What is a Typical Day for a Director of Finance?

Students who have the strategic forethought to map out detailed career paths that lead to executive level, corporate finance positions likely have the makings of a company Director of Finance. After mastering fundamental financial management functions, some finance professionals seek to move into positions of greater responsibility that require significant leadership skills as well as financial management acumen. Here are some particular job functions that one can expect to encounter during a typical day as a company Director of Finance.

Leads the Development and Implementation of Company Financial Strategy

A corporation’s Director of Finance is responsible for the creation and management of the organization’s financial strategy. A company’s financial strategy is a key management document that is used to guide company investment decisions across its portfolio. In addition to providing internal financial investment guidance, the document contains important information for would be shareholders to determine whether a company’s overarching goals match their investment objectives. Savvy Finance Directors not only manage the creation of the strategy, but they also follow up to make sure that the financial activities of business units align with the big picture objectives described in the company’s financial strategy.

Advises Department Managers on Budgeting Matters

Many Finance Directors still get to do hands on financial management activities when they help department managers create and manage their budgets. Finance Directors are often sought after in these advisory roles because of their reputed analytical skills, and they often have approval authority for certain financial budgets anyway. These Directors of Finance utilize their leadership and experience to recommend budgetary practices to department managers that streamline their operations and identify cost reductions.

Makes Financial Management Policies, Operations and Status Transparent To Chief Financial Officer

A corporate Finance Director typically reports to the organization’s Chief Financial Officer (CFO). After developing company financial policies, managing capital investments and ensuring company adherence to statutory financial requirements, prudent Finance Directors make their ongoing efforts and achievements visible to the CFO . Finance Directors are proficient with many business related information technology (IT) tools, and they often use these business applications to provide appropriate stakeholders with transparent reporting capabilities. Since a company CFO answers to the board of directors and shareholders, it is useful for them to have updated company financial data available to them. Finance Directors usually set up these business IT tools as web-based scorecard reporting mechanisms that show status about investment decisions, audit outcomes, financial risk analysis output and future financial strategic plans.

Manage Company Audit Functions

Periodic audits are facts of life in the world of financial management because they attempt to keep the financial system honest and free of fraud. Directors of Finance develop and maintain financial audit systems that are used in their company’s internal financial auditing processes. In addition to overseeing internal audit functions, Finance Directors work with government or third-party audit professionals to make sure that companies are in compliance with state specific regulatory requirements. When a company does not pass a third-party audit, Finance Directors seek ways to correct the identified flaw using data collected through automated IT audit systems.

Conclusion

Reaching the position of Finance Director requires a combination of hard work, keen technical skills and indefatigable networking abilities. After obtaining the sought after position, a corporate director of finance must demonstrate strong leadership abilities to guide the organization to success.