Do you find logic and rationale behind every decision? Are you good with numbers? These days, students with critical thinking and number crunching skills are stepping into the finance industry. It is one of the most forward-thinking sectors that is undergoing perpetual change and growth.
As the industry moves in an exciting direction, finance jobs require experts with technical skills to keep up with fast-paced work. Similarly, it also requires analytical and problem-solving skills because most day-to-day tasks involve fixing intricate problems. If you have a similar skillset, a career in finance could be your calling. Besides a challenging workplace environment, it would open doors to numerous growth opportunities.
From law, investment banking, corporate finance to accounting – there will always be progression routes. Above all, the earning potential in the finance sector is way higher than in other industries. If you want to embark on this endeavor, have a look below. Here are ten career pathways for those willing to enter the finance field.
Financial analysts research stocks, bonds, and securities to assist companies with corporate expansion and restructuring. They delve into the company’s financial performance, analyze trends, and provide recommendations to improve financial health. Likewise, they use all financial data to help companies with mergers and acquisitions. Hence, as a financial analyst, you will have to build financial models, calculate ratios, and conduct technical, quantitative analysis. You will prepare reports detailing the company’s monetary findings and present them to the team members.
Despite emerging accounting software, the need for accountants remains consistent. Organizations are looking for experts who can manage and report all the financial information. They examine bank statements, income, expenses, and revenue. Likewise, accountants generate financial reports that display the company’s profits, equity, and cash flow. They also analyze data to determine the company’s financial health. Do these job roles sound interesting to you? If yes, consider becoming an accountant. You can pursue MBA with accounting concentration and emerge as a competent accountant in the finance sector.
Are you striving to become a leader? Actuaries play a leadership role in financial institutes such as insurance, banking, accounting firms, etc. As an actuary, you have to use your brilliant mathematical skills to calculate various events’ probability. Similarly, you also have to assess financial consequences for outcomes. For instance, if a company is opening a credit line, an actuary will evaluate its impact on its financial performance. They present recommendations to managers and throw light on the relevancy of their decisions. Precisely, they save companies from drowning in losses because of wrong financial decisions.
At times, companies opt for loans without understanding their repayment capacity, exposing themselves to credit risk. As a credit analyst, you would have to evaluate the financial standing of loan prospects. You will assess the risks involved with external financing. Likewise, it will also appraise the financial viability and interpret financial records to determine if the company has enough profits to cover its interest payments. In case the company isn’t profitable enough, analysts will inform potential clients about the drawbacks of financing.
With rising economic uncertainty, financial planning has become inevitable for businesses. Therefore, the demand for financial planners is on the rise. These professionals develop plans that ensure the company’s present and future financial stability. They also review the organization’s financial goals and draft plans for investing and savings. Besides, you would focus on wealth generation because every business’s primary goal is profit maximization. Similarly, financial planners either have flat fees or share a percentage in client’s profits.
Hedge Fund Manager
Isn’t the stock market getting more volatile with every passing day? These days, people don’t have a considerable risk appetite. As a result, they look for investment opportunities with minimal risk and high returns. Well, this is the reason why hedge funds are becoming increasingly popular. These are unregulated private investment funds managed by a hedge fund manager. They buy and sell shares at a predetermined price to eliminate the effect of share price fluctuations. Thus, hedge fund managers work with investors and companies who want to limit their risk exposure.
Everyone who prefers job stability and security should explore careers in commercial banking. Since financial institutes offer a wide range of services, the job roles and responsibilities are also diverse. You can become a loan officer to assist companies and individuals regarding loan procedures. Otherwise, pursue investment banking and become an analyst. You will have to guide people about different investment options and financial securities. It is a conventional banking job but with high earning potential. Most private bankers earn up to $95,000 annually.
Often, businesses have to shut down in their initial years due to a lack of funds and cash. After all, overspending is one of the most significant problems in the corporate world. But with effective budgeting, companies can ensure better financial management. Here, budget analysts come into play. They gather information regarding the company’s income and expenses and prepare budgets. After this, they thoroughly analyze the accounts to ensure finances are in order.
Do you want to become a certified public accountant (CPA)? Well, public accounting is a diverse field with countless opportunities. You can help businesses to keep track of their finances according to the international financial reporting standards (IFRS). Likewise, you can also track business transactions, prepare financial statements, or provide related consulting services. Instead of a full-time job, these accountants work in partnerships with accounting firms, letting you enjoy flexible working conditions.
Surprisingly, a career in finance goes beyond conventional corporate jobs. You can become a private equity investor, a venture capitalist to support high-growth potential companies. A career in venture capital discovers financial opportunities in small businesses and start-ups. You will determine whether investing money into a start-up will be profitable in the long-run or not. After all, venture capitalists generate their incomes from the profits of other companies. Hence, the lucrative investments you make, the higher could be your earning potential.
A finance career is all about managing and handling money effectively. While some organizations want experts who can calculate income and profits, others seek assistance with external financing. Additionally, the role of risk management and budgeting is also rising in the finance sector. You can become a credit analyst, accountant, or actuary. All career pathways offer incredible growth prospects and rewarding returns, making it one of the well-paying fields.