what is a director of finance?
As a director of finance, you hold a strategic position in an organization's finance department. You promote the company's financial health and growth. Since it is a senior position in finance, you have a high level of responsibility for overseeing the company's financial operations. Your role is integral in managing financial resources to ensure the company's financial stability.
With your financial expertise, you shape the company's future and help the organization navigate through periods of economic downturns. You provide financial advice to the management on balancing opportunities and risks. This facilitates sound financial decisions to help the business succeed in diverse economic landscapes.
As a finance director, your duties revolve around creating strategies and supervising finance teams. Another critical aspect of your job involves liaising with stakeholders. Your job is to promote good relationships with investors and financial institutions.
Would working as a director of finance suit your finance acumen and strategic thinking? Then read on to find out what competencies and qualifications you need to thrive in a director of finance role.
view jobs near youaverage director of finance salary
According to Job Bank, the director of finance earns an average salary of $160,000 per year. That means you earn an average hourly rate of $82.05. In an entry-level position, you start with a salary of $109,544 annually due to the minimal experience you have in the role. Senior finance directors take home over $195,437 per year.
what factors affect the salary of a director of finance?
As a director of finance, your earnings depend on your qualifications and experience. As you improve your experience, your earnings increase gradually, and you can take home a higher salary. Having additional qualifications and credentials also improves your earnings. For instance, having a master’s degree, as well as certifications in finance and accounting, improves your skills.
The industry you work in also influences your earnings. When you work in high-revenue companies like telecommunications and financial institutions, you manage huge financial resources. With the complexity of your role, you earn a higher salary than those working in low-revenue industries.
types of director of finance
Directors of finance work in diverse companies. For instance, if you are the director of finance in an investment company, your duties differ from those of directors in other industries. Some of the types of finance directors include:
- corporate director of finance: as a corporate finance director, you are responsible for the company's financial activities. You manage investment strategies, implement financial plans and make key decisions that affect the company’s profitability.
- non-profit director of finance: as a non-profit finance director, you work in non-profit organizations (NPOs). Your job is to regulate the financial resources of the organization. You oversee the budgeting process, conduct audits and ensure legal compliance. Your focus is to achieve the organization’s missions instead of increasing profits.
- government finance director: as a director of finance working in governmental bodies, you focus on ensuring transparency and the efficient use of public funds. You prepare budgets and supervise the audit functions.
working as a director of finance
Director of finance is a senior-level position in the company. Let's explore the responsibilities, work environments and schedules of finance directors.
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what does a director of finance do?
Some of the duties and responsibilities of a director of finance include:
- directing and supervising finance staff: as the director of finance, you are a senior manager in the finance department. Your job involves overseeing finance staff. You ensure your team is motivated and well-equipped to carry out their responsibilities.
- developing the company's budget: as the director of finance, you are in charge of financial planning. You ensure the creation of the company's budget and make sure financial targets are met. You also control the company's annual operating budget and provide financial advice or guidance to managers and other staff.
- overseeing the company's financial accounts: you ensure the company prepares financial reports according to Canada's financial reporting standards. You also ensure compliance with financial and statutory regulations during the preparation of financial accounts. You make sure taxes are paid on time and that the company meets its obligations to third parties.
- developing and implementing internal audits: as the director of finance, you develop internal controls to monitor the company's financial activities. Internal audit programs ensure the organization complies with financial procedures and regulations.
- monitoring external contracts: as the director of finance, you monitor external contracts and services from suppliers. Your job is to ensure services are delivered and that the company meets its financial and legal obligations.
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work environment of a director of finance
As the director of finance, you work in various industries, from financial institutions and investment companies to manufacturing and telecommunications companies. You typically work in an office environment and spend most of your day reviewing financial reports and analyzing data at your desk. You also attend meetings outside the office and travel for business. If the company has multiple branches, you visit them from time to time. While you can perform some duties remotely, most companies prefer directors of finance to work from the office.
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who are your colleagues?
Depending on the company you work for, you work alongside controllers, finance managers, financial analysts and accounting managers. You also collaborate with business analysts, accountants and financial planners. Other professionals you are likely to interact with are product managers, operations managers and sales managers.
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director of finance work schedule
As a director of finance, you work the traditional business hours of up to 40 hours a week. However, you will likely work additional hours if you supervise a large finance department. You should expect to work in the evenings and on weekends. For instance, you could go to dinner with potential investors or play golf and attend networking events for the company. Most organizations hire finance directors on a full-time basis, and part-time roles are rare.
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career opportunities as a director of finance
Most finance directors start their careers in entry-level accounting or finance roles. When you gain experience as an accountant, you can progress to higher roles like finance manager or controller. These positions prepare you for senior positions, such as finance director. The role has promising job prospects in large companies and organizations. When you have extensive financial experience, you move up to executive positions in the company, like chief finance officer or chief executive officer.
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advantages of finding a job as a director of finance through randstad
Working with Randstad offers you a range of benefits.
- Always a contact person you can fall back on and ask for help from
- Many training opportunities
- A range of jobs in your area
director of finance skills and education
The educational requirements of a director of finance include:
- bachelor’s degree: pursue a bachelor’s degree in finance, commerce, economics or business administration to start your career. Since it is a senior position in the company, you should obtain a master’s degree in business administration or finance to improve your leadership skills.
- work experience: to work as a director of finance, you require experience in accounting, auditing, financial planning and financial activities. Gain experience through entry-level and mid-level management roles. You can boost your career prospects with recognized accounting designations, such as a Chartered Professional Accountant (CPA) or Certified General Accountant (CGA) certificate. If you want to work in investment companies, you require financial designations like Chartered Financial Analyst (CFA) or Chartered Investment Manager (CIM).
competencies and characteristics of directors of finance
Some of the qualities of a director of finance include:
- communication skills: as a director of finance, you communicate in written and verbal formats. Having good written communication skills helps you prepare financial reports and forecasts for senior management. Your verbal communication skills help you simplify complex financial concepts during presentations.
- analytical thinking: as a director of finance, you require analytical skills to analyze situations, review data and develop intelligent solutions to issues. For instance, you analyze the risks associated with investments or financial planning and come up with the best strategies.
- problem-solving skills: as a director of finance, you encounter numerous problems during your workday, so it's important to have the best problem-solving skills. The ability to handle issues that arise helps you adjust your strategies to mitigate risks and handle financial difficulties.
- technical skills: as a director of finance, you rely on technical skills to analyze data and prepare financial reports. Most companies use accounting software to monitor their financial performance and write reports or financial forecasts. Knowledge of using financial software is useful in the role.
- leadership skills: as the finance director, you are the head of the finance department. You require good leadership skills to motivate and inspire workers to achieve the company's goals.
FAQs
Here, you will find the answers to the most frequently asked questions about the profession of a director of finance.
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what is the purpose of a director of finance?
A director of finance develops and implements financial policies. You establish performance standards, supervise the preparation of financial reports, and ensure financial statements meet the accounting standards. Your job is to assist with financial planning, budgeting and developing investment strategies.
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how do I become a director of finance?
The minimum educational requirement for becoming a director of finance in Canada is a bachelor's degree. Pursue a degree in economics, finance or business administration. Having an MBA boosts your job prospects and improves your leadership skills. You also need extensive work experience in accounting, financial planning and auditing. Some companies require accounting designations, such as a Certified General Accountant, Certified Management Accountant or Chartered Accountant.
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is a CFO higher than a director of finance?
Depending on the organizational hierarchy, the chief financial officer (CFO) is usually higher than the director of finance. As a director of finance, you are a senior manager in the finance department but not one who ranks over the executives. You report directly to the CFO. In companies without a CFO, you report directly to the chief executive officer (CEO).
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how much do finance directors make in Canada?
Finance directors in Canada earn $160,000 per year. In an entry-level position, you start with a salary of $109,544 annually, while the most experienced finance directors take home over $195,437 per year. Your earnings fluctuate based on experience, qualifications and the scope of your duties.
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what makes a good director of finance?
A good director of finance has exceptional leadership skills to inspire and motivate workers to achieve their goals. You also require good analytical skills to analyze the financial reports and find any discrepancies. Since you use financial software to prepare and review financial reports, you require technical skills to use complex computer software.
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how do I find a job as a director of finance?
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