FirstHR

Director of Finance Job Description Templates

Free director of finance job description templates: standard, small business, nonprofit, finance and accounting, and healthcare. With FLSA guidance. DOCX.

Nick Anisimov

Nick Anisimov

FirstHR Founder

Hiring
17 min

Director of Finance Job Description Templates

5 free templates: standard, small business, nonprofit, finance and accounting, and healthcare, with the finance ladder and FLSA fields built in. Download as DOCX.

The director of finance job description is one most owners copy from a job board, and every one of those templates leaves out what actually matters for a senior finance hire: the FLSA exempt classification, where this role sits versus a controller or CFO, the fiduciary and board duties, the credit-check rules for someone with signatory authority, and, for nonprofits, the Form 990 disclosure that makes their pay public. The role is also frequently the first strategic finance hire a growing company makes, the moment finance moves beyond bookkeeping, and no job-board template frames it that way.

At FirstHR, we build templates for the growing businesses making this hire, including the small business bringing on its first dedicated finance leader. The five templates below cover the real situations: standard for-profit, small business first hire, nonprofit finance and administration, finance and accounting, and healthcare practice, each with the classification and compliance fields built in. This page targets both director of finance and finance director, and the guide to writing a job description covers the fundamentals.

TL;DR
Five free director of finance job description templates: Standard, Small Business / First Hire, Nonprofit (Finance & Administration), Finance & Accounting, and Healthcare. The things competitors skip: FLSA exempt classification (the role is almost always exempt, but the duties test decides), where it sits on the finance ladder (Controller to Director to VP to CFO), and fiduciary, credit-check, and nonprofit Form 990 nuances. BLS maps the role to financial managers, median $161,700. Download as DOCX, customize, and post.

What a Director of Finance Does

A director of finance leads an organization's finance function and owns the forward-looking financial planning that guides the business. The work spans budgeting and forecasting, financial reporting and FP&A, managing the accounting team and the close, advising leadership and the board, and owning cash flow, controls, and compliance.

What changes is the setting. At a small business the role is hands-on, often the first strategic finance hire; at a larger company it is a senior FP&A leader under a CFO. A nonprofit version adds grants and Form 990; a healthcare version adds the revenue cycle. That is why the templates below split by setting. For scoping the role before posting, the guide to defining job responsibilities walks through the process.

Controller vs Director vs VP vs CFO

Finance leadership follows a ladder, and naming the right rung prevents an expensive mis-hire. Here is how the levels compare.

RoleFocusOrientation
ControllerThe books, close, GAAP, complianceBackward-looking
Director of FinanceBudgeting, forecasting, FP&A, strategyForward-looking
VP of FinanceThe whole finance functionTop role absent a CFO
CFOCapital, investors, board, strategyC-suite, external

The cleanest distinction is that a controller tells you what happened while a director of finance tells you what to do next. At a small company these blur, and one person may cover several rungs, but the practical question is which you actually need: often a controller for clean books first, then a director of finance once you need a strategic planning layer above accounting. Pick the level that matches your stage rather than the most senior title.

Director of Finance Duties and Responsibilities

Director of finance duties center on four areas: planning and analysis, accounting and close, controls and compliance, and leadership and board. Every version shares these, with the setting setting the weights. These are the duties grouped the way the templates use them.

Planning and analysis
Own budgeting and forecasting
Lead FP&A and reporting
Advise leadership on strategy
Accounting and close
Manage the monthly close
Oversee accounting and GAAP
Ensure accurate reporting
Controls and compliance
Own internal controls
Manage the audit relationship
Maintain financial policies
Leadership and board
Manage the finance team
Present to the board
Own cash flow and working capital

A strong posting grounds these in your business: your stage, your systems, the team the role manages, and whether it faces the board. It also states whether this is a hands-on builder or a strategic overseer, since that distinction shapes who applies and who succeeds at your scale. Candidates read a finance-leader posting for the scope, the reporting line, the team, and the compensation before applying.

Which Template Should You Use?

Pick the template by your setting. The finance-leadership core, own the planning, lead the reporting, manage the team, runs through all five, but the duties, the compliance, and the seniority differ enough that the matched version reads more credibly. Use this guide to choose.

Standard Director of Finance
Any for-profit company
The universal version for a for-profit business: own FP&A, budgeting, reporting, and financial strategy while managing the accounting team. The right base to adapt.
Small Business / First Hire
First strategic finance hire
The version no competitor offers: a hands-on leader who takes finance beyond bookkeeping, builds the processes and controls, and gives the founder real visibility into the numbers.
Nonprofit Finance & Admin
Grants, audit, Form 990
For a nonprofit: a broad Director of Finance and Administration role covering budgeting, grant compliance, audit and Form 990 prep, and often HR, IT, and facilities.
Finance & Accounting
FP&A plus the books
For companies wanting one leader across both: the forward-looking finance function plus the accounting operation, the close, and GAAP compliance in a single role.
Healthcare Practice
Revenue cycle, payer contracts
For a medical or dental practice: financial strategy plus the revenue cycle, payer contracts, and reimbursement complexity specific to a healthcare business.
Match the Template to the Hire
Any for-profit company: Standard. A growing business making its first strategic finance hire: Small Business. A nonprofit with grants and a board: Nonprofit Finance & Administration. One leader across finance and the books: Finance & Accounting. A medical or dental practice: Healthcare. Whichever you pick, confirm you actually need a director of finance rather than a controller or fractional CFO for your stage.

5 Free Director of Finance Job Description Templates

Download all five as a single Word document or copy individual templates. Each follows the same structure: organization overview, position summary, key responsibilities, qualifications, classification, compensation, and how to apply. Fill in the brackets, confirm the classification and compliance notes, and post.

Download All 5 Job Description Templates
Standard, small business, nonprofit, finance and accounting, and healthcare. All in one DOCX.

Template 1: Standard Director of Finance (W-2)

The universal version for a for-profit business: own FP&A, budgeting, reporting, and financial strategy while managing the accounting team. The right base to adapt.

Director of Finance Job Description (Standard, W-2)
DIRECTOR OF FINANCE JOB DESCRIPTION
Company: __ ([City, State])
Reports to: [CEO / CFO / President]
Employment type: Full-time (W-2 employee)
FLSA classification: Exempt [executive/administrative; confirm
the salary and duties test, see notes]
Pay: [$______ per year] [include a range where required]

ABOUT [COMPANY NAME]

[Two or three sentences about your company: what you do, your
stage, and why this is a strong finance role to own.]

POSITION SUMMARY

[Company Name] is hiring a Director of Finance to lead our finance
function: budgeting, forecasting, reporting, and the financial
strategy that guides the business. You will own financial planning
and analysis, manage the accounting team, and advise leadership
on the numbers behind every decision.

KEY RESPONSIBILITIES

Own financial planning, budgeting, and forecasting
Lead financial reporting and analysis (FP&A)
Manage the accounting team and the monthly close
Advise leadership and the board on financial strategy
Oversee cash flow, working capital, and financial controls
Ensure compliance with tax, audit, and reporting requirements
Build and own financial policies and internal controls
Partner with leadership on growth and investment decisions

REQUIRED QUALIFICATIONS

[7-10] years of finance/accounting experience, with leadership
Strong FP&A, budgeting, and financial-reporting skills
Experience managing a finance or accounting team
[Bachelor's in finance/accounting; CPA or MBA a plus]
Proficiency with [your accounting/ERP system]
Strong board-facing communication and judgment

COMPENSATION AND HOW TO APPLY

Pay: [$______ per year] [+ bonus/equity]
Benefits: [health, PTO, retirement, __]
To apply, email __ with your resume.
[Company Name] is an equal opportunity employer.

Template 2: Small Business Director of Finance (First Strategic Hire)

The version no competitor offers: a hands-on leader who takes finance beyond bookkeeping, builds the processes and controls, and gives the founder real visibility into the numbers.

Small Business Director of Finance (First Strategic Hire)
DIRECTOR OF FINANCE JOB DESCRIPTION (SMALL BUSINESS / FIRST STRATEGIC HIRE)
Company: __ ([City, State])
Reports to: [Founder / CEO]
Employment type: Full-time (W-2 employee)
FLSA classification: Exempt [confirm salary and duties test]
Pay: [$______ per year] [include a range where required]

POSITION SUMMARY

[Company Name] is hiring our first dedicated Director of Finance
to take finance beyond bookkeeping and outsourced accounting. This
is a hands-on, build-it role: you will own budgeting, forecasting,
and reporting, set up financial processes and controls, and give
the founder real visibility into the numbers. Ideal for someone
who wants to build a finance function, not just run one.

WHAT YOU WILL DO

Own budgeting, forecasting, and cash-flow management
Build financial reporting the leadership team can act on
Set up financial processes, controls, and policies
Manage or coordinate bookkeeping and accounting
Advise the founder on pricing, spend, and growth
Prepare board or investor reporting [if applicable]
Own the financial systems and the monthly close
Wear multiple hats across finance and operations

WHAT WE ARE LOOKING FOR

[5-8] years of finance/accounting, ideally at a smaller company
Comfortable being hands-on, not just managing
Has built financial processes or reporting before [a plus]
Strong FP&A and cash-flow skills
[Bachelor's in finance/accounting; CPA a plus]
Self-directed and comfortable in a growing company

COMPENSATION AND HOW TO APPLY

Pay: [$______ per year] [+ bonus/equity]
Benefits: [health, PTO, __]
To apply, email __ with your resume.
[Company Name] is an equal opportunity employer.
Still Using Spreadsheets for Onboarding?
Automate documents, training assignments, task management, and track onboarding progress in real time.
See How It Works

Template 3: Nonprofit Director of Finance & Administration

For a nonprofit: a broad role covering budgeting, grant compliance, audit and Form 990 prep, and often HR, IT, and facilities, with the disclosure and policy notes built in.

Nonprofit Director of Finance & Administration
DIRECTOR OF FINANCE AND ADMINISTRATION JOB DESCRIPTION (NONPROFIT)
Organization: __ ([City, State])
Reports to: [Executive Director / CEO]
Employment type: Full-time (W-2 employee)
FLSA classification: Exempt [confirm salary and duties test]
Pay: [$______ per year] [include a range where required]

POSITION SUMMARY

[Organization Name] is hiring a Director of Finance and
Administration to lead our financial management and operations.
This broad role owns budgeting, grant compliance, financial
reporting, and often HR, IT, and facilities. You will keep the
organization financially healthy, audit-ready, and compliant
while supporting the mission.

KEY RESPONSIBILITIES

Own budgeting, financial reporting, and cash management
Manage grant compliance, tracking, and reporting
Prepare for the annual audit and Form 990 filing
Present financials to the board and finance committee
Oversee accounting, payroll coordination, and controls
Manage administration: [HR, IT, facilities, as applicable]
Maintain financial policies and the whistleblower policy
Ensure compliance with funder and regulatory requirements

REQUIRED QUALIFICATIONS

[7-10] years of nonprofit finance or accounting experience
Strong grant-compliance and fund-accounting knowledge
Experience preparing for audits and Form 990
Board and finance-committee communication skills
[Bachelor's in finance/accounting; CPA or MBA a plus]
Proficiency with nonprofit accounting systems

NOTE ON DISCLOSURE AND POLICY

If the Director of Finance is an officer or key employee with
reportable compensation over the IRS threshold, their pay is
itemized publicly on Form 990 Schedule J. The role should also
own the organization's whistleblower and document-retention
policies as governance best practice.

COMPENSATION AND HOW TO APPLY

Pay: [$______ per year]
Benefits: [health, PTO, retirement, __]
To apply, email __ with your resume.
[Organization Name] is an equal opportunity employer.

Template 4: Director of Finance & Accounting

For companies wanting one leader across both: the forward-looking finance function plus the accounting operation, the close, and GAAP compliance in a single role.

Director of Finance & Accounting Job Description
DIRECTOR OF FINANCE AND ACCOUNTING JOB DESCRIPTION
Company: __ ([City, State])
Reports to: [CFO / CEO]
Employment type: Full-time (W-2 employee)
FLSA classification: Exempt [confirm salary and duties test]
Pay: [$______ per year] [include a range where required]

POSITION SUMMARY

[Company Name] is hiring a Director of Finance and Accounting to
own both the forward-looking finance function and the accounting
operation. This combined role covers FP&A and strategy alongside
the books, the close, and GAAP compliance, fitting companies that
want one leader across finance and accounting.

KEY RESPONSIBILITIES

Own FP&A: budgeting, forecasting, and analysis
Lead accounting: the books, the monthly close, and GAAP
Manage the finance and accounting team
Ensure accurate, timely, compliant financial reporting
Own internal controls and the audit relationship
Manage cash flow, AP/AR, and working capital
Advise leadership on financial strategy
Maintain financial policies and compliance

REQUIRED QUALIFICATIONS

[8-10] years across finance and accounting, with leadership
Strong GAAP, close, and financial-reporting expertise
FP&A, budgeting, and forecasting skills
CPA [strongly preferred]; [Bachelor's required]
Experience managing audits and controls
Proficiency with [your accounting/ERP system]

COMPENSATION AND HOW TO APPLY

Pay: [$______ per year] [+ bonus]
Benefits: [health, PTO, retirement, __]
To apply, email __ with your resume.
[Company Name] is an equal opportunity employer.

Template 5: Healthcare Practice Director of Finance

For a medical or dental practice: financial strategy plus the revenue cycle, payer contracts, and reimbursement complexity specific to a healthcare business.

Healthcare Practice Director of Finance
DIRECTOR OF FINANCE JOB DESCRIPTION (HEALTHCARE PRACTICE)
Practice: __ ([City, State])
Reports to: [Practice Owner / CEO / Administrator]
Employment type: Full-time (W-2 employee)
FLSA classification: Exempt [confirm salary and duties test]
Pay: [$______ per year] [include a range where required]

POSITION SUMMARY

[Practice Name] is hiring a Director of Finance to lead the
financial side of our practice: budgeting, reporting, and the
revenue cycle that keeps a healthcare business healthy. You will
own financial strategy while managing the payer, billing, and
reimbursement complexity specific to healthcare.

KEY RESPONSIBILITIES

Own budgeting, forecasting, and financial reporting
Oversee the revenue cycle: billing, coding, collections
Manage payer contracts and reimbursement analysis
Monitor practice financial performance and margins
Ensure compliance with healthcare financial regulations
Manage the accounting and billing team
Advise practice leadership on financial decisions
Own financial controls and the audit relationship

REQUIRED QUALIFICATIONS

[7-10] years of healthcare finance experience
Strong revenue-cycle and payer-contract knowledge
Healthcare reimbursement and compliance familiarity
FP&A, budgeting, and reporting skills
[Bachelor's in finance/accounting; CPA or MBA a plus]
Proficiency with practice-management and accounting systems

COMPENSATION AND HOW TO APPLY

Pay: [$______ per year] [+ bonus]
Benefits: [health, PTO, retirement, __]
To apply, email __ with your resume.
[Practice Name] is an equal opportunity employer.
Companies Using FirstHR Onboard 3x Faster
Join hundreds of small businesses who transformed their new hire experience.
See It in Action

When an SMB Needs a Director of Finance

A director of finance is a real hire at the upper end of small business, but it is usually not the first finance hire, and getting the timing right saves money. The role typically appears once a company needs a strategic layer above its accounting.

Usually Not the First Finance Hire
The natural sequence is bookkeeper, then staff accountant, then controller, then director or VP of finance. A controller commonly makes sense in the low-millions of revenue; a director of finance once the company manages a multi-million-dollar budget, faces board reporting, or is post-funding. Below those thresholds, a fractional CFO or controller often bridges the gap.

The small businesses that most often hire a director of finance at smaller scale are venture or private-equity-backed startups, nonprofits with significant budgets and grant compliance, healthcare practices with payer complexity, and companies preparing for an audit or acquisition. If you have a bookkeeper or accountant keeping the books but no one owning strategic planning and forecasting, that gap is the signal it may be time for a director of finance. If your books themselves need work, a controller comes first.

Exempt Classification

A director of finance is almost always exempt, meaning a salaried role not owed overtime, but exemption depends on the actual salary and duties, never the title. Get this right before you post.

The role typically qualifies under the executive or administrative exemption, since the Department of Labor explicitly lists finance, accounting, budgeting, and auditing as qualifying administrative work, and a director managing the department and directing two or more staff meets the executive test. The salary requirement applies: the operative federal threshold is the 2019 rule's $684 per week, after a court vacated the 2024 increase, and the highly compensated employee provision often applies at $107,432 a year. Five states set a higher floor, so check yours. The exempt vs non-exempt guide covers the broader test. This is general information, not legal advice; confirm with a professional, since the title alone never decides.

Compliance the Job Boards Skip

Because a director of finance handles money, signatory authority, and board reporting, a few compliance items that generic templates skip deserve attention before you hire. These are the ones that matter most.

On background and credit checks: if you run a credit check through a third party, the Fair Credit Reporting Act requires specific disclosure and adverse-action steps, and eleven states restrict employer credit checks, though most carry an exception for financial or fiduciary roles, which a director of finance typically meets, so check your state and follow the written-notice procedure. On fiduciary duty: the role often advises the board and holds signatory authority, so document board-reporting duties, signatory limits, and ownership of internal controls in the posting. For nonprofits, two extra items apply: if the director is an officer or key employee with reportable compensation over the IRS threshold, their pay is itemized publicly on Form 990 Schedule J, and adopting a whistleblower and document-retention policy is widely advised as governance best practice. None of this appears in a typical job-board template.

How to Write a Director of Finance Job Description

A strong finance-leader posting takes about 20 minutes once you settle the level, the setting, and the scope. Here is the process the templates are built around. If this is among your first senior hires, the guide to hiring your first employee covers the steps around the posting.

1
Confirm you need this role, not a controller
A director of finance owns forward-looking planning and strategy; a controller owns the books. Many small businesses need a controller or fractional CFO first.
2
Pick the template by setting
Standard, small business first hire, nonprofit, finance and accounting, or healthcare. The setting shapes the duties, the compliance, and the seniority.
3
Define the scope and reporting line
Name what the role owns, the team they manage, whether they face the board, and whether they report to a CEO or CFO. Be honest about hands-on versus strategic.
4
Classify and state the exemption
A director of finance is almost always exempt; confirm the salary threshold and the duties test, and check your state, since five states set a higher floor.
5
Add compliance and EEO
Note fiduciary and board duties, credit-check rules, and for nonprofits Form 990 and whistleblower policy. Add a pay range where required and an EEO statement.

Director of Finance Pay

Director of finance pay is high and varies by company size, region, and industry, so a range set to your specifics beats a single national number.

The Federal Benchmark (BLS, May 2024)
The Bureau of Labor Statistics maps directors of finance into financial managers, whose median annual wage was about $161,700 in May 2024, with the lowest ten percent under about $86,490 and the highest above $239,200. Employment is projected to grow 15 percent through 2034, much faster than average, with about 74,600 openings per year (U.S. Bureau of Labor Statistics).

That figure covers a broad financial-manager population, so title-specific pay for a director of finance often runs somewhat below the broad median, with smaller companies paying less than large enterprises and finance-intensive industries paying more. National compensation surveys provide title-level benchmarks narrower than the broad occupation median. For your posting, benchmark to your company size, industry, and region rather than the national figure, structure the offer as base plus any bonus and equity since this is a senior role, and include a good-faith pay range where your state requires it.

Hiring a Finance Leader

For a growing company, hiring a director of finance comes down to a few things generic templates skip: classifying correctly, knowing the finance ladder, handling the finance-specific compliance, and onboarding a board-facing executive well. Here is what actually matters.

A director of finance is almost always exempt, but the salary and duties test decide, not the title
A Director of Finance is almost always an exempt employee, meaning a salaried role not owed overtime, but exemption depends on the actual salary and duties, never the title alone. The role typically qualifies under the executive exemption, managing the finance department and directing two or more employees with real authority over hiring, or the administrative exemption, since the Department of Labor explicitly lists finance, accounting, budgeting, and auditing as qualifying work that involves discretion and independent judgment on matters of significance. The salary requirement matters: the operative federal threshold is the 2019 rule's $684 per week, after a federal court vacated the 2024 increase, and at director-level pay the highly compensated employee shortcut also applies for those earning at least $107,432 a year who perform at least one exempt duty. Five states, California, Colorado, Maine, New York, and Washington, set higher thresholds than the federal level, so check your state. For nearly all genuine Director of Finance roles exempt is correct, but confirm the salary meets the floor and the duties genuinely involve leading the function. This is general information, not legal advice; confirm classification with an employment professional.
Know where the role sits: Controller, Director of Finance, VP of Finance, and CFO are different jobs
Finance leadership follows a ladder, and naming the right rung prevents an expensive mis-hire. The typical sequence runs Bookkeeper, then Staff Accountant, then Controller, then Director of Finance, then VP of Finance, then CFO. A Controller is backward-looking: they own the books, the close, accuracy, and GAAP compliance. A Director of Finance is forward-looking: they own budgeting, forecasting, FP&A, and strategy, and usually sit a level above the Controller. A VP of Finance is broader still, often the top finance role at a company without a CFO. A CFO is the C-suite, externally facing leader handling capital, investors, and the board. At a small company these blur, and one person may cover several, but the practical question for an owner is which you actually need: many businesses are better served first by a Controller who keeps the books clean, then by a Director of Finance once they need a strategic layer of budgeting and forecasting above accounting. Use the comparison on this page to pick the level that matches your stage, rather than reaching for the most senior title.
Finance roles touch credit checks, fiduciary duties, and, for nonprofits, extra disclosure
Because a Director of Finance handles money, signatory authority, and often board reporting, a few compliance items that generic templates skip deserve attention before you hire. Background and credit checks: if you run a credit check through a third party, the Fair Credit Reporting Act requires specific disclosure and adverse-action steps, and eleven states restrict employer credit checks, though most carry an exception for roles with financial or fiduciary responsibility, which a Director of Finance typically meets, so check your state law and follow the written-notice procedure. Fiduciary and board duties: the role often advises or reports to the board and holds signatory authority, so the job description should document board-reporting duties, signatory limits, and ownership of internal controls. For nonprofits specifically, two extra items apply: if the Director of Finance is an officer or key employee with reportable compensation over the IRS threshold, their pay is itemized publicly on Form 990 Schedule J, which founders should know before setting comp, and adopting a whistleblower and document-retention policy is widely advised as governance best practice. None of this is in a typical job-board template, and all of it matters for a finance hire.
Hiring a finance leader means a clean executive offer and an onboarding that documents the policies they will own
A Director of Finance hire usually coincides with a company moving past founder-led finance, which means the onboarding has to do more than standard paperwork: it has to hand over the financial policies, controls, and reporting the new leader will own. The base sequence is the same as any W-2 hire: send the offer letter with the pay, the exempt classification stated correctly, and the terms; collect the signed offer; complete Form I-9 within the first days; and gather tax forms. But for a finance leader, two things matter more: the offer should state the exempt classification and the full compensation, including bonus and any equity, clearly, since this is a senior, board-facing hire, and the onboarding should formally transfer ownership of the financial policies, internal controls, board-reporting cadence, and any whistleblower policy. A structured first ninety days, learning the numbers, then taking ownership of the function, gets a finance leader productive faster. For an owner-led company handling this directly, FirstHR fits the flow: send the executive offer letter for e-signature with the classification stated, store the signed offer and the financial and internal-control policies the new director will own, and run an onboarding checklist. FirstHR does not run payroll or administer benefits, so pair it with your payroll provider; what it does is make a senior finance hire fast, documented, and clean.

After You Hire: Onboarding

The job description is step one, and a director of finance hire usually coincides with a company moving past founder-led finance, so the onboarding has to transfer ownership of the financial function. Send the offer letter with the pay, the exempt classification stated correctly, and the terms, collect the signed offer, complete Form I-9 within the first days along with the rest of the new hire paperwork, and gather tax forms.

Because this is a senior, board-facing hire, two things matter more: the offer should clearly state the exempt classification and the full compensation, and the onboarding should formally hand over the financial policies, internal controls, board-reporting cadence, and any whistleblower policy the new director will own, alongside the usual onboarding documents. A structured first ninety days works well here, which is why a 30-60-90 day plan fits a finance leader, the kind of structured start the employee onboarding guide describes. Once terms are agreed, the offer letter template handles the core terms, and the employee handbook template covers your financial and conduct policies. FirstHR handles this for an owner-led company: send the executive offer for e-signature with the classification stated, store the signed offer and the policies the new director will own, and run an onboarding checklist. FirstHR does not run payroll or administer benefits, so pair it with your payroll provider. Applicant tracking is coming soon to FirstHR.

Key Takeaways
Pick the template by setting: standard, small business first hire, nonprofit, finance and accounting, or healthcare. Each shapes the duties, compliance, and seniority.
Know the ladder: a controller owns the books (backward-looking), a director of finance owns planning and strategy (forward-looking). Many SMBs need a controller or fractional CFO first.
A director of finance is almost always exempt, but confirm the salary threshold and duties test; the title alone never decides, and five states set a higher floor.
Handle finance-specific compliance the job boards skip: credit-check rules, fiduciary and board duties, and for nonprofits Form 990 Schedule J disclosure.
It is often the first strategic finance hire, the move beyond bookkeeping, so frame the role and onboarding around taking ownership of the financial function.
Benchmark pay near the $161,700 median for financial managers, adjusted for company size, industry, and region, structured as base plus bonus and equity.

Frequently Asked Questions

What does a director of finance do?

A director of finance leads an organization's finance function, owning the forward-looking financial planning and strategy that guides the business. The core work is consistent: owning budgeting, forecasting, and financial planning and analysis; leading financial reporting; managing the accounting team and the monthly close; advising leadership and often the board on financial strategy; overseeing cash flow, working capital, and internal controls; and ensuring compliance with tax, audit, and reporting requirements. The emphasis shifts by setting. At a small business, the director of finance is hands-on, often the first strategic finance hire taking the company beyond bookkeeping. At a larger company, the role is a senior FP&A and accounting leader reporting to a CFO. A nonprofit version, often titled Director of Finance and Administration, adds grant compliance, Form 990 preparation, and frequently HR and operations. A healthcare version adds revenue-cycle and payer-contract management. What unites them is ownership of financial strategy and reporting. This page offers a template for each version, with the classification and compliance fields built in.

What is the difference between a director of finance and a CFO?

A CFO is the C-suite, externally facing finance leader, while a director of finance is a more hands-on, internally focused role, though at small companies the titles often blur or are used interchangeably. A CFO owns the strategic and external side of finance: capital raising, investor and board relations, M&A, and company-wide financial strategy at the executive level, and typically leads a full finance team. A director of finance owns the internal finance function: budgeting, forecasting, FP&A, financial reporting, and managing the accounting operation, usually reporting to a CFO at larger companies or directly to the CEO at smaller ones. The practical difference is scope and seniority: the CFO is the top finance executive setting direction and facing outward, while the director of finance runs the day-to-day financial planning and analysis. The typical ladder runs Bookkeeper, Staff Accountant, Controller, Director of Finance, VP of Finance, then CFO. At a small company without a CFO, a director or VP of finance is often the top finance role, which is why the titles overlap. For your hire, match the title to whether you need a hands-on function leader or an external-facing executive.

What is the difference between a director of finance and a controller?

A controller is backward-looking and a director of finance is forward-looking, which is the cleanest way to tell them apart. A controller owns the books: accounting accuracy, the monthly close, GAAP compliance, internal controls, and historical financial reporting. Their job is making sure the numbers are correct, complete, and compliant. A director of finance owns the future: budgeting, forecasting, financial planning and analysis, and the financial strategy that guides decisions, and they usually sit a level above the controller in the org chart. Put simply, the controller tells you what happened, and the director of finance tells you what to do next. At a company of around thirty people, you often have one or the other, not both: a controller if the priority is clean books and compliance, a director of finance if the priority is strategic planning and forecasting above the accounting layer. As companies grow, the controller typically reports up to the director or VP of finance. For your hire, decide whether you primarily need accuracy and compliance, which points to a controller, or planning and strategy, which points to a director of finance.

Is a director of finance exempt or non-exempt from overtime?

A director of finance is almost always exempt, meaning a salaried role not owed overtime, but the classification depends on the actual salary and duties, never the title. The role typically qualifies under the executive exemption, by managing the finance department and directing two or more employees with genuine authority over hiring and firing, or under the administrative exemption, since the Department of Labor explicitly lists finance, accounting, budgeting, and auditing as qualifying work involving discretion and independent judgment on matters of significance. The salary requirement still applies: the operative federal threshold is the 2019 rule's $684 per week, after a court vacated the 2024 increase, and at director-level compensation the highly compensated employee provision often applies for those earning at least $107,432 annually who perform at least one exempt duty. Five states, California, Colorado, Maine, New York, and Washington, set higher thresholds than the federal floor, so check your state. For nearly all genuine director of finance roles, exempt is the correct classification, but confirm the salary meets the threshold and the duties genuinely involve leading the function. This is general information, not legal advice; confirm with an employment professional, since rules vary by state.

Does a small business need a director of finance?

It depends on your size, revenue, and complexity, and for many small businesses a director of finance comes later than a bookkeeper or controller. A director of finance is a real and valuable hire at the upper end of small business, roughly 25 to 50 employees, or for finance-intensive smaller organizations, but it is generally not the first finance hire. The natural sequence is a bookkeeper from early on, a staff accountant as transaction volume grows, a controller once the company is managing meaningful revenue and needs clean books and compliance, and a director or VP of finance once a strategic planning layer is genuinely needed, typically with a multi-million-dollar budget, board reporting, or post-funding traction. Below those thresholds, a fractional CFO or controller often bridges the gap. The businesses that most commonly hire a director of finance at smaller scale are venture or private-equity-backed startups, nonprofits with significant budgets and grant compliance, healthcare practices with payer complexity, and companies preparing for an audit or acquisition. For your situation, ask whether you need strategic financial planning above your accounting, or whether a controller or fractional CFO fits your stage better.

How much does a director of finance make?

Director of finance pay is high and varies by company size, region, and industry, so a range set to your specifics beats a single number. The Bureau of Labor Statistics maps directors of finance into financial managers, whose median annual wage was about $161,700 in May 2024, with the lowest ten percent under about $86,490 and the highest ten percent above $239,200; employment is projected to grow 15 percent through 2034, much faster than average. That figure covers a broad financial-manager population, so title-specific pay for a director of finance often runs somewhat below the broad median depending on company size, with smaller companies paying less than large enterprises and finance-intensive industries paying more. National compensation surveys provide title-level benchmarks that are typically narrower than the broad occupation median. For your posting, benchmark to your company size, industry, and region rather than the national figure, structure the offer as base plus any bonus and equity since this is a senior role, and include a good-faith pay range where your state requires it. The compensation should reflect that this is a board-facing leadership hire, not a mid-level finance role.

What qualifications does a director of finance need?

A director of finance needs substantial finance and accounting experience, demonstrated leadership, and strong financial-planning skills, with the specific bar set by your company size and sector. The core qualifications are consistent: several years of progressive finance or accounting experience, typically seven or more, with time in a leadership role; strong financial planning and analysis, budgeting, and forecasting skills; experience managing a finance or accounting team; and the judgment to advise leadership and present to a board. A bachelor's degree in finance or accounting is standard, and a CPA or MBA is commonly preferred, particularly for roles heavy on accounting and compliance. Beyond the basics, calibrate to the version: a small-business director of finance needs hands-on ability and ideally has built financial processes before; a nonprofit director needs fund accounting, grant compliance, and Form 990 experience; a healthcare director needs revenue-cycle and payer-contract knowledge; a director of finance and accounting needs deep GAAP and close expertise, making the CPA more important. For your posting, lead with the experience, leadership, and FP&A skills every version needs, then add the sector-specific requirements, and treat the CPA as preferred or required based on how accounting-heavy the role is.

What happens after I hire a director of finance?

Hiring a director of finance usually coincides with a company moving past founder-led finance, so the onboarding has to transfer ownership of the financial function, not just complete paperwork. The base sequence matches any W-2 hire: send the offer letter with the pay, the exempt classification stated correctly, and the terms; collect the signed offer; complete Form I-9 within the first days; and gather tax forms like the W-4. Because this is a senior, board-facing hire, two things matter more: the offer should clearly state the exempt classification and the full compensation, including base, bonus, and any equity, and the onboarding should formally hand over the financial policies, internal controls, board-reporting cadence, and any whistleblower or document-retention policy the new director will own. A structured first ninety days, learning the numbers and the team, then taking ownership of the function, gets a finance leader productive faster. FirstHR handles this for an owner-led company: send the executive offer letter for e-signature with the classification stated, store the signed offer along with the financial and internal-control policies the new director will own, and run an onboarding checklist. FirstHR does not run payroll or administer benefits, so pair it with your payroll provider. Applicant tracking is coming soon to FirstHR.

Ready to transform your onboarding?

7-day free trial No credit card required
Start Your Free Trial