Thefinance domain is considered as an essential aspect of project management as every project needs to be meticulously planned considering budget constraints. Thus, the project manager should possess necessary budgeting skills, which allow them to assign a cost to various areas of the project.
The finance related organization encompasses risks, and managing those risks should be diligent enough and in the utilization of resources as well. People playing a prominent role in the field must be competent and skilled enough. They must be capable of monitoring the work carefully and complete the work on time.
However, a skilled project manager can create a considerable difference when handling finance projects and assure a higher level of productivity within the team. Finance project managers are the most sought after in organizations as they are proficient at completing the projects within the given timeline and budget.
Want to know more about financial project managers
A finance project manager is a new role within the organization’s finance department. They are accountable for making suitable plans, technology improvements, and handling finance-related activities. People responsible for project management in the finance domain/people managing finance-related operations supervise from planning till implementation and assures on-time completion of projects with an assigned budget. This job role requires a proper balance of organization skills, financial expertise, and the ability to set schedules.
Financial project managers are responsible for the financial health of an enterprise. They are responsible for direct investment activities, financial reports, and develop strategies considering long-term/continuing financial goals.
Let’s explore what are all the key skills required for a finance project manager will involve:
- Communication skills
An efficient project manager should be a skilled communicator and should be able to thoroughly communicate with executives and team members across various departments and justify complex financial transactions.
- In-depth knowledge of financial analysis
Knowledge is the primary differentiator that can decide who can be hired for a particular role. Project managers in this domain need to have extensive knowledge in financial management, and they will always be preferred for the job role.
- Interpersonal skills
Being a project manager in the finance department, you need to connect with a lot of people across various departments such as suppliers, bankers, investors, etc. Thus, you need to have strong assertiveness and interpersonal skills.
- Team coordination
Coordinating with cross-functional teams is essential for an accomplished finance project manager. It is because projects involve sales, accounting, and other project-related activities.
While preparing income statements and balance sheets, the financial managers should be detailed and attentive/intent to their work to avoid errors.
Duties and responsibilities
The financial project manager’s job role is indeed a challenging task. They thoroughly analyze the financial data prepared by the accountants, monitor the financial status of the organization, and implement financial status.
The key responsibilities of a financial project manager are:
- Financial planning
Financial planning involves preparing and supervising the organization’s financial plan that projects expenditures and revenues, long-term investments, and cash flow. They should be able to come up with cost-benefit analysis concerning projects across various departments, thereby identifying cash flow and revenue where it could be improved.
- Scheduling and organizing
Scheduling and handling project timelines is a vital aspect of the financial project manager’s duties. They work in correlation with the team members and the department managers to implement project timelines and ensure that the team meets milestones all through the project lifecycle. It’s the responsibility of the successful project manager to prevent delays and make sure that deliverables are completed as per the schedule.
- Budget management
Finance project managers are skilled with budgeting skills and financial management to assist the teams in completing the project, considering the budget, and oversee the organization’s financial performance. An effective manager handles revenue and expenditure to make well-informed decisions about emerging opportunities and areas for improvement.
- Team leadership
The primary task of finance project managers is to develop and work with cross-functional teams. They coordinate across various departments and motivate the staff members to complete the projects considering external and internal deadlines.
- Efficiency improvements
Project managers look for methods to improve the overall efficiency and performance of the project. This means coming up with cost-saving opportunities at the enterprise level. They ascertain the areas for improvement and identify solutions to avoid project delays and help a company to meet its cash flow goals.
Education, training & certifications
Financial project managers should possess a bachelor’s degree in business administration, accounting, and finance.
In fact, many employers seek candidates with a Master’s degree, particularly in economics, business administration, accounting, and finance. These programs help the students to progress analytical skills, financial methods, and software.
On the other hand, experienced financial project managers can become Chief Financial Officers (CFOs) having the accuracy of the organization’s financial reporting.
Industry-recognized project management certification courses are essential for aspiring financial project managers to demonstrate their understanding of various methodologies, frameworks, and best practices.
The average annual pay of a Financial Project manager is approximately $104,862 /year. The pay depends on various factors like education, training, industry, geographic location, and experience level.
Candidates with proficiency in finance and accounting, and particularly those with add-on certifications or master’s degree, enjoy the best career prospects in the industry. Having a thorough understanding of international and complex financial documents is indeed essential.
Financial Managers – Employment Project Data, 2018-28
|Occupational Title||Employment, 2018||Projected Employment, 2028||Change, 2018-28|
The role of the financial project manager is changing with technological advances, which in turn has reduced the amount of time it takes to produce business-critical financial reports. Nowadays, managing the company’s finances can be done using data analysis and advising senior managers and executives to maximize profits and unearth new opportunities. They must be apt and proficient about the special laws, rules, and regulations that affect their industry. While you are here, you can check out these popular project management courses