Corporate Finance Jobs
These careers and jobs are important to corporations and can be some of the most lucrative career options.
What are the Best Corporate Finance Jobs?
Corporate finance is a subset of finance that deals with various funding sources, corporate capital structuring, and accounting and investment decisions. These careers and jobs are important to corporations and can be some of the most lucrative career options.
There is a wide variety of corporate finance careers and jobs widely known as corporate finance positions; many are entry-level positions, and others come from climbing the corporate ladder.
Most of these finance jobs are in place to help companies make accounting and investing decisions. Ultimately, the jobs are offered to people who can help increase the share value, maximize profits while limiting risks, and deal with cash flows, financial statements, etc.
There are amazing opportunities in the world of finance. There are generally four different areas of focus in corporate finance careers; these are
- Corporate development
- Financial planning and analysis
- Treasury
- Investor relations
All four play a key role in the growth of companies.
High-impact jobs in corporate finance often involve decisions about allocating capital, long-term planning, investing, and creating value. For example, corporate development positions are some of the most desired within corporations in the finance world.
Many jobs cannot be obtained without a four-year college degree; some require even higher education. Moreover, some entry-level positions require a minimum amount of experience that can be acquired through internships, specific courses, and certifications.
Corp finance jobs can be a great career for entry-level university personnel. However, many graduates from finance-related majors are ambitious individuals who aspire to excel in various finance careers, and corporate jobs may not be their first choice.
Key Takeaways
- Corporate finance includes funding sources, capital structuring, and financial decision-making within companies. It offers lucrative career opportunities across entry-level and advanced positions, contributing to share value maximization and profit growth.
- Desirable roles include Chief Financial Officer (CFO), FP&A Manager, Financial Controller, Auditor, and Investor Relations Manager. While rewarding, these positions demand years of education and experience.
career paths within Corporate Finance Jobs
There are many different paths within finance; these careers exist within corporate development, financial planning and analysis, investor relations, and treasury groups in companies.
There are four main groups of careers in companies, meaning most jobs fall under these categories:
1. Corporate Development
Careers in corporate development are considered some of the best jobs to have in corporate finance, mainly because they deal directly with the growth of the company and the allocation of funds.
One of the significant responsibilities of this department is handling mergers and acquisitions.
When dealing with mergers and acquisitions within development teams, you will more than likely be working on large deals for companies that can be life-changing for the companies, so to speak.
As a result, people may work heavy hours when trying to close big deals. Some specializations within corporate development are deal sourcing and analysis, financial modeling and valuation, and deal integration.
Deal sourcing involves finding companies seeking to make a deal; this happens more at smaller firms and much less at larger firms.
Financial modeling and valuation include creating projections for specific financial aspects such as revenue, expenses, and cash flow within companies. Based on the financial model, companies are valued to assist in deal negotiations.
Note
Deal integration involves helping acquired companies integrate your system with theirs.
2. Financial Planning and Analysis (FP&A)
Financial planning and analysis deal directly with planning, forecasting, budgeting, and other analytical duties. These activities help companies make decisions while supporting overall financial health.
FP&A teams integrate financial, operational, and external data to conduct comprehensive analyses supporting overall financial health. They analyze all of this data to expose details needed to make decisions for the future and lead their firms to success.
3. Investor Relations
Investor relations (IR) teams are frequently tasked with coordinating meetings with shareholders and other investors. They also deal with press conferences and the release of financial data to investors and lead financial analyst briefings.
Most investor relations teams must be closely integrated with their companies and accounting and legal departments. They must also be closely engaged with the executive management team members, such as the CEOs, COOs, and CFOs.
4. Treasury
Simply put, employees in the treasury departments and teams are responsible for managing their company's financial resources to reach the targeted business objectives.
Additionally, they are responsible for ensuring the company has adequate funds to meet its upcoming financial commitments, such as dividend payments.
For example, if a company has $5 million in dividend payments this quarter, then the treasury department would be responsible for making sure the funds about the same are available.
most desired corporate finance career jobs
There are many jobs and career opportunities within corporate finance. Still, some of the most lucrative roles are the chief financial officer (CFO), financial planning and analysis manager, controller, auditor, and investor relations manager.
Although these careers might be very rewarding, they are challenging to obtain. Getting to the point where one can be a CFO or manager takes many years of education and experience to ensure you can fulfill your responsibilities.
1. Chief Financial Officer (CFO)
A CFO is often considered the most desired career path for individuals aspiring to enter corporate finance. These jobs have lots of responsibilities and are normally very lucrative. This position is the top financial position in most companies.
CFOs monitor cash flow, budget the company's finances, identify its financial strengths and weaknesses, and provide strategic direction. They generally control the organization's finances and provide direction for the future.
2. Financial Planning and Analysis Manager (FP&A)
The financial planning and analysis manager is responsible for leading business forecasting efforts. They will look at the business financials in detail and try to find any abnormalities and trends headed in the wrong direction. Then, they will produce a plan to fix it.
In smaller companies, the business owner often handles this role. However, as companies grow, there is a need for experienced professionals to take on full-time financial analysis responsibilities.
3. Financial Controller
Primarily responsible for maintaining accurate company records and overseeing timely financial reporting. Their responsibilities include operating the financial processes and providing financial statements and reports to aid decision-makers in making better choices.
4. Auditor
Financial auditors are tasked with detecting errors and fraud in a company's documents and accounts and performing analyses to ensure compliance with generally accepted accounting principles (GAAP).
In addition, they can perform accounting analyses on companies to ensure they follow the generally accepted accounting principles (GAAP).
Note
Financial auditors can work for outside firms, or there can be a group of auditing teams within a company that places internal audit controls.
5. Investor Relations Manager
Investor relations managers are the main people who communicate with investors; this is a very important job. These employees handle the communication regarding releasing financial data, press releases, stakeholder queries, and investor meetings.
How to Get Corporate Finance Jobs
When breaking into corporate finance, you will more than likely need a higher level of education. Most standard entry-level positions require a four-year degree, and mid to senior-level positions often prefer or require at least a master's degree.
That said, none of the routes to corporate are easy, but some are easier than others. Everyone must start with at least a bachelor's degree. This will help one obtain an entry-level position at a corporate firm.
Education
If you are trying to enter into a corporation, there are specific degrees that you should consider choosing. These include finance, business administration, financial planning, financial analytics, and Financial technology. These degrees are a must when considering jobs in finance.
During your college years, completing at least one summer internship is essential. It provides real work-life experience, allowing you to understand the dynamics of the field you are potentially entering. The more internships you can get, the better.
Understand that the more internships you get before applying for a corporate job, the better the odds of bagging the offer. Additionally, some internship programs may offer their interns a full-time job at the end of the internship duration if they find them to be a perfect fit.
Experience
Once you complete your internships and degree, the next step is to get a job. Interview processes can be lengthy, and finding a job may take up to twenty-four weeks or longer for many applicants.
Master's And Professional Certifications
After you have worked for a few years and gotten promotions, it may be time to upgrade your education and apply for a master's program. Good master's programs for corporate finance include business, finance, business analytics, and marketing.
Many companies prefer or even require a master's degree for certain promotions. However, companies may also require certifications such as CPA (Certified Public Accountant) or CFA (Chartered Financial Analyst) at advanced career levels.
Note
In finance, you must be willing to put a lot of time and effort into finding the right job and career for yourself. . It can be grueling and difficult, but it has proven to be rewarding and lucrative at the same time.
Both of these certifications are hard and take a few years to obtain. To become a CPA, you must complete a bachelor's program in business, finance, or accounting with at least 150 hours of coursework. In most cases, one must have two years of experience to sit the CPA exam.
The CFA exam requirement is similar, although you must have at least four years of relevant experience. Passing a CFA is the gold standard for financial analysts, and here's why. To acquire your CFA, you must pass not one, not two, but three different exams.
Corporate Finance vs. Investment Banking
In simple terms, corporate finance deals with day-to-day operations for short and long-term business operations, while investing banking (IB) deals mostly with raising capital in public markets.
To understand it better, we'll take a look at the table below:
| Aspect | Corporate Finance | Investment Banking |
|---|---|---|
| Focus | Managing the financial activities of a company, optimizing its capital structure, budgeting, and financial planning. | Facilitating capital raising, mergers and acquisitions, and providing advisory services to corporations and governments. |
| Primary Activities | Financial planning, budgeting, risk management, capital budgeting, financial analysis, and managing the company's financial resources. | Underwriting securities, facilitating mergers and acquisitions, advisory services, restructuring, and capital raising through debt and equity markets. |
| Clientele | Internal stakeholders of the company, including management, board of directors, and shareholders. | External clients, such as corporations, governments, and institutional investors, seeking financial advisory and investment services. |
| Time Horizon | Generally focused on the long-term financial health and sustainability of the company. | Involves both short-term and long-term financial transactions, often driven by market conditions and deal timelines. |
| Deal Structure | Primarily involves managing the company's own financial resources and making strategic financial decisions. | Involves structuring complex financial transactions, negotiating deals, and executing financial strategies for clients. |
| Skills Required | Strong financial analysis, budgeting, and communication skills. Knowledge of accounting, finance, and business strategy is crucial. | Strong analytical skills, financial modeling, deal structuring, excellent communication and negotiation skills. A deep understanding of financial markets. |
| Work Environment | Generally, a part of the finance department within a company. | Typically works in investment banks, which are fast-paced environments with high-pressure situations and tight deadlines. |
| Compensation | Competitive salaries and bonuses, often with a significant portion tied to company performance. | Generally, higher base salaries and substantial bonuses, with a larger emphasis on performance-based compensation. |
| Career Path | Progression may include roles such as Financial Analyst, Manager, Director of Finance, and Chief Financial Officer (CFO). | Progression may involve roles such as Analyst, Associate, Vice President, Director, and Managing Director in investment banking. |
| Work-Life Balance | Generally offers a more predictable work schedule with more stable work hours. | Infamous for long and unpredictable work hours, especially during deal closings and busy periods. Work-life balance can be challenging. |
Conclusion
Corporate finance has excellent opportunities for students coming from college or others coming from areas of finance who desire a change. These jobs can be in four different groups:
- Corporate development
- Financial planning and analysis
- Investor relation
- Treasury
Corporate finance has many desirable jobs, such as chief financial officer, financial planning and analysis manager, controller, auditor, and investor relations. These jobs do not happen overnight; they take time and dedication.
When it comes to education and experience requirements, there are several routes one could take to break into corporate finance. However, all these routes begin with obtaining a bachelor's degree in finance, business administration, finance analytics, or other finance-related degrees.
After completing their degree, they can use the experience from the internships completed during the summers to land a job. Post graduation, some students go directly into corporate finance, while others go into investment banking, mutual funds, etc.
Shifting from investment banking (IB), mutual funds, and hedge funds to specific roles within corporate finance is the desired path, as the exit opportunities are great in addition to the profile-building exposure.
Once burnt out, many bankers easily hop onto higher-level corporate finance positions.
In general, corporate finance is a great career path for those interested. There are many paths of education and experience leading up to corporate finance. These careers don't come easy, and you must be willing to work hard to get there.
Research and Authored by Adam Bridges | Linkedin
Reviewed and Edited by Krupa Jatania I LinkedIn
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