Success in business rarely happens by luck alone. Savvy business leaders know the path to success starts with proper planning. A sound financial strategy is critical for any company that wishes to achieve its goals. Finance directors are in charge of developing, implementing, and overseeing an organization’s financial strategy.

In addition to managing finance department staff, finance directors provide financial guidance to company leadership using data, forecasting, and reporting. By making data-driven decisions and mitigating risk, finance directors can improve their organization’s fiscal performance through increased revenue, reduced overhead costs, and other benchmarks.

Finance director is one of the few financial careers where a single individual can significantly influence an organization’s financial destiny. The most effective finance directors usually possess an advanced education and relevant certifications that showcase their expertise.

Finance Director Job Description

Finance director is a senior-level position that reports directly to an organization’s chief financial officer (CFO). Directors manage an organization’s financial health through strategy, budgeting, analysis, and financial performance reviews. Additionally, finance directors oversee the day-to-day operations of the finance department, which typically includes a staff of accountants, auditors, and accounting clerks.

Typical duties of a finance director include:

• Developing and overseeing financial strategy
• Establishing policies and procedures for the finance department
• Budget planning
• Consulting with executives and company leadership on financial decisions
• Performing financial reviews and reporting findings
• Recruiting, vetting, hiring, and training accountants and other members of the finance department
• Ensuring the finance department remains within legal and regulatory compliance
• Identifying potential investment opportunities
• Analyzing market trends
• Preparing monthly/quarterly/annual financial reports
• Handling financial audits
• Providing financial forecasts to company leadership
• Collaborating with accountants, finance managers, and other finance professionals
• Monitoring the latest financial tools and analytical software

Effective finance directors possess excellent verbal and written communication skills, are proficient in mathematics and analytics, and can effectively manage their time and workflows. Other in-demand skills include:

• Computer competency
• Critical thinking
• Problem-solving
• Leadership

Finance Director Salary and Job Outlook

Based on current salary and job growth statistics, pursuing the role of finance director can lead to a stable career with strong growth opportunities. According to the U.S. Bureau of Labor Statistics (BLS), financial managers—a category that includes finance directors—made a median salary of $139,790 in 2022, with the top 10% making more than $239,000 per year. Salaries can be influenced by a professional’s education, experience, geographic location, and organization, among other factors.

The job market for financial managers is projected to grow by about 16% between 2022 and 2032, which is much higher than the national average of 3% for the U.S. job market as a whole, according to the BLS.

How to Become a Finance Director

When hiring finance directors, organizations look for applicants who possess a strong educational foundation, relevant credentials, and plenty of professional experience. The path to becoming a finance director isn’t the same for everyone, but these steps can increase a candidate’s opportunities:

1. Earn an undergraduate degree in a subject like accounting, finance, business administration, mathematics, or economics.
2. Earn a relevant certification, such as certified public accountant (CPA), Certified Treasury Professional (CTP), or Chartered Financial Analyst (CFA) credential. Although there is no specific requirement to earn a certification, professional credentials stand out to employers and help elevate a candidate’s financial acumen.
3. Gain multiple years of professional experience working in finance. Many aspiring finance directors develop the hard and soft skills required for the position while learning the industry as analysts or accountants.
4. Earn a master’s degree with a focus relevant to finance. Many employers prefer candidates who hold an advanced education when hiring for director roles.
5. Gain high-level experience in a senior finance role such as senior accountant or controller. Aspiring finance directors should typically spend at least five years in one of these roles.

Aspiring finance directors should also focus on growing their professional networks and establishing meaningful business connections. Social media sites such as LinkedIn are a great way to connect with others in the financial industry, showcase skills and certifications, and monitor potential job opportunities. Joining professional organizations is another effective way to establish contacts and keep up with the latest industry developments in the financial sector.

Having the proper skills, education, experience, and credentials is essential for any finance director role. However, the power of a strong professional network can’t be understated. A personal business connection may become a key reference or the source of a job referral.

Pursue a Rewarding Career in the World of Finance

Finance directors play a pivotal role in creating financial strategies that help ensure an organization’s long-term financial health and stability. The strategic thinking, analytical expertise, and advanced education that highly trained finance directors can offer are invaluable to businesses that are dedicated to meeting their goals.

In addition to assuming big-picture responsibilities, finance directors oversee the day-to-day financial operations of their company, closely monitoring for opportunities, potential risks, and other scenarios that may impact the direction of their financial strategy.

Aspiring finance directors must possess the proper skills and financial competencies. The best way to learn those skills is with a first-class business education. The Executive Master of Business Administration Online at Washington State University offers students the opportunity to build their foundations in key areas such as:

• Creating actionable business strategies
• Performing comprehensive business analysis that identifies risks
• Recommending solutions to business challenges
• Applying the tenets of executive leadership theory to improve performance

Find out how WSU can support your professional goals of becoming a leader in the financial industry.

Recommended Readings

5 Benefits of Business Analytics in an Organization

Crisis Management Plans and Strategies for Businesses

What Is the Value of an Executive MBA?

Sources

Built In, “Finance Director”

Gartner, “Building a Better Finance Strategy”

Indeed, “Director of Finance Job Description: Top Duties and Qualifications”

Indeed, “How to Become a Director of Finance (With Key Skills)”

Indeed, “What Does a Finance Director Do and How to Become One?”

Pacific Crest Group, “Importance of a Financial Strategy”

U.S. Bureau of Labor Statistics, “Financial Managers”

U.S. Bureau of Labor Statistics, “Occupational Employment and Wages, Financial Managers”

ZipRecruiter, “What Is a Finance Director and How to Become One”