How to become a Finance Director: skills, qualifications and salary

If you are looking to become a Finance Director, it is important to learn about the skills, qualifications and experience that employers are looking for. By doing so, you can enhance your application and put yourself in the best position for success when applying for Finance Director jobs. 

Applying for a Finance Director job is a major step in any finance or accountancy professional's career. Finance Directors are key members within an organisation, playing a pivotal role in setting the company's financial strategy and overall commercial trajectory. 

As such, the application and vetting process for Finance Directors tends to be quite in-depth, requiring candidates to demonstrate a high level of skill and experience. Whether you’re early in your career or already managing teams, understanding what it takes to become a Finance Director can help you map out a successful progression.

Here, we will provide advice on how to become a Finance Director and how to create the most compelling application when competing for high-profile roles within your chosen sector. We will also answer some key questions, such as: 

• What does a Finance Director do? 
• How long does it take to become a Finance Director? 
• What qualifications are needed to become a Finance Director? 
• What is the average Finance Director salary?

What does a Finance Director do?

Successful applications for senior roles should be written with the specific responsibilities and requirements of the role at the forefront. It is therefore important for candidates to have a strong understanding of what a typical Finance Director job description looks like, in order to ensure they are ticking all of the necessary boxes.

Finance Directors will be responsible for overseeing the finance and accounting department of an organisation. Working as part of the senior management team, if not the Board of Directors, they will usually be the most senior member of the finance department.

A standard Finance Director job description will usually include the following, depending on the industry, structure, and size of the organisation:

• Developing the company's business objectives and overall commercial strategy, and ensuring that its financial performance is delivering on these goals.
• Overseeing the organisation's financial controllership, including the preparation of value-add commentary with explanations for key movements.
• Managing the business's financial planning, with direct control over budgeting, forecasting, cash flow and credit.
• Providing guidance and support on audits, tax reviews and financial risk issues.
• Financial analysis and modelling of proposals to inform future business strategy and financial targets.
• Collaborating with and managing the company's accountancy team and lower-level management.

Although these are the typical job requirements for Finance Directors, the exact responsibilities associated with the role will vary depending on the organisation.

What skills are required for Finance Directors?

Finance Directors play a pivotal role in a company's commercial strategy and business administration, harnessing and making sense of complex financial information to ensure that the company's finances are being managed appropriately.

To become a successful Finance Director, you will need to demonstrate a wide range of leadership and financial skills: 

• Strategic thinking: Ability to align financial planning with long-term business goals

• Commercial awareness: Understanding of market dynamics and how they affect the business

• Leadership and communication: Managing teams and influencing stakeholders

• Analytical mindset: Ability to interpret data and deliver insights

• Regulatory knowledge: Up-to-date understanding of financial regulations and compliance

Additionally, the following soft skills will also be crucial to your Finance Director job application, and may often be specified as key requirements within a finance job description:

• Good communication skills, and an affinity for building relationships through your interpersonal skills.
• Strong analytical skills and critical thinking, backed by good commercial instincts.
• Broad knowledge of the latest industry trends and developments.
• High-level computer literacy and familiarity with the latest financial software systems.
• Good time management instincts, and the ability to multitask.

What qualifications do you need to become a Finance Director? 

While there is no single path to becoming a Finance Director, the following qualifications are typically expected:

• A degree in accounting, finance, or a related subject.

• A professional accounting qualification such as:

  • ACCA (Association of Chartered Certified Accountants).

  • CIMA (Chartered Institute of Management Accountants).

  • ACA (Institute of Chartered Accountants in England and Wales).

Additional certifications or training in leadership, corporate governance, or business management can also enhance your prospects.

Typical career path to Finance Director 

This may be different for each individual, but many Finance Directors progress through a series of finance and leadership roles before reaching the position:

1. Finance Assistant / Accounts Assistant

2. Management Accountant / Financial Accountant

3. Finance Manager / Financial Controller

4. Senior Finance Manager / Head of Finance

5. Finance Director

Each stage is an opportunity to build your skills in budgeting, forecasting, compliance, and people management.

How long does it take to become a Finance Director?

It typically takes 10 to 15 years to progress into an FD role, depending on your experience, industry, and the size of the organisation. Some professionals may reach this level sooner if they:

• Work in high-growth sectors.

• Take on cross-functional roles.

• Gain exposure to commercial and strategic decision-making early in their career.

The exact duration can vary based on individual circumstances and career paths. Aspiring Finance Directors should focus on building a solid educational foundation, gaining diverse professional experience, and developing strong leadership skills to achieve this role.

How to strengthen your application to become a Finance Director

If you possess these important skills and want to work your way towards a Finance Director role, there are a number of steps you can take to strengthen your application further:

• Research your chosen company before submitting your application, and tailor your approach accordingly. What specific qualifications and skills are they seeking? What challenges are they facing within their sector?
• Identify the industry you want to work in early in your career, and take steps to build your knowledge and experiences of this sector, including by building a strong commercial awareness of the industry's dynamics.
• Familiarise yourself with as many financial planning software systems as possible, so that you will be proficient with any setup.
• Highlight your measurable achievements and the value you have generated for past employers when writing your CV, as well as being as specific as possible about your previous responsibilities and project experience.
• Obtain references from previous employers that showcase your communication skills and relationship-building expertise, with a particular focus on positive references from business units outside the finance team. This will help to demonstrate your affinity for working as part of a multidisciplinary team, which is a key requirement for these roles.

By taking these steps, you can mark yourself out as a potentially great Finance Director candidate, putting yourself in the best possible position to secure the finance job you seek and start climbing the career ladder.

Finance Director salaries in the UK 

The compensation for this role can very significantly based on several factors, including the company's size, sector and location. One of the most significant factors influencing a Finance Director's salary is the industry or sector in which they work. Generally, Finance Directors in commerce and industry sectors tend to earn higher salaries compared to their counterparts in the public sector, for example. 

Salaries typically range from £55,000 to £150,000, with some additional financial incentives.

Here are some typical benchmarks:

• SME or not-for-profit sector: £70,000 – £90,000

• Mid-sized private companies: £90,000 – £120,000

• Large corporations or PLCs: £120,000 – £180,000+

Additional benefits may include performance bonuses, car allowances, pension contributions, and private healthcare. 

The benefits of working with a specialist recruiter

Finding a role as a Finance Director that matches your ambitions is much easier when you work with a specialist recruitment agency. Your recruitment partner can provide career advice and support you with all aspects of your job search, helping you to refine your CV and application, as well as match you with prospective employers who are looking for applicants with your skillset.

It is particularly important to find a recruitment partner with expertise in recruiting for high-level senior and executive roles, such as Sellick Partnership. We have good relationships with many of the industry's top employers, and a strong track record of placing highly skilled senior candidates in Director of Finance roles.

To find out how Sellick Partnership can help you apply for a Finance Director job, visit our Senior & Executive recruitment hub, where you can explore the latest vacancies we have available. If you don't come across anything suitable, please don't hesitate to get in touch with us anyway, as we might be working on upcoming and exclusive roles.