How to become A 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.

• Chief Financial Officer
• CFO
• Director of Finance
• Financial Director
• Vice President Finance
• Director of Financial Planning & Analysis
• Financial Controller

What do Finance Directors do?

A Finance Director would typically need to:

• 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
• 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
• Meet departmental teams; help formulate and coordinate budgets; report to the CFO or CEO
• 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
• Prepare and deliver financial reports to the board of directors and senior management
• Examine the company's financial statements and reports and look for methods to cut expenditures
• Control the company's cash flow, which includes budget management; make sure the business has access to sufficient resources to meet its financial obligations
• Create a strategy for the organisation's fundraising by generating new financing options; cultivate positive relationships with partners and investors
• Evaluate financial processes and suggest how to improve and optimise them
• Develop and use financial management tools to manage and reduce financial risk; respond quickly to issues as they develop
• Supervise the functioning of the finance IT system
• 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
• 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.

Finance Directors are typically employed full-time and follow regular business hours, some putting in more than 40 hours per week, even up to 60. Extended hours are usually necessary for senior-level professionals,  given their workload, deadlines to meet, and the unexpected situations to manage across the company. At the start of your career, you may need to devote time to acquiring higher and relevant qualifications and pursuing professional development.

Research suggests that flexible hours and generous telework policies appeal more than salary to the younger generation. There has been an incremental increase in employers willing to give promising employees a chance to adjust their schedules per the job demands.

Finding a new job might seem challenging. Finance Directors can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies.

Finance Directors are generally employed by: 

• Small Businesses
• Corporations
• Banks
• Financial Services Firms
• Investment Firms
• Insurance Companies
• Brokerage Firms
• Health Care Organisations
• Higher Education Institutions
• Charitable Organisations
• Foundations
• Museums
• Religious Organisations
• Treasury Agencies
• Comptroller Offices

Professional associations and organisations, such as the Financial Management Association International (FMA), are crucial for Finance Directors interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation. 

Professional associations provide members with various continuing education avenues, networking opportunities and mentorship services. Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• Ensuring the organisation remains financially stable and profitable, especially during periods of economic uncertainty or market volatility
• Identifying, assessing and managing potential risks, such as market volatility, regulatory changes or changes in interest rates
• Balancing the short-term goal of successful financial performance with long-term investments and strategies that help a company grow and remain competitive in the industry
• Creating effective fundraising strategies to ensure there is enough working capital for the business to expand, make use of opportunities and hire new talent; ensure that the cash flow is not interrupted
• Formulating and managing a budget, factoring in the varying requirements of multiple departments or business units, and updating it as needed
• Keeping up with changes in accounting standards, tax laws, and other regulations and strictly complying with them to avoid fines and other legal issues
• Ensuring that all transactions are recorded systematically, using measures such as automating expense entries and introducing real-time visibility into financial data
• Safeguarding the company’s reputation through accurate and timely financial reporting and  that complies with regulations and by correctly filing tax returns
• Attracting and retaining top talent to build a capable finance team; leading the team in supporting the achievement of enterprise objectives; ensuring team members have ample training and development opportunities
• Ensuring all bills are paid on time to maintain a good reputation and relations in the industry
• Utilising debt taken productively and efficiently, paying back debts on time, and reducing debts by reducing costs
• Managing the expectations of stakeholders, including investors, board members, and senior management; communicating the company’s financial data to them in a way that they can understand it
• Being adept at financial management as well as in communication, risk management and several other aspects of the job

Any academic program that a potential Finance Director takes up typically requires a period of supervised experience, such as an internship. You will benefit from tasks outside the classroom that align perfectly with lessons inside it. One may hear countless stories from more experienced professionals and obtain valuable hands-on experience when they turn seemingly routine incidents into unique learning moments.

Summer internships, part-time work at an entry-level position, or short-term paid/voluntary work offer a taste of a career in finance, give valuable insight into how a company or institution operates, help build useful contacts, and improve one’s prospects of getting a permanent job. You may find information about available openings in the journals or on the websites of some professional accountancy bodies.  Given the intense competition, send timely applications, even direct ones, to organisations that have not advertised placements.

The experience may also help determine whether the public, private, or voluntary sector is best suited to realise one’s ambitions. Your educational provider’s career service department can provide information about viable opportunities for work placements, internships and voluntary work in diverse sectors.

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. 

They may typically begin their career working as loan officers, accountants, auditors, securities sales agents or financial analysts. Aspirants for the role must continue to build their experience in financial analysis, budgeting and financial reporting to take on the leadership position of Finance Director. You must also develop experience in using financial software packages and systems to handle extensive financial data and produce models for other departments. Since you will lead the finance function for your company, you must also have experience in project management and process improvement, which indicate your quick thinking, resourcefulness and adaptability.

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. You may also mentor a junior professional in your field of finance or accountancy to acquire these skills.

Even while in high school, you can check with a teacher or counsellor about relevant work-based learning opportunities available in your school or community that can help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organisation that is of interest, so you can have fun while learning about yourself and be directed toward a future career. 

Read about the profession and interview or job shadow experts working in Finance to prove your commitment to course providers and prospective employers.

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.

Aspirants to the role will benefit from taking high school courses in mathematics, economics, accounting and business administration.

A combination of education, experience, and testing is generally required to gain certification. However, requirements differ from region to region and also depend on the industry and size of the company. Certification from an objective and reputed organisation can help you stand out in a competitive job market, carry a significant salary premium of up to 18 per cent, increase your chances of advancement, and become an independent consultant. Successful certification programs protect public welfare by incorporating a Code of Ethics.

The Certified Public Accountant (CPA) credentials, awarded by the American Institute of Certified Public Accountants (AICPA), are reputed and well-known across industries globally. They represent a professional’s expertise in accounting and financial management.

The Chartered Financial Analyst (CFA) certification is also widely accepted and demonstrates mastery in investment management and analysis. Those operating in investment-heavy sectors may find this certification especially valuable.

The Certified Management Accountant (CMA) credentials, offered by the Institute of Management Accountants (IMA), emphasise financial planning, analysis and control and may be valuable for professionals in management accounting or financial management.

The Association for Financial Professionals (AFP) grants the Certified Treasury Professional (CTP) credentials, which attest to the holder's proficiency in treasury management. The certification is valuable for Finance Directors whose responsibilities centre around risk and cash management.

The Global Association of Risk Professionals (GARP), an organisation committed to developing risk management practices globally, grants the Financial Risk Manager (FRM) credentials based on their expertise in quantitative analysis, market risk, credit risk, operational risk and risk management techniques. The qualifying exam tests their mastery in identifying, assessing and managing financial risks.

The Certified Financial Planner (CFP) credentials are highly valued by those wishing to prove their dedication to achieving competence in financial planning practices and meeting the ethical standards involved. 

Individual government entities conduct the licensing process. It typically requires passing an examination after meeting eligibility requirements, such as a minimum level of education, work experience, training, or completing an internship, residency, or apprenticeship.

Other relevant and useful credentials include the Financial Modeling & Valuation Analyst (FMVA) certification, the Chartered Alternative Investment Analyst (CAIA) designation and the CIMA Professional Qualification (which is offered by the CIMA or the Chartered Institute of Management Accountants and is changing to the Chartered Global Management Accountant or CGMA Professional Qualification). You may also consider qualifications provided by the ACCA (Association of Chartered Certified Accountants).

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. 

Starting in entry-level roles as an analyst or accountant, aspiring Finance Directors acquire relevant certifications and may head to mid-level positions, such as financial manager or senior accountant, with greater decision-making responsibilities. Advancing to the role of financial controller puts them in charge of the financial operations of an enterprise. All these roles help you obtain experience in financial analysis, accounting, budgeting and financial reporting. 

Stepping into the role of 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. 

Once you become Finance Director, several pathways are open to you. The most direct one is to take on the CFO (Chief Financial Officer) role, typically the senior executive position in the finance & accounting teams across an enterprise. The CFO helps the company navigate its way forward in changing economic climates, optimising organisational strengths and tackling weaknesses. The CFO role may lead you to become the CEO (Chief Executive Officer) in due time and with demonstrated capabilities and experience. 

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.

Some professional bodies, such as ACCA and CIMA, offer a fellowship to members who have completed a specific length of service and demonstrated the requisite knowledge and skills.  

If you work for multinational corporations, you may be posted overseas, particularly if you possess globally valid qualifications. Furthermore, the transferable skills you develop as a Finance Director allow you to move across different sectors and industries.

The desire to accelerate career growth and personal development has an increasing number of millennials choosing to job hop and build a scattershot resume that showcases ambition, motivation, and the desire to learn a broad range of skills.

Studies prove that job hopping, earlier dismissed as “flaky” behaviour, can lead to greater job fulfilment. Employees searching for a positive culture and interesting work are willing to try out various roles and workplaces and learn valuable, transferable skills along the way.

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

You may have participated in formal training programs provided by your company to prepare you for your role. However, continuing professional development (CPD) will help an active Finance Director build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning. It allows you to continually upskill regardless of age, job, or level of knowledge, stay up-to-date with the latest industry trends, make more effective decisions and build healthy working relationships.

One way to grow in your career is by developing a more thorough understanding of financial management principles covering accounting, budgeting, financial planning & analysis and risk management.

As a highly placed executive in the organisation, a critical component of your role as Finance Director is to lead people, making it vital for you to take refresher courses to brush up on your leadership skills, such as communication, team-building and conflict resolution through negotiation.

Learning about regulatory compliance and keeping current with changes are critical for Finance Directors to ensure that their company abides by tax and other relevant laws and financial reporting requirements.

Courses in data analytics, artificial intelligence and other innovative technology trends and innovations can enhance how a Finance Director carries out financial processes and makes decisions to boost organisational success and profitability.

Building relationships with other finance professionals through professional associations or networking events will help you stay connected with industry trends and best practices.

Some Useful Subject Choices for Your Bachelor’s or Master’s Degree

• Accounting: Given that many Finance Directors begin their financial career as professional accountants, a bachelor’s degree in accounting can give them a helpful start. Coursework typically includes standard accounting practices, financial decision making and tax laws. You could earn a master’s degree or credentials in a relevant field.
• Finance: A bachelor’s or master’s degree in finance typically includes courses in data analytics, risk management, capital allocation and economics.
• Business Administration: You may also choose business administration as your bachelor’s degree program major and head to an MBA (Master of Business Administration), specialising in finance. Along with teaching you financial analysis, an MBA fosters your managerial skills and business acumen, which are essential for the senior management role of Finance Director.
• Mathematics: Finance Directors must be capable of conducting complex economic modelling and financial analysis. A bachelor’s degree in mathematics, with the possibility of a minor in finance, equips you with the necessary knowledge and skills and can lead you to a master’s degree in a relevant subject. 
• Economics: A bachelor’s or master’s degree in economics gives you comprehensive knowledge of several useful aspects of the finance function, including international trade, business competition and interest rates. 

Some Useful Skills for a Finance Director

• Mathematical Abilities: Numbers are often at the core of a Finance Director’s work, whether assessing income statements, analysing accounting records or preparing tax information. To build your proficiency in mathematics, which, in turn, can boost your productivity and accuracy in finance, you may opt for mathematics as a minor during your bachelor’s degree program or enrol in online classes at a community college.
• Analytical & Technological Abilities: Finance Directors must use their analytical abilities to swiftly and accurately understand and evaluate extensive information, using which they arrive at well-considered financial decisions and strategies for their company. Since digital tools help tackle complex financial data, building your technological abilities can support you in analytical processes.
• Managerial Abilities: Finance Directors must coordinate the work of a large group of departmental staff. Knowing several methods for properly managing large groups might be helpful when handling these duties. Attending leadership development training seminars can equip you with the necessary strategies and strengthen your managerial skills to succeed as Finance Director.  
• Communication Abilities: Finance Directors must clearly explain their goals to their team, senior management and other company personnel so they can understand them and actively contribute to them. Consider signing up for a public speaking course to enhance your communication skills so that you can coordinate your work more efficiently while optimising company operations.

Finance Director vs Financial Controller

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. However, there are also certain distinctions between the roles of Finance Directors and Financial Controllers, particularly when both roles are functional in an enterprise.

Some Similarities:

• Both carry out strategic financial planning for their enterprise, developing and implementing solutions for risk assessment and management. 
• They are responsible for budgetary procedures, including scheduling and accountability. 
• Both also liaise with auditors and participate in the process of giving incentives to staff. Both collaborate to help design and carry out any new initiatives decided upon by the business. 
• They are active participants in reviewing an organisation’s internal control system, which is the set of procedures and policies ensuring all accounting reports are uniformly reliable and accurate.

Some Differences:

• In terms of organisational hierarchy, a Finance Director ranks higher than a Financial Controller and, therefore, earns a higher remuneration. 
• Financial Controllers are typically responsible for generating and managing financial reports, including statements indicating a company’s revenue increase or decrease for a specific period and strategic planning reports. Finance Directors manage an organisation's financial operations, analyse the reports, identify the causes behind any change or discrepancy and assess the company’s market position and competitiveness. Accordingly, they give expert advice on any action to be taken. 
• Financial Controllers process the capital requests that Finance Directors have approved.
• Finance Directors arrange debt financing while Financial Controllers watch over the available funds. 
• Accounts payable and receivable and billing typically fall within the purview of a Financial Controller’s responsibilities, while Finance Directors tackle taxes.
• Finance Directors conduct equity placements and take part in investing business funds and building relationships with banks and external funders, while Financial Controllers maintain those relationships and monitor the investments made.

Finance Director vs Chief Financial Officer (CFO)

Depending on the corporate structure, an enterprise may have either or both the senior executive positions of Finance Director and Chief Financial Officer (CFO). The Finance Director may report to the CFO or the CEO, while the CFO typically reports to the CEO or the board of directors. In all cases, the organisation defines the scope of each role, its responsibilities and the reporting lines. There are some parallels between the positions of Finance Director and Chief Financial Officer (CFO), but there are also some differences, particularly when both roles exist in a company.

Some Similarities:

• These positions have similar financial management responsibilities, such as directing and controlling the organisation's financial performance, regulating financial reporting, and complying with rules and regulations.
• Both positions are involved in strategic financial planning and collaborate with other executives to create long-term financial plans and establish company objectives. 
• Both positions are in charge of managing the organisation's budgeting and forecasting processes.

Some Differences:

• The CFO typically oversees all facets of the company's financial operations, whereas the Finance Director may concentrate on a single area or function in some companies. As a result, the CFO's responsibilities may be broader than those of the Finance Director, based on the corporate structure.
• Managing connections with investors, banks, and other stakeholders are some of the CFO's more externally focused duties. The Financial Director may interact less frequently with outside parties, once again depending on the definition of the role.
• Where both positions exist, the CFO may be better placed to identify and assess potential opportunities and risks and may, therefore, be more involved with corporate strategy and decision-making.

Current Scenario

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. 

The financial crisis of 2008, an outcome of the subprime mortgage market collapse, profoundly affected the world economy and prompted important changes in financial regulation.

It is a position of immense responsibility that demands a blend of technical expertise and multiple skills, including strategic thinking, risk management and leadership. As Finance Director, you must constantly monitor your company’s short- and long-term financial goals, ensuring that all financial processes abide by current standards and regulations. As the one leading the finance function, the department also looks to you for its work ethos. You must inspire your team to learn continuously and maintain strong work ethics while keeping the company financially stable and growing.

Establish relationships of trust with stakeholders, including the board, top management and investors. Ensure timely and accurate communication regarding the company’s financial data and performance. Find a balance between maintaining a long-term perspective of organisational goals and achieving short-term successes. Get handy with the latest technology to streamline departmental and corporate processes, boost efficiency and reduce costs.