Heads of finance · the role
What does a head of finance do?
The short answer · updated
A head of finance runs a company’s finance function day to day. They own the month-end close and management accounts, budgets and cash forecasts, the audit and statutory accounts, controls and finance systems, and lead the finance team. They report to the managing director, or to a finance director or CFO where the company has one.
What is a head of finance?
A head of finance is the senior manager in charge of a company’s finance team and its numbers. The title sits between financial controller and finance director, and companies use it at both ends of that range.
In a growing company the head of finance is often the most senior finance person, reporting to the managing director and doing much of a finance director’s job without the board seat. In a larger company the role runs the finance team under a finance director or CFO, whom ICAEW’s guide to finance careers describes as the most senior role in the finance function.
What a head of finance is responsible for
The remit changes with the size of the company and who sits above the role. The common core is below.
- The close and management accounts. A monthly close the leadership team can rely on, and accounts that explain the variances.
- Budgets and forecasts. The annual budget, the rolling forecast and the reporting against both.
- Cash. The cash-flow forecast, banking, payment runs and credit control.
- Year-end and audit. The statutory accounts that go to shareholders, Companies House and HMRC, and the external audit where one is needed.
- Tax compliance. VAT, corporation tax and payroll taxes, usually with outside advisers.
- Controls and systems. Approval limits, reconciliations, the ledger and the reporting tools.
- The team. Hiring, managing and developing the accountants and finance staff.
- Business partnering. Working with sales, operations and the leadership team on prices, costs and investment decisions.
Who a head of finance reports to
Where the company has no finance director, the head of finance reports to the managing director or chief executive, and often presents the numbers to the board. Where there is a finance director or CFO, the head of finance reports to them and runs the function while the director deals with strategy, investors and the board.
The financial controller or finance manager, the management and financial accountants, payroll and credit control usually report in.
The head of finance is rarely a statutory director, but someone has to sign. Companies House guidance says the directors stay legally responsible for the company’s records and accounts even when they hire a professional to help. In a large company or group, HMRC’s senior accounting officer rules may also apply: they cover only qualifying companies above set turnover or balance sheet thresholds, and the officer named is often the senior finance person.
Head of finance vs finance director, financial controller and CFO
A financial controller owns the accounts and the controls: the close, reconciliations, the audit file and compliance. See what a financial controller does.
A head of finance owns the finance function: everything the controller does, plus budgets, cash, systems, the team and partnering with the business. In a small company one person does both jobs.
A finance director owns the company’s financial direction and usually sits on the board or the leadership team: funding, investors, risk and the plan. A head of finance often reports to them, or is hired to become one. See what a finance director does.
A CFO leads finance at executive level, often across a group, with investors, lenders and the board as the main audience. See what a CFO does. Titles vary from company to company, so compare the responsibilities, not the label.
Skills and qualifications
No qualification is required by law, but most heads of finance are chartered accountants. The usual routes are ICAEW’s ACA, the ACCA Qualification and CIMA’s CGMA Professional Qualification; CIPFA is common in the public sector. In the head of finance job ads ITJobsWatch tracks, ACCA and CIMA are the qualifications named most often.
Beyond the qualification, the job needs a reliable close, sound judgement on cash, the ability to explain numbers to people who are not accountants, and experience leading a team. Systems experience matters more each year, as finance teams move ledgers and reporting into newer tools.
Fractional, part-time and interim head of finance
A permanent head of finance suits a business whose finance function needs running every day.
A fractional or part-time head of finance works a set number of days a week: fixing the close, building the forecast, preparing for an audit or a raise, then keeping it running. It suits a growing company that needs senior finance but not five days of it. See fractional head of finance jobs.
An interim head of finance works full-time for a fixed period, often covering a vacancy, a year-end or a system change. Where the gap is at director level, see interim finance director.
A fractional or interim head of finance working through their own company may fall within the off-payroll working rules (IR35). Status turns on how the engagement runs in practice, and a medium or large client makes the determination. Our IR35 guide sets out the tests.
What a head of finance earns
Pay depends on the scope, the size of the company, the sector and location, and whether the role faces the board. A head of finance who is the senior finance person usually earns more than one who runs the team under a finance director.
Our head of finance salary page sets out advertised pay against the financial controller and finance director, each figure with its source. For open roles, see head of finance jobs.
How to hire a head of finance
Decide which version you need before you write the brief: the senior finance person, or the head of the team under a finance director. Our head of finance job description gives a template.
Test the work, not the title. The CIPD’s guidance on selection methods favours clear, structured processes and skill-based assessment tasks. Give candidates a real task: last quarter’s management accounts, a cash forecast or an audit plan.
We recruit fractional, interim, part-time, temporary and permanent executives, and non-executive directors. To hire a head of finance, see fractional head of finance jobs; for a permanent director-level search, see finance director recruitment. Every brief gets a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out, after our five-stage vetting.
Questions people ask
Is a head of finance the same as a finance director?
Not usually. A finance director owns the company’s financial direction and often sits on the board; a head of finance runs the finance function and often reports to the finance director. In a smaller company with no finance director, the head of finance may do much of both jobs.
Is a head of finance more senior than a financial controller?
Usually. The financial controller owns the accounts and controls; the head of finance owns those plus budgets, cash, systems and the team, and the controller often reports to them. See what a financial controller does.
Who does a head of finance report to?
The managing director or chief executive where there is no finance director, or the finance director or CFO where there is one.
What qualifications does a head of finance need?
None is required by law. Most hold ICAEW’s ACA, ACCA or CIMA; CIPFA is common in the public sector.
Can a head of finance work part-time?
Yes. A part-time or fractional head of finance works a set number of days a week, usually for a growing company. See fractional head of finance jobs.
How much does it cost to hire a head of finance?
A permanent head of finance is paid a salary, often with a bonus; a fractional or interim one a day rate. Our head of finance salary page sets out pay with sources, and we set out pay or day rate for every candidate on the shortlist.
How do I hire a head of finance?
Decide which version of the role you need, choose permanent, part-time, fractional or interim, and test every candidate on a real finance task. See fractional head of finance jobs; we send a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out.
