As we all know, the world is constantly changing. It holds, especially for the financial domain. Throughout the last decade, a corporation’s finance department has changed dramatically. There are three main types of finance: Accounting Finance, Taxation Finance, and Banking Finance.
There have been many global integrations since then, with more multinational companies present in Nepal. Added to these options is the fact that there are many finance certifications available to fresh graduates.
Young professionals must take more steps after obtaining a degree. Choosing a career path is the next challenge, one often based on determining which jobs offer the best salary potential or which sectors will experience continued growth in the coming years. The Finance industry requires several skills and qualifications, and students interested in these careers need to be aware of them before making a career decision.
Explore these areas
Investment Banking: Investment banks serve as agents for companies, individuals, and governments that wish to raise money through the issuance of securities. In addition to mergers and acquisitions, investment banks offer ancillary services such as Market Making, Derivative Trading, Foreign Exchange, Fixed Income Instruments, and Commodities.
Corporate Finance: Every company has different departments that handle various aspects of its operations. Moreover, the finance department forms one of the critical pillars of any business. It is important to keep account of the day-to-day transactions of the firm to ensure its financial health. Furthermore, the finance department measures economic performance and displays it to stakeholders. An organization’s transactions have financial implications. However, if you’ve rendered the services of any professional, not yet paid monetary compensation, it leads to liability.
Equity Research: Many investment banks have an Equity Research (E.R.) department, which continuously tracks and analyzes listed companies. They look into the foundations of the companies they cover (including industry sector and general economic conditions) and produce reports and ratings on whether the stock is a good buy (it will appreciate in the future), hold (wait for a better time), or sell (it will likely fall more). Essentially, it provides a critical review of a movie, except that the film is ongoing and the thoughts change over time.
Project Finance: This type of financing is mainly used for long-term projects, in which debt repayments are primarily made with the given project’s cash flows and not on the balance sheet of the ‘sponsor(s)’ (or equity investors).
Commercial Banking: Also known as corporate banking or institutional banking, commercial banks specialize in lending products and services to corporations, institutions, and government. Generally, these banks borrow money from customers and use that as collateral for loans.
Qualification to Explore
Chartered Financial Analyst (CFA): The CFA Institute, USA, conduct the CFA program. A CFA is a wholesome financial program with an international reputation that examines a thorough knowledge of portfolio analysis and financial analysis. A well-known certification in the global financial industry, it is very highly sought after.
Certified Financial Planner (CFP): The CFP is a well-known certification in the financial planning field, recognized in 24 countries. Topics like risk management and insurance planning, estate planning, taxation and retirement planning are discussed in the personal finance class.
Financial Analysis relies heavily on financial statements/reports, which comply with international financial reporting standards (IFRS). Think of a world in which all firms have different formats for reporting. Comparing, comparing, and analyzing companies, even in the same industry, would be impossible. Our reporting standards are based on uniformity. An example of a global reporting standard is the International Financial Reporting Standards, adopted by the International Accounting Standards Board (IASB). This standard specifies how financial statements should be presented, what information gets disclosed, what should be included in states, and how interest payments, leases, taxation, and depreciation should be handled.
Chartered Institute of Management Accounting (CIMA): The Chartered Institute of Management Accountants (CIMA) is the largest management accounting professional organization in the U.K. A program known as the CIMA Professional Qualification is offered by the CIMA Organization in collaboration with AICPA. This program focuses on management accounting and the marriage of finance and accounting with strategy and decision-making. The course is, therefore, more suited to people interested in corporate careers rather than public accounting.
Financial Risk Management (FRM): Financial risks refer to a broad range of risks that could cause a company financial loss(es). In addition to interest rate and credit risks, liquidity risks and operational risks are included in businesses’ risks. This specialized type of knowledge is required for Financial Risk Management. The Financial Risk Manager (FRM) program offered by The Global Association of Risk Professionals (GARP) focuses on providing a holistic education on Financial Risk Management. Candidates seeking top positions in Financial Risk Management across firms will benefit from this program.
ACCA: The ACCA is a global professional association of accountants based in the United Kingdom. If you enroll and complete the program, you will be prepared for a global career in accounting. Like the CPA (U.S.), the ACCA focuses on international accounting standards and will help you launch a career in chartered accounting. The CPA (U.S.) is also not as cumbersome to obtain and appear for as the CPA and might therefore be a good alternative for someone interested in practising abroad or working in a global accounting setting within Nepal.
As a result, you’ll have a better understanding of what finance offers.