The Director Finance manages the company’s finances, controls income and expenses, carries out tax planning, evaluates assets and liabilities, thereby optimizing profits and distributing risks. In fact, he can be called the Deputy Director of Finance. Most often, this is the second person of the company, who bears the same responsibility as the leader himself.
Basic requirements for Director Finance
All requirements for the Director Finance, the scope of his duties and powers are prescribed in the job description, which is approved directly by the head of the company. The set of requirements for education, level of knowledge and practical skills may differ markedly depending on the specifics of the organization. However, there are general requirements that are found in most cases. This specialist must have a higher specialized education and relevant work experience (as a rule, from 3-5 years).
The find director must be able to:
- Manage the work of the organization on the basis of the adopted rules of financial control;
- Attract investors’ funds;
- Negotiate with various counterparties, potential clients;
- Analyze the sources of income and expenses of the company;
- Plan the budget for the next year / years;
- Form the financial and tax policy of the company;
- Choose the most favorable tax regime;
- Participate in the development of sales plans.
In his work, the financial director is guided by the requirements of the law, orders of the head and other internal documents. Thus, the main task of the financial director is to conduct a competent financial policy of the company in order to minimize costs and maximize profits, as well as to distribute risks.
12 essential responsibilities of Director Finance
- The main responsibilities of the Director Finance are:
- Form and implement the financial policy of the enterprise.
- Lead the work of financial departments / departments; organize effective interaction between various employees to achieve the approved indicators.
- Control the movement of financial flows, ensure transparency of expenses, adjust them if necessary.
- To represent the interests of the organization, speaking on its behalf to counterparties, clients, tax authorities and other structures.
- Participate in the development of job descriptions for subordinate employees, establish the range of their rights and responsibilities, monitor the execution of orders.
- Participate in the formation of a sales plan, take all measures to achieve it, monitor employees, receive reports and other documentation from them.
- Participate in the formation of the budget of the company and / or its individual divisions, branches, project estimates.
- Request in divisions or branches all the information necessary for their work, notify the heads of divisions and branches of the adopted changes in the company’s income and expenses policy.
- Participate in the development of orders, instructions and other documents that are mandatory for all employees of the company.
- To form and implement the concept of attracting investments, calculate the potential profit and possible risks from the investments received. Analyze financial risks, calculate the possible consequences of their occurrence, minimize losses from already manifested negative factors.
- Organize and participate in the work on the analysis of the company’s performance for the reporting period, identify and eliminate the reasons for non-fulfillment of the plan and other targets.