Finance Team Structure, Roles & Responsibilities

finance team working together

When you think of finance teams in the context of a company, you might tend to imagine groups of people devoted to budgeting, forecasting, and providing guidance to senior leadership for overall monetary management. 

The finance team is ultimately responsible for designing a strategic plan to cut expenses and increase revenues. It supports fundraising opportunities and provides key insights into specific areas of the business. 

Depending on the company’s size and needs, the finance team could be a handful of people or dozens. The size of the finance team may also be impacted by the industry in which the company operates. 

For example, a company operating in financial services or investments will likely have many finance team members, while a small business in retail may only require a few.

The Importance of a Great Finance Team

Since finance teams commonly set the strategic financial direction of a company, you need a group that understands the underlying business and processes of every area of the company. 

The team must be willing to dive into the details and provide key performance indicators that summarize the company’s activities. 

A strong finance team is well organized. Each member has responsibilities that they tackle, and the final output from the team gives senior leadership the ability to make decisions to improve the company’s financial performance.

Key traits of a great finance team include:

  • A well-experienced group that collaborates
  • Educated members driven to provide information adhering to best practices
  • People with strong technical and financial analysis skills
  • The ability to present data in an effective manner

When we initially set up a finance team, we look for people who are experienced and can add value to the company. Our team wants people who are engaging and able to present their findings to management in a way that allows decision-makers to draw an actionable conclusion. 

Finance team members should have obtained a degree in finance, economics, accounting, or statistics. Experience in financial planning software and financial analysis is a huge plus, as there will be less of a learning curve when they need to extract financial data from the general ledger system. 

What Are the Main Finance Team Responsibilities?

Finance teams manage the money in an organization. They review the overall financial performance of an organization to set short and long-term goals. Financial planning teams will also use current records and reports to predict the growth and future trends of a company. 

They may also seek out ways to increase capital and manage budgets. The finance team should fully understand the company’s operations to make sound assessments.

Let’s explore some common finance team responsibilities below.

Financial Planning

Financial planning involves reviewing current company performance and projecting future income and expenses over various periods. 

Typical forecasts will project earnings for a quarter, six months, and a year. To develop an outlook, financial planners must fully understand all of the income streams and expenses that the business currently has. 

Finance team members can liaise with other departments, such as sales and procurement, to develop an understanding of any predicted changes to revenue and expenses. Forecasts are very helpful to senior leadership, who can use them to make decisions or have insight into upcoming problems. 

Alongside future planning for income and expenses, the finance team may play a role in developing key performance indicators. These can be used to understand the current and forecasted cash position of a company, as well as predict cash collections and compare revenues across periods. 

Capital Budgeting

If a company has a lot of on-site equipment or is seeking other investment opportunities, it may need members on the finance team who consider different projects available for purchase. This need is especially true in the manufacturing industry, where lots of expensive equipment is typically used. 

Those who work in capital budgeting will review all of the different options available and present the projected financial impact for each option to senior leadership. Company management will use the information to decide whether investing makes sense.

Financing and Investor Relations

The finance team is often responsible for preparing documentation related to the current financial performance of the company. 

Documentation can include comparisons between prior and current years, as well as specific insights used to provide information. Presentations generally consist of lots of charts and graphs and are easy for reviewers to understand. 

These presentations are often used to encourage the potential for financing from company investors or banks. If the company is public or has institutional investors, the finance group may design reports that investors can review. Reports will often indicate current performance as well as predicted future growth. 

What Are the Main Finance Team Roles and How Are They Structured?

There are a number of roles associated with the finance team structure. A few of the most prevalent are described below:

Chief Financial Officer (CFO)

The CFO is the finance team leader and typically also oversees accounting and treasury. Each CFO is an executive in the company and will work directly with other executives and members of the finance team. 

They are responsible for the overall financial performance and strategic financial direction of the company. Typically, they will give executives advice on long-term fiscal planning for the business. A CFO will also liaise with internal and external parties with a stake in the company.

Director of Finance

The Director of Finance usually reports directly to the CFO. They are also a finance team leader and oversee positions directly related to finance. 

Finance Directors will work with financial analysts, financial planners, and any other positions included in the finance team to establish strategies that ensure the long-term growth and profitability of a company. In addition to providing oversight, they may direct team members on the types of reports that best benefit the company.

Financial Analyst

A financial analyst is responsible for reviewing the performance of the company over specific periods. They’ll identify areas where the company has improved revenues or increased expenses, and they may also perform the forecasting functions of the finance department. 

Oversight performed by a financial analyst can be limited to a specific area or include all departments. The level of involvement that they have is usually determined by the size of the business and the number of individuals on the finance team.

Budget Analyst

The budget analyst is responsible for ensuring that the company operates according to an established budget. They typically help to prepare the company’s operating budget for the year. Once the company reports its results for a specified period, the budget analyst will compare the results with the budget. 

If the company’s costs exceed those established in the budget, the budget analyst will notify leadership and provide information on the reasons for the variances. Managers may then decide how to get the company back on track to meet its budget. In some cases, they will modify the budget to accommodate the need for additional expenses.

Finance Assistant

A finance assistant is responsible for supporting the senior management and financial team within an organization. They may handle lower-level tasks, such as maintaining and updating financial records. 

Other responsibilities can include tracking and documenting raw financial data, calculating bills, and answering basic queries from other departments or managers. They may prepare parts of reports that are provided to senior leadership based on the data that they assemble.

Career Outlook for Finance Team Roles

The U.S. Bureau of Labor Statistics expects employment in business and financial operations to grow by 8% between 2020 and 2030. Globalization and a growing economy are expected to lead to continued demand for finance professionals. 

In addition, increasing use of data and the desire companies have to improve their performance will lead to new opportunities in the finance arena. 

Pay for finance team members remains high when compared with other positions. Individuals in financial analyst and budget analyst positions can expect to earn an average of $80,000. 

A Director of Finance may earn a base pay of $137,000, while a CFO can earn as much as $411,396. However, keep in mind that salaries can vary based on a number of different factors. These factors can include the size of the company, the experience level of the individual, and the location of the position. 

Since finance positions are well-paid and there is a significant potential for growth, individuals interested in the field should definitely consider it. 

Building Your Finance Team

The finance team plays a critical role in any organization. It is responsible for providing management with insight into historical business performance as well as developing forecasts for future accomplishments. 

Teams can also assist in strengthening relationships between a company and its investors. Employees in key management positions, such as the CFO, have a duty to direct the entire strategic financial decision-making process. 

When setting up a finance team, it’s important to have an understanding of what you want your employees to accomplish. Simply creating roles and hiring people for them is not enough. Instead, each role must create value for the company. 

If you’re looking to enhance the analytics and insights you receive for your company’s operations, consider QBIX Analytics. 

We partner directly with Workday Adaptive Planning to provide financial and sales planning insights designed to optimize your resources and help you make better business decisions. To learn more about our services, contact us for a free demo today.

Further Reading