The Director of Finance oversees the financial operations and planning for a company or a department within a large company and manages the company’s overall financial health. They are responsible for financial reports, providing direction for investments, and developing plans to achieve the company’s or organization’s long-term financial goals.
Education and Qualifications
A finance director typically needs a bachelor’s degree in business, economics, finance, accounting, or related fields. Though this is not mandatory, many organizations prefer an MBA or master’s degree in finance.
Though it is not required, Certified Public Accountant (CPA) Certifications and Chartered Financial Analyst (CFA) Certifications are recommended.
Responsibilities and a Day in the Life
Typically, this role requires 8 hours a day, 5 days a week. But like any other senior management role, the finance director is responsible for the company/department’s overall financial health; so, occasionally, they might work extended hours when a deadline such as the end of a month, quarter, or year is approaching.
Though the daily responsibilities may vary based on many factors; some of the common ones include the following:
- Leading financial planning and analysis of the company or department.
- Overseeing the financial strategic planning of the company by evaluating its performance and potential risks.
- Building and managing forecasts.
- Performing regular financial analysis.
- Working with the executives and managers to create budgets.
- Managing company cash flow.
- Overseeing and reviewing accounting tasks, including payroll, taxes, and compliance.
- Preparing monthly, quarterly, and annual financial reports.
- Developing strategies to increase return on investment and profitability.
- Supervising all audit and internal control processes.
- Ensuring compliance with financial laws and guidelines.
- Presenting detailed financial reports to executives and other stakeholders.
- Advising upper management for long-term growth.
- Analyzing trends to reduce financial risks associated with new investments or spending decisions
- Hiring, training, and managing finance and accounting department team members
- Staying current on market trends and developments and adjust internal policies accordingly.
Other Necessary Skills
- Strong mathematical and analytical skills
- Superior communication and presentation skills
- Organizational and Interpersonal skills
- Strong leadership skills
- Knowledge of financial software.
Salary
- Salary can vary based on the company size, experience, location, etc. According to BLS, the median salary for a finance manager is about $132K. But the salary could vary between $100K and $250K based on company type and size. The role could also come with other benefits like stock options, bonuses, etc.
Job Growth
According to BLS, there were about,
- 731K finance manager jobs in 2021
- The job outlook from 2021 to 2031 is 17%, much faster than the average job growth.
- Employment change 123K (2021 to 31)
Summary
If you are someone who finds the following characteristics of this job appealing, you can consider being a finance manager as your future career:
- Working with numbers.
- Working with people, explicitly leading team members.
- Multitasking and delegating responsibilities to others.
- You have a strong business acumen.
