Finance Today
Finance is the process of acquiring assets, managing them where possible and obtaining the best return from them during their lifetime. It could also extend to other peripheral functions such as getting rid of unwanted assets in a legal and viable manner. Ultimately finance seeks to ensure that the organization has enough resources to fund its own business plans. Withoutfinance, the organization comes to a standstill.
Finance Careers
1. Commercial Banking
2. Corporate Finance
3. Financial Planning
4. Hedge Funds
5. Insurance
6. Investment Banking
7. Money Management
8. Private Equity
9. Real Estate
2. Corporate Finance
3. Financial Planning
4. Hedge Funds
5. Insurance
6. Investment Banking
7. Money Management
8. Private Equity
9. Real Estate
Finance Mentor: Gordon Brown
Q. What’s a typical day like for you or someone in a similar position?
A. 9 to 10 hours a day sometimes, In the Corporate world you don't take 15 min. breaks or a full hour off for lunch even though "technically" you are allowed. However you adjust quickly and still find time to eat and shoot the bull with a co-worker. Finance and Accounting related jobs do expect you to be very computer savvy. The ability
to trouble shoot and problem solve is key to success in this type of work. Most of my time is at my computer(s), working on ad-hoc reporting with data realted to Sales. I work is a Sr. Compensation Analyst which basically means I figure out the commissions amount earned for the sales teams. It's a niche job in Finance but very much needed at most any large company that has sales staff. Unlike most any other job in Accounting, I don't have the same hard deadlines, but have my own set of payroll related deadlines. This job is "the best" in my opinion when in comes to what you can do within Finance/Accounting at a Company. Of the many types of Companies out there, stick to a Software related Company if you can. For many reasons (here is 2 of them)1 - They have low overhead (no physical manufacturing costs), 80% of their expenses are related to Staff & Marketing. No costs related to making a physical item, this is huge. IP (itellectual property) is king. You work for Micron computer ? HP ? Boeing ? might be good pay when times are good, but these giants lay-off often and many. Find a solid software company to be part of, it will lower your risk and usually provide a good job growth track. 2 - As with a low overhead, this allows more money to be put into finding and keeping good talented people to work. You want a good raise ? you want an annual bonus ? you want a chance to be promoted ? these things come easier in a software company. I worked for a medical manufacturing company for 6 years prior to a software company, HUGE difference. Granted I did get promoted 2 times at the medical company, can't complain on that but after I moved over to Software industry, was also promoted 2 times, and ..everything is nicer (yes including pay), people are happier.
Q. What do you like most about your job?
A. Freedom to "own" my job. That means flexible work hours, good people, and a great company.
Q. What do you like least?
A. commute for me isn't that great, but that was my choice based on where I wanted a house =)
Q. What talents or skills do you think are the most crucial to success in this field?
A. Computer savvy and problem solving are a MUST, learn all normal MS (Microsoft) applications such as Excel, Access..but learn Tableau Software as well if you can (Free version on the internet), these tools are a huge asset to any job you might consider in the Finance or Accounting field.
Q. When and how did you get involved in this work?
A. Went to lunch with a sibling on day (After Ricks College) was working a 3 month temporary gig doing software sales, saw a big building that said "Spacelabs Medical" and I thought, surely a company with a building of that size has a few jobs open, and maybe 1 for me....turns out it did, and I landed my first "Commissions" related job. Later I moved into General Accounting, but when I left that company I took a job dealing with commissions again and enjoy it much more for flexibility and importance.
Q. What was your training and background? Is this typical for people in your position and in similar positions?
A. a BS degree is usually what is asked. However experience, computer skills, and problem solving are more what are looked for in any interview. A sociable
personality helps as well. The skills on the computer you learn in time what you didn't learn in College, as many Accounting and Commission software programs are custom and not something you will see in any College.
Q. How important are specific credentials for entry or success?
A. As a hobby, I like to work on cars, and if you ever have done that, you know " it's all about the tools". Without the right tools you are going to be in for a long and frustrating job. Same for a career, arm yourself with the right tools. For a Finance job, that includes school of course, but getting you foot in the door and climbing the pay/position latter. Entry Level jobs are around 30K (better than the 23K I started at after college) but you can quickly get up to 80K or so....beyond would be Manager/Director Level job that will require a Masters Degree and the right connections from prior employers.
Q. What and where are the opportunities?
A. Tableau Software has many jobs (mostly in Engineering and Development), but many other Hi-Tech companies in the Seattle are are branching out and hiring.
Amazon.com, Microsoft, F5 Networks, Costco, Expedia, Tmobile, Paccar, Adobe, Google..etc.
TIP:
Most of these companies advertise in 2 spots, on their websites and on "Craigslist" You wouldn't think Craiglist.org website would be used for this by such large companies but it is VERY much. This is because online job companies like Monster.com now charge a large amount for every job a company wants to post, but Craigslist is very cheap in comparison for a company. So online search there if you don't see what you like on a specific company website.
Q. What are your projections for your type of industry? Is it stable, growing, declining?
A. Software industry is fairly stable, depends on what type of software. Old school software like Emulation (Mainframe to PC) software is going downhill fast. New Technology is growing. For example Tableau Software has doubled in Size and Sales each year for the past few years and still going strong. So aim for a company that is making new products or software not just maintaining old legacy software ( ie Novell....which was just broken up). Lastly, unless you have the hook up in Utah, don't plan on making it rich there. As you know the LDS Church is very good at promoting education. So many graduate students are there, causing over educated workforce competing for low wage jobs (everyone from there wants to live with Mom and Dad or in their home town). The jobs are only low wage because there are so many people that can fill them with high degrees etc...Not saying you can't land a good job in SLC area, just saying it won't pay as much. The same job will pay almost 2 times as much elsewhere in the Country. The biggest secret is pray about jobs before you take them. The Lord has never led me down the wrong path...I've worked since about age 11 (paper route). I even worked part-time while I attended Ricks College (BYU-I), each night from 5 to 10pm and sometimes all day on Saturday's at the Kmart in town.
If you are looking for a career that is not in Finance and doesn't require a high degree of education, then Software Sales is where it is at...good
luck.
A. 9 to 10 hours a day sometimes, In the Corporate world you don't take 15 min. breaks or a full hour off for lunch even though "technically" you are allowed. However you adjust quickly and still find time to eat and shoot the bull with a co-worker. Finance and Accounting related jobs do expect you to be very computer savvy. The ability
to trouble shoot and problem solve is key to success in this type of work. Most of my time is at my computer(s), working on ad-hoc reporting with data realted to Sales. I work is a Sr. Compensation Analyst which basically means I figure out the commissions amount earned for the sales teams. It's a niche job in Finance but very much needed at most any large company that has sales staff. Unlike most any other job in Accounting, I don't have the same hard deadlines, but have my own set of payroll related deadlines. This job is "the best" in my opinion when in comes to what you can do within Finance/Accounting at a Company. Of the many types of Companies out there, stick to a Software related Company if you can. For many reasons (here is 2 of them)1 - They have low overhead (no physical manufacturing costs), 80% of their expenses are related to Staff & Marketing. No costs related to making a physical item, this is huge. IP (itellectual property) is king. You work for Micron computer ? HP ? Boeing ? might be good pay when times are good, but these giants lay-off often and many. Find a solid software company to be part of, it will lower your risk and usually provide a good job growth track. 2 - As with a low overhead, this allows more money to be put into finding and keeping good talented people to work. You want a good raise ? you want an annual bonus ? you want a chance to be promoted ? these things come easier in a software company. I worked for a medical manufacturing company for 6 years prior to a software company, HUGE difference. Granted I did get promoted 2 times at the medical company, can't complain on that but after I moved over to Software industry, was also promoted 2 times, and ..everything is nicer (yes including pay), people are happier.
Q. What do you like most about your job?
A. Freedom to "own" my job. That means flexible work hours, good people, and a great company.
Q. What do you like least?
A. commute for me isn't that great, but that was my choice based on where I wanted a house =)
Q. What talents or skills do you think are the most crucial to success in this field?
A. Computer savvy and problem solving are a MUST, learn all normal MS (Microsoft) applications such as Excel, Access..but learn Tableau Software as well if you can (Free version on the internet), these tools are a huge asset to any job you might consider in the Finance or Accounting field.
Q. When and how did you get involved in this work?
A. Went to lunch with a sibling on day (After Ricks College) was working a 3 month temporary gig doing software sales, saw a big building that said "Spacelabs Medical" and I thought, surely a company with a building of that size has a few jobs open, and maybe 1 for me....turns out it did, and I landed my first "Commissions" related job. Later I moved into General Accounting, but when I left that company I took a job dealing with commissions again and enjoy it much more for flexibility and importance.
Q. What was your training and background? Is this typical for people in your position and in similar positions?
A. a BS degree is usually what is asked. However experience, computer skills, and problem solving are more what are looked for in any interview. A sociable
personality helps as well. The skills on the computer you learn in time what you didn't learn in College, as many Accounting and Commission software programs are custom and not something you will see in any College.
Q. How important are specific credentials for entry or success?
A. As a hobby, I like to work on cars, and if you ever have done that, you know " it's all about the tools". Without the right tools you are going to be in for a long and frustrating job. Same for a career, arm yourself with the right tools. For a Finance job, that includes school of course, but getting you foot in the door and climbing the pay/position latter. Entry Level jobs are around 30K (better than the 23K I started at after college) but you can quickly get up to 80K or so....beyond would be Manager/Director Level job that will require a Masters Degree and the right connections from prior employers.
Q. What and where are the opportunities?
A. Tableau Software has many jobs (mostly in Engineering and Development), but many other Hi-Tech companies in the Seattle are are branching out and hiring.
Amazon.com, Microsoft, F5 Networks, Costco, Expedia, Tmobile, Paccar, Adobe, Google..etc.
TIP:
Most of these companies advertise in 2 spots, on their websites and on "Craigslist" You wouldn't think Craiglist.org website would be used for this by such large companies but it is VERY much. This is because online job companies like Monster.com now charge a large amount for every job a company wants to post, but Craigslist is very cheap in comparison for a company. So online search there if you don't see what you like on a specific company website.
Q. What are your projections for your type of industry? Is it stable, growing, declining?
A. Software industry is fairly stable, depends on what type of software. Old school software like Emulation (Mainframe to PC) software is going downhill fast. New Technology is growing. For example Tableau Software has doubled in Size and Sales each year for the past few years and still going strong. So aim for a company that is making new products or software not just maintaining old legacy software ( ie Novell....which was just broken up). Lastly, unless you have the hook up in Utah, don't plan on making it rich there. As you know the LDS Church is very good at promoting education. So many graduate students are there, causing over educated workforce competing for low wage jobs (everyone from there wants to live with Mom and Dad or in their home town). The jobs are only low wage because there are so many people that can fill them with high degrees etc...Not saying you can't land a good job in SLC area, just saying it won't pay as much. The same job will pay almost 2 times as much elsewhere in the Country. The biggest secret is pray about jobs before you take them. The Lord has never led me down the wrong path...I've worked since about age 11 (paper route). I even worked part-time while I attended Ricks College (BYU-I), each night from 5 to 10pm and sometimes all day on Saturday's at the Kmart in town.
If you are looking for a career that is not in Finance and doesn't require a high degree of education, then Software Sales is where it is at...good
luck.
Key Finance Terms
Return on Investment (ROI)--The earning power of assets measured as the ratio of the net income (profit less depreciation) to the average capital employed (or equity capital) in a company or project. Expressed usually as a percentage, return on investment is a measure of profitability that indicates whether or not a company
is using its resources in an efficient manner. For example, if the long-term return on investment of a company is lower than its cost-of-capital, then the company will be better off by liquidating its assets and depositing the proceeds in a bank. Also called rate of return, or yield.
Net Present Value--The difference between the present value of the future cash flows from an investment and the amount of investment. Present value of the expected cash flows is computed by discounting them at the required rate of return. For example, an investment of $1,000 today at 10 percent will yield $1,100 at the end of the year; therefore, the present value of $1,100 at the desired rate of return (10 percent) is $1,000. The amount of investment ($1,000 in this example) is deducted from this figure to arrive at net present value which here is zero ($1,000-$1,000). A zero net present value means the project repays original investment plus the required rate of return. A positive net present value means a better return, and a negative net present value means a worse return, than the return from zero net present value. It is one of the two discounted cash flow techniques (the other is internal rate of return) used in comparative appraisal of investment proposals where the flow of income varies over time.
Stocks--Equity capital raised through sale of shares. The proportional part of a company's equity capital represented by fully paid up shares. British term for a fixed interest government debt security issued usually in denominations, and Inventory.
Bonds--A written and signed promise to pay a certain sum of money on a certain date, or on fulfillment of a specified condition. All documented contracts and loan agreements are bonds.
Stockholders--An individual, group, or organization that holds one or more shares in a company, and in whose name the share certificate is issued. Also called shareholder.
Government Securities--Bonds, notes, and other debt instruments sold by a government to finance its borrowings. These are generally long-term securities with the highest market ratings.
Mutual Fund--An investment vehicle managed by finance professionals that raises capital by selling shares (called units) in a chosen and balanced set of securities to the public.
Securities and Exchange Commision (SEC)--US federal agency established in 1934 to help protect investors by enforcing securities-related laws, and by setting mandatory standards for disclosure of financial and other pertinent information about firms whose securities are traded over a stock exchange. Its five commissioners (appointed by the US President and confirmed by the Senate) serve for staggered five-year terms, and at any time no more than three of them may be from the same political party.
Stock Markets--a place where shares are bought and sold, i.e. a stock exchange.
Initial Public Offering (IPO)--First offering of a firms' stock (shares) on the stockmarket, at the time it 'goes public.' Because a stockmarket usually values the stock on the expectations of the firm's future growth and income, IPOs are typically an opportunity for the founders and other early investors to make high profits by cashing their stockholdings.
Venture Capital--Startup or growth equity capital or loan capital provided by private investors (the venture capitalists) or specialized financial institutions (development finance houses or venture capital firms). Also called risk capital.
Interest Rate--The annualized cost of credit or debt-capital computed as the percentage ratio of interest to the principal.
Dow Jones Industrial Average--average of 30 actively traded shares of the blue chip US industrial corporations listed on the New York Stock Exchange. The trend in the movement of the market value of these shares is considered to be an indicator of the movement of the entire US stockmarket.
is using its resources in an efficient manner. For example, if the long-term return on investment of a company is lower than its cost-of-capital, then the company will be better off by liquidating its assets and depositing the proceeds in a bank. Also called rate of return, or yield.
Net Present Value--The difference between the present value of the future cash flows from an investment and the amount of investment. Present value of the expected cash flows is computed by discounting them at the required rate of return. For example, an investment of $1,000 today at 10 percent will yield $1,100 at the end of the year; therefore, the present value of $1,100 at the desired rate of return (10 percent) is $1,000. The amount of investment ($1,000 in this example) is deducted from this figure to arrive at net present value which here is zero ($1,000-$1,000). A zero net present value means the project repays original investment plus the required rate of return. A positive net present value means a better return, and a negative net present value means a worse return, than the return from zero net present value. It is one of the two discounted cash flow techniques (the other is internal rate of return) used in comparative appraisal of investment proposals where the flow of income varies over time.
Stocks--Equity capital raised through sale of shares. The proportional part of a company's equity capital represented by fully paid up shares. British term for a fixed interest government debt security issued usually in denominations, and Inventory.
Bonds--A written and signed promise to pay a certain sum of money on a certain date, or on fulfillment of a specified condition. All documented contracts and loan agreements are bonds.
Stockholders--An individual, group, or organization that holds one or more shares in a company, and in whose name the share certificate is issued. Also called shareholder.
Government Securities--Bonds, notes, and other debt instruments sold by a government to finance its borrowings. These are generally long-term securities with the highest market ratings.
Mutual Fund--An investment vehicle managed by finance professionals that raises capital by selling shares (called units) in a chosen and balanced set of securities to the public.
Securities and Exchange Commision (SEC)--US federal agency established in 1934 to help protect investors by enforcing securities-related laws, and by setting mandatory standards for disclosure of financial and other pertinent information about firms whose securities are traded over a stock exchange. Its five commissioners (appointed by the US President and confirmed by the Senate) serve for staggered five-year terms, and at any time no more than three of them may be from the same political party.
Stock Markets--a place where shares are bought and sold, i.e. a stock exchange.
Initial Public Offering (IPO)--First offering of a firms' stock (shares) on the stockmarket, at the time it 'goes public.' Because a stockmarket usually values the stock on the expectations of the firm's future growth and income, IPOs are typically an opportunity for the founders and other early investors to make high profits by cashing their stockholdings.
Venture Capital--Startup or growth equity capital or loan capital provided by private investors (the venture capitalists) or specialized financial institutions (development finance houses or venture capital firms). Also called risk capital.
Interest Rate--The annualized cost of credit or debt-capital computed as the percentage ratio of interest to the principal.
Dow Jones Industrial Average--average of 30 actively traded shares of the blue chip US industrial corporations listed on the New York Stock Exchange. The trend in the movement of the market value of these shares is considered to be an indicator of the movement of the entire US stockmarket.