Home Finance What Are The Functions And Requirement To Become A Finance Director?

What Are The Functions And Requirement To Become A Finance Director?

by Banking Desk

Finance Director is one of the members of the company’s senior executive team. The Finance Director performs such functions which will lead the company to long term growth. Here, we provide you some of the functions of a Finance Director and what are the qualifications required for the same. 

What does a Finance Director Do

He / She is responsible for maximizing the returns on the company’s investments by establishing:

  • Financial policies,
  • Procedures,
  • Controls and
  • Reporting systems.

His / Her position ensures that all of organisation’s accounting and financial reporting functions meet the land’s legal and regulatory compliance. His / Her position also oversees:

  • Cost and general accounting,
  • Accounts receivable/collection and
  • Payroll and risk management.

Required Educational Qualifications and Experience

  • A Postgraduate degree in business, financial or related field or equivalent work experience.
  • 10 or more years of experience in managing an accounting function in a company whether it be a medium or large size company.

Competencies

  • Financial Management.
  • Strategic Thinking.
  • Business Acumen.
  • Ethical Conduct.
  • Technical Capacity and
  • Performance Management.

Essential Functions

  • He / She guides the organization in taking correct financial decisions by establishing, monitoring and enforcing policies and procedures.
  • He / She protects the organization’s assets by establishing, monitoring and enforcing internal controls.
  • He / She works towards the maximization of returns and limits the risk of cash by minimizing cash balances and making wise investments that have good ROI.
  • He / She provides the status of financial condition of the company by collecting, interpreting and reporting key financial data.
  • He / She ensures compliance with federal, state and local legal requirements by:
  • Researching existing and new legislation,
  • Consulting with outside advisors, and
  • Filing financial reports.
  • He / She advises management about the necessary actions to be taken and their potential risks.
  • He/She arranges for audits whenever the need seems to arise and appropriate.
  • He / She manages the organization’s budget and controls expenses effectively.
  • He / She Hires, trains, develops and appraises staff in an effective manner. And takes corrective action whenever the need arises on a timely basis and in accordance with the company policy.
  • He / She Consults with Human Resources whenever he/she seems it appropriate.
  • He / She keeps himself up-to-date on information and technology affecting functional area(s), so as to encourage and increase in innovation and ensure legal compliance.

So, these are the duty and functions of the Financial Director and also the qualifications to become a Finance Director. 

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