The corporate finance market in the US is set to be worth US$0.37tn by 2028. The world’s biggest companies tend to have teams of people working in finance, driving the decision-making process, crunching numbers, and often having a huge impact on the way companies are run.
Corporate finance jobs tend to require a lot of skill, and for this reason there tend to be opportunities for solid careers, some of which also have high salaries. A career in corporate finance might be on your list of potential options, and in this guide we’re delving into some of the roles that are involved, as well as the fundamentals of corporate finance and what the industry brings to the world of business.
The Role of Corporate Finance
If you were to look at a list of careers in finance and look for a job with a high salary and potential to grow, corporate finance roles can certainly seem very appealing. But what does the industry do? You need to understand the concepts and basics of corporate finance first and foremost.
Corporate finance is a specialized area within the broader field of finance that focuses on managing the financial decisions of corporations, businesses, and organizations. Working in the field encompasses a wide range of tasks, including financial planning, capital raising, investment banking, risk management, and strategic decision-making. The primary goal of corporate finance is to maximize shareholder value and help the company to meet its objectives and goals, while remaining financially healthy (and even driving more profits).
One of the key functions of corporate finance is financial planning and analysis, which involves developing budgets, forecasts, and financial models to guide decision-making and ensure the efficient use of resources. This includes evaluating investment and business opportunities, assessing the financial impact of strategic initiatives, and analyzing the performance of existing business units or projects. The sort of discussions that happen all over the world in boardrooms!
According to IBISWorld the number of people employed in the Finance and Insurance industry in the US.
Ultimately, the roles in finance tend to be a mix of hard numbers and people skills. While some of the jobs may suit people who are comfortable in a spreadsheet over anything else, careers in corporate finance often require a lot of meetings and offering your advice and skills to the decision-makers in a company.
List of Careers in Corporate Finance
So what are some of the corporate finance careers that you might wish to pursue after gaining a finance degree or related qualification? There are numerous options on this career path, with some of the roles listed below.
Auditors
Auditors are often in charge of checking that the company is compliant and that they have the records that they require, such as accountancy records.
There are different forms of auditors, and while a lot of companies employ internal auditors, there are also external auditors who may work for government agencies and assess whether companies are meeting their responsibilities when it comes to tax and legislation.
Financial Management
Financial managers oversee the financial operations of an organization, including budgeting, financial reporting, and risk management. They develop financial strategies and procedures to optimize the organization's performance and keep the company safe and compliant, as well as financially healthy.
Financial managers also manage cash flow, liquidity, and capital expenditure decisions, making strategic recommendations to senior management and the board of directors in big businesses, but small and medium sized entreprises may also have financial managers, and they may have to wear a lot of hats and oversee many aspects of the business and its monetary ops.
Financial Planning and Analysis (FP&A) Management
FP&A managers are responsible for financial planning, budgeting, and forecasting within organizations. They develop financial models, analyze business performance, and provide insights to support strategic decision-making and resource allocation.
FP&A managers may have roles including preparing financial reports and presentations for senior management, board meetings, and stakeholders, plus helping to communicate the organization's financial performance, trends, and future outlook effectively. This can be a very high-responsibility career in corporate finance.
Treasurer
Many organizations and charities have a treasurer handling much of their finances. In addition to managing day-to-day financial transactions, treasurers can also be responsible for optimizing the organization’s capital structure and investment portfolio. They evaluate investment opportunities, assess risk-return profiles, and make recommendations on allocating funds to maximize returns or have the most impact.
Treasurers often work tightly with senior management and a board of directors to develop the business and its future growth. They may have a background working as a financial analyst or other careers in corporate finance.
These are not all of the roles in corporate finance, and those who are looking to pursue a career handling monetary issues for a business may also look at careers in accountancy. Often, the “top of the tree” is seen as the CFO position, but businesses are all structured differently and roles vary depending on employer.
Chief Financial Officer
The Chief Financial Officer (CFO) is often seen as the highest financial role within an organization, serving as the top executive responsible for overseeing the financial operations, strategies, and performance.
Acting as a strategic partner to the CEO and board of directors, the CFO provides financial leadership and guidance, driving initiatives to optimize financial performance, mitigate risks, and maximize shareholder value. Key responsibilities of the CFO include financial planning and analysis, budgeting, forecasting, financial reporting, treasury management, capital allocation, investor relations, and compliance with regulatory requirements.
The CFO plays a pivotal role in shaping the organization's long-term financial strategy and ultimately may be the one making the key decisions including identifying growth opportunities, and ensuring the sustainability and profitability of the business.
What Do Corporate Finance Jobs Pay?
If you’re considering a corporate finance career path then it is only natural that you’ll be interested in what the career might pay.
At the top end of the industry, if people are able to reach the pinnacle of corporate finance, the salaries can be absolutely huge.
Corporate finance has a lot of different facets and roles, and some people specialize in different areas. The best way to look at the current salaries on offer is by performing job searches.
Most finance jobs have a high ceiling in terms of earning potential, which is appealing to many. Below is a rough guide of the salaries that are on offer for the jobs on this list. It can vary depending on the specialism and skills that somebody possesses (as well as each individual company, of course).
| Role | Average Salary | Opportunity to Earn |
|---|---|---|
| Auditor | $70,880 | $100,000+ |
| Financial Management | $108,349 | $140,000+ |
| Financial Planning and Analysis (FP&A) Management | $148,268 | $180,000+ |
| Treasurer | $139,679 | $200,000+ |
| CFO | $153,794 | $200,000+ |
Working in Corporate Finance: Are You Suited to a Career in Finance?
Working in corporate finance is like being one of the financial architects of a company's success, where every number tells a story and every decision could be crucial.
Though it sounds like management speak, it is true that this is a dynamic and fast-paced environment where you're constantly challenged.
In a corporate finance role, you'll need a keen eye for detail and a knack for numbers, as you'll be diving deep into financial data, analyzing trends, and forecasting future outcomes. Strong analytical skills are a must, along with the ability to communicate your findings clearly and concisely to both financial and non-financial stakeholders.
It's not just about crunching numbers and burying your head in spreadsheets, as working in corporate finance also requires excellent interpersonal skills and the ability to collaborate effectively with colleagues across departments. You'll often find yourself working closely with senior executives, providing strategic insights and financial guidance to support key business decisions. You may even have to be the person who puts a stop to a project if it is not financially viable.
Consider taking finance classes to gain the knowledge and skills needed to work in corporate finance, including understanding financial statements, capital budgeting, and strategic financial planning.
Adaptability is another essential skill in corporate finance, as you'll need to navigate changing market conditions, regulatory requirements, and business priorities with ease. Think about some of the unprecedented challenges businesses have had to face in recent years. Nobody could have foreseen them, but it is crucial that the decision-makers can adapt. Being able to stay calm under pressure and think strategically in high-stakes situations is crucial for success in this field.
Overall, working in corporate finance is an exciting and rewarding journey that offers a huge number of opportunities for growth and development. Whether you're analyzing investment opportunities, dealing with a small business and its cash flow, or driving strategic initiatives, every day brings new challenges and the chance to make a meaningful impact, as well as building yourself a respectable career.
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