what is a director of finance?
As a director of finance, you are responsible for a company's financial growth. Some of your main duties include creating revenue reports and implementing financial policies. With your in-depth knowledge of accounting and finances, you are responsible for a company's financial health. Part of your responsibilities are maintaining transparency in the finance department and preparing financial statements at the end of the fiscal year. You also implement strategies that allow the company to grow financially and earn profits.
As the director of finance, you make investment decisions to improve and grow the company's portfolio. You continuously monitor the investment portfolio and take appropriate risks when growing it. You also create monthly, quarterly and annual revenue reports and budgets for each department.
Another key responsibility you have is to track the company's expenditures and profits. It's your job to reduce or eliminate financial risks for the company and find solutions to the organisation's financial issues. You report the company's finances and activities to your immediate supervisor, the CFO.view jobs
average director of finance salary
The average salary of a director of finance in Australia is $195,000 per year. However, the remuneration package fluctuates based on various factors, ranging from work experience to company size and the complexity of duties. When you join the finance director position, you start with a salary of $185,000 per year. As you improve your experience, your earnings gradually increase, and you can take home over $205,000 annually.
how to increase your salary as a director of finance
Your remuneration package as the director of finance increases with experience and educational qualifications. When you have a high level of expertise, you are likely to earn more compared to a director of finance with minimal experience in the role.
The industry you work in also affects your earnings. Working in high-revenue industries, like investments or telecommunications, improves your earning prospects. Working in large organisations with complex duties also attracts higher salaries since you handle diverse duties. Big companies often have multiple branches, increasing your workload compared to a small company with only one branch.
When you work in metro areas, you are likely to earn a higher remuneration than in smaller cities. The high demand for directors of finance improves your earning prospects.
Want to know what you will earn as a director of finance? Check out what you are worth with our salary checker.
types of directors of finance
The director of finance is typically in the same position across different companies. However, the role has different titles, such as director of financial planning and analysis or director of finances and operations.
Directors of finance work for companies of varying sizes, from small and medium-sized businesses (SMBs) to multinational organisations, with significant commitments and investments in the international market. If you work in a multinational company, you are responsible for large investment portfolios and big company budgets. It is also possible to work with external businesses on behalf of your company.
working as a director of finance
The director of finance requires a strategic vision and technical abilities to carry out financial planning for companies. To do this, you need the necessary competencies and must develop the skills that allow you to perform your duties successfully. Here are some essential aspects of your work profile.
education and skills
You require at least a bachelor's degree to become a director of finance in any company. Pursue a bachelor's degree in business administration, finance or accounting. These degree courses equip you with knowledge in accounting or finance, helping to prepare you for finance roles. Since the director of finance is a senior role in the company, you should pursue a master's degree to improve your job prospects.
Gain work experience in mid-level finance or accounting positions to improve your skills. Since managerial experience is mandatory, consider roles like finance manager or controller to improve your career prospects. You also need professional accounting or finance qualifications, such as a Chartered Professional Accountant (CPA) or Certified Financial Analyst (CFA) designation.
director of finance skills and competencies
You need a variety of skills and competencies to be effective at your job as director of finance. Some of the skills include:
- team management skills: finance directors work with other departments to create budgets, account for expenditures, and ensure the company is on track financially. Managing and leading these teams effectively is important.
- communication skills: if there are financial issues, communicating the issues and possible solutions is an important skill to master. As a director of finance, you present your financial reports in a comprehensible and easy-to-understand manner.
- financial forecasting skills: successful finance directors not only manage budgets but also efficiently forecast the company's performance. These analytical skills are important to ensure the company is always in good financial health.
- stay updated: a good director of finance stays updated on any financial regulations that affect the company.
- technological know-how: as new financial software continues to emerge, finance directors should learn and master the different software programs.
- adaptable: financial situations are sometimes fluid. As a director of finance, you should remain flexible as changes happen at the company or within the financial industry.
- crisis management skills: large portfolios at a company can sometimes take a hit, especially during a recession. You should be able to steer the company during times of crisis to ensure financial chaos doesn't ensue.
FAQs about working as a director of finance
Here, you will find the answers to the most frequently asked questions about the profession of a director of finance.