What is a Vice President of Finance?
A Vice President of Finance (VP Finance) is a senior financial executive responsible for overseeing the day-to-day financial operations of an organization. While a CFO typically focuses on strategic financial leadership and external relationships, the VP Finance manages internal financial functions, reporting, analysis, and team development.
Key Responsibilities of a VP Finance
- ✓Financial Reporting & Analysis: Oversee preparation of monthly, quarterly, and annual financial statements and provide insights for decision-making
- ✓Budgeting & Forecasting: Lead annual budgeting process and maintain rolling forecasts with variance analysis
- ✓Team Management: Build, develop, and lead accounting, FP&A, and finance operations teams
- ✓Internal Controls: Establish and maintain robust financial controls, policies, and procedures
- ✓Systems Management: Oversee implementation and optimization of financial systems and technology
- ✓Compliance: Ensure adherence to accounting standards, tax regulations, and audit requirements
- ✓Cross-Functional Partnership: Collaborate with operations, sales, and other departments to support business objectives
VP Finance vs CFO: Understanding the Difference
While both are critical financial leadership roles, VP Finance and CFO positions serve different functions in owner-managed businesses:
VP Finance Focus
- • Internal financial operations
- • Day-to-day management
- • Reporting and analysis
- • Team supervision
- • Process improvement
- • Systems implementation
CFO Focus
- • Strategic financial planning
- • External relationships
- • Capital raising & M&A
- • Board communications
- • Business transformation
- • Overall financial strategy
Many growing owner-managed businesses hire a VP Finance before a CFO, or use a VP Finance to complement their CFO by handling operational details while the CFO focuses on strategy. Our recruiters help you determine the right financial leadership structure for your organization.