What is a finance director and how to become one

Q: How long does it take to become a Finance Director?

It takes 10 years of professional experience to become a finance director. That is the time it takes to learn specific finance director skills, but does not account for time spent in formal education. If you include the normal education requirements to complete a college degree, then it takes 13 to 15 years years to become a finance director.

Q: How much does a financial vice president make?

A financial vice president makes around $150,000 a year, on average. As an experienced and critical member of the executive team, a VP of Finance can expect to make between $90,000 and $200,000 per year. In addition, the compensation package will often include bonuses or profit-sharing as a perk of the executive position.

Q: How to get promoted to finance director

Getting promoted to finance director involves learning a broad base of skills and operational experiences. Today's finance directors are increasingly taking on duties that had previously belonged to other departments requiring diversity in their knowledge base and delivery skills.

Q: Is being a finance director a good job?

Yes, being a finance director is a good job. Being a finance director is a good job if a person wants to work in a role that requires a lot of attention to detail and directly impacts the company's financial health.

Q: Is it hard to become a finance director?

Yes, it is hard to become a finance director. This is a senior executive-level position that requires a significant amount of education and experience to achieve. A finance director's primary responsibilities are to assess the financial needs of a company and direct funds appropriately. This position will build a financial foundation that allows the organization to grow. Finance directors manage all aspects of a company's financial health and long-term growth.

Q: What is the difference between CFO and finance director?

The difference between a chief financial officer (CFO) and a finance director is that a CFO is a higher-level position than the finance director. The finance director reports to the CFO and acts as their primary accountant providing financial information needed to make executive-level decisions about the company's finances.

Q: What is the difference between a CFO and a VP of Finance?

The difference between a CFO and a VP of finance is that VPs often have a hands-on role in managing a company's finances, while CFOs are more involved in the strategic financial future of a firm. These roles are fairly similar but have different day-to-day tasks and levels of strategic involvement.

Updated January 8, 2025

4 min read

Quoted expert

Brian Meehan

Finance directors are senior-level executives responsible for overseeing an organization's financial operations. They manage financial planning, budgeting, forecasting, and reporting, as well as ensuring compliance with financial regulations and managing risk. The finance director also works closely with other executives and departments to develop and execute strategic plans that align with the organization's financial goals. Successful finance directors have strong analytical skills, excellent communication and leadership abilities, and a deep understanding of financial markets and trends.

What general advice would you give to a finance director?

Brian Meehan

Assistant Professor of Economics, Campbell School of Business, Berry College

My advice would be to apply broadly for jobs and take advantage of the robust set of career opportunities a degree in economics provides. It also gives you a better gauge of the opportunity cost (next best alternative) of accepting a job. Try to determine what that best alternative is. Additional training can also be a good option. Those individuals interested in graduate schools, professional schools, law schools, MBAs, etc. should look into these opportunities. Improving your human capital stock (via training and education), while weathering a recession, and then capitalizing on a healthier job market at the end of this training, is a pretty good route (assuming the recession is short).

ScoreFinance DirectorUS Average

Salary

8.1

Avg. Salary $118,518

Avg. Salary $59,228

Stability level

7.8

Growth rate 17%

Growth rate 0.3%

Diversity

3.3

Race

American Indian and Alaska Native 0.34%

Asian 9.42%

Black or African American 7.55%

Hispanic or Latino 14.46%

Unknown 4.10%

White 64.13%

Gender

female 34.93%

male 65.07%

Age - 46

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 46

Stress level

7.8

Stress level is high

7.1 - high

Complexity level

9.2

Complexity level is advanced

7 - challenging

Work life balance

4.6

Work life balance is fair

6.4 - fair

What are the pros and cons of being a finance director?

Pros

High salary and compensation
Exposure to a wide range of business operations and functions
Opportunity to develop leadership skills
Ability to make a positive impact on the company's financial health
Chance to work with cutting-edge financial technologies and tools

Cons

High levels of stress and pressure
Responsibility for managing large amounts of money and finances
Risk of making costly mistakes or errors in judgment
Necessity of staying up-to-date on changing financial regulations and laws
Requirement to communicate complex financial information to non-financial professionals.

Key steps to become a finance director

Explore finance director education requirements

Most common finance director degrees

Bachelor's

71.2 %

Master's

20.1 %

Associate

5.5 %

Start to develop specific finance director skills

Skills	Percentages
CPA	6.66%
Financial Analysis	5.99%
Payroll	4.25%
Work Ethic	4.20%
Oversight	4.09%

Research finance director duties and responsibilities

Manage treasury functions considering the inflationary situation and changes in economic patterns to minimize any negative impact they may involve.
Improve internal controls and operating efficiency by training accountants and converting general ledger reconciliations to GAAP formats.
Prepare financial data and footnotes for independent CPA annual audit financial statements.
Develop financial models in Hyperion to aggregate sales data and allocate expenses for profitability analysis.

Get finance director experience

Generally, it takes 6-8 years to become a finance director. The most common roles before becoming a finance director include controller, finance manager team lead and senior finance analyst.

Prepare your finance director resume

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