Finance Manager vs. Finance Director: What Are the Differences?

A career in finance can be both challenging and rewarding. Two common positions in this field are that of a finance manager and a finance director. Though these roles share some similarities, there are also several key differences between them.

In this article, we discuss the differences between a finance manager and a finance director, and we provide additional finance-related professions you may be interested in pursuing.

What is a Finance Manager?

Finance Managers are responsible for the financial planning and management of an organization. They develop and oversee financial systems and policies, direct investment activities and prepare financial reports. Finance Managers also create long-term business plans, monitor financial performance and assess capital needs. They work closely with other managers to ensure that the organization’s financial goals are met. Finance Managers typically have a bachelor’s degree in business, accounting or finance. Some organizations may require Finance Managers to have a master’s degree or certification in financial management.

What is a Finance Director?

Finance Directors are responsible for the financial planning and management of an organization. They develop long-term business plans and oversee the implementation of financial strategies. They also prepare and present financial reports to the Board of Directors and other stakeholders. Finance Directors work closely with other senior managers to ensure that the organization’s financial goals are aligned with its overall business strategy. They also manage a team of financial analysts and accountants.

Finance Manager vs. Finance Director

Here are the main differences between a finance manager and a finance director.

Job Duties

A finance director oversees all financial activities within an organization, while a finance manager typically manages a specific department or team. For example, a finance director may manage the budget, accounting and financial reporting for a company, while a finance manager may oversee the daily operations of that department, such as ensuring transactions are processed accurately and assets are secure.

Other duties of a finance director may include creating budgets, monitoring spending and providing financial reports to upper management. A finance manager’s job duties often involve managing accounts and finances within their department, such as approving expenditures and monitoring account balances. They may also monitor the performance of staff members who work in that department and ensure compliance with financial policies.

Job Requirements

Finance managers and finance directors typically need a bachelor’s degree in business administration, accounting or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many finance professionals pursue certifications through the Certified Public Accountant (CPA) or Certified Management Accountant (CMA). These organizations offer training programs that teach professionals how to use financial software and other tools they might need on the job.

Work Environment

Finance managers typically work in an office setting, but they may travel to meet with clients or attend conferences. They also spend time on the phone and emailing clients and colleagues. Finance directors usually have more responsibilities than finance managers because of their higher positions. This means that they often work long hours and travel frequently for business purposes.

Finance managers can work in a variety of settings, including hospitals, retail stores, restaurants and other businesses. However, most finance managers work in offices. Finance directors usually work in large companies where they oversee multiple departments.

Skills

Both finance managers and finance directors use financial analysis skills to examine an organization’s financial statements and make recommendations about how to improve the company’s financial health. They also both develop budgets and forecast future financial needs. However, finance directors typically have more responsibility for an organization’s overall financial strategy, while finance managers may focus on a specific area, such as risk management or investments.

Finance directors need to be able to think strategically to develop long-term plans for an organization’s financial growth. They also need to be able to communicate effectively with other members of senior management to ensure that everyone is on the same page regarding the company’s financial goals. Finance managers may not need to possess these same skills to the same extent, but they still need to be able to develop sound financial plans and communicate their recommendations to those who need to know.

Salary

The average salary for a finance manager is $107,233 per year, while the average salary for a finance director is $135,322 per year. The salary for both positions may vary depending on the size of the company, the location of the job and the level of experience the employee has.