9 Things to Know About the Corporate Finance Industry Before Starting Your Career
Start building your future in corporate finance with insights from some of the industry’s top leaders. Understanding what lies ahead is crucial. With advice from a co-founder and CEO and a president, dive into the foundational skill of embracing resilience as your first step. After exploring key strategies, finish with the essential approach of tailoring your efforts to specific roles, with a total of nine expert insights to guide you.
- Embrace Resilience in Corporate Finance
- Understand Pace and Pressure
- Analyze Global Economic Trends
- Master Financial Modeling
- Prioritize Ethical Standards
- Ground Your Salary Expectations
- Drive Company Growth Strategically
- Expect Less Flash, More Analysis
- Tailor Efforts to Specific Roles
Embrace Resilience in Corporate Finance
As a tech CEO deeply involved in our financial operations, I’d say one vital thing about the corporate finance world is resilience. The industry has ups and downs, just like the markets it tracks. You will face periods of intense stress, volatile markets, and challenging financial puzzles. But the ability to stay grounded, maintain professionalism, and keep the company’s financial well-being at the forefront—even when things look stormy—is what separates successful finance professionals from the rest.
Abid Salahi, Co-founder & CEO, FinlyWealth
Understand Pace and Pressure
It’s a big move to enter the corporate finance space, and there’s one big point that everyone making that move should consider. Pace and pressure in corporate finance aren’t just words; they’re a fact. You have deadlines, and everything could go wrong if you are creating financial statements or making strategic investment decisions that will impact the entire business—not just for the sake of numbers, but to be able to offer insight in a form that can shape the future of the business itself. This setting not only demands strong financial expertise but also the ability to work well under pressure and make fast-track decisions.
Now, for a second, little bit less discussed but also important, is the rise of technology in corporate finance. So, if you’re coming into this business, you’ve got to be technologically advanced. This is not just a matter of Excel abilities; having access to financial modeling software, blockchain implications in financial management, or even just basic coding could make the difference. This integration with technology is revolutionizing finance careers and turning them from analysis-focused tasks to data-crunching jobs. So, my suggestion? Boost your tech chops and be prepared to show how you can use technology to reduce costs and offer strategic advice. It’s transformative, and staying one step ahead can make a real difference in your corporate finance career.
Eric Croak, CFP, President, Croak Capital
Analyze Global Economic Trends
When entering the corporate-finance industry, it’s crucial to understand the impact of global economic trends on business decisions. The ability to analyze how different markets react to these trends can distinguish you from other candidates. For instance, during economic downturns, companies often prioritize liquidity and cost management, which means understanding asset management and cash flow becomes vital.
Networking also plays a key role; building relationships with professionals in the field can provide deeper insights and uncover opportunities not visible from the outside. Each corporation has a unique financial culture, and it’s beneficial to study their financial statements and strategies to better tailor your approach. Being adaptable and willing to continue learning as economic conditions change, is essential for thriving in this dynamic field.
Ace Zhuo, Business Development Director (Sales and Marketing), Tech & Finance Expert, TradingFXVPS
Master Financial Modeling
One of the most important aspects that any fresh graduate or career-changer needs to bear in mind before joining the finance industry is how prevalent financial modeling is to one’s day-to-day tasks. Be it corporate planning, acquiring companies, or managing an organization’s budget, financial modeling is a key competency that allows companies to assess potential investments, anticipate the need for future funding and investments, and strategize properly to meet their objectives.
To put it simply, financial modeling is constructing a worksheet wherein they take points from the historical performance of a firm and certain assumptions towards projecting what the performance of the firm would be in the future. Thus, for the person who is only getting started in the profession, this means that such a person would not only have to know how to use Excel but do so at an advanced level. More importantly, such a professional would be required to understand financial statements, cash flows, and even key indicators of performance.
Apart from the technical skills that are required for financial modeling, the practice also equips practitioners with critical reasoning. It requires one to think of many “what ifs” and how they would affect the performance of a company. As a result, it’s not only about how good one is with arithmetic; it’s really about how that information is taken and put to useful application.
Ariful Islam, Finance Expert, Sterlinx Global
Prioritize Ethical Standards
The corporate finance industry isn’t just about numbers. It’s primarily about managing trust. Therefore, if you want to work in this field, you should know that you’ll be expected to act as a guardian of ethical practice. To excel in your role, you must have a strong moral compass and the ability to balance complex, often conflicting, interests while upholding transparency and accountability.
In the era of corporate scandals—which can destroy companies overnight—and regulatory scrutiny, maintaining ethical standards and ensuring compliance is non-negotiable. The decisions you make working in the corporate finance industry must align with the company’s long-term sustainability and integrity as they impact not only profits but also employees, investors, and the broader community.
Moreover, these days, companies are increasingly judged not only by their financial performance but also by their social impact. That’s why corporate finance teams must balance profitability and purpose. You might face situations where the “right” financial decision isn’t the most profitable in the short term. Still, remember that protecting the company’s reputation and fostering trust with stakeholders will always pay off in the long run.
Agata Szczepanek, Career Expert & Community Manager, LiveCareer
Ground Your Salary Expectations
Manage your expectations and make sure they’re grounded in reality. There are so many young workers breaking into this space who think that a degree in finance guarantees a six-figure salary right out of the gate. Spoiler alert—it doesn’t work like that. Like most industries out there, entry-level positions come with salaries that might feel underwhelming compared to what you imagined. It takes time, but every role is a stepping-stone. It’s all going to add up eventually, but first, you need to use these opportunities to learn the ropes and prove yourself.
Gary Gray, CEO, CouponChief.com
Drive Company Growth Strategically
From a finance expert’s perspective, one crucial aspect for newcomers to understand about corporate finance is its pivotal role in value creation. Unlike common perceptions, it’s not just about managing money or cutting costs. Corporate finance professionals are instrumental in driving a company’s growth strategy and maximizing shareholder value.
You’ll be expected to evaluate investment opportunities, assess risks, and make recommendations that can significantly impact the company’s future. This requires a blend of quantitative skills and strategic thinking. You must be comfortable with ambiguity and able to make decisions based on incomplete information.
Plus, ESG (Environmental, Social, and Governance) considerations are increasingly shaping corporate financial strategies. Understanding how sustainability and social responsibility factor into financial decision-making is becoming essential.
Lastly, be prepared for a field that’s rapidly evolving with technological advancements. Familiarity with financial technology and data-analytics tools can give you a competitive edge in this dynamic industry.
Brandon Aversano, CEO, The Alloy Market
Expect Less Flash, More Analysis
After helping many young workers for years, I have met a lot of people who, after watching movies about Wall Street, jump into corporate finance. But let me tell you, the reality is less flashy while still fascinating.
In simple words, corporate finance is not about doing dozens of trades (most of the time, even trades that don’t seem to make sense happen). This is because they are popular at the moment. But really, it’s more like being a business detective. In my experience, about 70% of the time, people talk to me about the numbers and explain how the company is doing. But it’s not all like “The Wolf of Wall Street.” It’s more about making the normal way of doing things faster and better.
This is useful because it helps you understand why these details matter. It is helpful in two ways.
First, it lets you see if you are enjoying the daily work: digging into spreadsheets, studying the business, making hard decisions, and/or working with people on finances.
Second, it helps you focus your job applications and interviews better. Rather than talking about guessing in market trading, talk about your skills in analyzing and solving problems.
I remember when I started my first job in corporate finance. I thought I would see busy trading floors, but instead, I got interested in how financial analysis helps businesses make decisions. It wasn’t what I expected. But the good news is, I found something I liked. If you enjoy solving puzzles and want to help businesses grow, I think you should be in this kind of role.
Farrukh Muzaffar, CMO | Co-Founder | Business Strategist, Environmental and Sustainability Jobs
Tailor Efforts to Specific Roles
The one thing I recommend is to spend time learning what will help you land and thrive in specific roles within corporate finance. For example, what kind of education, accreditations, and experience will help you become an FP&A leader, a Treasury Director, or a Controller. On the surface, it may seem that they are all the same, but they are very different. That’s why it is better to spend time upfront so you can tailor your networking and job-seeking efforts accordingly.
Wassia Kamon, CPA, CMA, MBA, Chief Financial Officer, Access to Capital for Entrepreneurs
