From evaluating business scenarios effectively to proposing a course of action based on quantitative research, a career as a corporate financier has become one of the most sought after options, says Prof Supriya Sehgal
Globalisation is opening up plenty of opportunities for refined corporate financiers, financial analysts and planners. With an increase in amalgamation and purchase activities, plethora of options has come up for people in finance who are able to do things strategically. Evaluating business scenarios effectively and proposing a course of action based on quantitative research is one of the best career options in the recent times.
Corporate finance and accounting professionals are accountable for the money-forecasting and smooth running of all business functions. Finance controllers play an integral part in decide the sources of arrival of fund and how it should be spend in different ways and on different activities to ensure maximum returns to the shareholders. They rely over spreadsheets that specify cash flow, profitability and expenses. Any planned big expense by a department is usually checked by the finance personnel first in order to ensure that the company is in a position to diverge over such kind of a fund.
The finance department adopts the best policies and development path for the company, sometimes through acquiring other companies or re-investing the surplus fund in the business to spread out further. In corporate finance, one has to be aware of the goal of maximising the value of the corporation while minimising risk with all financial decisions.
Skills
The corporate finance controller, in addition to basic financial reporting, must be skilled at in-depth financial analysis and providing expert financial perspective and opinions. This means that financial controller must have proficient computer knowledge over spreadsheets, word processors, and presentation packages, large-scale data management tools along with strong analytical and quantitative skills. This is especially true for entry level positions where one should be aware of cracking the numbers involved in the details of corporate financial planning, accounting and capital raising.
One should also enjoy solving problems by thinking critically about all the numbers of income, expenses, profits, investments, cash flow and decode them in order to put together the best decisions for the company. That includes analysis of industry and business publications to understand market conditions, economic forecasts, and trends. Finance professionals also need to be conscious of the external factors that could potentially help or hurt the profitability of the company.
Profile
The job accountability for the professionals is to manage the operations of the corporation, the production of periodic financial reports, keeping an eye on the accounting records and supervision of a comprehensive set of controls and budgets designed to reduce risk. He may be required to oversee all tax and regulatory or compliance issues and auditing. To boost the accuracy of the company’s reported financial consequences; the reported results should be in accordance with Generally Accepted Accounting Principles and lnternational Financial Reporting Standards.
Job Prospect
Job opportunities for financial controllers are on the higher side as they are crucial for each and every organisation, but competition for the top jobs can be extremely high. A corporate financial controller may finally evolve into other positions such as chief executive officer, vice president of operations, and president of the corporation. While the growth is booming for senior level finance executives and accounting professionals, it has also opened up for the C-level, including corporate controllers.
Eligibility
Professionals with degrees in a related subjects like Math, Economics or Business along with a relevant Accountancy qualification, with the skills for developing more practically impeccable financial models, currency hedges, estimate another company’s future earnings and current value, will rise and shine in this segment. As more and more accounting functions are becoming mechanised by software, the accountants and financial controllers will be able to do analytical work and imagine tactically with better prospects.
A bachelor’s degree in accounting or business administration, or a MBA will make it even more attractive to companies hiring for budgeting, planning, and strategy functions. Preference will be given to candidates with Certified Public Accountant or Chartered Accountants. Competitive candidates need to have strong computer knowledge with excellent communication skills, must be well-versed with international finance, followed by good regulatory knowledge which will help in keeping them employed for a longer period.
Candidates should also get enrolled in various workshops on subjects like financial analysis, international banking, information systems, and corporate cash management as these specific programmes may accelerate one’s professional progression, even though the common criteria for promotion are capability, skill, and leadership.
Remuneration
Salaries have gone up as much as 5.5 per cent for corporate controllers in finance, depending on the organisation’s revenue scope, reflecting a higher demand for the position. In this sector, earnings are not severely restricted to salary as overdue compensation in the appearance of stock options is gaining vigorous popularity, particularly for senior level managers.
Jobs in corporate finance are an immensely well-paying where a person with competency can earn around Rs40,000 to Rs50,000 in the beginning. But with a few years of experience, the person can end up with a salary as high as Rs2 lakh per month.
(The writer is a professor at JK Business School, Gurgaon)