Director of Finance Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a director of finance. Feel free to use our director of finance job description template to produce your own. We also provide you with information about the salary you can earn as a director of finance.
Who is a Director of Finance?
Directors of finance are senior executive team members who oversee all facets of a business’s financial health and long-term growth. They develop and maintain a business’s financial strategy for profit maximization and supervise finance and accounting operations.
A director of finance typically supervises or manages a team of financial experts who manage a company’s or organization’s financial activities. A director of finance, typically reporting to or working under the CEO, may define and develop a company’s financial strategy and performance. Individuals working in this industry may have a strong background in corporate finance or investment banking and a working knowledge of corporate valuation, mergers and acquisitions, and other capital-raising techniques used for business activities such as research, development, and expansion.
Among a director of finance’s numerous responsibilities is assisting a company or organization in clearly defining a strategy for current and future financial activity. This strategy may include project financing on an individual basis, capital raising, and corporate finance responsibilities. This function also includes the maintenance and monitoring of these various financial activities. A director of finance will almost certainly collaborate closely with a company’s chief executive officer (CEO) or chief financial officer (CFO). This position may also require the analysis and preparation of monthly, quarterly, and annual financial reports for a board of directors.
Any director of finance with a background in corporate finance or investment banking will find it easier to successfully manage the duties and responsibilities of this position. Since investment banks will be underwriting any capital-raising projects, a director of finance with investment banking experience will be in a unique position to assist in raising funds to expand or grow certain aspects of a business. Working knowledge of corporate capital raising techniques such as stocks, bonds, and securities may also be required for this position. Anyone in this position who has prior experience with initial public offerings (IPOs) of stock or issuing bonds to raise capital has an advantage.
Most directors of finance will benefit from prior experience dealing with shareholders, corporate valuation, acquisitions, and mergers. Before any of these methods can be used to raise capital for a corporation, shareholders must be assured of the corporation’s current market value of any assets or liabilities. A director of finance is also responsible for ensuring that a business takes the necessary steps to maintain an excellent credit rating if the need to borrow money arises. Excellent communication skills and the ability to determine what information to disclose at what time while adhering to all applicable laws and regulations are required in this position.
Director of Finance Job Description
Below are the director of finance job description examples you can use to develop your resume or write a job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of a director of finance include the following:
- Supervising the company’s financial operations
- Managing accounting personnel and providing ongoing training
- Budgeting per the requirements of individual company departments
- Allocating capital funds for capital projects and collaborating with the Director of Facilities to ensure they remain financially viable
- Developing the company’s annual financial plans and projections
- Analyzing the financial implications of business initiatives
- Supervising the company’s financial strategic planning by assessing its performance and potential risks.
- Conducting routine financial analysis.
- Creating budgets that adhere to the requirements of the company’s various departments.
- Managing all accounting and finance employees, including management accountants and internal auditors, by setting goals and managing them.
- Ensuring that all auditing and internal control processes are carried out properly.
- Preparing detailed financial reports on the company’s performance.
- Ascertaining compliance with applicable financial laws and regulations.
- Recognizing patterns in the company’s spending and revenue and making recommendations for resolving any issues.
- Assisting the company in liaising with external financial institutions.
Qualifications
Education
Directors of finance must possess a bachelor’s degree in accounting, finance, or a closely related field. Numerous employers prefer candidates with a Master of Business Administration (MBA) or another master’s degree with a finance or economics concentration. Accounting, economic principles, international economics, money and banking, business administration, and international relations are all relevant courses.
Training
Directors of finance frequently need at least five years of experience in a management position within the finance industry. Numerous individuals have worked as accountants or financial analysts.
Additionally, directors of finance frequently receive additional company training as part of their onboarding process. They may acquire necessary systems and technologies while honing their management and leadership skills.
Certifications
There are several certification programs available to directors of finance who wish to demonstrate their skills and qualifications to current and prospective employers, expand their knowledge base, and advance their careers. Popular certifications include the following:
- Chartered Financial Analyst (CFA)
The Association for Investment Management and Research (AIMR) offers a designation that demonstrates an individual’s proficiency in portfolio management and investment analysis. To earn the CFA designation, candidates must pass three different levels of examinations, have a minimum of two years of relevant experience, and join the CFA Institute. This is a global certification that is one of the most highly respected in the finance industry due to the time commitment required to earn it.
- Certified Treasury Specialist (CTP)
This designation is offered by the Association for Financial Professionals to validate your experience in cash and treasury management. It discusses topics such as revenue collection, obligation payment, cash management, account management, transaction monitoring, forecasting and monitoring cash flow, and financial statement analysis. To earn this designation, candidates must pass an examination and meet certain educational and work experience requirements. CTP certification is valid for three years. Certification holders must earn 36 hours of continuing education credits and pay a fee to renew their certification every three years.
- Certified Public Accountant (CPA)
The CPA designation binds accounting professionals to a code of ethics that includes a commitment to public interest protection. CPAs can assist organizations in making strategic decisions and fostering long-term financial growth and success by providing tax, financial reporting, and advisory services. Candidates for the CPA designation must have completed at least 150 hours of post-secondary education, passed a rigorous four-part exam, and demonstrated relevant work experience. Individuals who hold this designation must also maintain their certification through continuing education courses.
Essential Skills
Directors of finance require a blend of hard and soft skills to be successful in their roles. Several of the most frequently required skills for a director of finance position include the following:
- Communication skills
These include the ability to communicate verbally and non-verbally through active listening, observation, speaking, and empathizing. Directors of finance must possess superior verbal, nonverbal, and written communication skills to foster positive relationships with their team, communicate and collaborate with internal departments and other C-level executives, and communicate complex financial information in an understandable manner.
- Time management skills
These terms refer to the ability to balance and prioritize projects in such a way that your work is completed on time while also maintaining a work-life balance. Directors of finances spend the majority of their day multitasking and must prioritize responsibilities and delegate tasks as needed.
- Computer proficiency
Computer literacy is a composite of keyboarding, operating system, and software knowledge. Directors of finances must have strong computer skills, as their job duties include typing, using Microsoft Office and QuickBooks, as well as industry- and company-specific software.
- Ability to think critically and solve problems
These abilities refer to an individual’s capacity to solve problems through the application of knowledge, facts, data, and reasoning. The Director of finances must be able to think critically and act appropriately when confronted with complex financial issues, frequently in fast-paced and stressful environments.
- Analytical skills
These critical abilities include the ability to analyze data and think logically to deconstruct complex problems into their constituent parts and devise strategic solutions.
- Mathematics abilities
In the workplace, mathematical abilities refer to the ability to analyze numbers and perform calculations. The Director of Finance is responsible for all aspects of a business’s financial health and thus requires exceptional abilities in this area.
How to Become a Director of Finance
- Become a Certified Public Accountant
The first step in your career is to become a certified public accountant. There are several paths you can take to earn your credentials. It’s not all about academic work; being a director of finance requires a unique set of skills. You want to hone your teamwork and leadership skills by interacting with financial industry colleagues at all levels.
While pursuing your qualification, you should seek out a variety of work experiences in the sector to get a sense of what to expect. If you are accepted into an internship program, you will frequently be offered a part-time or full-time position within the organization.
- Develop Effective Communication Skills
Working in finance requires a high level of engagement and negotiation, whether with clients or coworkers. You’ll spend your days meeting new people both online and in person. Your communication skills are critical for building a network of people who can assist you in climbing the career ladder. Communication entails more than simply speaking with another person face to face. You want to maintain as much contact as possible with your colleagues and clients, whether via email or in person.
As a director of finance, you’ll need to understand how to manage expectations and solve problems. When you work in the financial sector, no two days are the same, and you want to be prepared for anything that may occur. You must be able to listen to and understand your clients’ concerns and demonstrate empathy toward them, especially in difficult situations. Likewise, you want to be able to communicate your ideas and expertise. You may not always deliver the most favorable news to a client, and you must be prepared to handle these situations appropriately.
- Take Command of Your Excel Documents
When you work in the financial industry, you will spend the majority of your time working with Excel documents. This software is the foundation for everything you will use daily in your job, from your first day in a financial organization to the end of your career in the industry. You should feel confident in your ability to use every feature of Excel to create and maintain spreadsheets and presentations. Additionally, you may wish to consider a CDFO to assist with your digital transformation.
If you’re unfamiliar with Excel, it’s worthwhile to invest in a few training courses to become more knowledgeable about the program’s tips and tricks. Additionally, it’s worthwhile to be willing to experiment with new programs and software as they gain popularity within the industry. With the rate at which technology advances, you want to ensure that you are always aware of and capable of using the most up-to-date software.
- Locate A Mentor
The most effective way to begin your journey toward becoming a successful director of finance is to seek out industry mentors. It’s never too early to consider career advancement, and there is always someone out there who can serve as a mentor. There are always dozens of networking events, both offline and online, where you can meet a mentor. There are always senior leaders willing to assist the next generation.
Do not be afraid to look for a mentor or support network within your organization. Certain financial institutions offer tailored mentorship programs in which they pair you with a partner or senior executive to assist you in achieving your career goals.
- Maintain Current Knowledge
Financial services are one of the most rapidly evolving sectors of the professional world. While you should continue to work in the present, you should keep one eye on the future to see what is approaching. Maintaining current knowledge of industry developments is critical for anyone seeking a leadership position.
A director of finance is a strategic position, and you must be willing to evolve with the industry and continually improve your skillset. It’s a good idea to carve out time from your regular job to work on your professional development. You should attend conferences and networking events throughout the year, especially if your specialty is in a niche within your industry. You can stay informed while also building your profile within the industry. The ICAEW offers worthwhile professional development courses.
Never be afraid to specialize or become an expert in a particular area of the industry. Selecting a niche to specialize in can assist you in carving out a niche for yourself within the industry and navigating your way to becoming a director of finance.
If you believe your career is ready for the next level, contact the team at FD Capital; we recruit a full-time director of finance positions regularly and may be able to place you.
Where to Work as a Director of Finance
Directors of finance typically work full-time in an office setting. They typically work standard business hours Monday through Friday but may be required to work weekends and evenings depending on their business’s needs. The majority of directors of finances are salaried employees, and many work above 40 hours per week.
Director of Finance Salary Scale
The average salary directors of finance earn in the United States is $111,387 per year.