Finance Officer Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of a finance officer. Feel free to use our job description template to produce your own. We also provide you with information about the salary you can earn as a finance officer.
Who is a Finance Officer?
The finance department is arguably the backbone and powerhouse of all businesses and firms. Every transaction, project, intervention, or activity needs finances to run smoothly. Also, human personnel and capital operation need adequate financial resources to function properly. Moreover, the company’s income, profit, and revenue must be controlled by highly-skilled, technical, and qualified individuals. Someone should explain to the management when the company suffers financial losses as well. Some professionals are trained, educated, and experienced to handle the finances of organizations; they are referred to as finance or financial officers. A finance officer is in charge of overseeing and reviewing the financial transactions of an enterprise. The scope of activities of finance officers includes developing budgets, monitoring transactions, and preparing financial reports. Financial reports can be prepared weekly, monthly, quarterly, or annually based on the company.
Being astute professionals with strong accounting and analytical abilities, the finance officers keep track of the firm’s income and control its spending. In some ventures, the finance officers’ tasks encompass reviewing paperwork, procedures, and analysis of financial data. They are typically based in office environments and work weekly hours (Monday to Friday). However, a finance officer might be required to work overtime during peak periods or exceptional situations such as the end of the financial year. Though the finance officer primarily handles the flow or not of income into the enterprise, they also manage financial risks, keep records, and supervise the financial department of the company. They report directly to the chief financial officer, chief executive officer, and other management staff; in some companies, the finance officer might have a seat on the board. While acting as the chief financial spokesperson for the firm, the finance officer directly assists the management team on all business-related matters including cost-benefit analysis, budget management, forecasting needs, and securing of new funding.
The financial officer provides administrative and financial support to customers, stakeholders, and coworkers. If you want to move up the financial corporate ladder, then this position should attract and interest you. Relatively, the role of a finance officer should appeal to you if you harbor or nurture the dream of becoming a chief financial officer one day. Without a doubt, a finance officer must be focused on outcomes, be able to use financial tools and software, and must have the expertise to interact with several units or departments internally. Furthermore, businesses and organizations set financial and budget goals at the start of the business year; the finance officers ensure that such budget goals and set revenue for the year are achieved. Using their vast knowledge of tax regulations and accounting, the finance officers make sure that the company is 100% compliant. Finance officers working in hospitals, schools, and government agencies ensure that taxpayer money is spent judiciously and efficiently. In contrast, finance officers in large corporations assist the chief financial officer to make strategic decisions. Some predictions suggest that the demand for finance officers globally will increase by a staggering 19% in the next few years.
The finance officer must have first-hand knowledge of the company’s products, processes, and services to succeed in the role. This will enable them to manage the records, receipts, and reconcile the daily, monthly, and yearly transactions of the organization. When financial disputes and complaints are raised by the sales team and customer service units of the firm, the financial officer resolves them. The finance officer is the first port of call for other departments concerning accounting and financial matters. Undoubtedly, the finance officer needs to have an excellent work ethic and be a good team player. The finance officer is responsible for supervising the organization’s spending, including investment and cash management. They perform internal audits and make sure that all financial statements comply with Federal, State, and local regulations. An important aspect of the responsibilities of a finance officer entails meeting tight deadlines; they must be willing and ready to attend to emergency and urgent financial needs of the company when necessary. Perhaps, this explains the close working relationship between finance officers, chief financial officers, and chief executive officers in most organizations. A business, economics, finance, accounting, or mathematics major can help you in your journey to becoming a finance officer.
Finance Officer Job Description
Below are the finance officer job description examples you can use to develop your resume or write a finance officer job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
A job description is the number of different tasks required in a job and the frequency with which those tasks are repeated. In other words, a job description refers to the number of several tasks and different cycles within a job for a specific period. Additionally, the job description is the entire area with which the job includes or deals. Job descriptions are used for several reasons; they are a tool for recruiting, determining salary ranges and levels, or grades. Also, they can be used to establish job titles, create employee’s job goals and objectives, and conduct performance reviews.
Directing the use of a company’s financial resources and ensuring compliance with financial regulations involves many tasks and responsibilities. The financial officer job description was analyzed to put together the following list of the most relevant finance officer duties and responsibilities thus;
- Creating and implementing financial policies to ensure operational efficiency.
- Maintaining records and receipts for all day-to-day transactions.
- Overseeing the preparation, organization, and planning of budgets.
- Contributing to financial audits internally.
- Preparing and producing invoices, income statements, expenses reports, and balance sheets.
- Monitoring of all bank payments including deposits.
- Ensuring that financial records are updated with the latest changes and transactions.
- Performing periodic financial analysis to detect and resolve problems.
- Ensuring that the general and subsidiary ledgers are maintained.
- Following investments and sustaining relevant cash reserves.
- Ensure all expenses and spending are within the confines of the assigned project budget.
- Perform periodic financial analysis to identify and resolve gaps, variances, and related issues.
- Ensure data integrity in all financial reports.
- Update and record financial transactions properly and on time.
- Ensure account payables and receivables activities are performed accurately, timely, and well documented.
- Oversee and supervise the drafting or writing of financial proposals.
- Analyze finances, report to the chief financial officer, and perform other managerial tasks.
- Resolve and identify issues arising from invoicing, account discrepancies, and other financial-related maladies.
- Review the financial procedure and paperwork and make necessary changes appropriately.
- Update internal system with relevant and accurate financial data.
- Prepare daily, weekly, monthly, quarterly, and annual financial reports.
- Reconcile daily, monthly, and yearly financial transactions.
- Develop in-depth knowledge of the company’s processes, services, and products.
- Provide excellent customer service to clients.
- Resolve financial disputes raised by the customer service and sales team.
- Support the chief financial officer and management with projects and tasks when needed.
- Be a key port of call for other units on accounting and financial matters.
Other related duties of the finance officer are;
Participate in budget strategy meetings: A finance officer should be willing to participate in regular budget and growth strategy meetings with the chief financial officer and other types of financial managers. This is to help prioritize certain tasks daily.
Generate revenue growth ideas: Revenue growth is the target of every business venture; hence, the need for finance officers. An important duty and responsibility of finance officers are to determine and develop ways to make the organization generate more funds. This necessitates an understanding of the organization’s unique value proposition, offerings, and current market trends.
Analyze investment opportunities: Many corporations have an investment in stocks and bonds as part of their revenue growth strategy. Therefore, the finance officer has to ensure the organization’s investment capital is spent to maximize profit.
Ensure compliance with all financial laws and regulations: Finance officers anywhere in the world should be experts in all of the regulations set forth by regulatory bodies. A financial officer must use this expertise to ensure their organization avoids the steep fines associated with non-compliance.
Oversee merger and acquisition proceedings: Finally, finance officers must oversee all merger and acquisition proceedings under the direction of the chief financial officer. This includes constantly prospecting for merger and acquisition opportunities, presenting the idea of a merger or acquisition, building rapport with decision-makers, and negotiating the terms.
Qualifications
The qualifications for the role of a financial officer are;
- Education: The position of a finance officer is well suited to individuals with university degrees. The most relevant fields of study for the role of a finance officer are finance or economics, accounting, business or business administration, and mathematics. However, a college diploma in a related field is accepted by some employers. The coursework in the bachelor’s degree covers the principles of accounting, business organization, economics, and financial technology. Relatively, a master’s of business administration and a concentration in finance is an added advantage.
- Experience: The ideal candidate should have a minimum of 5 years of experience in a similar role and must have in-depth knowledge of financial regulations and accounting practice. However, relevant experience in the financial and accounting field is generally the most important of all.
- The ability to use MS Excel and knowledge of financial regulations and laws is desirable.
- Knowledge and training in SAP, QuickBooks, Tableau, Xero Accounting Software, and HP TRIM can suffice.
- Professional certification and qualification as a CFA or CPA are considered a plus.
Essential Skills
Preparing for a career as a finance officer requires the possession of certain industry-related and soft skills. These hard and soft skills are used by finance officers to get their work done. It is important to note that although each position or profession has its skill requirement, several skills cut across all experience levels, positions, or organizations. Thus, the following are the essential skills for finance officers;
Persuasiveness: Since the finance officer participates in budget strategy meetings and oversees merger and acquisition proceedings, being persuasive is paramount. The finance officer might need to persuade coworkers, the chief financial officer, and other management staff to accept useful financial strategies, revenue generation procedures, or budgeting tactics that they feel can benefit the organization. Also, the finance officer might need to persuade investors and clients to accept mergers or acquire shares as the case might be. All these will require the finance officer to provide factual and realistic evidence to support their claims. The financial world requires the financial officer to be evidence-based.
Detail-oriented: Being detail-oriented is an important skill for a finance officer since the work involves analyzing, entering, and calculation of data. The finance officer needs to identify discrepancies in the company’s finances as well as mistakes made in accounting calculations. By being detail-oriented, the financial officer can help the organization to maintain its financial accuracy.
Financial planning skills: This is an industry-based skill that implies the knowledge of financial planning for an organization. Financial planning skills enable the finance officer to create a comprehensive plan for short and long-term organizational growth. Similarly, it enables the finance officer to devise a detailed plan on how to achieve or maintain financial stability.
Risk analysis skills: Risk analysis skills allow the finance officer to analyze a company’s financial documents and figure out potential risk factors to a company’s finances.
Cash flow management skills: The finance officer should possess good cash flow management skills. These skills enable the finance officer to monitor the amount of cash that an organization has at a particular time. In relation, cash flow management skills help the finance officer to project the amount of cash that will be available to the firm in the future.
How to Become a Finance Officer
The path to gaining employment as a finance officer involves education and training, experience, skills, and certification. Tips on how to become a finance officer are enumerated below;
- Enroll for and complete a bachelor’s degree preferably in finance, accounting, economics, or business administration.
- Where obtaining a degree isn’t feasible, earn a college diploma in any finance-related field.
- Whilst in school, try and get related experience through industrial training for example.
- After graduation, look for an internship in any financial institution to enhance your experience.
- Look for mentorship opportunities and learn more about the role.
- Apply for an entry-level position and move up the ladder gradually.
- Obtain professional certification to place you above your competitors.
Where to Work
Different types of organizations and employers hire finance officers to handle, maintain, and improve their finances. These include large companies, government agencies, educational facilities and institutions, and hospitals. Other employers of finance officers are manufacturing enterprises, technical service providers, scientific institutes, finance and insurance companies, and research institutes.
Finance Officer Salary Scale
The national average salary estimate for finance officers in the United States is 61,874USD with the highest and lowest salary placed at 100,00USD and 50,000USD respectively. The salary is determined by some factors including soft and technical skills, years of experience, and the scale of responsibilities in the company. The hourly and monthly breakdown of a finance officer’s salary is 32.00USD and 5,120USD.
Finance officers in Great Britain work for 37 to 39 hours per week and earn between 19,500GBP to 34,000GBP annually.