A finance director holds one of the most important positions in companies belonging to all sectors of the economy. This article contains the relevant and important details about the job profile and salary of a finance director.
The need for experienced and highly qualified finance professionals is rising these days due to the increased competition in the market. Finance directors are supposed to oversee all the financial transactions in the company for the benefit of the organization. These professionals are generally pass-outs of reputed business schools, and are hired at very high salaries.
The job profile of a finance director consists of taking big financial decisions to make the organization’s financial position strong. He studies the current financial position of the company and sets aims or goals for further expansion. He makes policies for growth and explains it to the middle management and lower level employees as well. His functions also include accounting, budgeting and taxes. He also has to convey the company’s current position and his plans to the board of directors, and discuss all details with them personally. He studies the debt to equity ratio, balance sheet, profit and loss accounts, and financial reports to take the right decisions for his firm’s prosperity.
Establishing cash controls, management of investments and ensuring that employees working in the finance department get the right training and exposure, are also among his duties. In many companies, finance directors conduct press conferences to help investors/stakeholders know about the expansion plans and financial situation of the company.
Becoming a finance director takes several years of hard work, consistency in performance and a positive attitude. To begin with, you need to pass out with a graduation degree in subjects such as finance, accounting, economics or business administration, from a renowned university. A master’s degree will naturally enhance your chances of securing greater employment.
Internships in finance firms and practical working experience help in getting higher level positions. Having sound accounting and computer knowledge is imperative for all candidates. Apart from this, excellent communication skills, interpersonal skills, logical thinking ability, problem solving skills, analytical skills and language skills are a must for this position. While applying for this job, you should make sure that your resume is perfect and well drafted. Taking help from experts to prepare a resume can help a lot.
The average finance director salary is much higher as compared to senior level positions in other sectors. In the United States of America, a qualified finance director can earn a median salary of around $200,000 per year, which is absolutely stunning. However, their salaries also depend on the type of employer, location of the job and work experience. Finance directors earn a very high salary in large metropolitan cities as compared to smaller cities and towns. Those working for financial service majors will make more money than those working for relatively smaller firms.
The finance director salary range can be between $75,000 to $300,000 per year. It also depends largely on bonuses, stock options and incentives, which they are entitled to. The bonus payment again depends on the financial health of the company and overall economic conditions. Having said this, the average salary has been pegged at around $100,000 per year by industry experts.
If you are interested in making a career in the field of accounting and finance, then this is the right time to jump into this field, because the economies of most nations are picking up after the recession, thus creating many good jobs. All the best and make the most of the opportunities that come your way.