Vice President of Finance: Salaries, Roles and Skills

If you are someone looking for a great career in corporate finance, then you should be aiming for the post of vice president of finance, also known as VP of finance. It is often confused with the post of chief executive officer, and it can be justified for smaller firms. But in large firms, it is a separate and important designation that students of finance should aim for.

What does a vice president of finance do?

The vice president of finance is a senior-level position only one step below the CFO. A VP of finance is primarily responsible for maintaining the financial health of the company. This means being involved in managerial as well as administrative duties. They have to handle various duties, such as overseeing the financial aspect of the company, managing different financial teams, and communicating the work of their teams’ development to the executive level and stakeholders.

What is the salary of the VP of finance?

As this is one of the highest positions in organizations that oversee a lot of financial activities, the remuneration is also high. According to Indeed.com, the average salary for a VP of finance is $141,055 per year. When working in a big company, it can go as high as $227,700 per year.

What are the different roles and responsibilities of a VP of finance?

There are different roles that the VP of finance undertakes, such as ensuring the day-to-day financial activities of the company run smoothly, overseeing administrative tasks such as budgeting, payroll processing, risk management, etc., and managing different financial teams. The different teams include accountants, analysts, and bookkeepers.

Here are the responsibilities of the VP of finance;

1. Analyzing and reporting on financial performance
2. Developing budgeting strategies
3. Planning investments
4. Providing financial advice
5. Analyzing market trends
6. Managing cash flow and transactions
7. Managing assets

What are important skills for a vice president of finance?

A diverse range of skills are necessary for a post such as VP of finance. Some of these skills are mentioned below.

1. Leadership skills
2. Financial analysis
3. Financial reporting
4. Accounting and auditing
5. Financial planning
6. Communication skills
7. Presentation skills
8. Budgeting
9. Bookkeeping
10. Forecasting
11. Team management skills

Read: Establish Yourself as a Thought Leader

How do I become a vice president of finance?

This position is high as well as technical. There is a lot of decision-making power that rests in the hands of the VP. They are also the link between mid-level employees and executives. These responsibilities would be difficult to undertake without the right qualifications and experience. Let us look at the initial steps you should take to ensure it leads to this position.

1. Relevant undergraduate degree: As you know finance is a difficult field without the right foundation. There are only a few degrees that will help you to build the foundation for the finance field. The subjects that you can opt for are finance, accounting or economics.
2. Right masters degree: For getting high level positions such as VP of finance, master’s degree is often considered a must. A master’s degree not only prepares you in the hard skills but also in the soft skills such as management skills, communication skills, etc. Let us take a look at a masters degree that would help in advancing your career.
   • Global Master of Science in Finance (Global MS in Finance) from the Richard DeVos Graduate School of Management: The Global MS in Finance program is engineered around the most advanced financial theories, quantitative models, and industry practices. This program includes subjects such as risk management, portfolio management, corporate financial decision-making, etc. which prove to be very helpful in investment analysis. Post finishing this program participants will be eligible to participate in the US OPT – Optional Practical Training program for F-1 students upon the completion of the degree.
3. Start your career right: As you must know, the VP’s position is nowhere near the entry level position. You have to climb several ladders before you can even apply for such a high position. Some of the preferred jobs would be of financial analysts, junior accountants, or financial planners. It is also important to have jobs which will give you opportunities to work with teams and give you space to show your ideas.

When you aim high, it is important to understand the right career path, to ensure that the goal is achieved with the utmost ease.