Finance directors take a bird’s-eye view of a company’s finances and make data-informed decisions that enhance its financial performance.Here’s what to know about a finance director’s needed skills, salary and how to become one.
What Is a Finance Director?
The finance director is a senior-level position for an experienced professional who has the sound financial knowledge to effectively manage budgets and forecast financial trends. They analyze data to decide how to allocate resources and determine potential risks.
What Do Finance Directors Do?
A finance director’s business activities include training accountants, conducting regular financial reviews, monitoring budgets and weighing the pros and cons of investments.
Finance Director Responsibilities
- Formulate and direct financial strategy.
- Establish accounting and finance policies.
- Oversee budget planning.
- Advise executives on financial decision making.
- Conduct periodic financial reviews.
- Devise and implement training for accountants.
- Supervise financial compliance.
Day-to-Day Responsibilities of Finance Directors
- Analyze financial performance.
- Evaluate potential investments.
- Prepare financial reports.
- Meet with executives and other financial decision makers.
- Manage audits and tax preparations.
- Produce financial forecasts.
Finance Directors Within a Company
A finance director is the head of a company’s finance department, working closely with management-level positions like senior accountants, finance managers and controllers. The finance director usually reports to the chief financial officer.
Importance of Finance Directors
Finance directors combine strong analytical skills and accounting expertise to become reliable stewards of their companies’ resources. They have a diverse range of responsibilities to guide the organization’s financial strategy toward long-term success.
What Skills Are Needed to Be a Finance Director?
Qualifications to Be a Finance Director
- Finance and accounting expertise.
- Experience with data analysis and financial forecasting.
- Knowledge of relevant laws and regulations.
- Understanding of best practices for long-term financial planning.
- Familiarity with relevant tools and software.
Finance Director Prerequisites
- A bachelor’s degree and likely a master’s degree as well.
- While not always required, accounting and financial management certifications can be beneficial.
Finance Director Hard Skills
- Setting internal policy.
- Financial planning.
- Managing budgets and spending.
- Using accounting and finance tools.
- Complying with laws and regulations.
Finance Director Soft Skills
- Analytical thinking.
- Organized and detail oriented.
- Able to multitask.
- Strategic mindset.
- Communicating with company decision makers.
- Training and mentoring early-career accountants and other finance employees.
Tools and Programs Finance Directors Use
- Accounting platforms like Xero, FreshBooks and QuickBooks.
- Platforms like NetSuite for financial planning.
- Platforms like Workiva for reporting and compliance.
- Business intelligence platforms like Microsoft Power BI for analytics.
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How to Become a Finance Director
Finance Director Education and Experience
To become a finance director, you need a bachelor’s degree in a field such as finance or accounting. A master’s degree can also bolster your resume, and in some cases, it’s required. A finance director must also have at least 10 years of professional experience, which can be complemented by certifications.
Finance Director Certificates and Courses
Finance Director Career Path
To prepare for a career as a finance director, professionals can start as entry-level financial analysts or accountants for five years before spending another five years in a leadership role like senior accountant or controller. A finance director can go on to become a chief financial officer.
Finance Director Salary and Job Outlook
There are expected to be 7,600 new jobs for financial specialists between 2021 and 2031, according to the U.S. Bureau of Labor Statistics.
The full compensation package for a finance director depends on a variety of factors, including but not limited to the candidate’s experience and geographic location. See below for detailed information on the average finance director salary.
FAQs
Qualifications to Be a Finance Director
What skills do you need to be a finance director? ›
Reporting on and clearly communicating financial information is the keystone of an FD's effectiveness. The ability to break down complex data to inform wider action-planning is essential to having a positive influence on an organisation's strategy. Technical acumen is a required part of any financial role.
How do I become a Director of Finance? ›
A bachelor's degree in finance, accounting or a related discipline and 5 years or more of work experience are the common minimum requirements to work as a finance director. Some employers prefer or may require applicants with master's degrees in business or finance.
What does a finance director do? ›
You are in charge of reviewing expenditures, planning the company budget, providing accounting management services, analyzing data, maintaining documents, and fulfilling other executive duties. You report your findings and recommendations to help with company effectiveness and efficiency.
How to be an effective finance director? ›
7 Habits of a Successful Financial Director
- Honesty and Integrity. Strong ethical attitude is a fundamental aspect of being a good financial director. ...
- Commercial Skills. ...
- Interpersonal and Communication Skills. ...
- Vision & Leadership. ...
- Risk Management. ...
- Self Confidence & Fearlessness. ...
- Strong Team.
It falls to the finance director to make sure the business hits its legal obligations and financial targets. They support the business by providing guidance on risk and compliance. Finance directors create and maintain all policies, reporting, and procedures related to the business's finances.
What skills are required for finance manager? ›
Below are 8 skills any finance manager worth their salt should seek to hone in order to advance their career:
- Strategic and analytical skills. ...
- Be tech-savvy. ...
- Adaptability. ...
- Honesty and strong values. ...
- Strong communication skills. ...
- Leadership skills. ...
- Industry-specific knowledge. ...
- Keep learning.
A finance manager may also be involved in preparing financial reports, managing financial risks, and working with other departments to ensure that financial goals are met. A finance director, on the other hand, is a senior financial figure who is responsible for the overall financial management of a company.
Which is higher CFO or finance director? ›
The hierarchy or position
The CFO is in the highest position, almost the same as the CEO. Even though the CFO reports their job directly to the CEO, they still have the same position as the executive of the company. In the financial field, the finance director is under CFO.
Is a finance director an accountant? ›
A finance director often starts as an accountant but their role encompasses broader strategic and management responsibilities.
Financial management
Directors are responsible for the stewardship of public assets and the ongoing solvency of a GBE. In the case of Commonwealth Companies, Directors bear personal responsibility for insolvent trading liabilities under Part 5.7B of the Corporations Act .
Who is above Finance Director? ›
The seniority of a Chief Financial Officer over a Finance Director is evident in their direct reporting to the CEO and participation in board meetings, reflecting their critical role in high-level decision-making.
Is being a Finance Director stressful? ›
Finance Managers, tasked with the crucial role of overseeing an organization's financial health, often find themselves in a high-stress environment where maintaining a work-life balance can be particularly challenging.
Is it hard to become a Finance Director? ›
A successful Finance Director must possess a robust set of skills. Technical competencies include a deep understanding of financial modeling, performance analysis, and regulatory compliance. Strong strategic thinking is required to guide long-term financial planning and investment decisions.
How to think like a Finance Director? ›
“To be successful as a Finance Director, you need to influence change. To provide a vision for your function that inspires people to join you on a journey and to be the best they can be. Innovation can bring spark and zest to your function and the company as a whole. Communication is fundamental to success.
What is the life of a Finance Director? ›
Finance Directors often work between 45 to 60 hours per week, with fluctuations depending on financial cycles, reporting deadlines, and strategic initiatives. In periods of fiscal year-end, budget planning, or during mergers and acquisitions, they may work additional hours.
What skills does a finance officer need? ›
You'll need:
- knowledge of economics and accounting.
- business management skills.
- maths knowledge.
- analytical thinking skills.
- financial management skills.
- leadership skills.
- the ability to use your initiative.
- to be thorough and pay attention to detail.
Some positions may involve frequent bending, moving, lifting, and carrying material weighing up to 50 pounds; some positions may involve moving, lifting, and carrying material weighing up to 70 pounds; standing up to eight hours each day; working in all weather conditions; exposure to high noise levels and require ...
Is being a finance director stressful? ›
Finance Managers, tasked with the crucial role of overseeing an organization's financial health, often find themselves in a high-stress environment where maintaining a work-life balance can be particularly challenging.
