Finance Director Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a finance director. Feel free to use our finance director job description template to produce your own. We also provide you with information about the salary you can earn as a finance director.
Who is a Finance Director?
A finance director oversees or manages the financial activities of an organization or company. They are also responsible for developing and implementing a company’s financial strategy. This industry requires someone with a strong background in investment banking or corporate finance. They also need to have a working knowledge of corporate valuations, mergers, and other ways of raising capital for business activities such as research, development, expansion, and research.
One of the many responsibilities a finance director has is to help a company or organization define a strategy that will guide future and current financial activity. This strategy could include individual project finance, capital raising, or corporate finance responsibilities. This function includes monitoring and maintaining the performance of various financial activities. The finance director will likely work closely with the chief executive officers (CEOs) and chief financial officers (CFOs) of a company. This position may also require the preparation of financial reports for a board of directors, whether they are monthly, quarterly or annual.
Any financial director will benefit from a background in investment banking or corporate finance to be able to effectively handle the duties and responsibilities that come with this job. A corporate finance director who has experience in investment banking can help to raise funds to grow or expand a company’s business. Investment banks will underwrite any capital-raising projects. This position may require a working knowledge of corporate capital-raising techniques like bonds, stocks, and securities. Anyone in this position will benefit from previous experience with initial public offerings (IPOs) of stock or issuing bonds to raise capital.
Finance directors will also benefit from past or current experience dealing with shareholders, corporate valuations, acquisitions, and mergers. Shareholders must be informed of the current market value and liabilities of any corporate assets before capital can be raised through any of these options. The corporate finance director also has the responsibility of ensuring that a corporation maintains a high credit rating in case it needs to borrow money. This position requires excellent communication skills, the ability to communicate clearly, and the ability to determine what information should be disclosed at any given time while still adhering to all laws and regulations.
Finance Director Job Description
Below are the finance director job description examples you can use to develop your resume or write a finance director 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 finance director include the following:
- Supervising audit and tax functions.
- Implementing and developing accounting policies.
- Preparing budgets and forecasts.
- Training accountant staff.
- Reviewing departmental budgets.
- Assessing, managing, and minimizing risk.
- Analyzing complex financial data.
- Controlling internal affairs
- Preparing financial reports monthly, quarterly, and annually.
- Managing and building monthly, quarterly, or annual forecasts.
- Providing advice on private equity and venture capital fundraising strategies
- Implementing strategies to improve profitability and return on investment
- Supervising and reviewing accounting tasks including compliance and payroll.
- Assisting directors and executives in creating budgets and tracking key performance indicators.
- Monitoring the performance of your business
- Collaborating with departments and teams
- Developing financial models
- Planning for the future
- Controlling and directing finance staff to ensure they are properly motivated and trained to fulfill their responsibilities to the highest standards.
- Assisting in the achievement of the company’s objectives through financial strategy advice and guidance.
- Assisting in the preparation of financial accounts for the company to ensure they are accurate and timely.
- Taking necessary actions to ensure that the company fulfills its legal and financial obligations.
- Managing the financial reporting of the organization including monthly financial reporting, forecasting, budgeting, financial planning, and financial reports for the 5 year period.
- Providing sound financial support and insight to allow the ELT to make important business decisions
- Presenting financial results to the Board
- Participating in the development of the business’s strategic plan
- Assisting in the management and supervision of tax affairs for the organization and liaison with external tax firms to provide specialist advice
- Supervising and managing the cash flow of your company, and ensuring that it has adequate treasury control.
- Managing the relationship with the External Auditor and compliance with accounting standards
- Assisting in commercial decision-making, including tender analysis, margin analysis, and pricing analysis.
- Implementing best practices to increase revenue and decrease costs.
- Providing strategic financial advice to the ELT and advising on market changes
- Managing and tracking of budget and accounting information, including collections, billing, tax, and collection information
Qualifications
The requirements for a job as finance director depend on the industry and the size of the company.
Education
A minimum of a bachelor’s degree is required for directors of finance. Companies prefer candidates with a Master of Business Administration (MBA) or another masters-level degree that focuses on finance or economics. Relevant coursework includes accounting principles, international economics, and banking, as well as business administration and international relations.
Training
Finance directors typically need at least five years’ experience in a managerial role within the financial field.
As part of their onboarding process, finance directors often receive additional training from the company. They might learn the necessary technologies and skills, and also improve their leadership and management abilities.
Certification
Finance directors might consider pursuing a variety of certifications to demonstrate their financial acumen to potential employers and gain further knowledge to advance their careers. These certifications include:
- CFA (Chartered Financial Analyst)
The Association for Investment Management and Research offers a designation that gives recipients a solid foundation in portfolio management and investment analysis skills. To obtain the CFA certification, candidates must pass three levels of examinations and have at least two years of experience in a relevant field. Because of the amount of time it takes to obtain this certification, it is a highly respected designation in the finance industry.
- Certified Treasury Professional (CTP).
This designation is offered by the Association for Financial Professionals to validate your cash and treasury management experience. This course covers topics such as revenue collection, obligation payment, and cash processing.
Candidates must pass an exam, have relevant work experience, and must be able to pass a written test to obtain this designation. The CTP designation lasts for three years. To regain their certification, holders of the CTP designation must complete 36 hours worth of continuing education credits.
- Certified Public Accountant (CPA).
Accounting professionals can also obtain the CPA designation, which demonstrates their commitment to the protection of public interest. CPAs can offer financial reporting, tax, and advisory services to organizations that help them make strategic decisions and promote long-term financial growth. Candidates must complete 150 hours of post-secondary education and pass a four-part exam. They also need to have relevant work experience. To maintain their certification, individuals who hold this designation need to take continuing education courses.
Essential Skills
- Analytical and strategic skills
Accounting software and programs have made it possible for accountants and finance professionals to focus more on data analysis and financial analysis to help clients or their businesses grow. This includes strategic decision-making, budgeting, and making the right investments regarding their financial activity.
CFAs (chartered financial analysts) are required to be creative in their approach to problem-solving and seek out innovative solutions in a constantly changing environment. Financial directors must have the ability to analyze and understand the numbers.
Forecasting, financial reporting, market analysis, and financial reporting are all examples of roles that require advanced analytical skills.
- Tech-savvy
The financial services industry has seen a significant shift in technology. Not only for financial directors but also for their clients, who can now access their income statements, financial statements, and balance sheets via new accounting software. Cloud accounting software makes data accessible on multiple platforms, so most work has been moved to it.
There are many programs available, including Hyperion, Oracle, and Xero. It is important to be proficient in all of them while keeping up-to-date on any new trends and technologies.
- Honesty, integrity, and strong values
Finance directors must adhere to strict compliance and legal guidelines to ensure that their clients’ activities comply with the law. In an industry that values transparency and integrity, finance directors who are honest and have strong ethics will be highly valued.
- Strong communication skills
Strong communication skills are essential for any finance director, whether they are working for a particular client or in corporate finance. They must have strong relationships with other departments to thrive in a corporate environment. They must also communicate with board members and executives to make the best financial decisions for the company.
- Leadership skills
Finance directors at higher levels will most likely be required to manage a team of accountants. As finance officers progress in their careers, it is important to think about how they will lead and improve their managerial skills.
Individuals at all levels of seniority have the chance to collaborate and lead within a team as more companies adopt flatter organizational structures.
- Industry-specific knowledge
If they have a solid understanding of the sector they are working in, financial directors who work for clients in certain industries such as healthcare, travel, business administration, or insurance can bring a lot to the table.
It is important to have a solid grasp of accounting and finance. However, it is also possible to go the extra mile and get the job done.
- Time management skills
These are the skills that allow you to prioritize and balance projects so that you can complete your work on time while still maintaining a work-life harmony. Finance directors spend a lot of time multitasking. They need to be able to prioritize tasks and delegate when necessary.
- Problem-solving and critical thinking skills
These skills are the ability to apply knowledge, facts, and reasoning to solve problems. Finance directors must be able to think critically and react appropriately to complex financial issues, which can often occur in stressful and fast-paced environments.
- Mathematical skills
This skill can be used to analyze numbers and perform calculations. Finance directors oversee all aspects of a company’s financial health and therefore require exceptional skills.
How to Become a Finance Director
- Earn a degree
A bachelor’s degree is required for directors of finance. Candidates with an MBA or master’s degree in finance or accounting are preferred by many companies. The recommended coursework covers areas such as accounting, statistics, finance, and economics.
- Get experience
Do an internship while in college in the industry you are interested. Internships can help you get the experience necessary to become a finance director. To build your professional portfolio, you can then start working in accounting, finance, or another related field. Companies prefer candidates who have at least 10 years experience in finance or accounting, with five years in management.
- Learn how to use ERP software
Technology has revolutionized the way people work. Enterprise Resource Planning (ERP software) is connecting everything.
ERP allows purchase orders and invoices to be entered into the financial processing system. The system will then display the information for the finance department to process.
All information is available at the touch of a button. You’ll be able to see the causes of delays and how you can increase efficiency.
- Improve your people skills
A finance director will work with many people and teams of different backgrounds. Talking to people is key to bringing people together and resolving conflict. This means that you must learn how to be a good communicator, listener, and leader.
It’s not enough to crunch numbers. You need to be more social to build stronger teams.
Get out and meet people by joining professional groups.
- Learn from your peers
There are many ways to learn from your peers – including attending FD events and online forums, as well as co-mentoring programs.
Learn about their strengths and weaknesses.
You can share your knowledge with them, and they might be able to share theirs. You will become a better leader by sharing your knowledge.
- Keep up-to-date on the needs of your stakeholders
You will be able to gain an advantage by understanding the priorities of your stakeholders. This will allow you to access more funding and make a bigger impact.
- Open to changes
Strategic roles, as we have discussed before are more about analysis and not number crunching.
Technology and changing business needs are driving the role of finance directors to change. While accounting experience is important for all purposes, analysis is more important than ever.
Certifications are not necessary, but certifications can help you demonstrate your skills and make you stand out to hiring managers.
Where to Work
Finance directors work full-time in an office environment. They work over 40 hours per week and are paid every month. These positions often require frequent travel.
Finance Director Salary Scale
Finance directors are usually salaried, full-time employees. The salary of directors of finance varies depending on their education level, work experience, geographic location, company size, and industry. Additional compensation may be offered to finance directors in the form of bonuses or profit-sharing.
The average salary of a finance director in the United States is $111,387 annually.