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The finance industry is growing quickly and needs talented individuals to meet demand. New positions are being created daily, and ambitious finance professionals can take advantage of this opportunity and move up in their organizations.

Having finance-specific skills is important in landing a job for a great company, but there are other, often overlooked skills that a prospective finance professional must acquire. For example, communication is essential in a leadership role in finance, as is collaboration. Other skills needed to be a leader in the finance industry include accounting skills, critical thinking, and financial decision-making.

Hard skills


Accounting skills are one of the most important to get a foot in the door as a leader in finance. Accounting skills don’t necessarily mean being an accountant but having the capacity to understand and decipher financial documents. These documents include balance sheets, cash flow statements, and annual reports.

The data that can be extracted from these documents can help leaders in the finance industry analyze a business’s financial health and prospects for growth. Cash flow management is an extremely important skill to have as it allows an individual to track an organization’s assets and use it to predict how liquid a company can be at any given moment.

Analytical thinking

In the financial industry, analytical thinking skills are fundamental when analyzing financial data and getting a full understanding of an organization’s performance. They often use economic models and data analysis tools to identify trends, patterns, and insights that can help them predict future revenue and expenses, evaluate investment opportunities, and make strategic decisions.

Analytical skills are particularly useful in monitoring and managing risk. Finance leaders will analyze financial and economic data to identify potential risks that could impact the organization’s financial performance and create strategies to mitigate those risks.

It is also important that the leaders of an organization understand the financial data, which is why analytical skills can help financial officers of a company explain complex data in easily digestible presentations and readily understandable language.

Financial decision-making

Any leader in any industry needs to have strong decision-making skills rather than risk appearing indecisive and having others in the organization lose confidence in them. Understanding an organization’s goals for the future and its mission is essential in making these decisions because they indicate the direction the company wants to move in.

One of the ways to attain this skill is to apply for an MBA online at an accredited school such as St. Bonaventure University. With this program, working professionals can further their education and attain the requirements to be an industry leader in finance; experience in making financial decisions is key in creating a strategy based on financial data analysis, and further education is an excellent way to learn this skill.

Financial forecasting

Financial forecasting is used to predict an organization’s financial future by analyzing historical data. Such data includes revenue, expense sheets, cash flow, and sales. This skill is immensely important as it helps the leaders of an organization with strategic planning for the future.

Cash flow forecasting is one type of forecasting that shows how liquid a company is and its ability to cover debts. It also shows how a company can cover expenses in the future and what resources it will need for projects moving forward.


Management skills can be taught to a certain degree but also come with experience managing a team of people. Management skills involve building relationships with staff members as well as the ability to control the various departments in an organization that deals with capital structure and processes of reporting. Strong management skills are key in getting a team to work together to push an organization toward success in the finance and digital industry.

Management skills rely heavily on collaboration and communication. Even simple documents like a budget require the ability to work with others and get relevant information from other team members. An organization can’t be successful unless all the departments and employees are working towards the same goal. A good manager creates an open atmosphere of collaboration, which allows for the free flow of ideas and suggestions.

Soft skills


Communication skills can sometimes be overlooked as a soft skill in finance secondary to the more desirable hard skills such as accounting and forecasting. In truth, this skill is probably one of the most important. A strong communicator will be able to present financial data in meetings where participants have varying degrees of knowledge. The ability to cut through the jargon and explain complex subjects in simple terms is key in getting everyone in an organization on the same path toward success.

Communication can take the form of strong presentation skills or the ability to explain a complex program to a layperson. This is why it is so important for financial leaders to have a deep understanding of financial terms and concepts.


A strong financial leader needs to have a good understanding of the economic language to simplify it into layperson’s terms so all employees (financially skilled or otherwise) can benefit from it. Empathy is important when trying to explain difficult concepts to employees. If an employee has a problem or doesn’t understand something, a financial leader must empathize and have the patience to ensure employee happiness and development.

Equally, a financial leader should have the technical expertise to discuss the more complex aspects of the role with fellow professionals.


Success in finance can’t be achieved by one person alone; it takes a dedicated team of individuals to work together to create real change. Strong leaders understand that innovation comes from a free-flowing atmosphere of ideas and an open-expression culture.

There is a reason why some of the most successful technology companies use a non-traditional business model of working in teams in open areas rather than separate departments with a management hierarchy. In a collaborative atmosphere, everyone on the team gets a say, so one individual may see something in the financial data that was not evident and detect problems that need to be solved.

A collaborative team environment is much more hospitable and pleasant because all team members feel respected and heard. Employees are more inclined to find ways of achieving the company’s goals when they feel valued and are more likely to pinpoint deficiencies rather than ignore them for fear of reprisal. It is a perfect environment for innovation and forward-thinking ideas.

Challenges facing financial leaders

Digital risk

Keeping up with rapidly evolving technology and digital platforms is one of the biggest challenges facing financial leaders today. Technology is constantly changing, and a good leader needs to keep on top of innovations in the industry to stay competitive. They also need to be aware of the latest programs in finance so they can ensure they are analyzing historical data in the most efficient way possible. By keeping up with trends, smart finance leaders can move their organizations into the future with maximum growth.

Another challenge facing leaders in the financial industry is managing risk and maintaining compliance with changing regulations. When one deficiency is found in the industry, all the players must make sure they are following the guidelines. Managing risk is a challenge that requires a constant awareness of protocols and regulations.

Consumer’s demand

Meeting customer demands for personalized service and real-time access to information is another challenge that faces financial leaders. The financial industry is very competitive, and customers understand that their needs should be met; otherwise, they will take their business elsewhere.

A strong leader has a plan of action to meet demands and a deep understanding of the finances of their organization to provide the very best in customer service and information delivery. Their knowledge of the latest technologies also comes in handy for this challenge, as most information delivery systems are virtual.

Strong competition means a financial leader must have a solid grasp of their market and customer base. By analyzing the economic data, they should be able to anticipate what their clients will react well to and apply resources in that area.

Market fluctuations

Finance leaders must adapt to economic and market fluctuations, including shifts in interest rates, currency exchange rates, and global trade conditions. A strong finance leader is not caught off guard by global upheavals in the market or changes in exchange rates.

A strong finance leader must ensure efficient and sustainable operations, including cost management and environmental sustainability. With this, a finance leader can help their organization maximize its profitability.

Reducing unnecessary expenses can directly translate to higher profits, while sustainability measures can create cost savings in the long term. These measures will also keep the company compliant, which saves money in fees for non-compliance. With the increasing demand for environmental sustainability, financial leaders must keep track of the latest trends and protocols demanded by government agencies.


The health of the planet has also been a major topic of conversation, and customers who see an organization trying to reduce its carbon footprint and alleviate some of the damaging effects on the atmosphere will gain favor with the public over a competitor who is not environmentally aware.

Companies that improve their sustainability practices can also gain a competitive advantage. This is increasingly the case as consumers and business partners alike have become more mindful of the environmental impact of their choices. A strong finance leader should ensure sustainability measures are in place, such as reducing waste, conserving energy, and improving resource management.

Sustainable operations can help companies mitigate risks related to changes in environmental regulations, supply chain disruptions, and reputational damage. A finance leader needs to oversee the risk management process to avoid unexpected expenses, reputational damage, and loss of revenue.

Final thoughts

The main objective for financial leaders today is to attract and keep top talent in a competitive market. The industry is creating new financial positions all the time, and there is a shortage of skillful and talented finance leaders so that a competitor could poach each applicant. These individuals know their worth, and successful financial leaders will be able to convince applicants of their organization’s benefits and promising future.

When it comes to being a leader in the finance industry, it is important to possess certain skills and qualities. Skills such as accounting, financial forecasting, and management skills are among the few that can send an individual up the corporate ladder in their organizations. While there may be challenges, a strong financial leader can keep current on the latest technology and innovations. Hence, the company remains competitive and moves towards a bright future.