Friday, January 3, 2014

Decoding Director of Finance Jobs and other Financial Careers



Senior management titles in finance mostly get mangled. There is no clear understanding of the roles performed by similar management positions. However, every one of them has a clear role and every role is differentiated in terms on responsibility and authority. A director of finance job is different from VP of finance job. Most misunderstood positions are that of a CFO and VP finance. 

Role of VP Finance

VP finance ensures that all financial controls are in place. All book of records and reports are prepared under his directions. He ensures all records are accurate and timely. He keeps strict control on company’s finances. He summarizes and foresees company’s financial position and ensures adequate staffing of accountants, clerks and finance managers. He also oversees budget, audit and accounting departments. Finally a VP or VP Director of Finance jobs ensures that all wheels are on the bus and organization is functioning smoothly. 


An organization needs a CFO when all its financial functions and procedures are in place and it looks forward for a deep financial strategy. CFOs are largely about organizations future endeavors. CFOs provide a strategic outlook and financial framework for the organization.  They are accountable for accuracy of financial reporting. CFOs handle mergers & acquisitions and manage relationships with investors. They help in meeting organizations financial budget, goals and objectives. 

When should an organization hire VP Finance and a CFO?

VP Finance ensures that all financial functions in organization are accurate and timely. Organization needs VP Finance in its day to day functioning. If an organization can afford VP finance, it should hire one immediately and he will ensure that all finances are in place. CFO needs a meaty role and interesting business. If an organization does not have an expansion or growth plan it does not require expertise of a CFO. Rather organizations should hire a CFO when it wants to go more strategic and is looking for overseas expansion. VP handles inside of the organization whereas a CFO handles outside functions.  

In summary, VP finance improves efficiency and avoid financial risk and a CFO effectively manages functions and strategically leads organization for growth.

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