Corporate Financial Accounting
Corporate financiers help businesses make financial decisions. The primary aim of corporate finance accounting is to maximize corporate value while minimizing risk. To achieve this goal, corporate finance professionals determine how a company can free up capital, decrease expenses, and increase profitability. They determine the best growth path for their companies by identifying new business opportunities and forecasting where money will come from. Financiers also research market conditions and developments while structuring market campaigns for future financial transactions.
Daily Tasks
The main role of a corporate finance accountant is to give companies advice about how to achieve their financial goals and execute their plans. In short, corporate financiers manage their firm's money. These professionals typically work in teams that focus on specific market sectors and their corresponding financial transactions. Corporate finance deals commonly involve two stages: origination and execution. First, the potential and desirability of a specific financial deal are evaluated, and then the structure of the deal is negotiated and executed.
As a corporate finance accountant, you might work for a small business or a large multinational company. Recent graduates can expect to start their careers as staff accountants or financial analysts working closely with a corporate finance team. Once corporate financiers gain sufficient experience, advancement and professional independence become a reality.
Keep in mind that your career as a corporate financier may take on different forms. Corporate financiers serve as:
- General accountants
- Internal auditors
- Treasurers
- Divisional financial officers
- Cash and credit managers
- Real estate officers
Education & Training
Corporate financiers are accountants first, and then financiers, therefore they must complete the educational requirements to become an accountant. Students who want to become corporate finance accountants should consider applying to a program that offers an accounting degree.
A bachelor's degree in accounting or a related field is generally the minimum educational requirement for corporate finance accountants, although some employers accept applicants who possess a combination of postsecondary education and work experience. Many accountants also choose to pursue certification—such as the Certified Public Accountant (CPA) designation—as a means to help advance their careers.
Salary & Job Outlook
While compensation is likely to depend on location, an initial salary for an accountant with a bachelor's degree ranges from $35,000 to $50,000 per year. Starting salaries for financiers with a master's degree can range from $55,000 to $80,000 per year. As the financier gains more experience his or her compensation will likely increase.
Employment prospects for corporate financiers are favorable despite the recent economic recession. With each corporate dollar spent, and with each merger or acquisition completed, there is an employment opportunity for one or more corporate financiers.
Prospective accountants should bear in mind that more and more accounting functions are becoming automated by software. As a result, professionals with analytical skills will have much better prospects than those who do not. Completing a graduate degree and gaining extensive analytical experience will be a boon to your future employment.
Characteristics of a Successful Corporate Finance Accountant
Key competencies required to become a corporate financier include strong attention to detail and top-notch problem solving skills. These accountants should have excellent communication skills in order to coordinate teams of professionals. As in other accounting specialties, prospective corporate financiers should have an aptitude for using numbers to analyze business patterns, and the consistency to get the math right in every calculation. If you have these skills and are interested in business operations, you should consider a career as a corporate financier.
Article Resources:
U.S. Bureau of Labor Statistics: Financial Managers
Careers in Corporate Finance