Financial Manager Income | Accounting.com (2024)

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What do financial managers do? They help companies stay financially healthy to meet organizational goals, serve customers, and compensate their employees. While specific tasks vary among companies, most financial managers work in data analysis, risk management, and/or fund acquisition.

Successful financial managers are skilled in accounting, financial reporting, data analysis, and critical thinking. Getting started in a financial manager career usually means earning a degree in business or finance, completing an internship, and possibly earning certification as a chartered financial analyst.

Use this guide to explore the salary and job prospects you could enjoy as a financial manager.

How Much Does a Financial Manager Make?

According to Bureau of Labor Statistics (BLS) data from May 2023, the median annual salary for financial managers is $156,100. The BLS also reports that the lowest 10% of earners bring in less than $82,870, while the highest-paid 10% claim upwards of $239,200.

Many factors can affect a financial manager's salary, including specialization, location, industry, experience, and education. For example, professionals who hold finance leadership positions at enterprise-level corporations with headquarters in major cities typically outearn financial managers employed by smaller companies in mid-size urban areas.

Overall, financial managers earn strong wages, making this career an attractive choice for people who love assessing numerical data.

$156,100
Financial Manager Median Annual Salary, 2023
Source: BLS

Financial Manager Salary by Education

Like most fields, financial management rewards formal education. An MBA can be particularly valuable because of its longstanding reputation and blend of finance and business leadership courses.

You can become a financial manager with just a bachelor's degree and add on certifications and degrees as you advance in your career. Many business schools now offer online MBAs or master's degrees in finance that you can complete while you work in your field.

Not all higher education pays off equally well, though. As the table below demonstrates, Ph.D. graduates may earn a lower average salary than people with MBAs. The difference may be because MBAs typically work in business or finance management, while many Ph.D. degree-holders serve as teachers or researchers at universities, which often pays less than corporations. This disparity may also be due to a lack of respondents in certain categories.

Finance Manager Salary by Experience

On average, experienced financial managers earn more than newcomers. Fortunately, new financial managers can earn higher-than-average salaries, and longevity does not always pay off. Long-term employees often hit the upper limits of their earning potential but may feel unable to change employers due to ageism or loyalty.

Experienced financial managers can benefit by pursuing work as financial controllers or chief financial officers, as both careers pay higher average salaries than financial managers earn.

Salary by Location

Your location also contributes to your earning potential and job prospects. For example, global finance hubs like New York City and Chicago need more financial professionals than mid-size cities.

In general, the top-paying states are population-dense areas with high concentrations of finance companies and central offices for global corporations. These states may also have much higher costs of living than the national average — meaning your salary has to stretch a lot further.

Where Should You Work as a Financial Manager?

The BLS projects that financial manager roles will grow by 16% from 2022-2032, much faster than the average occupation. Globalization, economic growth, and a renewed emphasis on risk management are also helping fuel the sharp upward trend for financial manager roles. Cross-border equity, direct loans, and foreign investment continue to grow in complexity, and consequently, corporations need financial managers adept at managing these exchanges.

As the world recovers from the economic effects of the COVID-19 pandemic, corporations also have more access to credit and capital, fueling economic growth and further accelerating the increasing need for risk-savvy financial managers.

In this environment, rising finance experts need cutting-edge technology skills and a modern understanding of recent regulatory changes.

+16%
Financial Manager Change in Projected Employment, 2022-2032
Source: BLS

Best Areas for Financial Manager Jobs

Financial managers work in companies all across the U.S. and around the world. However, where you work may help determine what you do and how easily you can secure a new position.

Most financial manager jobs are concentrated in major metropolitan areas where enterprise-level companies maintain their headquarters. The New York City area, for example, is the top-employing metropolitan area for finance managers. Highly populated states like Texas and California also employ more finance managers.

If you prefer to live in a more rural part of the country, however, you can still pursue a career as a financial manager. Non-metro areas in Alaska, northeast Iowa, and Vermont, have high concentrations of financial management professionals.

Major cities are often home to larger companies that can offer more complex or highly specific professional roles, which can make them seem attractive to new finance managers. City-based workers may also experience longer commutes, higher costs of living, and different work cultures.

Remote or hybrid work allows some financial managers to handle financial analysis and leadership tasks for urban-centered companies while living in a smaller community. This approach may also be more cost-effective for many employers.

Financial managers who work in private wealth management or client services may establish their own businesses, working with clients across the country or around the world from anywhere with an internet connection.

Best Industries

Financial managers can work in virtually any industry, but banks, insurance companies, and investment firms are among the most common employers. While almost all finance professionals work in accounting management in some way, aspects of the role may vary depending on the industry and the size of the company.

For example, financial managers who work in municipalities or public agencies may emphasize auditing and compliance work, while those at investment firms may focus on risk management. These traditional roles are not the only options available.

Many financial managers guide the implementation of the Securities and Exchange Commission's directives on environmental, social, and governance goals. Others are leading corporate integration of generative AI or new models and algorithms.

In short, career opportunities in this field can take you to a small credit union, a major investment research firm, a government agency, or even an entrepreneurial venture.

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