Study of Corporate Finance has gained a lot of value in the past few years. Lots of students are taking up the subject in their graduations. If you too are interested in studying Corporate Finance then there are various things that you should know about the subject.
At first, it is important to understand what Corporate Finance is all about. The name itself has quite e weight and a lot of times people think that it is a very complicated subject. But it is not. You just need to focus nicely on studying the subject and you can easily land a good job.
Corporate Finance directly deals with the monetary factor of a company. It is about evaluating the financial structure of the concern, be it a government body or a private body. It is all about understanding the financial market. Stock Exchange is the best example of a financial market that you can relate to and is very frequently heard of.
If you can get a good hold of this subject then you can reach heights. The subject is very interesting but has many challenging aspects which make it a very expensive subject in today’s market.
Many reputed companies have a separate department in the name of Corporate Finance. The department is solely responsible for any budgeting or managing the finance of the company. They are the ones who take any kind of important decision regarding capital management of the company.
The Corporate Finance department also makes way for new investments that have a good future and can return a handsome profit. In every financial year-end, the companies deal with a lot of capital that has come in the form of revenues or profits. It is the Corporate Finance department that has to look after the management of this whole capital. They have to make wise decisions regarding the proper utilization of this money. The money has to be invested correctly so that it can meet the budget needs of the company.
The company always hires such employees who have a great understanding of the subject and can take the company to a new height. The Corporate Financers draw a very handsome salary for the hard work they do throughout the month. Their hard work is always recognized and valued.
No specialization in any specific discipline is required to get a job in the Corporate Finance domain. Studying Accounting, Finance or Business Administration will surely help. But if you can get a specialization in Corporate Finance done, then it will surely add a feather on your hat.
What kind of people can easily make it big in this field?
Are you in love with numbers? Do you like accounting? Do you have a good understanding of the financial market? If yes then you are a perfect fit for this job. If you have good analyzing quality then you have good chances of excelling. You need to understand the technicality of this subject.
Along with these, you need to have an undying love for the business that will keep you going in hard times. Having a good knowledge of the market is important. You must be aware of the market’s financial condition, the current trends of the market and the various capital structures of the industry. You should also know how to negotiate as with this quality of yours you will be able to crack important financial deals for the company.
The qualification standards for working in this field.
There are no qualification standards as such for working in the field of Corporate Finance. But there are some basic qualifications required. Certain knowledge through certain courses can make your base really strong in this field and help you to gain profound knowledge of the fundamentals of this subject.
You can go to various accounting classes. Accounting classes will help you to carry out the various audits smoothly. You will be able to maintain the finance of the company on a daily basis. Financial Accounting courses are very helpful in making you understand the basics of finance nicely. Having a strong base in finance can solve many problems before they appear.
The various principles of different types of investments must be crystal clear in your head. Remember, the small and big profitable investments of the company bring in the maximum cash. So if your investment plans work out successfully then you will become the star of the company.
Knowledge of stocks, bonds, and capital management is also very important. A degree study in Bachelors of Business Administration (BBA) covers most of the aspects of this subject.
There are some more courses that you can enroll in if you are considering a career in Corporate Finance.
- Course on Investment ideas
Understanding the basics of various investment schemes is very important. A good investment can bring in good profits for the company but a bad investment can ruin the whole business. So before you advise any investment plan to your company you should weigh every pros and con of the investment so that you do not have to regret later.
- Finance Management courses
You may have a good understanding of finance but managing it wisely is not at all easy. You need to master the art of managing finance tactfully. If the capital of the company is not in the hands of good managers then it will take no time to turn zero. Such is Finance!
- Performance Assessment programs
It is not easy to chalk out the prospective profits and losses of the company. What seems a profitable decision today may turn out to be a devastating loss tomorrow? So there are certain tricks that need to be learned. For this, you need to attend the various Performance Assessment programs held by reputed bodies.
- Classes to understand the base of Accountancy
Accountancy is not only about keeping accounts of various numbers. It is much more than that. You need to get in the depth of the subject and understand it thoroughly. You need to learn properly and remember all the taxation laws. You need to learn how to conduct audits. You also need to know how to manage the various accounts of the company.
- Courses to manage the Business Capital
The business runs on the capital it has got. So it is important to expand the capital available for the business to expand the business. For this, you must know the various ways out that can help you to understand how the business is running and how can you work towards its expansion.
The various career options available in this field are:
After the successful completion of studies, you will surely look for good jobs that can give value to all the hard works you have done. So here are some respectable career options for you.
- Financial Analyst-
A Financial Analyst does a thorough research of the stocks, bonds, and the companies and provides useful information to the investors and Finance Officers. They help the investors in their investment plans and the companies in mergers and acquisitions by analyzing all the useful data. They also have to analyze the various risks and act accordingly to protect their clients.
They earn around $85,000 annually.
- Finance Planner-
They help companies with the right investment strategies. They have to manage the capital of the company and make the perfect utilization of it. The Finance Planners play a very important role in any concern and the job has a lot of value. Good financial decisions can take you to heights in this profession.
Finance Planners earn around $90,000 yearly.
- Budget Analyst-
A budget analyst does the job of analyzing the different aspects of any project and plan the budget accordingly. As a Budget Analyst, you have to control the capital that is available for any project and use it sustainably.
You have to go through many interviews and meetings to decide the exact budget that can be allotted for any project. Big companies who handle many projects appoint good Budget Analysts as they are the ones who can bring good profit to the company.
A Budget Analyst earns an average of $75,000 in a year.
- Accounting Officer-
Reputed companies are always in search of good Accounting Officers who can manage the accounts of the company brilliantly. The accounts of every concern big or small should be managed properly or else the concern may face severe losses. So the job of an Accountant or an Accounting Officer is always high in demand.
As an Accountant, you must be having good accounting skills and should have a strong base in understanding Finance.
An Accounting Officer can earn an average of $70,000 every year.
- Credit Analyst-
This job has gained a lot of importance in recent years when companies and business concerns have started giving credit loans. They do not give the credit loans before examining the loan takers nicely.
They hire good Credit Analysts who will give a thorough check to the background and track records of the parties applying for a credit loan. If the loan appliers come out clean and have good track records then the loan is granted.
You need to have good knowledge of analyzing the company’s financial conditions to judge whether they can repay back the loan. A wrong decision of yours can generate a bad loan.
You can earn around $72,000 annually in this profession.
- Financial Advisor of Real Estate Agents-
Real Estate is one of the most profitable and growing businesses of recent times. Many big business firms are indulging in this business. The Financial Advisor’s job is to make the right evaluation of the property and set the budget for the project accordingly. He also has to decide the price of the property once it is completed.
All of these are done after examining the current market trends. So you need to understand the financial condition of the market and take decisions accordingly. You have to take such decisions that should bring profit to the company.
The Financial Advisor to Real Estate Agents can earn a good salary of around $95,000 every year.
- Finance Teacher-
This job definitely holds the highest place in terms of respect. It is believed that a good student can surely turn out to be a good teacher. So if you have your basics strong in the subject then what better than imparting knowledge to the ones who want to gain it?
A Finance Teacher must have good communication skill so that he can easily teach his students. You should know to present the subject properly in front of your students as Finance is not an easy subject and students often find difficulty in understanding the basics. As a Finance teacher, you can find a job in high schools where there are subjects like Accountancy, Business Mathematics and many more.
A Finance Teacher can earn a good salary of about $50,000 yearly.
Apart from these, there are many other career options for a Finance graduate. There are many good colleges which can help to shape your future in this discipline. The University of Pennsylvania is regarded as the best university for studying Finance. Then comes the Massachusetts Institute of Technology in the second position. New York University is also known for its brilliant performance in the discipline.
There are many more reputed universities in the United States where you can gain profound knowledge of the subject. A master degree in the subject is well preferred by all the recruiters. But work experience combined with your analyzing skill will take you ahead in this field.
So wishing all the best for your future and hoping you find the blog useful.
The author of this wonderful piece of writing is Evelyn W. Minnick. She is a reputed online tutor. She has completed her MBA from a reputed institution of the United States and has been working for the past 6 years with the New York University. Students love her take on the subject. She has a unique way of explaining. She is a financial advisor too.