What is a Successful Career Path in Corporate Finance

As the world moved away from the barter system, it became more reliant on money systems. Money is now earned and transacted in a variety of ways, which has resulted in the development of rules and regulations for handling your money. On an individual level, almost every adult has gone through the complexity of managing their money, and we cannot even imagine doing that on an organizational level. That’s why many corporations hire corporate finance professionals to assist them with their finances. 

What is corporate finance? 

Corporate finance is a branch of finance that assists businesses with their financial aspects, such as profit maximization or departmental cost reduction. Its work is not limited to large corporations but rather to all types of businesses.

What does a corporate finance professional do?

The duties of a corporate finance professional are broadly concerned with short- and long-term financial plans and their implementation in a business. This includes activities such as analyzing company revenue, managing capital structures, overlooking company accounts, consulting on investment decisions, advising company managers on projects, and writing financial reports and statements, etc.

Is corporate finance a good career option?

If you are someone who likes working with numbers, is detail-oriented, and has a deep interest in the stock market, then this career is for you.

Here are a few reasons why you should pursue a career in corporate finance.

1. Stable career: Every company needs to manage its finances irrespective of the industry. Hence, this career could be considered one of the most stable career options. You also have standard timings and regular holidays that help you have a work-life balance. 
2. Larger impact: As a person working in the field of corporate finance, you will have a chance to impact the success of large organizations directly. You would be actively involved in company management from a financial perspective.
3. Scope for growth: This career offers a lot of scope for growth, may it be from working in a small business to large cooperation or climbing the corporate ladder within a company.
4. Better perks: Being a job that directly impacts the company’s profit and growth, a job in corporate finance often comes with a good compensation package. 
5. Variety in roles: There are multiple roles in corporate finance which have different responsibilities, that you can choose from based on your preferences.

What are the different jobs in corporate finance?

1. Financial analyst – A person in this post prepares financial reports, evaluates budget and income statements, and generates forecasts, keeping the overall development of the company in-sight.
2. Cost analyst – A cost analyst focuses on calculating and analyzing the cost of company operations such as labor cost, manufacturing, inventory, etc.
3. Corporate accountant – A corporate accountant generally keeps track of company finances and prepares financial reports that guide the executives of the company while making strategic decisions. 
4. Investor relations manager – A investor relations manager is responsible for maintaining proper relations between a company and its investors. Their primary job is to meet investors on a regular basis, prepare reports for stakeholders and provide financial information to potential investors. 
5. Benefits analyst/manager – A person in this position is responsible for identifying, analyzing, selecting, and administering a benefits program for the company employees. 
6. Real estate manager – A real estate manager evaluates and secures the commercial property for the business depending on the property value assessment and its future return on investment (ROI). 
7. Financial planning and analysis manager – A person in this position is responsible for making decisions on the company’s investment and day-to-day operations. 
8. Treasurer – A treasurer manages the overall finances of the company. They are responsible for ensuring the financial decisions are in line with the short- and long-term goals of the company.
9. Controller – A person in this position oversees how a company controls its finances in terms of investing, risk management, and payroll duties. 
10. Chief financial officer (CFO) – This is the highest position available in corporate finance. The duties of a CFO entail analyzing a company’s financial performance and developing processes to maintain the company’s financial health among other things. 

What are the skills required for to build a successful career in corporate finance?

• Quantitative skills
• Problem-solving and analytical skills
• Critical thinking
• Financial reporting and presentation
• Negotiation skills 

These are some of the general skills required in corporate finance, though some additional skills would be required depending on the position you are applying for.

Qualifications to get a corporate finance role

A career in corporate finance is geared completely toward the finance vertical; hence, there are certain qualifications that one must have to apply for any role in this domain. 

1. Bachelor’s degree: A bachelor’s degree in accounting, finance, or a related field is a must for getting an entry-level job in this domain. 
2. Master’s degree: To advance in corporate finance one needs a master’s degree in finance or business administration. Northwest Executive Education offers an MSF program which will help you go ahead in this field.
   1. Global Master of Science in Finance (Global MS in Finance) from the Richard DeVos Graduate School of Management at Northwood University – The program helps develop the acumen to play an important role in the ever-changing and expanding world of global finance. It is a highly accredited program like this, is sure to help you get a head start on your financial career.
3. Additional certifications: Certifications such as Chartered Financial Analyst (CFA), Certified Public Accountant (CPA), Association of Certified Chartered Accountants (ACCA), and Chartered Alternative Investment Analyst (CAIA) help you advance in specific positions at a faster pace. For example, the ACCA certification is helpful to someone in an accounting position.
4. Continued learning: Staying updated on financial market trends and developments is essential for success in these dynamic roles.
   • Duke Chief Financial Officer (CFO) Program – It is an extensive 8-month multi-modular program designed to shape visionary financial leaders into transformative agents who can steer their organizations towards success in an increasingly uncertain global business arena. This immersive program will offer a deep dive into the multifaceted world of modern finance, that will equip participants with the tools to navigate complex financial decisions and emerging trends. Under the guidance of world-class Fuqua faculty and through the cutting-edge curriculum, the program will empower finance leaders with the knowledge, skills, and insights necessary to drive transformative financial growth within their organizations.
     

     

      
5. Appropriate experience: Hands-on experience is very crucial to accelerate your career in corporate finance. A few ways to do it are: 
   1. Interning in a financial firm while studying
   2. Work in an auditing team or accounting firm
   3. Get experience in public accounting

The path to a successful career in corporate finance is much simpler compared to other careers in corporate, as the steps you need to take are straightforward. A successful career is guaranteed with hard work and taking the right steps at a time.

FAQs

• Which is an entry-level position in corporate finance?
  Some entry-level positions in corporate finance are financial analyst, tax accountant, budget analyst, and managerial analyst.

• What are the best career pathways in finance?
  There are four basic pathways to choose from if someone is looking for a career in finance.

1. Financial planning and analysis (FP&A): Someone in an FP&A position deals with activities such as budgeting, trend analysis, forecasting, key performance indicators (KPI) development, etc.
2. Corporate development: Corporate development positions work on growing the business through activities such as mergers and acquisitions, strategy development, etc.
3. Treasury: People in treasury positions are responsible for maintaining the financial health of a business.
4. Investor relations: A person in investor relations maintains investor relations.

Read more: How to Get a Head Start on Your Finance Career

• What is the difference between investment banking and corporate finance?
  Investment banking is a division of banking that provides services for organizations to raise funds while corporate finance deals with financial activities within a company.
• What are other top positions in finance?
  The other most pursued positions in finance are investment banker, portfolio manager, securities trader, and financial advisor.