Head of Finance Job Description, Skills, and Salary
Are you searching for a head of finance job description? Get to know about the duties, responsibilities, qualifications, and skills requirements of a head of finance. Feel free to use our head of finance job description template to produce your own head of finance job description. We also provide you with information about the salary you can earn as a head of finance.
Who is the Head of Finance?
The Head of finance is in charge of an organization’s financial operations. Finance department leaders plan budgets, manage risks, and estimate financial results.
The highest-ranking employee in a company’s financial department is the head of finance. In addition to leading their staff and establishing strategy, they are in charge of managing every area of the division.
Typically, the CEO or another senior executive in the company receives direct reports from the head of finance. They are responsible for ensuring that the business has the necessary financial resources to realize its objectives. This can entail creating fresh plans to raise money or lower expenses, putting fresh processes or practices in place, etc.
The person in charge of the organization’s or company’s financial health is the head of finance. They are often referred to as chief financial officers or financial managers. As the head of finance, the person is responsible for a variety of tasks, such as preparing financial statements and business activity reports, checking financial information to make sure regulations are followed, assisting management with financial decisions, and managing staff who handle budgets and financial reports.
The head of finance analyzes data extensively and uses the findings to advise top managers on how to improve profitability. They also look at market trends to determine how to expand, increase revenue, and cut costs. Additionally, they might assist and counsel senior executives. Being profitable is the chief financial officer’s responsibility, making this job extremely crucial.
Head of Finance Job Description
What is a head of finance job description? A head of finance job description is simply a list of duties and responsibilities of a head of finance in an organization. Below are the head of finance job description examples you can use to develop your resume or write a head of finance 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 head of finance include the following;
- Project results for each month, quarter, and year.
- Accept or reject the budget.
- Manage risks.
- Assess and select investments.
- Oversee a group of accountants.
- Distribute resources and control cash flow.
- Perform cost-benefit evaluations.
- Create secure methods to protect sensitive data.
- Ensure that all internal audits and accounting activities adhere to financial regulations.
- Consult the board about available funding sources.
- Offer cost-cutting suggestions
- Preserve current policies and processes while also developing and implementing new ones.
- Keep an eye on cash flow, predict future cash flow requirements, and make adjustments as necessary.
- Ensure that all criteria for financial reporting, such as tax filings and regulatory compliance, are met.
- Take care of accounting tasks including maintaining the general ledger and managing payroll accounts payable, and accounts receivable
- Make a budget and collaborate with managers to see that it is met.
- Provide the organization with financial planning services, such as establishing capital budgets or cash flow projections.
- Maintain existing procedures and policies while simultaneously creating and implementing new ones.
- Make sure that all needs for financial reporting, such as tax filings and regulatory compliance, are met by monitoring cash flow, forecasting future cash flow requirements, and making adjustments as necessary.
- Provide the organization with financial planning services, such as creating capital budgets or cash flow estimates, and working with managers to ensure that it is met.
- Budget approval or rejection.
- Suggest cost-effective fixes
- Consult with the company’s leaders and important stakeholders regarding different funding possibilities.
- Ensure that all accounting and internal auditing procedures adhere to financial regulations.
- Carry out analysis of gains and losses.
- Manage cash flows and allocate resources.
- Direct and observe the accountants’ team.
- Assess and select investments.
- Create important financial models
- Plan for the money needed for various tasks.
- Observe all corporate rules and audits.
- Establish corporate spending plans for a fiscal year.
- Establish corporate guidelines for sound financial management
- Control the company’s cash flow.
- Make wise investment choices to expand a business’s portfolio.
- Prepare and summarize complicated models in straightforward language so that others can use them.
- Use business software, track the performance of investments and produce reports.
- Investigate patterns to reduce the costs associated with saving or spending money.
Qualifications
- A bachelor’s degree in accounting, finance, or a similar subject.
- A track record of accomplishment in a similar or head of finance job.
- Solid accounting and financial management knowledge.
- Familiarity with accounting software.
- Strong decision-making and analytical skills.
- Strong leadership abilities.
Essential Skills
- Analysis Capabilities: Financial choices for the organization must be made by finance directors who can effectively examine data. Strong analytical abilities are needed for this, including the capacity to decipher financial accounts, gauge risk, and evaluate investment prospects. Analytical abilities are also used by heads of finance in the planning of budgets, tracking of cash flow, and assessment of staff performance.
- LBO: LBO refers to the procedure of lending money to a business. A Head of finance that is proficient in LBOs can assist businesses in raising financing and strengthening their financial situation. Assessing risks, negotiating contracts, and controlling cash flow are all part of this process. A Head of Finance with strong LBO abilities may be able to secure better loan conditions or identify other sources of capital.
- Financial modeling: The capacity to produce financial models and visual representations of a company’s finances is known as financial modeling. These models are frequently used by finance directors to forecast how future profits and losses may be affected by changes in business operations. For instance, the head of finance can create a model that illustrates the implications of the investment over time to determine the potential impact of an investment in new equipment on revenue.
- Organization: To keep track of all the financial data for their organization, the head of finance needs to be organized. This includes being aware of the location of crucial documents, their due dates, and the amount of money coming into or leaving the business at any one time. The Head of finance can make wise decisions about investments and other business dealings that have an impact on a company’s finances by being well-organized.
- Investment banking: The process of generating capital for businesses through debt and equity is known as investment banking, and finance directors frequently come from this field. With this ability, finance directors may assist their firms in obtaining funds for growth or expansion. When assessing potential investments for the company, they also draw on their expertise in investment banking.
- M&A: Head of finance frequently manages mergers and acquisitions, which calls for expertise in accounting and finance. Additionally, the head of finance uses their negotiating abilities to assist the business in closing deals that are advantageous to all parties. Additionally, they assess potential hazards related to mergers and acquisitions and create plans to reduce such risks.
- IRR: A financial indicator used to assess an investment’s profitability is the internal rate of return. The Head of finance assesses possible investments to identify which ones would yield the greatest returns for the business using their knowledge. They utilize this ability when haggling with lenders since they have to be able to articulate why one loan choice is preferable to another.
- Analyzing finances: Head of Finance frequently has to assess a company’s financial performance and offer suggestions for improvement. Strong financial abilities are required for this, particularly financial, and include which include looking at historical data to forecast future patterns. In addition to assessing budgets, choosing investments, and determining the success of projects, finance utilizes analytic abilities in these other contexts.
- Making Decisions: Financially important choices are frequently made by the head of finance. For instance, individuals might choose whether to invest in new technology, or they might consent to loans and other types of finance. Strong decision-making abilities can aid finance directors in selecting wisely how to allocate their company’s resources. Additionally, the head of finance must be able to defend any significant judgments they make.
- Strategic Analysis: Head of Finance frequently has to make strategic choices regarding whether the organization can accomplish its objectives. Thinking strategically entails assessing the long-term repercussions of your decisions and determining whether they are consistent with the organization’s objectives. Strategically minded finance directors can sub-organizations expansion and success.
- Communication: Since the head of finance frequently interact with a range of departments and people, effective communication skills are crucial. The Head of Finance must be able to convey complicated concepts to executives and personnel in other departments in a straightforward manner. When they meet with clients or investors, they further employ their communication abilities.
- Leadership: Leaders of teams of finance experts, including accountants and other financial analysts, are frequently required. A head of finance with strong leadership qualities can help their team members receive direction and advice while also pen-doing an open-door policy that encourages staff to come to them with questions or concerns. Contract negotiations may also be necessary for the head of finance, necessitating good negotiating abilities.
- Forecasting and Budgeting: For their organizations, heads of finance are in charge of developing and managing budgets. They also employ forecasting abilities to foresee future monetary requirements, such as forthcoming costs or revenue sources. Budgets that are organizational strategic goals are frequently created by finance directors in collaboration with other finance experts.
- Enterprise Evaluation: Assessing the worth of a company’s assets and liabilities is a common task for finance directors. This entails figuring out how much money a company has, what it owes, and how much its tangible assets are worth. The Head of Finance establishes budgets, engages in negotiations, and makes other financial decisions using their valuation skills.
- NPV: The company’s financial health is the head of finance responsibility, they must have a thorough understanding of how to assess investment opportunities and make wise judgments. Heads of finance with good NPV abilities can support their businesses’ growth by making profitable investments. They also consider NPV while assessing potential risks and selecting which contracts to accept or reject.
How to Become a Head of Finance
- Obtain a degree: A degree is not always required for employment as a head of finance, however many candidates for this post hold at least a bachelor’s degree. programs or doctoral programs is one of the further graduate degrees that the head of finance may complete. Here are some degrees that might be relevant.
- Accounting: Since many finance directors begin their careers as professional accountants, getting an accounting degree can be a good way to get started down this career path. Standard accounting procedures, financial decision-making, and tax legislation are frequently included in courses for accounting degrees.
- Another popular choice for finance directors is a degree in programs; these degree programs typically offer courses in economics, risk management, data analytics, and capital allocation.
- Obtain a certification: An appropriate financial certification can help you advance your professional expertise, even though there are no formal certification requirements to operate as a director of finance. Here are a few credentials that could aid your career as a director of finance:
- Certified Public Accountant: For accounting graduates, becoming a CPA is a typical next step. Earning a CPA accreditation is a good way to advance your career because it entitles you to execute a variety of intricate financial tasks in the workplace.
With this qualification, you may demonstrate your expertise in areas including account administration, revenue collection, and cash processing. You can gain additional knowledge of the duties of the role by earning it.
- Chartered Financial Analyst: Learning intricate financial concepts might be facilitated by becoming a chartered financial analyst. Earning this credential might help you carry out more typical duties of a head of finance because it also includes training on portfolio management and investment abilities.
- Acquire work experience: In a normal company structure, heads of finance have high-level positions that can call for at least five to ten years of prior work experience. Consider applying for several entry-level roles in a company’s finance department if you want to work your way up to the position of finance director. Your chances of being a successful future leader can rise by becoming familiar with how various functions within a financial department function.
- Display your worth: Even if you might locate a business that wants to hire you as a head of finance, it might be simpler to advance at your current job. You can improve your chances of being promoted to a managing role by demonstrating to your team how valuable you are as a financial professional. Meeting with company officials can be useful for learning more about the measures you need to follow to get this promotion.
Where to Work as a Head of Finance
- Financial Institutions
- Private companies
- Government Establishments
- NGOs
Head of Finance Salary Scale
In the UK, the average head of finance salary is £32.05 per hour, or £62,500 annually. Most experienced workers earn up to £82,500 per year, while entry-level occupations start at £50,009 annually.
In Canada, the average compensation for a head of finance is $107,918 per year or $55.34 per hour. Beginning salaries for entry-level occupations are $89,805, while those with the most experience can earn up to $145,000 annually.
In Australia, the average head of finance compensation is $186, per hour. Entry-level salaries begin at $165,000 annually, while the majority of experienced workers can earn up to $222,002 annually.
In Ireland, the average head of finance salary is € 80 000 annually or € 41.03 per hour. The starting salary for entry-level jobs is €66 774, while the average yearly salary for experienced workers is €100,000.
