Finance Director

Finance Directors apply their financial wizardry to keep businesses on track. As senior executives, they watch over a company's financial health and stability by ensuring the numbers add up and comply with the company budget. They maintain a steady cash flow and enhance business profitability using their analytical abilities, financial knowledge, and leadership skills.

What do Finance Directors do?

A Finance Director would typically need to:

1. Develop, implement and manage an organisation's financial strategy in collaboration with senior executives and oversee the operations of the finance function within the company.
2. Help management make financial decisions and investments based on the company's current condition, short- and long-term objectives, and the climate in the financial markets.
3. Meet departmental teams; help formulate and coordinate budgets; report to the CFO or CEO.
4. Research and identify elements that affect business performance; analyse market trends and competition to generate forecasts and identify prospects for growth, higher profitability or acquisitions.
5. Prepare and deliver financial reports to the board of directors and senior management.
6. Examine the company's financial statements and reports and look for methods to cut expenditures.
7. Control the company's cash flow, which includes budget management; make sure the business has access to sufficient resources to meet its financial obligations.
8. Create a strategy for the organisation's fundraising by generating new financing options; cultivate positive relationships with partners and investors.
9. Evaluate financial processes and suggest how to improve and optimise them.
10. Develop and use financial management tools to manage and reduce financial risk; respond quickly to issues as they develop.
11. Supervise the functioning of the finance IT system.
12. Employ, train, oversee, evaluate and motivate the finance team; establish departmental goals and lead the finance staff towards achieving them, thereby contributing to overall organisational objectives.
13. Stay up to date with changes in relevant legislation and constantly ensure regulatory compliance; stay up to date with the latest financial software, tools and technology.

Finance Directors typically work in an office setting where they can work comfortably with convenient and constant access to computer systems, information services, financial software and other tools. The specific environment depends on the industry and enterprise you work in, which could be in the public or private sector and range from multinational manufacturing or financial corporations to nonprofit organisations and educational institutions.

Finance Directors collaborate extensively with senior management and the corporate divisions supplying the required financial data. Frequent travel is likely to meet customers, visit subsidiary firms, attend meetings of financial and economic associations, and participate in conferences and workshops.

Since Finance Directors function at the level of senior management, they typically require several years of experience in finance, accounting, banking or investment roles with executive or managerial responsibilities, preferably relevant to the industry in which they wish to work. Experience applying various financial software programs to information processing and model-building is also necessary.

While specific job requirements may vary based on the industry and organisational size, demonstrating your abilities to make effective decisions and deliver results in a senior role, such as Financial Controller, are valuable to land the role of Finance Director. A track record of line management, leadership, team development, communication and interpersonal skills in mid-level roles, such as Finance Manager, gives you a competitive edge.

The senior-level Finance Director role warrants advanced academic qualifications coupled with extensive professional experience. While specific qualifications for an aspiring Finance Director may depend on the industry and company, candidates typically require a minimum of a bachelor's degree in finance, economics, business administration, accounting, mathematics or a related field. Some employers may mandate a master's degree in economics or finance or an MBA (Master of Business Administration) degree specialising in finance.

Finance Directors may also need to undergo an employment background check, including but not limited to a person's work history, education, credit history, motor vehicle reports (MVRs), criminal record, medical history, use of social media, and drug screening.

Performance, experience, and the acquisition of professional qualifications drive career progression. Employees with consistently high levels of performance may be eligible for promotion every two to three years.

As a Finance Director, you would oversee an organisation's finance function, with overarching responsibility not just over the company's financial performance and processes but also its financial and risk management strategies and regulatory compliance.

As a Finance Director, another pathway for you is to specialise in areas such as profit maximisation, data analysis and the financial health of organisations. Or you can take up related roles, such as Director of Risk Management or Director of Payroll.

Candidates with the necessary skills and leadership experience in finance and accounting, relevant higher education and certification have the best job prospects.

Some Useful Skills for a Finance Director:

1. Mathematical Abilities
2. Analytical & Technological Abilities
3. Managerial Abilities
4. Communication Abilities

The roles of both the Finance Director and Financial Controller exist in some organisations, while other enterprises may opt for one or the other to head the corporate finance function. There can be considerable overlap in the responsibilities of Finance Directors and Financial Controllers, given that they are both employed within the finance department of an organisation.

The employment outlook of a particular profession may be impacted by diverse factors, such as the time of year (for seasonal jobs), location, employment turnover (when people leave current jobs), occupational growth (when new roles are created), size of the occupation, and industry-specific trends and events that affect overall employment.

Regardless of the state of the economy, Finance Directors are essential for the success of any organisation as they attempt to expand it and enhance its profitability. Hence the demand for professionals qualified and experienced in accounting and finance is projected to grow over the next decade.