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Finance Management and How to Get an MBA in Finance?
An MBA in finance will help you to create a financial base for your industry by researching historical data and present market structure. It also helps with predicting the future requirements of the business and its growth enabling you to manage the asset and liabilities of the business. Finance will teach you the money aspect of the business which will enhance your decision-making skills.
Financial management is the field of business that deals with the finance of the company. Financial management works with an investment of available financial resources (cash, assets, marketable securities, etc) to receive a return on it and how to use it in the growth of companies’ profits. Financial management will teach you how money flows into the organization so you can get the maximum return out of the business. Financial management deals with the allocation of funds to different departments, the investment of idle funds, the expenses of the organization, liquidity, and cash maintenance in the organization. Managing all the financial needs of the business is done by the company’s finance department. Finances are the resource locator of the business; the right investment in your finances will lead you to great profits, while mismanagement of available funds can lead to the insolvency of the organization.
Difference Between Finance and Accounting
Finance deals with the management of money; it takes care of the allocation of funds, the financial holdings of the company, the lending of money, budgeting, the financial status of the company, saving, and investing. Financial management focuses on managing the money invested in the business and making decisions over those investments. Forecasting is done, and then the investment is made according to it. Financial management is a critical process that involves decision-making, the allocation of funds, and maintaining the liquidity of cash in the business.
Accounting, on the other hand, is the recordkeeping of day-to-day transactions happening in the business. Accounting is based on recording the movement of money from inside the department of the business or from outside the business. It records each and every money transaction so that the finance manager and his team can study those records of the organization to further analyze them and make strategies for the growth and profit maximization of the business. Accounting provides data for the financial analysis of the business, whereas finance helps the business know its financial position and how to improve it.
Why do an MBA in Finance?
MBA in finance is an evergreen choice for management students because of its diverse career choices. Finance is a sector that is the backbone of any industry, as it involves the cost of capital, investments, and other aspects of the business. Every business involves money, which strengthens the stability of the business. Business is done to earn profits and maximize the revenue of the business so that it can stay in the market for a long time.
The financial status of the business defines its reputation in the market, whether the company is capable of meeting its daily obligations or not, how it is managing its reserves and surplus, calculating profit and loss, debt-equity ratios, etc. is used to know the financial position of the business and what measures can be taken to improve the profit of the company.
The finance sector is the booming sector in the corporate world, companies cannot survive in the competitive market without proper financial strategies, so they need financial assistance, which can only be given by finance managers. Whether it’s hospitality, banking, travel, or manufacturing, every sector has involvement in money, so there are plenty of opportunities in the market for an MBA in finance. Finance is the sector that takes care of the money-related events of every other department like HR, operations, sales, and marketing.
How to Get a Degree in MBA in Finance
To get an MBA degree in India, you have to prepare for all of India’s common entrance tests, commonly known as the CAT. There are several other entrance tests for MBAs as well, popularly known as MAT, GMAT, and XAT, and there are many more exams conducted by Indian B-schools. You can choose your favorite business school and look at which of these entrance tests is acceptable at that B-School then start preparing for your entrance examination.
The pattern of all MBA entrance exams is almost identical, but the main focus of all the exams is on basic English grammar and vocabulary, arithmetic, profit and loss, work and time, and logical reasoning. You can go through the previous year’s question paper, and practice mock tests to get a grip on the examination pattern. It is an all-India level exam, so it has some high standards. Prepare yourself well for the exam and attempt the questions wisely. You must score at least 50% in your graduation to be eligible for this exam.
Once you pass the examination, you will start getting interview calls from B-schools like IIM-A, IIM-B, IIM-L, etc. Once you get your entrance results, start preparing for your interviews. You must score higher than the 95th percentile to get an interview call from top IIMs.
There are other B-schools in India that conduct their own individual entrance examinations and interview processes, so if you want to opt for an MBA at one of them, you can go for it as well.
Prepare your interviews with business news, get yourself updated, prepare your answers well, and practice talking about your skills and accomplishments at the same time you should not be bragging. Be generous and sincere; you have to make your interviewer believe that you are going to make a difference after getting an MBA from there and adding value to the business world. Once you get selected for your favorite B-school you can decide your specialization according to your preferences.
At the beginning of your MBA course, you will be taught the basics of business and management and in the next year, you will be given the opportunity to choose your specialization. You can select your specialization from human resources, operations management, marketing, and finance. You can opt for your specialization according to your interests and skill sets.
Finance is a specialization whose craze never disappears from the students as every business revolves around the involvement of money and we all need ways to get better returns on our business investments. You can get into different finance professions according to your interests.
Career scope in Finance Management
Finance can open a wide variety of options for you; here are some career options to consider after an MBA in Finance.
Finance will improve your sense of judgment regarding the wise utilization of money, whether it is your personal investment in your business, investing in someone else’s business, or working as a finance manager for any corporate firm.
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