Financial Managers and CEO's Play Important Roles Term Paper

Financial managers and CEO's play important roles in ensuring that organizations meet their specific goals. The skill levels for both positions are high and require a great deal of patience and experience. The purpose of this discussion is to determine whether being a financial manager is the best preparation for later becoming a CEO.

Role of the Financial Manager

According to the Bureau of Labor, financial managers must have a bachelor's degree in a field such as business administration, accounting, economics or finance. Although, as the business world becomes more competitive, organizations are requiring financial managers to have Master's degrees and a great deal of experience before they can become financial managers. The Bureau also explains that financial managers are vital to the success of any organization and their jobs involve supervising the preparation of financial reports, direct investment activities, and implement cash management strategies. As computers are increasingly used to record and organize data, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization." (Financial Managers)

The article also asserts that some financial managers have different titles and different duties depending on the organization. For instance, at some institutions financial managers are known as Chief Financial Officers. (Financial Managers) Chief financial officers traditionally have more responsibility than other types of financial managers. Chief financial officers are generally responsible for all of the financial deals of an institution or organization. (Financial Managers) Chief Financial officers and CEO's often work hand in hand to manage the organization. (Financial Managers)

The CFO keeps the CEO aware of all the financial dealings of the organization and ensures that the organizations finances are properly managed.

On the other hand, other types of financial managers such as controllers and credit managers are also important to the success of an organization. The Bureau of Labor and Statistics explains that a controller is responsible for preparing financial reports that discuss the financial condition of the organization. (Financial Managers) In addition, the controller is expected to prepare special reports and oversee several different financial departments within the organization. (Financial Managers) Likewise, credit managers are responsible for issuing a firms credit and they determine credit rating criteria. In addition, they are responsible for managing overdue accounts. (Financial Managers)

The Bureau of Labor and Statistics also reports that financial managers must have a grasp on the latest technologies that are available in the arena of accounting and the creation of financial statements. (Financial Managers)

The bureau reports that many financial managers are now being outsourced and asked to perform financial analysis on financial documents that have been generated through computer programs. (Financial Managers)

For this reason, continuing education is necessary for any financial manager and especially a CFO.

At many institutions, financial managers are required to have a great deal of experience. This is particularly true at financial institutions because of the complexity of financial instruments and management that is required. (Financial Managers)

The bureau of labor and statistics also asserts that organizations are eager to ensure that financial managers get the proper training and often pay for their continuing education. (Financial Managers)

Continuing education may come in the form of a short-term course or through a certificate program. (Financial Managers)

Obtaining a certificate in a field such as management accounting, Public accounting or Government financial management can greatly improve a financial manager's staying power at an organization. (Financial Managers)

In addition, to the financial responsibilities that financial managers have they are also being required…