Corporate finance incorporates an organisation’s capital structure, funding, analysis of financial resources, determining credit tenure to debtors and actions that a professional undertakes to increase the value of a company to the stakeholders. Combining all of these goals enables an organisation to function proficiently from an asset viewpoint.
Finance management is an indispensable aspect of every company. No business can survive without proper financial planning, so organisations hire corporate finance professionals to deal with day-to-day financial tasks. If you are planning to enter the field soon, here are ten things you should know:
1. Job positions
To become a corporate finance professional, the job roles vary from company to company. Joining a firm at an entry level, you will be hired as a Financial Analyst, Cost Analyst, Business Analyst or Support Analyst. At the mid-level, you can be a Senior Financial Analyst, Strategic Planner or Budgeting.
However, this will require you to have a degree as Masters in Business Administration. At the top of the hierarchy, you can be hired as Chief Executive Officer(CEO), Chief Financial Officer(CFO), Business Development Manager, Treasurer or Controller.
To build a career in corporate finance, you need to have strong analytical skills and the ability to make decisions based on careful research and analysis. Besides, you also need to be strong in problem-solving, leadership skills, communication, team management, research-based analysis, understanding financial models, financial reporting, negotiation, and networking.
To become an established finance professional or move up the career path, you need to equip yourself with the necessary knowledge. There are various management and training courses such as MBA in Finance Management and Masters in Business Administration that one can pursue from any UGC-recognised university. Management courses such as these help you scape up in your career.
- Types of industries
As a corporate finance professional, you can choose to apply at any bank, investment company, government entity, private financial company, small business or start-up, among others.
- The career outlook
Considering the corporate finance career prospects, there is a lot of competitiveness. A study indicates that the growth of the financial profession is way faster than others.
In India, people who are in this profession can expect to start earning a minimum of Rs.50000 – 60000 per month. Gradually, when you gain experience in the field, the salary can go beyond Rs.500000 per month.
- Simplification of complex information
As quoted by Leonardo da Vinci, “Simplification is the ultimate sophistication.” One of the hallmarks of a finance professional is simplifying complex data by leveraging financial modelling skills.
- Innovation is key
While most of you may think that a corporate financial professional must be good in the analysis, account and financial planning of a company, innovation is the key in this career field. Some companies will require you to bring a new perspective to streamline the older processes. Innovate, improvise, and you never know how valuable a contribution you can make to your role.
Some organisations also require you to have the ability to predict the course of things. This can be achieved when you learn financial modelling. Having experience in these skills across sectors can make you adaptable to the existing situation. A futuristic vision is a skill that companies search for when hiring a finance professional.
- Having a professional degree
For healthy growth, you need to have a degree. When you want to be in a higher position in the finance field, the competition becomes tough. Relevant expertise by way of a postgraduate degree is a must. You can easily apply for a distance MBA in Finance Management from a reputed UGC-recognised school like NMIMS Global.