The VP of Finance is a vital role in any company or organization. Because a company relies on making a profit in order to succeed in business, it is imperative to have a strong VP of Finance in place.
This job requires a lot of experience and skills, including between five to ten years experience as a financial professional, preferably in a management position, and the knowledge to work various accounting and financial operating software. The job also requires a bachelor’s degree in a finance field, although a graduate degree in business or finance is preferred.
A VP of Finance is responsible for all finance matters within a company; they report directly to the president and are regular attendees at board of directors meetings. It is their job to ensure that the company is under budget and makes a profit every fiscal year, and so it can be a stressful job at times, but it is well worth the reward of being a integrable member to their organization.
Salary
The average salary for a VP of Finance is estimated to be $134,421; the city and experience level of the professional plays a role in the final salary. Executives in this role often get bonuses, profit sharing payments, and commissions as well, putting the final salary at well over $235,000.
Beginning Salary
The median beginning salary for a VP of Finance is $106, 802 with skill level, city, industry, and experience acting as key factors in how much a candidate gets paid to begin their career in the role.
Key Responsibilities
The VP of Finance is tasked with preparing financial and business activity reports, fiscal forecasts, budgets, and working closely with executives to ensure that the business is trending towards profits on a quarterly and yearly basis.
This position requires that the professional act as an advisor to the president of the company and other key executives on financial planning aspects of the business. This includes advising on policy matters, investments and acquisitions, budgets, and cash flow. In return, the VP serves as the management liaison between the president and other department heads on all matters relating to finance.
Necessary Skills
A VP of Finance candidate will be expected to understand finance and accounting reporting systems, the Generally Accepted Accounting Principles used in American business, and have the ability to analyze the fiscal data from a company and prepare and present financial reports, projections, and statements.
Other necessary skills include having knowledge and experience in running a full revenue cycle from beginning to end, a background in federal and state laws that affect the industry, have the ability to work on acquisitions from idea to fruition, and can handle a department of professionals ranging from three to 30 people.
Degree and Education Requirements
This position requires, at minimum, a bachelor’s degree in either finance or accounting; a master’s degree in business, finance, accounting will provide candidates with an advantage over other candidates with the same experience and skill level. It is strongly encouraged that candidates for this position seek graduate education prior to pursuing the role of VP of Finance.
Certification as a CPA or a CFP is desired among most sectors, especially the international finance and business market. Candidates who are choosing to find jobs on either the West Coast or East Coast are strongly encouraged to receive certification in their field.
For a VP of Finance candidate looking for a job in a specific field, there are special requirements; working with a defense company that does business with the government, for example, requires knowledge of how government contracts work in regard to payments. Candidates are strongly encouraged to understand the non-degree education requirements for any specific industry prior to applying for the position.
Rewards and Challenges of Position
Becoming a VP of Finance has a number of rewards aside from the competitive pay and bonuses; these professionals often work with a diverse group of financial professionals and has the ability to provide a positive team experience, making them invaluable to their companies. They are also given a variety of benefits, including health insurance, a flexible spending account, travel expenses compensation, a company car, and a business cell phone.
Some challenges that face the VP including being responsible for the entirety of the company’s fiscal outlook which comes with long hours; many professionals in this role regularly work over 40 hours a week. VPs must balance budgets, ensure cash and revenue flows are done properly, and must ensure the bookkeeping for the company is correct. These professionals must also contend with state and federal regulators during audits and are responsible, good or bad, for financial investments the company makes.
Getting Started
After graduating with a degree at the undergraduate level, candidates for this job will be expected to have at least five to ten years of experiences in accounting or finance. One to three years of experience managing and running a finance department as a department head or leader is also required for most job positions. Most businesses also give preferred consideration to candidates with a graduate degree.
Candidates who are pursuing this position will want to begin their career straight after graduation, moving up in a company to become the head of a finance department prior to applying for a VP of Finance role. Gaining supervisory experience in both national companies and small businesses will make it easier for a candidate to find a position as a VP once they begin the job search. A minimum of five years in a mid-level management position is required for this role, so working up towards a mid-level management position within one company is encouraged.
Future Outlook
As businesses grow in America, the need for candidates who can fill the job of VP of Finance is also expected to expand. The current job outlook sees an increase of seven percent through 2024, or around 40,000 new jobs; however, the growth will vary by industry and will be highly competitive considering the amount of candidates that will qualify for the position is expected to increase in the next five years.
Any major organization or business will need a VP of Finance to help them secure venture capital, keep under budget for projects, and report to the board about the fiscal health of the company. Therefore, businesses across the country in all sectors are currently looking for qualified candidates. Many small businesses, especially in the entertainment and goods and services sectors, are estimated to be the largest sectors who are providing available jobs.
The VP of Finance position is a competitive and rewarding role for any financial professional. It requires hard work and dedication to meet the demands reserved for this executive role, but it is one of the most lucrative jobs in the finance industry. Any interested candidate would find that serving in this role will be a fulfilling career.
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