What Does a VP Finance Do? Responsibilities, Salary, and When to Hire One

If your company is growing fast—hiring teams, expanding into new markets, or preparing for funding rounds—it might be time to bring in a VP of Finance¹. This role goes far beyond bookkeeping and monthly closes. A strong VP of Finance helps you scale responsibly, forecast with confidence, and make financial decisions that support long-term growth.

But what does a VP of Finance do exactly? How is the position different from a CFO²? And at what point should your company bring someone into the role?

Let’s break down the VP of Finance job description, responsibilities, and strategic value, especially for teams of 10+ people approaching their next stage of growth. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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What Is a VP of Finance?

A VP Finance, also known as a Vice President of Finance, is a senior leader responsible for overseeing a company’s financial operations, strategy, and reporting. The role sits between the Controller³ and the CFO, balancing hands-on financial oversight with strategic planning.

Unlike a CFO, who often focuses on external strategies such as fundraising or investor relations, the VP of Finance is deeply involved in internal operations, ensuring that financial systems operate smoothly, budgets are precise, and decisions are supported by real-time insights.

Core VP of Finance Responsibilities

What does a VP of Finance do? While the exact responsibilities can vary depending on a company’s size and growth stage, this role consistently blends tactical execution with strategic leadership.

The VP of Finance ensures the company’s day-to-day financial operations run smoothly while shaping long-term financial direction and growth strategy.

One of their central duties is developing robust short- and long-term financial models to guide hiring, expansion, and capital allocation. These forecasts help leadership make informed decisions, stay ahead of funding needs, and manage the company’s cash runway.

By advising the CEO and department heads, the VP of Finance plays a key role in setting budgets, evaluating ROI on major initiatives, and adjusting financial strategy in real time based on internal performance and market trends.

They’re also responsible for financial reporting and analysis. This includes leading the month-end and year-end close processes, preparing GAAP-⁴ or IFRS-compliant⁵ statements, and building internal dashboards that track KPIs and highlight business performance.

Beyond producing reports, they interpret the numbers, identifying risks, inefficiencies, and growth opportunities to inform decision-making at the board and executive levels.

As companies scale, risk management and compliance become even more critical. The VP of Finance implements internal controls, ensures accurate tax filings and payroll, and stays ahead of changing regulations across markets.

They are also the primary point of contact for audits and due diligence, overseeing compliance and reducing legal exposure. Through scenario planning and insurance coordination, they help protect the business from operational risks.

Finally, this role is deeply rooted in team and process leadership.

The VP of Finance leads and grows the finance and accounting team, hiring specialized roles as needed and mentoring existing staff. They standardize core financial workflows, implement ERP and reporting tools, and continuously look for automation opportunities to improve accuracy and efficiency.

This strategic oversight ensures the finance function supports—not slows—the company’s broader growth.

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VP Finance vs CFO: What’s the Difference?

Although they work closely together and sometimes overlap in smaller companies, the roles of VP of Finance and Chief Financial Officer (CFO) are distinct in both scope and focus. Understanding the difference is essential for founders and finance leaders planning the company’s next strategic hire.

At a high level, the VP of Finance is execution-focused, managing internal financial operations with precision and accountability.

The CFO, on the other hand, is outward-facing and more strategic, often involved in shaping the company’s capital structure, investor relations, and long-term growth trajectory.

Here’s a side-by-side comparison to clarify their roles:

Function	VP Finance	CFO
Focus	Internal finance operations	External strategy & growth
Scope	Budgeting, reporting, compliance	Fundraising, M&A, investor relations
Stage	Often hired post-Series A/B	Hired closer to IPO or $50M+ revenue

In companies that haven’t yet reached the size or complexity that demands a full-time CFO, the VP of Finance often acts as the most senior finance leader, owning everything from forecasting to compliance.

As the company matures, this same VP may transition into the CFO role, particularly if they’ve built investor relationships and contributed to strategic planning.

For companies at an inflection point that are growing beyond early-stage scrappiness but not yet public, hiring a VP of Finance provides critical execution power and financial clarity while still leaving room for a CFO later.

Knowing which role to hire (and when) helps avoid redundancy and ensures your finance function scales alongside your business.

Skills and Qualifications for a VP Finance

A great VP of Finance combines technical expertise with strategic leadership and team management. To succeed in this role, candidates must be fluent in financial operations while also influencing high-level business decisions.

Strong technical skills are a priority.

This includes deep knowledge of GAAP or IFRS standards, advanced financial modeling, and scenario planning.

A VP of Finance should also have hands-on experience managing budgeting, forecasting, and cash flow for growing companies. Familiarity with ERP systems⁶ like NetSuite or SAP, along with data reporting tools, ensures they can oversee complex financial operations with accuracy and efficiency.

Next come soft skills. The best VPs of Finance communicate clearly with non-finance stakeholders, translating complex data into strategic insights.

They collaborate effectively across departments and lead finance teams with a focus on accountability, mentorship, and continuous improvement. A problem-solving mindset and the ability to drive execution are key traits in this role.

Most VPs of Finance hold a bachelor’s degree in finance, accounting, or a related field. Certifications such as CPA, CMA, or CFA are highly preferred and demonstrate a strong professional foundation. An MBA can add business depth, but it isn’t always required.

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Compensation: What Does a VP Finance Earn?

Compensation for a VP of Finance can vary significantly based on location, industry, company size, and growth stage.

However, recent data from ZipRecruiter and LinkedIn shows that the average VP of Finance salary in the U.S. typically falls between $150,000 and $250,000 per year⁷.

This base salary is often complemented by a performance-based or equity-based compensation package, especially in venture-backed or high-growth companies.

Common Compensation Components

• Base salary: $150K–$250K depending on market and company maturity.
• Annual performance bonuses: Tied to financial KPIs or company milestones.
• Equity or stock options: Often a meaningful part of the package, especially in startups.
• Profit-sharing plans: Available in more mature or private companies.
• Health, dental, and retirement benefits: Competitive executive-level packages.

In high-cost, competitive markets like San Francisco, New York City, or Boston, salaries may reach or exceed the top end of the range.

Similarly, companies approaching IPO or involved in complex M&A activity often offer higher total compensation to attract top-tier finance leadership.

When to Hire a VP of Finance

Timing is everything, especially for a decision as important as hiring a VP Finance.

If you bring someone into this role too early, you risk straining resources. On the other hand, waiting too long can expose your company to financial risk and missed opportunities.

It’s time to hire when you’re managing a $5M+ annual budget, facing complex board reporting, or expanding into new markets with increasing compliance needs. If the CEO or COO is still handling financial planning or your finance team lacks strategic direction, it’s likely overdue.

Most companies make this hire post-Series A or B, once product-market fit is clear and scale is the focus.

A strong VP of Finance brings control, clarity, and foresight, building systems to manage cash flow, support growth, and prepare for future funding or exit events.

Tools and Systems Managed by VPs of Finance

One of the key responsibilities of the VP of Finance is building and maintaining a reliable financial infrastructure. This includes selecting, implementing, and managing the systems that support everything from daily operations to long-term planning.

To ensure accuracy, speed, and compliance, modern VP of Finance leaders rely on a diverse tech stack that often includes the following:

• ERP platforms such as NetSuite, SAP, and QuickBooks are used to centralize accounting, invoicing, and reporting
• Financial planning and analysis (FP&A) tools like Excel, Mosaic, or Adaptive Insights for modeling, forecasting, and variance tracking
• Payroll and benefits systems to manage employee compensation, tax filings, and benefits administration
• Expense and procurement platforms (e.g., Spendesk, Expensify, Coupa) to control company spending, automate reimbursements, and enforce policy compliance
• Business intelligence tools to turn financial and operational data into actionable dashboards and reports

Beyond day-to-day usage, a VP of Finance often leads the charge in system selection and optimization, ensuring tools are scalable, integrated, and aligned with the company’s growth trajectory. They also play a critical role in training staff, maintaining data integrity, and identifying opportunities for automation or workflow improvements.

Final Thoughts

If your business is scaling fast and financial complexity is increasing, hiring a VP of Finance is a necessity. This role brings structure to your numbers, clarity to your decision-making, and leadership to your finance team.

A strong VP of Finance will take financial operations off the CEO’s plate, implement systems that grow with the company, and turn raw data into insights your leadership team can act on.

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Sources:

1. What Does a Vice President of Finance Do? – Indeed Canada
2. Chief Financial Officer (CFO) Definition – Investopedia
3. Controller Definition – Investopedia
4. What is GAAP? – Corporate Finance Institute
5. International Financial Reporting Standards (IFRS) – Investopedia
6. Best ERP Software – Zapier Blog
7. Vice President of Finance Salary – ZipRecruiter