Finance Today
Finance is extremely important to any business because without money, a company cannot survive. The finance aspect of a business or corporation helps to regulate the flow of money and to generate the best possible results for the business’s sake. There are three benefits of finance in a business, according to Chron.com. They are: business support service; lowest costs; and effective control of the environment. These three crucial points aid in the success of a business and the most effective monetary usage.
Finance is like the backbone of a business. Without the proper principles and procedures done in an orderly, effective, and timely fashion, a company would not be able to last long. A major role of financial officials is to work with other aspects of the company, such as the marketers, take the proposed ideas and make sure that they are sensible and will profit the company.
A clear, wholesome definition of finance is perfectly stated by Phil Searle in his article, “What is the Role of Finance? And What Exactly is Decision Support?” He states, “The reality is that the finance function provides a broad range of different services to meet corporate, legal, statutory, tax and compliance requirements, to provide transactional, administrative, professional and technical services to the business, and to deliver financial and management reporting and value add decision support.”
Finance is like the backbone of a business. Without the proper principles and procedures done in an orderly, effective, and timely fashion, a company would not be able to last long. A major role of financial officials is to work with other aspects of the company, such as the marketers, take the proposed ideas and make sure that they are sensible and will profit the company.
A clear, wholesome definition of finance is perfectly stated by Phil Searle in his article, “What is the Role of Finance? And What Exactly is Decision Support?” He states, “The reality is that the finance function provides a broad range of different services to meet corporate, legal, statutory, tax and compliance requirements, to provide transactional, administrative, professional and technical services to the business, and to deliver financial and management reporting and value add decision support.”
Finance Careers
Banking:
1. Bond market analyst
2. Investment banking analyst
3. Loan officer
4. Underwriter
Corporate Finance:
5. Real estate portfolio manager
6. Business analyst
7. Cash manager
8. Controller
9. Credit manager
10. Financial analyst benefits officer
11. Investor relations officer
12. Real estate officer
13. Treasurer
New Ventures:
14. Business ownership
15. Chief financial officer (CFO)
Other (encompasses many fields):
16. Accountant
17. Auditor
18. Budget analyst
Retail:
19. Finance manager
20. Insurance sales
21. Personal financial assistant
22. Personal financial planner
23. Stock broker
1. Bond market analyst
2. Investment banking analyst
3. Loan officer
4. Underwriter
Corporate Finance:
5. Real estate portfolio manager
6. Business analyst
7. Cash manager
8. Controller
9. Credit manager
10. Financial analyst benefits officer
11. Investor relations officer
12. Real estate officer
13. Treasurer
New Ventures:
14. Business ownership
15. Chief financial officer (CFO)
Other (encompasses many fields):
16. Accountant
17. Auditor
18. Budget analyst
Retail:
19. Finance manager
20. Insurance sales
21. Personal financial assistant
22. Personal financial planner
23. Stock broker
Finance Mentor: Peter Miller, Chief Financial Officer (CFO)
Objectives:
What do you really want to get out of this interview? What would make it successful for you?
I want to understand the importance of finance in the business world. I want to know what is required for such a career.
Marketplace
What are your projections for this type of work or industry? Is it stable, growing, declining?
The field of accounting and finance continue to grow.
What are the key trends or issues? New developments? Key challenges?
There are always new regulations such as Sarbanes Oxly as result of Enron and Frank/Dodd as a result of banking crises.
What and where are the opportunities?
Accounting and finance are very versatile degrees with opportunities in any business.
What are typical salaries in this type of job, entry-level to experienced? What are the opportunities for career growth?
Entry is generally 40-50k per year. Experienced is much higher depending on management responsibility or leading into business ownership.
Entry Into Position
When and how did you get involved in this work?
BS in Accounting from BYU-Provo and MBA from University of Northern Colorado plus passed the CPA test.
What was your training and background? Is this typical for people in your position and in similar positions?
Yes the above is typical.
Below is my work career:
How important are specific credentials for entry or success?
Very. Each of the 3 items help above 1. BS 2. MBA 3. CPA
Job Specifics
What’s a typical day like for you or someone in a similar position?
In the beginning, I did detailed accounting work. As I have moved into management, I focus on strategy.
What do you like most about your work?
Every day brings a new challenge.
What do you like least?
Work politics that people do.
What talents or skills do you think are the most crucial to success in this work?
Accuracy, intelligence, and flexibility
What attitudes or values are important?
Integrity, willing to work hard, and honesty
Who doesn’t do well in this type of work?
Non-detail oriented people
How do you advance or get promoted in this type of work?
Work hard and do a good job
Recommendations
Would my background be appropriate for this type of work?
I do not know your background.
What would you recommend I do if I want to go into this type of work?
BS in Accounting.
Are there other jobs similar to yours that you would suggest I also consider?
The main fields in accounting are:
1. Public accounting i.e.. CPA firm (auditing, taxes, and consulting)
2. Business accounting i.e. controller, cost accounting, and general ledger
3. Finance i.e. insurance, mortgage, and investment
Can you recommend other people I can talk to, or other resources I can check out?
Chuck Phillips, Don Smillie, Glen Larson, and Elmer Selim
Knowing what you do now, would you approach this career (or job) in the same way?
If not, what would you do differently, and why?
I have no regrets on my approach.
What do you really want to get out of this interview? What would make it successful for you?
I want to understand the importance of finance in the business world. I want to know what is required for such a career.
Marketplace
What are your projections for this type of work or industry? Is it stable, growing, declining?
The field of accounting and finance continue to grow.
What are the key trends or issues? New developments? Key challenges?
There are always new regulations such as Sarbanes Oxly as result of Enron and Frank/Dodd as a result of banking crises.
What and where are the opportunities?
Accounting and finance are very versatile degrees with opportunities in any business.
What are typical salaries in this type of job, entry-level to experienced? What are the opportunities for career growth?
Entry is generally 40-50k per year. Experienced is much higher depending on management responsibility or leading into business ownership.
Entry Into Position
When and how did you get involved in this work?
BS in Accounting from BYU-Provo and MBA from University of Northern Colorado plus passed the CPA test.
What was your training and background? Is this typical for people in your position and in similar positions?
Yes the above is typical.
Below is my work career:
- 1983 CPA firm as an auditor
- 1984 Accountant in the General Accounting department for University
- 1985-1988 Worked as Manager of Financial Planning & Analysis for NCR – a computer mfg. co.
- 1988-1993 Worked as CFO (Chief Financial Officer) and VP of Operations of mfg. co.
- 1993-2012 Worked as CFO and Manager of Operations for different mfg. co.
- 2012 Present CFO for different mfg. co.
How important are specific credentials for entry or success?
Very. Each of the 3 items help above 1. BS 2. MBA 3. CPA
Job Specifics
What’s a typical day like for you or someone in a similar position?
In the beginning, I did detailed accounting work. As I have moved into management, I focus on strategy.
What do you like most about your work?
Every day brings a new challenge.
What do you like least?
Work politics that people do.
What talents or skills do you think are the most crucial to success in this work?
Accuracy, intelligence, and flexibility
What attitudes or values are important?
Integrity, willing to work hard, and honesty
Who doesn’t do well in this type of work?
Non-detail oriented people
How do you advance or get promoted in this type of work?
Work hard and do a good job
Recommendations
Would my background be appropriate for this type of work?
I do not know your background.
What would you recommend I do if I want to go into this type of work?
BS in Accounting.
Are there other jobs similar to yours that you would suggest I also consider?
The main fields in accounting are:
1. Public accounting i.e.. CPA firm (auditing, taxes, and consulting)
2. Business accounting i.e. controller, cost accounting, and general ledger
3. Finance i.e. insurance, mortgage, and investment
Can you recommend other people I can talk to, or other resources I can check out?
Chuck Phillips, Don Smillie, Glen Larson, and Elmer Selim
Knowing what you do now, would you approach this career (or job) in the same way?
If not, what would you do differently, and why?
I have no regrets on my approach.
Key Finance Terms
- ROI— A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
- Net Present Value— The present value of future cash returns, discounted at the appropriate market interest rate, minus the present value of the cost of the investment. The present value of an investment project's net cash flows minus the project's initial cash outflow. Same as present value, being sure to include (negative) payments as well as (positive) receipts.
- Stocks— A share in the ownership of a corporation.
- Bonds—Publicly traded long-term debt securities, issued by corporations and governments, whereby the issuer agrees to pay a fixed amount of interest over a specified period of time and to repay a fixed amount of principal at maturity.
- Stockholders— One who owns shares of stock in a corporation or mutual fund. For corporations, along with the ownership comes a right to declared dividends and the right to vote on certain company matters, including the board of directors.
- Government Securities— A government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default.
- Mutual Fund— A company that invests in and professionally manages a diversified portfolio of securities and sells shares of the portfolio to investors.
- SEC— A government commission created by Congress to regulate the securities markets and protect investors. In addition to regulation and protection, it also monitors the corporate takeovers in the U.S. The SEC is composed of five commissioners appointed by the U.S. President and approved by the Senate. The statutes administered by the SEC are designed to promote full public disclosure and to protect the investing public against fraudulent and manipulative practices in the securities markets. Generally, most issues of securities offered in interstate commerce, through the mail or on the Internet must be registered with the SEC.
- Stock Markets— An institution that facilitates the buying and selling of stocks.
- Initial Public Offering (IPO)— A company's first offering of common stock to the general public.
- Venture Capital— An investment in a start-up business that is perceived to have excellent growth prospects but that does not have access to capital markets.
- Interest Rate— The rate of return on bonds, loans, or deposits. When one speaks of "the" interest rate, it is usually in a model where there is only one.
- Dow Jones Industrial Average— The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.