Head of Finance
The head of finance leads a company's operational finance department and is responsible for accounting, controlling, reporting and payments. The role sits between financial accounting and the CFO: more leadership and process responsibility than the former, less strategic and capital-markets work than the latter.
Scope of the role
A head of finance owns the monthly and annual close, leads the finance team, ensures reliable numbers and working processes, manages liquidity and payments, and delivers internal reporting. In many companies tax matters, insurance and working with auditors are added.
Boundary to the CFO
The difference is direction of view rather than seniority. A head of finance makes sure the finance function works. A CFO uses that base to steer the company: capital structure, investment decisions, investor communication, corporate planning. In smaller companies the two roles merge; above a certain size they separate.
When the role appears
Usually once accounting involves more than two or three people, or once the managing director can no longer lead the area alongside everything else. The head of finance is often the first dedicated leadership role in the finance function of a growing company.
As an interim role
Head of finance is one of the most frequently interim-filled finance roles, for a practical reason: if the position is vacant, closings stall while deadlines keep running. A temporary appointment keeps the function operating until a permanent solution is found, and prepares the handover.