.
Finance Professionals are responsible for managing financial operations, analyzing data to make financial decisions, and creating financial strategies for individuals, businesses, corporate organizations or government.
Importance of Finance
Finance is important for individuals, businesses, corporations and the government. From managing the income of an individual to managing the national budget, knowledge of finance is prominent. Along with this finance includes a wide range of activities, including investing, borrowing, lending, budgeting, forecasting, managing risks. Some of the importance of finance are:
- The knowledge of finance helps individuals and businesses invest in assets that increase the value and generate income.
- Finance helps businesses and individuals in raising capital for investment and operation.
- Finance provides knowledge to individuals and businesses to manage different financial and non-financial risks through insurance, hedging and diversification.
- Budgeting and financial forecasting is another essential use of finance knowledge. Businesses forecast future expenses, revenue, and cash flows.
- Finance plays a crucial role in facilitating economic growth. Finance is responsible for ensuring effective and efficient allocation of resources and encouraging financing and investing activities.
- The knowledge of finance is essential for analyzing financial statements for assessing investing opportunities and for making informed decisions.
- It is the responsibility of the finance profession to plan for taxes and optimize the tax liability of individuals, businesses and corporations.
- Finance is responsible for tax planning, preparation and compliance services for individuals or businesses.
Profession in Finance
There are various professions in finance that require different skill sets and qualifications. Some of the most lucrative profession in the field of finance are:
| Accountant | Financial Analyst |
| Investment Banker | Financial Planner |
| Risk Manager | Insurance Underwriter |
| Fund Manager | Financial Controller |
| Credit Analysis | Tax Accountant |
| Actuary | Trader |
| Quantitative Analyst | Venture Capitalist |
Accountant
The Accountant Profession is of the opportunities in finance. Accountants are responsible for preparing and analyzing financial statements, bookkeeping, tax planning and compliance. Accounting requires specialized skills and experience. The earning potential of an accountant is highly dependent on factors like location, experience and industry. Accountants in urban areas earn comparatively higher than accountants in rural areas.
According to the U.S. Bureau of Labor Statistics, the median annual salary of an accountant was $73,331 as of 2022.
There are different types of Accountant jobs:
| Financial Accountant | Management Accountant |
| Cost Accountant | Forensic Accountant |
| Investment Accountant | Auditor |
Financial Analyst
They are responsible for conducting financial research, analyzing financial data and preparing financial reports for investment opportunities and informed decision making. It is one of the charming professions in the field of finance. Individuals with specialized skill and experience have growth potential in this profession.
As per the report by U.S. bUreau of Labor Statistics, the median annual salary of a financial analyst was $86,991 in 2022 with a decent additional cash compensation.
Some of the different profession under this are:
| Investment Analyst | Equity Analyst |
| Fixed Income Analyst | Credit Analyst |
| Portfolio Analyst | Risk Analyst |
| Quantitative Analyst | Corporate Finance Analyst |
| Real Estate Analyst | Economic Analyst |
Investment Banker
They are finance professionals who are responsible for financial advisory services for mergers and acquisitions, underwrites securities offering and raises capital for companies, debt and equity issuances, conducting due diligence, marketing financial securities etc.
This profession is a highly lucrative career choice. As per the U.S. Bureau of Labor Statistics, the median annual wage of an investment banker is $ 162,715.
Some of the different profession under Investment Banker are:
| Compliance Specialist | Sales and Trading |
| Derivative Specialist | Equity Research Analyst |
| Debt Capital Market Specialist | Merger and Acquisition (M&A) Specialist |
| Structured Finance Specialist | Corporate Finance Specialist |
| Risk Management Specialist |
Financial Planner
Financial planners are those professionals who are responsible for helping individuals and businesses develop financial plans to achieve their financial goals, retirement planning and operational risk. They have higher demand for retirement planning, estate planning, tax planning, budgeting etc.
Financial planners made a median salary of $ 94,170 in 2021. Financial planner requires a high level of interpersonal skills, sales ability, and regulatory compliance knowledge.
Some of the different professions under Financial planner are:
| Certified Financial Planner | Tax Advisor |
| Wealth Manager | Estate Planning Attorney |
| Investment Advisor | Financial Analyst |
| Insurance Advisor | Retirement Planning Specialist |
Insurance Underwriter
Insurance underwriters are professionals who are responsible for risk assessment associated with individuals, businesses and other entities. Such professionals are responsible for planning and executing insurance policies after careful considerations of rules and regulations, likelihood of claim, premium policies, client’s demographics, lifestyle etc.
Insurance underwriters are policy makers or reviewers for any insurance based business. According to the U.S. Bureau of Labor Statistics, the median annual wage for insurance underwriters in 2020 was $73,040.
Some of the different professions under Insurance Underwriters are:
| Life Insurance Underwriters | Health Insurance Underwriters |
| Property Insurance Underwriters | Property Insurance Underwriters |
| Marine Insurance Underwriters | Casualty Insurance Underwriters |
| Aviation Insurance Underwriters | Reinsurance Underwriters |
| Environment Insurance Underwriters | Surety Bond Underwriters |
| Political Insurance Underwriters | Cyber Insurance Underwriters |
Risk Manager
Risk managers are responsible for identifying, assessing, and managing financial risks for individuals or companies. There are different types of risks associated like credit risk, market risk, interest risk and operational risks. Risk managers have the responsibility to identify the possible risks and prevent such risks.
As per the GlassDoor and U.S. Bureau of Labor Statistics , the median annual wage for Risk Manager was around $ 1,34,180 as of May 2022.
Some of the responsibilities under Risk Manager are:
| Credit Risk Manager | Operational Risk Manager |
| Environmental Risk Manager | Market Risk Manager |
| Project Risk Manager | Enterprise Risk Manager |
| Vendor Risk Manager | Insurance Risk Manager |
| Financial Risk Manager | Information Security Risk Manager |
| Cyber Risk Manage | Compliance Risk Manager |
Fund Manager
Fund manager is a profession who is responsible for managing financial data, assessing risk and making investment decisions on the behalf of individuals, institutions, or corporations. The most prominent roles and responsibilities of a fund manager are; Portfolio Management, Investment Research, Risk Management, Investment Strategy, Client Relationship Management, Compliance, Reporting etc.
As per Payscale, the average base salary of a fund manager in the U.S. is $ 96,000 per year.
Some of the professional responsibilities of a fund managers are:
| Fund Accountant | Trader |
| Client Service Manager | Risk Manager |
| Compliance Officer | Investment Analyst |
| Portfolio Manager |
Credit Analyst
Credit Analysts are financial professionals who are responsible for analyzing the credit behavior and credit worthiness of individual or institutional borrowers. They determine the ability of clients to pay back their liabilities. Some of the primary functions of credit analysts are; Analyzing Financial Statements, Conducting Industry and Market Analysis, Evaluating Credit Risks, Monitoring Credit Performance, Managing Credit Portfolios etc.
As per the report by The U.S. Bureau of Labor Statistics, the average medium annual wage of financial analysts, which includes credit analysts, was $ 83,660 as of May 2020.
Some of other professional responsibilities under credit analysts are:
| Credit Analyst | Portfolio Manager |
| Loan Officer | Credit Risk Analyst |
| Underwriter | Credit Operations Manager |
| Risk Manager |
Financial Controller
A financial controller is an executive level financial professional. Financial Controllers are responsible for managing the financial operations of an entity. They ensure the financial health of the company from statement to process, standard to policy. Some of the key responsibilities of a financial controller are; Financial Reporting, Budgeting and Forecasting, Internal Controls, Tax Compliance, Cash Management, Financial Analysis, Team Management etc.
The average base salary for a financial controller in the United State is around $ 89,000 per year (Payscale). There is a high demand for such financial experts as they handle all the financial activities in an entity.
Some of the other responsibilities of Financial Controller are:
| Financial Analyst | Accounting Manager |
| Treasury Manager | Tax Manager |
| Internal Auditor | Financial Systems Manager |
| Financial Planning and Analysis Manager |
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