what is a director of finance?
As a director of finance, you are responsible for the financial growth of a company. Some of your main duties include creating revenue reports and implementing financial policies. With your in-depth knowledge of accounting and finances, you are responsible for the financial health of a company. Part of your responsibilities are also to maintain transparency in the financing department and to prepare the financial statements at the end of the fiscal year. In addition, you implement strategies that allow the company to financially grow and earn profits.
As a director of finance, you make investment decisions for the company to improve and grow the company's portfolio. You continuously monitor the investment portfolio and take appropriate risks when growing the portfolio. In addition, your job is to create monthly, quarterly, and annual revenue reports as well as to create budgets for each department. Another key responsibility you have is to track the company's expenditures and profits, reduce or eliminate financial risks for the company, and find solutions to the company's financial issues. Finally, you report the company's finances and activities to your immediate supervisor, the Chief Financial Officer, or CFO.
Would working as a director of finance suit your interests? Then read on to find out what competencies and qualifications you need to thrive in a director of finance role.
jobs near youaverage director of finance salary
Would you like to know what a director of finance earns? Where the highest salaries are paid to a director of finance? Then check out this director of finance salary page and find out all about the salary of a director of finance in the USA.
A director of finance salary can be as high as $170,243 to $203,149 a year, though the median salary is $131,710. Your salary will depend on the city you are in and the demand for directors of finance in that city. However, according to a Bloomberg report, both CFOs and directors of finance are in high demand. Anywhere that shows a high need for directors of finance and CFOs means you may be able to negotiate a higher pay. In addition, the expected job growth for directors of finance should be 17%, from 2020 to 2030 .
Although you may start with a salary of around $131,710, finance directors typically receive bonuses at the end of the year. This can increase your salary by a few thousand. Finance directors also have the opportunity to move up the ladder and become CFOs.
types of director of finance
The director of finance is typically the same position across different companies. However, the director of finance may have different titles, such as director of financial planning and analysis, director of finances and operations, or finance director.
Finance directors may also work at companies of varying sizes, from small and medium companies to multinational companies with significant commitments and investments in the international market. Directors of finance who work in multinational companies will, of course, be responsible for larger investment portfolios and larger company budgets. It may also be necessary to work with external businesses on behalf of your company.
working as a director of finance
The director of finance should have a strategic vision and technical abilities to carry out financial planning for companies. To do this, you must be prepared, have the necessary competencies, and develop the skills that allow you to successfully perform your duties. Here are some of the essential aspects of your work profile.
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director of finance job description
A director of finance performs a series of roles that vary depending on the organizational structure of the company. In small companies, you may track the company's spending and revenue as well as prepare budgets. For large companies, though, expect to do more. Besides overseeing their financial department, your job is to determine how to make profits. This may include making investment decisions, creating an investment portfolio, deciding how and what to invest in, and maintaining the company's portfolio.
What does a director of finance do? Here are some of your key responsibilities:
- managing the accounting and be responsible for the company's annual accounts
- conducting advanced financial analysis to determine the current status and make projections for the company
- using different models to simulate financial scenarios and examine the impact on the organization
- presenting the results of your studies to the management team as well as the CFO
- managing and following up on the preparation and publication of departmental and organizational financial documents
- planning the development and implementation of financing strategies
- ensuring the proper use of financial resources
- reviewing and validating the accuracy and enforcement of the regulations/standards of financial and legal documents
- managing the different aspects of financial communication
- ensuring transparency in the company's financial performance
- assessing, identifying, and communicating any potential financial risks
- supporting the CFO in preparing financial plans
- managing banking and company investors
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director of finance work environment
As a director of finance, you have employment opportunities in companies from a variety of sectors, in both large and small organizations. Although the main working environment is in offices, you may need to travel as you may be responsible for financial relations with third parties.
There is also the possibility that you will have to spend long hours at work. At times, you may have to work at night or on weekends to complete all your commitments or complete an important presentation. It may be possible to perform your work remotely as well. Remote director of finance positions are available at Randstad.
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who are your colleagues?
As a director of finance, expect to work with other top executives and managers of the company as you make financial decisions for different departments. In some organizations, you may need to restructure the finance system and work directly with the accounting department. You will also be coordinating activities with different managers and their departments and evaluating the economic risks of your decisions. Likewise, the financial analyses you carry out are crucial in the decision-making of the organization, so you will need to present the results of your management to the CFO and CEO from time to time.
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work schedule
Although the normal working hours are 40 hours per week spread over eight hours of daily work, Monday to Friday, a director of finance often puts in a lot of overtime hours. In addition to the time it will take to review detailed management reports and create budget and revenue reports, there may be additional time spent traveling and doing business with third-party companies. Experience and years will contribute to better time management control.
Some companies may allow you to work part-time, especially if the company is small. However, at larger companies, expect to work full-time hours. There may be also scenarios where financial problems arise and you must spend longer hours at work until you sort out all the issues. For companies that allow you to work remotely, you may be able to create your own work schedule, so long as the projects are finished on time.
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job outlook for director of finance
As the job growth for finance directors is 17%, there is quite a bit of potential in this field. Finance directors can work in industries such as technology, healthcare, finance, manufacturing, and more. Many companies need a professional to create budgets for their departments, implement strategies to make profits, and keep track of their expenditures.
Larger companies, especially those that trade on the public stock exchange, are more likely to have a demand for a director of finance than smaller companies. Large companies will need a director of finance to handle their large financial operations and portfolios.
In addition, as the finance industry starts to implement AI systems, finance directors who have skills in this kind of software will become invaluable.
More companies may embrace remote work as well, making it possible for finance directors to expand their employment opportunities.
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benefits of working for randstad as a director of finance
Working through Randstad offers you a range of benefits:
- being paid weekly
- flexibility
- always a contact person you can fall back on and ask for help from
- many training opportunities
- a range of jobs in your area
Want a permanent contract? But you wonder why it would be interesting for you to work with a staffing company? A temporary job as a director of finance is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
director of finance skills and education
A solid background in finance can put you ahead of the pack when you are seeking a director of finance job. Here is a breakdown of the skills and education you need.
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education
To succeed as a director of finance, it's important to have, at minimum, a bachelor's degree in finance, business administration, and accounting. With a four-year degree, you’ll be able to gain work experience in lower-level positions before taking on senior positions and becoming director of finance. Although a more advanced degree is not a requirement, you may have a competitive edge with the leadership skills you gain with a Master of Business Administration (MBA).
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certifications
There are professional certifications that you can attain as well to sharpen your financial skills. These include:
- CPA or Certified Public Accountant: This is a certificate that focuses on accounting.
- CFA or Chartered Financial Analyst: This certificate focuses on financial analysis and investment management skills.
- CMA or Certified Management Accountant: This certificate focuses on financial planning skills.
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technical skills
Alongside a solid education in finances and certificates, technical skills can be useful as well.
- risk management: As a director of finance, having risk management skills can be crucial when you are managing a large company's investment portfolio.
- accounting skills: Having a detailed knowledge of accounting and budgets is important.
- financial analysis: Being able to interpret financial data and make sound financial decisions can help you effectively solve financial problems at a company.
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skills and competencies
You will need a variety of skills and competencies to be effective at your job as director of finance.
- team management skills: Finance directors work with other departments to create budgets, account for expenditures, and ensure a company is on track financially. Managing and leading these teams effectively is important.
- communication skills: If there are financial issues, communicating the issues and possible solutions is an important skill to master. As a director of finance, you must present your financial reports in a comprehensible and easy-to-understand manner.
- financial forecasting skills: Successful finance directors not only manage budgets, but they efficiently forecast the company's performance. These analytical skills are important to ensure the company is always in good financial health.
- stay updated: A good director of finance should stay updated on any financial regulations that affect the company.
- technological know-how: As financial software continues to emerge, finance directors should learn and master the different software programs.
- adaptable: Financial situations are sometimes fluid and a director of finance must remain flexible as changes happen at the company or within the financial industry.
- crisis management skills: Large portfolios at a company can sometimes take a hit, especially during a recession. A director of finance must be able to steer the company during times of crisis to ensure financial chaos doesn't ensue.
FAQs about working as a director of finance
Here you will find answers to the most frequently asked questions about the director of finance.
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do you need an MBA to become a financial director?
While an MBA can certainly help your chances of becoming a financial director, it is not a requirement. You need a bachelor's degree in finance, business administration, or accounting.
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what leadership qualities do you need to become a director of finance?
Because you will be working closely with the accounting department as well as managers from other departments, team management is essential. You should also be an effective communicator and a strategic thinker.
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are there career growth opportunities for finance directors?
Yes, a director of finance reports to the CFO. However, after years of excellent work and extra schooling - such as attaining an MBA - a finance director can be promoted to CFO of a company.
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what kinds of budgets do finance directors typically work with?
Finance directors work with a variety of budgets, such as operating budgets, cash budgets, and revenue budgets. There are also rolling budgets and zero-based budgets.
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how can I build my skills as a finance director?
One of the best ways to build your skills is to stay on top of any financial updates, regulations, and technology. You can attend conferences and workshops. Your problem-solving skills are critical as well, so practice critical thinking and strategic planning processes.
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how do I find a job as a director of finance?
Applying for a director of finance job is easy: create a Randstad profile and search our director of finance jobs for vacancies in your area. Then simply send us your CV. If you do not have a resume, no worries. Just check out our resume builder. This state of the art tool will help you to create your own resume. Need help with your application? Check out all our job-hunting tips!
