JOB PROFILE
Whats Is a Finance Director?
IN THIS JOB PROFILE
You Will Learn.
- What does a Finance Director do?
- What are the responsibilities of a Finance Director?
- What are the differences between Finance Manager and Finance Director roles?
- What qualifications does a Finance Director need?
- What is the average salary of a Finance Director?
- What are the progression opportunities within Finance Director roles?
- What makes a good Finance Director?
- Where are the latest Finance Director jobs and how can you apply for them?
What Does a Finance Director Do?
The role of a Finance Director is to give financial advice and direction to a business to ensure the company’s financial commitments are met. A Finance Director will also ensure policies and procedures are in place so that finances are managed effectively and efficiently throughout the business.
In a ‘traditional’ business, a Finance Director will report directly to the Chief Financial Officer (CFO).
What Is the Difference Between a Finance Director and a Finance Manager?
The main difference between a Finance Director and a Finance Manager is that the Finance Director is responsible for the policy of the business.
A Finance Manager is responsible for adhering to the policies which a Finance Director sets and they will usually report directly into them.
What Are the Responsibilities of a Finance Director?
A Finance Director must oversee a company’s financial operations, offering crucial financial advice on investment decisions and strategic financial planning. They are responsible for providing insights into what benefits the business financially and developing systems which are likely to promote success.
While working as a Finance Director, you could be required to:
- Oversee financial operations within the business.
- Contribute to achieving the businesses objectives by providing financial advice, guidance and strategy.
- Contribute to the development and delivery of strategic plans which maximise revenue streams and minimise operating costs.
- Identify areas for financial improvement.
- Produce analysis and insights into the financial performance of the business.
- Develop annual financial plans, forecasting, projections and budgets.
- Provide guidance and training to business managers, accounting personnel and employees to help them to achieve their financial objectives or targets.
- Provide guidance and training to business managers in relation to daily tasks such as cash flow, debt recovery, income and expenditure and budget management.
- Ensure the company’s financial accounts are prepared and presented within the designated time frame.
- Be a point of contact for internal and external audits.
- Oversee the preparation of the company’s financial accounts to ensure that these are presented accurately and on time.
- Develop and maintain systems, policies and procedures to ensure the smooth running of finances within the business.
- Ensure the business meets its financial and legal obligations.
- Analyse financial risks to the business and recommend remedial or evasive action.
- Strive to improve technology to ensure the business is running as efficiently as it can.
- Work with the businesses payroll provider to ensure accurate and timely processing and completion of statutory returns.
Frequently Asked Questions
What Qualifications Does a Finance Director Need?
To become a Finance Director, you will need a degree in a related subject such as accounting, maths, business or economics. Many Finance Directors are fully qualified accountants with a chartered accountancy qualification (ACA, ACCA, CGMA, CIPFA, or equivalent).
It is also likely that you will need to gain between 5 and 10 years of valuable experience within accounting, economics and accounting. Many Finance Directors will work as an Accountant or Finance Manager and work their way up through the ranks.
A Finance Director will also need to prove that they have a solid understanding of the law, HR management and business technology.
However, depending on the size and type of industry which the business operates, requirements on qualifications can vary.
What Is the Average Salary of a Finance Director?
The average salary of a Finance Director in the UK can vary widely depending on several factors, including the size and type of the organisation they work for, their level of experience, and their location.
Through independent research conducted by Spencer Clarke Group, the average salary of a Finance Director is:
- London - £104,000
- Manchester - £95,495
- Birmingham/Wolverhampton - £78,250
- Leeds/Bradford - £69,750
- Liverpool - £58,150
- Newcastle - £84,000
- Glasgow - £60,450
- Southampton/Portsmouth - £66,900
Finance Directors who have extensive experience and a proven track record of success can command higher salaries than those who are just starting out in their careers.
What Are the Perks of Finance Director Jobs?
Popular perks of the job for a Finance Director include:
- Bonus scheme / Annual bonus.
- Performance related bonus.
- Pension scheme.
- Private medical/dental insurance.
- Life insurance.
- Flexitime.
- Working from home.
- Cycle to work scheme.
- Company car or car allowance.
- Free parking.
- Company events.
- Salary sacrifice childcare vouchers.
- Sick pay.
What Makes a Good Finance Director?
Key skills of a Finance Director include:
- The ability to clearly present and communicate financial information. Often this can be complex data which needs to be delivered in an easy to read format to those who are not fluent in financial jargon.
- Strong people management skills. The ability to build and retain a high performing team is key to long term success.
- The ability to think long-term and connect financial planning with commercial thinking.
- Confidence to point out flaws or mitigate errors in a financial plan which may have a significant impact on the business.
- The ability to make strong and quick decisions.
- The ability to keep up with industry trends and how technology is evolving within the financial sector. The advancement in automation (in regards to data collection) and artificial intelligence (AI) will continue to have a significant impact on the roles of those who work within the financial industry.
- The ability to cultivate great working relationships with colleagues, in particular the CEO, CFO and senior management.
- Resilience to overcome financial and economic difficulties such as financial crashes, downturns, recessions and more recently, the Covid-19 pandemic. A great Finance Director will lead a business through difficult times and give employees faith that there is light at the end of the tunnel.
- Due to the nature of the role, soft skills such as honesty and integrity are also extremely important qualities to possess.
- The ability to work well under significant pressure.
- Desire to make a difference and strategically guide the business forward.
Strong leadership qualities
With their knowledge and expertise in finance, a Finance Director will be required to work with an array of colleagues such as business support and accounting personnel and many more to help them achieve their financial objectives or targets.
They will also guide Business Managers in relation to daily tasks such as cash flow, debt recovery, income and expenditure, and budget management to ensure the smooth running of finances within the business.
The financial world faces many challenges that can be hard to predict such as financial crashes, downturns, recessions and more recently, the Covid-19 pandemic.
A great Finance Director will lead a business through difficult times and give employees faith that there is light at the end of the tunnel. This ability to build and retain a high-performing team through difficult periods is key to long-term success.
An awareness of ever-changing industry trends
Technology is evolving within the financial sector. The advancement in automation (in regard to data collection) and artificial intelligence (AI) will continue to have a significant impact on the roles of those who work within the financial industry. A successful Financial Director will be aware of this and able to navigate changes within the industry.
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