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Financial director chief accountant how to issue. Job description of financial director

" № 6/2008

The soldier who does not dream of becoming a general is bad. In the same way, a young chief accountant usually hopes to rise to be a financial director. For many of them, this position seems to be the next step up the career ladder. However, such a representation suffers from a clear simplification. The job of a CFO is very different from an accounting job. We will understand its specifics and evaluate whether it is worth messing with it.

Finder tasks

What are the professional responsibilities of a financial director? In fact, he needs to solve four tasks - uninterrupted business financing through the optimal construction of financial flows, business planning, implementation of a management accounting system and tax forecasting. This is where the powers of such an employee come from, the list of which includes obtaining all the necessary information and managing several departments that ensure the solution of these tasks. This is, first of all, his own department, partly the accounting department and the company's lawyers. We can say with 100% certainty that the appointment as CFO is an impressive step forward in the career of a talented chief accountant. However, here you need to soberly weigh the pros and cons in order to figure out - is the game worth the candle?

Advantages of the new status

Actually, career growth as such implies a huge number of advantages, so it’s worth breaking them into three conditional groups.

First of all, it is status. Many rising chief accountants perceive the new position as a career advancement. This is not entirely true, because the position of financial director implies a completely different level of responsibility and other powers. Undoubtedly, they are higher than that of an accountant, and this fact is attractive to many. As well as the salary, which, as a rule, is at least 50% more.

Another important factor is the growth of qualifications. Becoming a financial director, an employee will automatically have to master a whole arsenal of completely new knowledge and skills. First of all, it is business planning and at the enterprise. Management accounting is, in fact, the holy of holies of any enterprise, since it is its data, and not accounting data, that determines the true structure of production costs. Within its framework, accounting entries acquire a completely different meaning and purpose. Let's take an example.

Example

From the settlement account of the Beta organization, 100,000 rubles were paid for the goods to the supplier. This operation will be reflected in the accounting registers: Debit Credit - 120,000 rubles. However, in management accounting, the meaning of the operation is seen in a completely different way: 100,000 rubles - a bank loan is returned; 20,000 rubles - interest on the loan has been paid.

Now we will explain why only the sum coincided. Such a situation is very likely if there are settlements with a certain company through which the bank issues “short loans” - with them the bank pays for the company goods purchased from foreign suppliers in the amount in euros, thereby equivalent to 100,000 rubles. And your company, after receiving money from buyers, pays for the loan. Or you can interpret this operation as follows: 100,000 rubles - a loan is issued to a company, which will then be registered in accounting as a supply of goods or services from it. It is easy to see that the chief financier is much better informed about the state of affairs at the enterprise than the leading accounting specialist - and this, you see, is very tempting.

And finally, responsibility. Or rather, the absence of any responsibility before the law for the reliability of tax and accounting reports, the need to submit them on time, etc. However, one should not succumb to the illusion of calmness, because management reports, unlike accounting and tax reports, are prepared more quickly, and the survival of the company actually depends on its timeliness and accuracy - and, therefore, the future of the findir itself.

Of course, the position of financial director implies other advantages, but one must understand that such an employee has not less, but much more duties than an accountant. In addition, it is also much easier to evaluate the results of a financier's activities - as well as to make a decision on his full or incomplete official compliance.

Reasons to think

The first of them is a strong separation from the regulatory framework. The CFO rarely delve into changes in tax legislation, unless they relate to the VAT rate or income tax. But after all, the fantasy of lawmakers is not limited to these innovations. The chief accountant is in any case more informed - for example, in matters of civil law. He knows what taxes are subject to property transactions, and also imagines the size of the tax deductions for them.

The second reason is that, in fact, the same performer who cannot refuse the owner of the business if he wants to receive money for his personal needs. If the state of affairs allows you to pay dividends, then there are no questions. It is much worse when the owner simply pays for operating expenses at the expense of the company's working capital. Here the financial director will have to rack his brains over how to document such whims, and most often it comes down to a banal “cashing out” for fictitious goods, works, services.

The third reason to think about it is the dependence on the results of the activities of other employees, on the basis of which recommendations are developed for making managerial decisions. If you have a weak lawyer or a new chief accountant, then all plans will go to waste very quickly.

Or here's another reason. Often, the CFO does not have the opportunity to pay equally and fairly to different employees who have violated financial discipline. Very many questions still depend on the proximity of each individual worker to the "body". Such a situation undoubtedly drops the authority of the chief financier.

Alas, this list of cons is far from complete. There are also branches, the personnel composition of which the financial director did not recruit, and it is hardly possible for him to check the qualifications of which. We have to take into account the constantly changing aspirations of the founders who want to open a new direction tomorrow somewhere in the region where this direction falls under the special tax regime, which must be thoroughly studied. And, of course, the main headache - WHERE TO FIND THE MONEY FOR ALL THIS?

Agree, if you wake up the financial director at night and hear all of the above from him, then the desire to go into this profession can instantly disappear, and the work of the chief accountant will seem not so ungrateful and scary. At least all his steps are regulated by PBU, Codes, Rules and other regulations. At the same time, management accounting is not regulated by anything, but errors in it will cost much more.

The successful work of a financial director largely depends on the qualifications of other employees of the organization.

Two in one

Is it possible to try to combine the functions of financial director and chief accountant, trying to sit on two chairs at once?

Many people see this opportunity as attractive, and besides, this practice is not uncommon in Russian companies. The most common reason for combining functions is to reduce business. A decrease in the company's turnover will inevitably lead to a reduction in costs and, as a result, to a reduction in the number of employees. When it becomes necessary to choose between the financial director and the chief accountant, the company's management will undoubtedly leave the chief accountant in the state, because without him the company simply cannot work. Since the duties of the financial director will still have to be performed by someone, and the company has no other specialist to whom they could be delegated, he assigns this difficult role to the chief accountant.

The second reason may be, oddly enough, business expansion. From some point on, the functions performed by the chief accountant are no longer enough for the company - management reporting and closer work with credit institutions, checking estimates and developing business plans are required. However, the owner, for some reason, does not want to initiate a new, even a very qualified specialist, into the affairs of the company. Since this employee will also be a very expensive "acquisition", the manager faces the question - why not help the chief accountant acquire the knowledge of a financier?

Note that in all cases it is the chief accountant's candidacy that is considered as the person to whom the duties of the financial director will be added, and not vice versa. This is due to the following reasons:

the volume of fundamental knowledge in the field of accounting and taxation of the chief accountant is incomparably higher than that of the company's financier;
name and authority within the company. This is an important factor for establishing interaction between various departments of the enterprise;
economic considerations. Combining positions is also beneficial from the point of view of cost savings, because one person will still need to pay less than two, even if one or two assistants are taken;
speed of adaptation. It is easier for the chief accountant to master in-house know-how, even if he himself did not take part in their development and adjustment. In addition, he will be able to make them more unified, using extensive accounting experience.

So is it still possible to combine the duties of the chief accountant and financial director by one top manager? Theoretically - YES! Imagine how many agreements and mistakes can be avoided if you control business processes and at the same time “fit” them into tax schemes that obviously do not violate the provisions of tax legislation.

But remember - such work actually turns into a "manual adjustment" of a single company. So, having become an indispensable employee in your company, you run the risk of starting all over again in another, because the probability of failure is high (see above), and the accounting problems remain with you.

To be or not to be?

However, all this does not mean that the chief accountant is automatically the main contender for the post of financial director. There are good reasons for this.

First, it cannot be said in advance that a person who successfully copes with accounting will necessarily become an excellent financial director. And the head of the company will think a hundred times - is it worth changing the order, which is already working fine.

Secondly, more and more often, in advertisements for a findir vacancy, employers indicate such a requirement as the applicant's lack of an accounting background. This is also quite understandable, because such an applicant does not have a chance to return to his usual profession, and interaction with the company's divisions - especially with accounting - will be built in a fundamentally different way.

Making the decision to change your career is not easy. Therefore, one piece of advice: do not rush, it is better to first become a chief accountant, and this takes at least ten years. So, young colleagues, you still have time.

The job description of the financial director was developed on the basis of the Qualification Directory of Positions. The instruction discloses the main job responsibilities of the financial director, his rights and responsibilities, as well as qualification requirements.

The proposed standard job description of the financial director can serve as the basis for the development of a job description containing a more specific list of job responsibilities of the financial director, taking into account the characteristics of the enterprise, organization of production, labor and management, as well as the rights and responsibilities of the financial director. If necessary, responsibilities can be distributed among several performers.

The duties of the financial director depend on the specifics of the company's activities and on the tasks assigned to the financial director. A CFO should not only have a good understanding of financial matters, but also have leadership and organizational skills, as well as the ability to think strategically. The functions of a modern financial director are much broader than the management of financial flows.

A job description that clearly articulates the functions of the CFO helps to ensure the continuity of the financial function and the continuity of duties. The requirements specified in the job description speed up the process of induction of a new employee.

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Job description of financial director

APPROVE

General manager
Surname I.O. ________________
"________"_____________ ____ G.

1. General Provisions

1.1. The financial director belongs to the category of managers.
1.2. The financial director is appointed to the position and dismissed from it by order of the general director of the company.
1.3. The Financial Director reports directly to the CEO.
1.4. Reporting to the financial director are: the chief accountant, managers and specialists of the accounting department, managers and specialists of the financial department.
1.5. During the absence of the financial director, his rights and obligations are transferred to another official, which is announced in the order for the company.
1.6. A person who meets the following requirements is appointed to the position of financial director: higher professional education (financial, economic) and work experience in the specialty in the field of organizing financial activities for at least 5 years.
1.7. The CFO must know:

legislative and other regulatory legal acts regulating the financial and economic and production and economic activities of the organization;

regulatory and methodological documents on the organization of accounting and financial management;

fundamentals of civil law;

financial, tax and economic legislation;

codes of ethics for professional accountants and corporate governance;

methods for analyzing and evaluating the effectiveness of the organization's financial activities, analyzing financial markets, calculating and minimizing financial risks;

the procedure for concluding and executing economic and financial contracts;

procedure and forms of financial settlements;

organization of financial work, budgeting;

methods and procedure for planning financial indicators;

the procedure for drawing up financial plans, forecast balance sheets, cash budgets, profit and loss budgets;

the procedure for long-term and short-term lending, attraction of investments and borrowed funds,

the procedure for using own funds, issuing and acquiring securities, distributing financial resources,

principles and procedure for calculating taxes, the tax system of the Russian Federation,

the procedure for conducting audits;

accounting, tax, statistical and management accounting;

principles of financial control;

basics of production technology;

economics, organization of production, labor and management;

modern reference and information systems in the field of accounting and financial management;

rules for the storage of financial documents and information protection;

advanced domestic and foreign experience in organizing accounting and financial management;

labor legislation;

labor protection rules.

1.8. The Financial Director is guided in his activities by:

Legislative acts of the Russian Federation;

the Charter of the company, the Internal Labor Regulations, other regulatory acts of the company;

Orders and instructions of the management;

This job description.

2. Responsibilities of the financial director

The Financial Director performs the following job responsibilities:

2.1. Determines the financial policy of the company, develops and implements measures to ensure its financial stability.

2.2. Manages financial management based on the strategic goals and prospects for the development of the company, to identify sources of funding, taking into account market conditions.

2.3. Carries out analysis and assessment of financial risks, develops measures to minimize them, ensures control over compliance with financial discipline, timely and complete fulfillment of contractual obligations and receipt of income, the procedure for processing financial and economic transactions with suppliers, customers, credit organizations, as well as foreign trade operations activities.

2.4. He leads the work on the formation of the company's tax policy, tax planning and optimization of taxation, improving accounting policies, preparing and conducting the issue of securities, analyzing and evaluating the investment attractiveness of projects and the feasibility of investing, regulating the ratio of equity and borrowed capital.

2.5. Interacts with credit institutions on issues of placement of temporarily free funds, transactions with securities, obtaining loans.

2.6. Manages the preparation of long-term and current financial plans and budgets of funds, brings the indicators of the approved system of budgets and the tasks, limits and standards arising from it to the departments of the organization, ensures control over their implementation.

2.7. Participates in the development of draft plans for the sale of products (works, services), costs for the production and sale of products (works, services), prepares proposals for increasing the profitability of production, reducing production and distribution costs.

2.8. Carries out control over the state, movement and targeted use of financial resources, the results of financial and economic activities, and the fulfillment of tax obligations.

2.9. Takes measures to ensure the solvency and increase the company's profits, the effectiveness of financial and investment projects, the rational structure of assets.

2.10. Organizes the development of an information system for financial management in accordance with the requirements of accounting, tax, statistical and management accounting, control over the reliability and confidentiality of information.

2.11. Ensures that necessary financial information is provided to internal and external users.

The duties of the head responsible for the company's finances include solving a fairly wide range of tasks. Strategic financial management should contribute to the efficient use of funds, in accordance with the strategic goals and current needs of the enterprise. Also, the specialist should develop ways to improve the efficiency of the use of financial resources. The main tasks include:

ensuring the formation of the amount of funds sufficient to cover current needs;
cash flow optimization;
ensuring the effective use of invested capital,
improvement of the settlement policy of the enterprise,
profit maximization with an acceptable level of risk,
ensuring the economic stability of the company.

Figure 1. Management reporting on the example of the software product "WA: Financier".

Tools and tools for automating the functions of the financial director

The duties of the financial director of an enterprise involve the creation of all necessary conditions at the enterprise for the implementation of the investment and dividend policy of the company, the effective management of sources of funds, income and expenses. In addition, he must provide senior management with timely and reliable information reflecting the performance of the company.

Automation tools make it possible to increase the efficiency of the financial director. A set of solutions from WiseAdvice helps to improve the quality of performance of functions assigned to the head of economic services of enterprises in Moscow and other regions of Russia. Depending on the complexity of the tasks, the financial director can use various options for the delivery of "WA: FINANCIST".

"WA: FINANCIST: Cash Management" allows you to automate the management of the treasury.
"WA: FINANCIST: Budgeting" contributes to the implementation of budget models of any complexity.
"WA: FINANCIST: Management Accounting / IFRS" is an excellent tool for organizing a management accounting system and reporting according to IFRS standards.

All solutions offered by the Financier system allow solving a wide range of tasks and fulfilling the direct duties of an economic manager with high quality, which depend on the company's accounting policy. The list may include the following functional responsibilities of the financial director:

organization of cash flow management;
regulation of relationships between business entities;
ensuring efficient use of resources;
development of measures to increase profits;
management of the budget process;
ensuring the capitalization of the company;
participation in the formation and improvement of the economic policy of a commercial enterprise;
analysis and optimal choice of funding sources in relation to the conditions and specifics of the company's activities;
analysis of the efficiency of invested capital and search for new investment directions;
a general analysis of the company's business activities and the development of effective methods that help optimize turnover and cash flows, increase profitability and other aspects aimed at improving performance indicators;
organization of financial accounting at the enterprise, control of compliance of actual indicators with planned ones and analysis of deviations, reporting, provision of objective and reliable information to top managers, coordination of information exchange between all departments;
general management of staff of subordinate services.

Figure 2. Analysis of cash flow in the "WA: Financier" system.

The system from WiseAdvice has been successfully implemented and used at many enterprises in Moscow and other major cities of Russia.

The job description of the financial director should include an extended list of functional duties and powers of the financial director of the enterprise. The head of economic structures manages the assets of the company, therefore, it belongs to the category of personnel with an increased area of responsibility. A well-written instruction will help the financial director to correctly fulfill his duties in accordance with the requirements of the company. It may contain the following sections:

Figure 3. An example of a treasury provision.

1. General Provisions.
This section may indicate the requirements for certain types of knowledge and the category of education that the financial director must have, indicate his status as a manager, describe who he can be appointed to the position, the subordination structure and other parameters. Special requirements may also apply. For example, for the applicant to work for a certain time as a deputy of a financial company.

2. Job responsibilities of the financial director.
This section of the instruction is of particular importance, therefore it should be set out as fully as possible and display all the functional tasks of the financial director.

3. Criteria for assessing the quality of performance of official duties.
Qualitative indicators of criteria are described, on the basis of which it is possible to control and determine the success of the performance of the financial director's official functions.

4. Rights of a specialist.
The duties of the enterprise to the specialist are described, such as payment of wages, payment of travel expenses, organization of the workplace, benefits, provision of information and technical means, creation of safe working conditions, etc.

5. The rights of the leader.

This paragraph of the instruction defines the powers of the financial director, as a manager, and the list of duties within his competence. The provisions describe the specialist's right to:

representation of the interests of the company in third parties,
interaction with heads of other structural divisions,
the ability to give orders to personnel in subordinate structures (in some cases, the financial director can control the activities of the chief accountant),
participate in the preparation of draft orders,
make proposals for the appointment, rotation, dismissal of personnel;
other rights.

6. Responsibility of a specialist.
A clause highlighting the responsibility of an employee for improper performance of duties, for offenses, causing material damage and other actions that are contrary to the interests of the company.

To understand how to become a financial director, it is logical to read the job description of a specialist in this profile. Below is an example of a job description developed for a CFO. It can only be a model, since in the conditions of a particular enterprise, all items must be adapted to the specifics of the company's activities and its development strategy.

Job description and functions of the financial director

APPROVE

General manager

1. General Provisions

1. The instruction describes the duties, rights and responsibilities of the financial director.

1.1. The entity acting as financial director belongs to the category of managers.

1.2. A person who meets the following criteria is appointed to the position:

Higher financial or economic education;

Professional work experience of at least 5 years.

1.3. The CFO must know:

Legislative acts in the field of financial and economic activity of the enterprise;

State of the markets and prospects for their development;

Principles of organization of the enterprise;

The procedure for drawing up budgets;

The system of financial instruments;

Principles of money management;

Methods for assessing assets, profitability, risks;

The procedure for lending and attracting investments for the company,

resource allocation methodologies;

Rules for controlling cash flows, income and expenses;

Forms of settlements between counterparties,

tax law requirements,

Accounting,

financial accounting standards,

Reporting forms.

1.4 The Financial Director is appointed by the Order of the General Director.

1.3. He reports directly to the CEO.

1.4. During the absence of the financial director, functional duties are performed by a person appointed in accordance with the procedure established by the enterprise.

1.6. Managers, analysts, economists from the relevant structural divisions report to the financial director.

2. Responsibilities of the financial director

2.1. Organization of company resource management, redistribution of cash flows in order to improve the efficiency of the enterprise, cost optimization, profit maximization, search and identification of funding sources.

2.2. Negotiating, accompanied by the necessary document flow, with credit and investment institutions, other external organizations.

2.3. Coordination of the work of structural divisions in order to conduct an economic analysis and determine the current state of the company and its development prospects.

2.4. Ensuring the development of the company's accounting policy, the definition of effective methodologies, the introduction of automation tools.

2.5. Enterprise asset management.

2.6. Organization of analysis of all types of expenses of the enterprise in order to further optimize costs.

2.7. Participation in the development of business plans in cooperation with other managers of the enterprise.

2.8. Organization of the budget planning process.

2.6. Monitoring the implementation of financial plans, adjusting the budget in order to increase profitability,

2.7. Development of measures that reduce the influence of factors leading to a rise in the cost of products.

2.8. Control of the consumption of borrowed funds and the effectiveness of capital investments.

2.9. Analysis of the main performance indicators of the company that affect the result.

2.10. Cash flow control, ensuring timely payments and payroll.

2.11. Development of proposals focused on ensuring the solvency and liquidity of the company.

2.12. Organization of workflow at the enterprise in the field of financial and accounting.

2.13. Control over the formation of objective reporting documentation.

3. Rights of the financial director

The financial director has the right:

3.1. Require senior management to provide the conditions necessary for the quality performance of official duties.

3.2. Make proposals aimed at improving the organization of work at the enterprise.

3.3. Participate in the preparation of projects, plans, budgets, contracts, instructions and other documents related to the economic aspects of the company.

3.4. Sign financial documents.

3.5. Give orders to subordinates in order to organize proper work.

3.6. Interact with the heads of all structural divisions on issues related to the financial and economic activities of the company.

3.7. To make proposals for improving the workflow within the limits of service competence.

3.8. Identify bottlenecks in the activities of the enterprise, propose methods and ways to eliminate them.

3.9. Timely receive the documents necessary for the qualitative performance of the duties of the financial director.

3.10. Submit for consideration by the management ideas on the promotion or disciplinary action of employees, appointment, rotation, dismissal, prepare an appropriate order.

3.11. Participate in the development of job descriptions for subordinate employees.

4. Responsibility of the financial director

The Financial Director is responsible for:

4.1. For disclosure of trade secrets and transfer of information to third parties, if such actions caused material damage to the enterprise, and also contributed to the deterioration of the company's image in the business community and among consumers.

4.2. For failure to perform or improper performance of official duties, inaction in the event of revealing an irresponsible attitude to official functions on the part of subordinates.

4.3. For causing material damage to the company under applicable law.

4.4. For violation of the laws of the Russian Federation during the performance of official duties.

4.5. For deliberately inflicted harm to the company in the form of distortion of objective information, concealment of income, uncoordinated withdrawal of funds from the company's accounts.

4.6. For non-compliance with the rules:

labor protection;

Labor regulations and discipline;

Industrial hygiene and sanitation;

Fire safety;

Industrial safety.

AGREED:

Head of the legal department.

Most often, ambitious and successful chief accountants consider moving to the position of chief financial officer. What is the difference between the functions of the chief accountant and the tasks of the findir? How much will the salary increase when changing positions? In this post, we give advice to those who decide to become a financier.

Who is responsible for what

Despite the fact that both - the chief accountant and the financial director - are responsible for the company's finances, their tasks are still different. Speaking in general, the financial condition of the enterprise as a whole is in charge of the financial director, and the chief accountant is responsible for maintaining accounting and tax records.

Responsibilities of the chief accountant:

bookkeeping management;
organization of accounting of financial and economic activities of the company;
accounting and tax accounting;
control over the preparation of accounting documents;
preparation of accounting, tax and statistical reporting;
preparation of management reporting, as well as the formation and submission of reports to tax authorities and funds.

Tasks of the financial director:

strategic planning of the company's financial activities, tax planning;
analysis of the financial and economic activities of the company, development of financial policy;
control of the work of accounting, economic and financial departments
introduction of a budgeting system;
formation of consolidated reporting;
setting up management accounting;
assessment of financial risks; lending and cash flow management of the company;
automation of the financial department and the introduction of ERP.

Who is more important

There are companies where both the financial director and the chief accountant report directly to the CEO. According to Superjob.ru, every third chief accountant (35%) is supervised by a director.

However, most often (6 out of 10 vacancies where the hierarchy in the company is described) the accounting department is part of the financial service and, therefore, the chief accountant is under the control of the financial director. Note that sometimes the chief accountant is led by an executive director.

Who earns more

The “cost” of both a financial director and a chief accountant in the market varies greatly even within Moscow, and even more so in the regions (see table below).

How much do chief accountants and financial directors earn on average in Russian cities, rubles*

Region	Chief Accountant	CFO
Moscow	80 000	155 000
Saint Petersburg	62 000	130 000
Yekaterinburg	48 000	100 000
Novosibirsk	47 000	90 000
Nizhny Novgorod	40 000	82 000
Rostov-on-Don	37 000	80 000
Ufa	36 000	80 000
Samara	38 000	76 000

Who is more needed

Recruitment specialists are unanimous: the demand for chief accountants is higher than for financial directors. So, on the Rabota.ru website, chief accountants are searched three times more often than finders. And according to the Superjob.ru portal, vacancies for chief accountants account for 6 percent of the total number of job offers in the financial sector. While the share of vacancies for financial directors is only 0.5 percent. In small companies, the position of financial director may not be provided, or his duties are performed by the chief accountant. In large holdings, on the contrary, a findir may have 5-10 chief accountants subordinate. And then it turns out that for one vacancy of a financial director there are up to ten vacancies for a chief accountant.

We have given a list of requirements that chief accountants and financiers must meet if they apply for an average market income (see below).

Who do employers want to see for the positions of chief accountant and financial director*

Chief Accountant	CFO
Basic Requirement
Higher education (financial / economic)	Higher financial and economic education, MBA degree is desirable
3+ years of experience as a Chief Accountant/Deputy Chief Accountant	3+ years of experience as CFO/Deputy CFO/Chief Accountant
Confident PC user (MS Office), knowledge of accounting programs and legal reference systems	Confident PC user (MS Office), knowledge of legal reference systems
Successful tax/audit experience	Experience in safe tax optimization
Up-to-date knowledge in the field of accounting and tax legislation	Knowledge in the field of tax legislation and financial law.
Knowledge of all aspects of accounting	Excellent knowledge and practical skills in budgeting, financial management and strategic management
Additional wishes
Having a DipIFR certificate	International certificate ACCA (Association of Chartered Certified Accountants), CFA (Chartered Financial Analyst), CIMA (Chartered Institute of Management Accountant), CPA (Certified Public Accountant)
	Experience in IFRS / GAAP reporting formatting
Experience in bookkeeping for multiple legal entities	Successful experience in automation of planning and management accounting systems
Knowledge of the basics of foreign economic activity (for work in an international company)	Knowledge of EPR systems (SAP, Navision, Scala, etc.)
Knowledge of English	Knowledge of English

How can a chief accountant become a financial director?

As they say, the soldier who does not dream of becoming a general is bad. If the chief accountant is sure that in the future he wants to manage not only his department, but the entire financial service, then he will have to go beyond the accounting functionality and gradually begin to fulfill the duties of a financial director in his company.

You can go to the financial analysis department, master international reporting standards, management accounting, then work in the controlling or budgeting department. Often, an accomplished chief accountant will have to sacrifice his high position and the financial side of the issue in order to gain such experience. But this is a temporary sacrifice, which will quickly pay off with the acquisition of the necessary knowledge.

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Finder tasks

Advantages of the new status

Actually, career growth as such implies a huge number of advantages, so it’s worth breaking them into three conditional groups.

Another important factor is the growth of qualifications. Becoming a financial director, an employee will automatically have to master a whole arsenal of completely new knowledge and skills. First of all, it is business planning and management accounting in the enterprise. Management accounting is, in fact, the holy of holies of any enterprise, since it is its data, and not accounting data, that determines the true structure of production costs. Within its framework, accounting entries acquire a completely different meaning and purpose. Let's take an example.

Example

From the settlement account of the Beta organization, 100,000 rubles were paid for the goods to the supplier. This operation will be reflected in the accounting registers: Debit 60 Credit 51 - 120,000 rubles. However, in management accounting, the meaning of the operation is seen in a completely different way: 100,000 rubles - a bank loan is returned; 20,000 rubles - interest on the loan has been paid.

Now we will explain why only the sum coincided. Such a situation is very likely if there are settlements with a certain company through which the bank issues “short loans” - with them the bank pays for the company goods purchased from foreign suppliers in the amount in euros, thereby equivalent to 100,000 rubles. And your company, after receiving money from buyers, pays for the loan. Or you can interpret this operation as follows: 100,000 rubles - a loan is issued to a company, which will then be registered in accounting as a supply of goods or services from it. It is easy to see that the chief financier is much better informed about the state of affairs at the enterprise than the leading accounting specialist - and this, you see, is very tempting.

Reasons to think

The second reason is that the financial director, in fact, is the same executor who cannot refuse the owner of the business if he wants to receive money for his personal needs. If the state of affairs allows you to pay dividends, then there are no questions. It is much worse when the owner simply pays for operating expenses at the expense of the company's working capital. Here the financial director will have to rack his brains over how to document such whims, and most often it comes down to a banal “cashing out” for fictitious goods, works, services.

The successful work of a financial director largely depends on the qualifications of other employees of the organization.

Two in one

Is it possible to try to combine the functions of financial director and chief accountant, trying to sit on two chairs at once?

Many people see this opportunity as attractive, and besides, this practice is not uncommon in Russian companies. The most common reason for combining functions is to reduce business. A decrease in the company's turnover will inevitably lead to a reduction in costs and, as a result, to a reduction in the number of employees. When it becomes necessary to choose between the financial director and the chief accountant, the company's management will undoubtedly leave the chief accountant in the state, because without him the company simply cannot work. Since the duties of the financial director will still have to be performed by someone, and the company has no other specialist to whom they could be delegated, the general director assigns this difficult role to the chief accountant.

the volume of fundamental knowledge in the field of accounting and taxation of the chief accountant is incomparably higher than that of the company's financier;
name and authority within the company. This is an important factor for establishing interaction between various departments of the enterprise;
economic considerations. Combining positions is also beneficial from the point of view of cost savings, because one person will still need to pay less than two, even if one or two assistants are taken;
speed of adaptation. It is easier for the chief accountant to master in-house know-how, even if he himself did not take part in their development and adjustment. In addition, he will be able to make them more unified, using extensive accounting experience.

To be or not to be?

However, all this does not mean that the chief accountant is automatically the main contender for the post of financial director. There are good reasons for this.

Dmitry Vasiliev

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