How to assess financial manager skills

It’s no secret that the financial health of an organization contributes to its overall success. To keep your accounts healthy and continuously striving toward your long-term financial goals, you’ll fare best with an expert to handle your financial responsibilities, which is what makes a financial manager a crucial hire for any business. 

A financial manager’s primary responsibility is making strategic financial decisions to better your company. They ensure financial efficiency and stability, making data-driven decisions to boost business growth. 

The exact duties of the role will vary by company, but to assess the core skills at the heart of every successful financial manager, you can use a customized skills assessment with tests such as an Intermediate math test.

For more guidance on the skills that enable financial managers to excel in their roles, keep on reading this comprehensive guide.

What is a financial manager skills assessment? 

A financial manager skills assessment is a collection of tests that can help you gauge an applicant’s financial managing skills. It tests hard skills that equip the candidate for the job, such as accounting, financial accounting, accounts payable, and mathematical analysis.

Aside from hiring the applicant with the necessary hard skills, it’s essential to consider the soft skills you want to see in an ideal candidate. One way you can do this is by adding personality tests to your skills assessment. Certain personality traits, such as conscientiousness and ambitiousness, can help your new hire:

• Feel motivated to work well with the team

• Positively influence others

• Make critical financial decisions

With a financial manager skills assessment, you can also assess relevant soft skills like communication, leadership, problem solving, and project management. TestGorilla’s tests provide a numerical percentage corresponding to each candidate’s expertise to help you easily assess their abilities. With a thorough dive into your candidates’ skills and traits, you can ensure the job is offered to the most well-rounded, suitable person. 

Why are financial manager skills important? 

Financial manager skills such as mathematical knowledge and budgeting expertise matter because they equip your new hire to do the job effectively. Without a particular set of skills, your company could miss valuable contributions and expertise that you’d otherwise get from someone more qualified for the role.

You need trusted people to handle your accounts and boost business growth. Monitoring finances and financial skills can keep a business successful and profitable because they help financial experts understand customer costs to serve and complete financial management. A company can only succeed with its finances in check.

Here are five reasons why it’s so important to ensure your finance manager candidates are appropriately qualified: 

1. Financial forecasting

Financial forecasting can put your company in a stronger position to outcompete rival businesses because you can anticipate financial challenges that might arise in the future and act accordingly. For example, a 2022 study by Hanover Research found that 85% of financial leaders were reforecasting to prepare for an impending recession in 2023.

Taking action early can mitigate risk and ensure your finances remain stable. It can increase financial outcomes, improve cash flow, and help solidify your annual budget.

To ensure accurate financial forecasting, your manager must have the skills to understand company-specific metrics, such as analytical skills, strategic thinking, problem solving, and communication, in order to offer advice, create plans, and make decisions.

2. Strategic decision-making

Your new financial manager must be decisive because they encounter complex situations regularly. Individuals with strong decision-making and problem-solving skills will use their expertise to analyze and interpret financial information for smooth navigation of strategic decisions that benefit the company and align with its vision.

For example, a retail business might have financial managers who analyze the profits and trends of the company and consider methods to increase return with upselling methods. They may then reassess the profit margins to determine if their strategies are successful.

3. Risk management 

Financial risk management protects the economic value of your firm, and it’s the financial manager’s job to identify quantitative and qualitative risks, analyze them, and make decisions to mitigate the risk. This is crucial for safeguarding your organization’s assets and ensuring financial health. 

4. Compliance

Companies must abide by the relevant rules, regulations, and laws that govern the institution. Finance managers ensure your company is compliant to prevent legal problems that jeopardize the business. They ensure this compliance with practices such as conducting regular audits to review processes and spot potential compliance gaps.

For example, a financial manager within a healthcare organization might perform annual audits to check the organization’s handling of patient health information, ensuring compliance with the Health Insurance Portability and Accountability Act. 

In this case, financial managers need a certain set of skills, including analytical skills, regulatory knowledge, attention to detail, and ethical conduct.

5. Cost control 

Cost control is critical to maintaining and increasing company profits. The right financial manager can examine costs and implement cost-saving measures to reduce expenses while increasing profits. These may include short or long-term strategies, such as downsizing, reducing waste, or cutting back on professional services from outside the company.

Which skills and traits are important for financial manager employees?

So, which skills do financial managers need? Overall, they need a combination of hard skills, soft skills, and personal traits to complete the tasks that this role demands. From accounting abilities to leadership qualities, here’s what to look out for in candidates applying for financial manager positions:

Data analysis

Analyzing data is a hard skill that trainee financial managers learn. It’s an essential ability because it equips a person with the correct methods to interpret data from various sources, such as:

• Balance sheets

• Bank statements

• Invoices

• Cash flow statements

With a sharp eye for detail, skilled financial managers can use this information to identify trends, forecast finances, and assess the overall financial health of your business.

Budgeting and forecasting 

Financial managers understand a company’s financial problems, risks, and goals. They can use specialist knowledge to create realistic budgets that reflect your company’s financial status, calculate risks, and find methods to solve financial discrepancies. 

For example, a financial manager can use their analytical skills firstly to identify discrepancies before analyzing the data and ensuring accounts are reconciled.

Mathematical proficiency 

Proficiency in mathematics is a non-negotiable skill for finance managers. Dealing with numbers, applying formulas, and completing mathematical calculations require advanced numeracy skills. Algebra, arithmetic, calculus, percentages, and statistical analysis are common math skills that financial managers use regularly.

For example, a financial manager might use percentages to evaluate the value increases or decreases of market indexes, stocks, or profit margins to make decisions that benefit both their company and clients.

Communication

Financial manager employees might have the brains to solve complex mathematical problems but will be insufficient when attempting to enhance the company's performance if they can’t communicate their findings.

In this profession, your hire needs to convey financial information to executives, investors, and other financial team members in a manner that they understand. This approach, along with verbal and written communication, ensures all stakeholders have a clear picture of the company’s finances, encouraging a harmonious collective agreement regarding company decisions.

It’s also essential that candidates can explain financial concepts without using jargon to ensure non-technical team members can understand their information. To achieve this, they might use concise communication and active listening to clarify any aspects that remain unclear.

Leadership

Leadership skills empower finance managers to develop methods that solve financial challenges, implement strategies, and delegate tasks among financial teams. A strong leader can inspire confidence and trust among staff and stakeholders, making way for positive changes.

For example, financial managers exhibiting leadership skills can boost staff morale by giving teams a sense of direction and helping employees better understand their purpose and strengths. This increases engagement, which is essential given that only 34% of US employees are engaged in their jobs, according to a Gallup report.

With a happier, more supportive environment, employees can perform at their best, thereby increasing productivity and reducing employee turnover.  

Problem solving 

Hiring a financial manager takes away the strain of handling financial operations yourself, and one of their key responsibilities is to solve problems and mitigate future ones. Challenges may include managing cash flow and making investment decisions. 

Therefore, financial managers must have problem-solving abilities to overcome obstacles and ensure business success. A flair for detecting problems, brainstorming ideas, and executing strategies to handle financial obstacles such as budgeting challenges will serve any financial manager well.

Analytical thinking

Analytical thinkers take a well-rounded approach to drive their decisions. Using the information available to them, such as financial reports and statements, they review the numbers and understand them, avoiding any rash, ill-informed choices. 

Because financial decisions require thought, look for candidates with an analytical mind. To achieve this goal, you may go a step beyond using a financial skills assessment by digging deeper during the interview phase and completing a reference check. 

Influencing skills

Tying in with leadership skills, financial managers can benefit from the ability to influence because they may encounter scenarios where they need to gain the trust of stakeholders to encourage financial investments. The ability to negotiate is also functional when securing contracts or partnership agreements. 

Creativity 

Aside from thinking analytically, financial managers may need to tap into their creative side to generate innovative solutions to problems. Creativity allows individuals to adapt and explore alternative options to generate results in an ever-changing environment.

For example, when working with startups, they may dedicate a specific budget for experimentation or use new key performance indicator monitoring methods to pursue innovative ways to enhance the company’s performance.

Organization 

Keeping organized is vital for finance managers to fetch information quickly from sources such as contracts, reports, and spreadsheets. Good organizational skills allow your employee to easily place important documents, meet deadlines, and avoid frustrating delays. 

Skills and traits tests

Skills-based hiring is ideal for quickly and easily discovering your next financial manager. It removes the guesswork and helps you find genuine talent in the early stages of the hiring process. When you receive the assessment results, you’ll know if an applicant is competent in financial management.  

TestGorilla offers a range of skills and traits tests to help you confidently hire a financial manager. Review our most relevant tests below and create a custom assessment of up to five tests to find the applicants who tick all the boxes. 

Financial management 

The Financial management test specifically evaluates candidates for a financial management role. It assesses your candidates’ ability to manage finance to maximize business profits while minimizing risk. These practical finance manager skills are essential to achieving financial success for any business.

This test covers working capital management, capital structure and cost, financial forecasting, financial analysis, investment appraisal, and decision-making skills. It’s also suitable when hiring other professionals responsible for handling your business finances, including auditors, corporate accountants, and treasurers.

Financial modeling 

Any finance professional should be familiar with Excel, and you can use TestGorilla’s Financial modeling test to assess their experience with the spreadsheet editor. This test evaluates candidates’ ability to create financial models in Excel using basic formulas. It also tests finance and valuation skills. 

If you expect your future financial manager to use Excel frequently, you can pair this test with the Excel skills test for more significant insights into candidates' abilities.

Financial math 

The Financial Math test focuses on a candidate’s mathematical computation skills and whether they can identify and evaluate financial outcomes. It will determine if applicants can use mathematical equations, linear programming, the time value of money, and its application in business. These are role-specific skills for financial managers, analysts, researchers, executives, and others responsible for performing mathematical computations for financial purposes.

Leadership and people management 

Consider our Leadership and people management test to see how candidates handle leadership in a group setting. You can see how they influence and guide others within an organization, from delegating tasks to providing feedback. This test ensures you hire leaders that support a healthy work environment and drive your business forward. 

Problem solving 

Since financial managers often face challenges, check if your candidate has the problem-solving skills you require with the Problem solving test. It provides insight into how individuals identify and respond to problems, demonstrating how they use the information available and their own logic to make decisions. 

Account management 

A financial manager typically focuses on long-term financial health, but depending on what the job entails, you might want somebody capable of managing your accounts.

The Account Management test helps determine whether a candidate can effectively serve and expand accounts. It covers understanding, opportunity management, forecasting revenue, and more.

Financial accounting 

The Financial accounting (US GAAP) test reviews your candidate’s ability to record, classify, and summarize accounting transactions in line with US GAAP (generally accepted accounting principles) guidelines. With this screening test, you can hire experts with an excellent grasp of financial accounting. You can then expect the best standards of record-keeping from organized individuals. 

Accounting 

Use TestGorilla’s Accounting test to confirm that your applicants have appropriate accounting knowledge. Accounting plays a substantial part in the role of a finance manager because they need to interpret and convey financial information to others within the company.

The topics in this test include books of accounts, recording financial transactions, and preparing and analyzing financial statements. 

Attention to detail 

The Attention to detail test gauges how well candidates can focus on textual detail while studying information. It’s a vital pre-hire skills test for financial managers because the results show whether candidates can handle intricate processes using expert analytical skills. 

These skills are necessary when filtering information, looking for patterns and trends, comparing financial statements, and checking for document accuracy and consistency.

Communication 

The Communication skills test checks if your candidate is good at communicating clearly and concisely, both verbally and in writing. It determines if they use professional etiquette and also assesses non-verbal cues and active listening skills. 

If you need to determine whether your applicants can share financial concepts without using confusing jargon, the Communication skills test will help you review their conciseness and ability.

Financial manager skills assessment FAQs

What are the functions of a financial manager?

Financial managers have an extensive range of responsibilities. Ultimately, they aim to oversee financial operations to improve a company's financial health and safeguard its assets. They do this by implementing financial plans, managing the budget, analyzing financial data, and assessing risks.

What are the key qualities to assess in a financial manager?

When hiring a financial manager, some essential qualities to consider are financial expertise, financial acumen, analytical thinking, strategic thinking, leadership qualities, and the ability to communicate and convey information to others clearly and concisely. These skills and traits enable successful financial planning for your business.

How do I assess a financial manager's leadership abilities?

You can assess a financial manager’s leadership skills by exploring their capacity to manage people, delegate tasks, mentor team members, and provide constructive feedback. If you’re looking to hire a financial manager, skills-based hiring with tests explicitly designed to assess a candidate’s leadership abilities can help you filter out the candidates lacking the necessary skills.

How can I determine a financial manager's proficiency in financial analysis?

A skills-based assessment is a great way to gauge a financial manager’s financial analysis proficiency. It enables them to show their skills and efficiency in analyzing data, interpreting documents, organizing financial forecasting, and finding solutions. You can also assess their track record for engaging in financial analysis.

What measures can I take to ensure a fair assessment of financial manager skills during the hiring process?

Using standardized interview questions and skills-based tests can ensure fairness and an unbiased pre-hire process. The results from skills-based assessments can help you consider applicants based on their skills and traits, regardless of factors like pedigree, background, and demographics. 

How TestGorilla can help you find the right skilled financial manager

Skilled financial managers can transform and save businesses through effective cash handling, minimizing wasteful spending, and governing all financial transactions.

To attract the right talent, write an effective financial manager job description. It should focus on the key skills and competencies your ideal financial manager will have. It should also highlight your company culture and the benefits of working at your organization. 

Once you’ve posted your open position and gathered applications, use pre-employment testing for financial roles to identify top candidates. Testing financial manager skills is integral to the hiring process because it reveals your applicants’ ability to do the job.

Using pre-employment testing for financial roles is a simple way to be sure you attract the right talent. Testing financial manager skills is integral to the hiring process because it reveals your applicant’s ability to do the job. You can maximize your talent acquisition efforts by identifying a candidate’s skills early on in the hiring process. 

With a custom assessment from TestGorilla’s test library, you can give your company an advantage by ensuring you only hire candidates with the appropriate skills. Ideally your assessment will feature tests for a mix of hard skills like financial management and math and soft skills like communication and time management. 

Get started with TestGorilla

TestGorilla’s pre-hire assessments offer a better means of reviewing applicants than screening resumes. Then, interviewing allows you to meet your candidates face to face, get a snippet of their personality, and gain insights into their experience and career prospects. For a faster, more efficient hiring process, you can thoroughly screen only the most qualified candidates with specific management interview questions after they demonstrate their skills through the skills assessment. 

The skills assessment will allow you to gather in-depth evidence of a person’s ability to perform in the role before you select applicants to interview. At TestGorilla, you can tailor the assessment accordingly to only screen for the most vital finance manager skills.

Science and experts back our user-friendly service, enabling you to create an assessment and evaluate candidates easily. Sign up for a free 30-minute live demo with a member of our team and explore the TestGorilla test library today.