The Generally Accepted Accounting Principles (GAAP) are authoritative standards that every corporation should abide by to accurately report their financial well-being. The GAAP outlines that companies must supply an income statement of profit and loss (P&L), balance sheet of assets, and cash flow statement. For publicly traded companies, the Securities and Exchange Commission closely monitors whether these standards are upheld. Distortion or deletion of important financial data can result in steep federal violations under the SEC. For this reason, businesses hire financial reporting managers to directly oversee filings for absolute accuracy and legal compliance. It’s their duty to prepare and distribute documents for review by
- investors
- shareholders
- government authorities
Financial reporting managers are upper-level accounting employees who crunch corporate numbers to ensure proper representation of the company’s sound revenue-making tactics.
Salary
Survey statistics published on Salary.com show that America’s financial reporting managers have a median annual wage of $111,050. This is equivalent to median hourly pay at $53, or $4,271 per biweekly paycheck. Two top-paying cities are San Francisco and New York where base averages are $137,234 and $130,939 respectively. Financial reporting managers also reap:
- bonuses
- pensions
- benefits
The total average compensation package is $166,582.
Beginning Salary
Newly promoted financial reporting managers generally land in the bottom 10th percentile of the bell curve with yearly income around $85,731. Financial reporting managers with a master’s or MBA degree fare better with market lows around $106,698. However, upward mobility is strong for experienced financial reporting managers to claim base salaries above $140,101. Advancing to VP of Financial Reporting provides a median annual wage of $197,159 before benefits.
Key Responsibilities
Financial reporting managers are primarily responsible for collecting accurate data for the production of mandatory external reports aligned with:
- SEC
- GAAP
- NYSE
- IFRS
- other strict regulations
They’ll oversee the preparation of periodic filings, such as Forms 10-K and 10-Q. It’s vital for them to coordinate external audits to ensure independent quarterly review of the company’s financial statements. Financial reporting managers lead research efforts to analyze and conclude on new disclosure standards issued in the industry. They’ll work with the finance department to strengthen internal controls for up-to-date reporting policies. Overall, financial reporting managers handle all duties related to distributing quality, reliable details on corporate economics.
Necessary Skills
Working in assurance services as a financial reporting manager requires in-depth analytical skills for poring over complex corporate ledgers. Accounting expertise is crucial for managers to research the company’s compliance with U.S. financial rules. Financial reporting managers must be computer proficient. They need the technical skills to log data from Microsoft Excel and other software. Having a keen eye for detail and organizational skills is crucial for managers to comb through vast amounts of transactions for accurate reporting. Financial reporting managers should have exceptional communication skills. They need to collaborate with external auditors and present issues to senior management. Critical thinking and problem-solving skills also help managers quickly spot discrepancies to fix reports before they’re filed.
Degree and Education Requirements
Stepping into the financial reporting manager’s shoes will require having at least a four-year bachelor’s degree from a business school, preferably AACSB-accredited. Most financial reporting managers major in:
- accounting
- finance
- statistics
- or business law
Taking courses related to GAAP and SEC regulations is highly suggested. Heading to grad school is increasingly expected for financial reporting managers to attain CPA distinction. A Master of Accounting (MAcc), Master of Science in Finance, or Master of Business Administration would lend well to the career’s focus. Some institutions offer customized curricula, such as the University of Houston’s Assurance/Financial Reporting Certificate or San Diego State University’s Financial Reporting Specialization.
Pros and Cons of the Position
Directing the preparation of reports that summarize a company’s financial position will offer job advantages and drawbacks. On the sunny side, financial reporting managers are needed in diverse industries from technology to healthcare. The position offers above-average salary potential with lucrative bonuses. In some cases, having a bachelor’s degree could be sufficient for exceptional ROI. Financial reporting managers work in a comfortable office setting with the possibility of virtual telecommuting at times. There’s also great benefit to society by checking that corporate legal regulations are met.
However, financial reporting managers typically work 40+ hours weekly with lengthy balance sheets that could cause eye strain. Keeping updated on changing business laws and maintaining credentials like CPA can be time-consuming. Financial reporting managers also face job-related stress, especially when inconsistencies in corporate data are found.
Getting Started
Landing the title of financial reporting manager requires both the right degree and experience. In college, it’s important for aspiring finance majors to apply their textbook knowledge in actual businesses. Cooperatives with the Big Four Firms of Deloitte, KPMG, Ernst & Young, and PwC are popular. Financial reporting internships are also offered by companies like:
- J.P. Morgan
- Voya Financial, Bloomberg
- Thermo Fisher Scientific
After graduation, begin building your SEC, SOX 404, and SAP knowledge in entry- to mid-level finance jobs. Most financial reporting managers need five to eight years of previous experience. Consider using these years to attend graduate school during evenings or online. Pursue the Certified Public Accountant (CPA) credential. Industry certifications like the GFOA Certificate of Achievement for Excellence in Financial Reporting could also foster promotion.
Future Outlook
According to the BLS, management occupations are expanding on-par with the average for 6 percent job growth through 2024. Financial reporting managers are in slightly higher demand than their other upper-level colleagues. They’ll see a 7 percent growth in the next decade. The financial management field will enlarge from roughly from roughly 555,900 to 593,500 positions for a +37,700 sum.
Since the United States’ Great Recession in 2007-08, companies have recovered and claimed more revenue on their balance sheets to report. Financial reporting managers will be needed to accurately release their profit data under the increasing scrutiny of bodies like the SEC and FDIC. Good job prospects should be available in the public and private sector, including:
- banks
- retailers
- hospitals
- financial services firms
- general businesses
CNN Money recognized financial reporting managers for having America’s 49th best job in 2017. Financial reporting is graded “A” for personal satisfaction. It’s a gratifying, well-paid arena for business gurus to make certain corporate transactions are recorded without error. Financial reporting managers delve into the numbers to coordinate the disclosure and review of their company’s money flow. Studying finance to become a financial reporting manager could also pay off with promotions to:
- controller
- VP of Finance
- accounting director
- even CFO.
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