Vice presidents of finance lead and oversee a company’s finance team and its operations. Here’s what to know about a vice president of finance’s salary, needed skills and how to become one.
What Is a Vice President of Finance?
A vice president of finance is responsible for leading the finance department and makes strategic decisions about finance goals and how a company should use its revenue and profits.
What Do Vice Presidents of Finance Do?
A vice president of finance is responsible for leading the finance department and managing accountants and other finance team members. This role makes strategic decisions about finance goals and how a company should allocate resources toward employee development, marketing and advertising.
Vice President of Finance Responsibilities
- Oversee and manage the finance department.
- Conduct in-depth financial analysis and reporting.
- Ensure the company’s compliance with state and federal tax laws and regulations.
- Set financial goals and strategy for the organization.
- Create budgets and financial forecasts based on financial reporting.
- Ensure the company is compliant with insurance regulations.
- Oversee payroll, tax preparation, invoices and other accounting operations.
- Work with company leadership on finance activities such as venture capital funding.
Day-to-Day Responsibilities of Vice President of Finance
- Coordinate with finance team members about ongoing projects, payroll and any issues that arise.
- Keep company leaders informed on finance department performance and updates.
- Monitor daily transactions and prepare financial reports.
Vice President of Finance Within a Company
Vice presidents of finance are responsible for leading the finance team and overseeing its operations. They often work closely with marketing and sales to plan budgets and goals. The vice president of finance typically reports to the chief financial officer, depending on the structure of the organization.
Importance of Vice Presidents of Finance
Vice presidents of finance use their analytical skills and accounting expertise to advise company leadership on how best to utilize resources. This role is essential to a company’s operations as they are responsible for overseeing payroll, budget planning and financial reporting and analysis.
What Skills Are Needed to Be a Vice President of Finance?
Qualifications to Be a Vice President of Finance
- Ability to view a company’s financial performance and process through a big-picture lens.
- Firm understanding of state and federal tax laws.
- Firm understanding of fiscal management principles.
- A solid understanding of risk management and assessment.
- Strong grasp on economic patterns and trends.
- Ability to hire and train financial analysts and accountants.
Vice President of Finance Prerequisites
- This role requires a bachelor’s degree in finance, accounting or a related field.
- Many vice presidents of finance obtain a master’s degree in finance or business management.
- Most vice presidents of finance are required to have 10 years of experience with three to five years of experience in a managerial role.
Vice President of Finance Hard Skills
- Analytical skills.
- Finance and accounting skills.
- Business acumen.
- People management and leadership skills.
- Critical thinking skills.
Vice President of Finance Soft Skills
- Presentation skills.
- Strong verbal and written communication skills.
- Organizational skills.
- Ability to multitask.
Tools and Programs Vice President of Finance Use
- Xero
- FreshBooks
- QuickBooks
- NetSuite
- Workiva
- Microsoft Power BI
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How to Become a Vice President of Finance
Vice President of Finance Education and Experience
A vice president of finance is required to have a bachelor’s degree in finance, accounting, economics or a related field. Many people in this role also hold an MBA and other related certifications. Vice presidents of finance usually have around 10 years of experience in finance and several years of experience managing people.
Vice President of Finance Certificates and Courses
Vice President of Finance Career Path
Vice presidents of finance usually begin their career with entry-level financial analyst and accounting roles. Some commonly held titles before becoming a vice president of finance may include senior financial analyst, finance director and controller. A vice president of finance may go on to a role like chief financial officer.
Vice President of Finance Salary and Job Outlook
The finance field is expected to grow at a steady rate over the next several years. The project job growth rate for financial analysts, a related field, is 9 percent through 2031.
The full compensation package for a vice president of finance depends on a variety of factors, including but not limited to the candidate’s experience and geographic location. See below for detailed information on the average vice president of finance’s salary.
FAQs
The VP of Finance plays a vital role in shaping the company's financial strategy and ensuring that the organization remains financially healthy and aligned with its long-term goals. This position requires an in-depth understanding of financial principles, excellent analytical skills, and strong leadership capabilities.
What is the vice president of finance? ›
VP of Finance stands for Vice President of Finance. Typically, the individual in this role oversees the day-to-day financial management of the organization. Key responsibilities include managing risk and investment strategies, alongside tracking the overall financial health of the company.
How do you become a VP of Finance? ›
This is a senior position, so you should have at least a bachelor's degree in finance and several years of experience working your way up through the financial sector. In this role, you are in charge of budget management, financial planning, and financial reporting for each quarter.
What skills do you need to be a vice president? ›
Being able to devise and implement strategic action plans is a must-have skill for any VP. You need to understand the organisation's goals, identify potential roadblocks, and develop comprehensive strategies to ensure progress and long-term growth.
What does a vice president of finance and operations do? ›
The Vice President of Finance and Operations (VPFO) will provide effective leadership and direction in innovation, planning, policy development, budget process and allocation, program evaluation and improvement for fiscal, physical plant, logistics, and assigned auxiliary services.
What is the vice president level in finance? ›
Vice presidents of finance are responsible for leading the finance team and overseeing its operations. They often work closely with marketing and sales to plan budgets and goals. The vice president of finance typically reports to the chief financial officer, depending on the structure of the organization.
Why is everyone a vice president in finance? ›
It might be because careers in banking have always been quite short – meaning that banks had to tempt juniors with seniority to stay (or at least apparent seniority). It might be because VPs are the earliest stage at which bankers start meeting clients, who also feel the need to talk with someone senior. So…
What are the 4 qualifications of the VP? ›
Article II, Section 1, Clause 5 of the constitution states for a person to serve as vice president must:
- be a natural-born citizen of the United States.
- be at least thirty-five years old.
- be a permanent resident in the United States for at least fourteen years.
To become a vice president, one must work their way up to the expertise and industry recognition that the role requires. Many current vice presidents start at lower level management or supervisory positions. They are promoted from experience rather than education.
How do I interview a VP of Finance? ›
Interview questions for VP of finance roles with sample answers
- Are you familiar with the accounting system this company uses? ...
- What are your cash flow management strategies? ...
- What improvements do you believe you can make to the financial reporting process? ...
- What is your experience with financial planning?
Hire and empower great talent.
A key part of leadership is knowing how to build and support a team, and that's especially true for VPs, considering their large set of responsibilities. "It's important to realize that your success is tied to the success of your teams.
What 3 major duties does the vice president have? ›
Constitutional roles
- President of the United States Senate. ...
- Presiding over impeachment trials. ...
- Presiding over electoral vote counts. ...
- Successor to the U.S. president. ...
- Acting president.
How to Ace the Job Interview and Land a Senior-Level Role
- Be ready to show off specific accomplishments. ...
- Make them picture a future with you. ...
- Make it personal. ...
- Research the people you're speaking with. ...
- Practice storytelling. ...
- Prepare open-ended questions to create a dialogue. ...
- Reference past conversations.
Education Requirements
- Bachelor's Degree in finance, accounting, business administration or a related field.
- Five to ten years of managerial experience.
- Certifications such as CPA, CFA, and CMA are preferred.
A VP of Finance will have many responsibilities because they serve as the financial advisor to the Chief Executive Officer (CEO). In addition, they provide strategic financial planning, lead and manage the budgeting process, and oversee all sides of an organization's accounting operations.
Is VP of Finance or CFO higher? ›
A VP of Finance is a senior financial executive who reports to the CFO.
Is VP of Finance higher than CFO? ›
A VP of Finance is a senior financial executive who reports to the CFO.
Is VP of Finance same as finance director? ›
In a scaleup, Finance Director and VP of Finance are often used interchangeably. The distinction between these two roles is really the ability of someone to drive revenue visibility. A Finance Director or VP of Finance knows how to influence revenue visibility and predictability across the company.
What is vice president title in financial services? ›
Vice President
An associate typically rises to the rank of vice president after working at the bank for a period of three to four years. A vice president speaks to clients and updates them on how deals or transactions are progressing.
Is vice president of finance higher than controller? ›
The vice president of finance outranks the controller. A controller reports to the CFO, while the CFO reports directly to the company's chief executive officer. The CFO has to observe every financial aspect of the company and know how they affect and relate to the accounting systems.
