What does a Head of Finance do in Germany?

A Head of Finance plays a crucial role in bridging a company’s financial strategy with its overall business operations. This full-time position requires not only strong analytical abilities but also leadership expertise and excellent communication skills to collaborate effectively with the management team. In today’s dynamic business world, the role is becoming more pivotal as companies increasingly seek financial leaders who can align strategic goals with financial performance. Many companies also offer home office options for increased flexibility, allowing finance professionals to balance work and personal life, while still delivering value to the organisation.

• What does a Head of Finance do day to day?
• What does a Head of Finance earn in Germany?
• What skills and experience should a Head of Finance in Germany have?
• Can a Head of Finance specialise?
• What is the career path for a Head of Finance in Germany?
• What opportunities does a Head of Finance have in Germany?

Heads of Finance oversee financial planning, ensure regulatory compliance, optimise cost efficiency and support a company’s financial objectives. They are instrumental in developing and implementing financial strategies in close collaboration with senior management, ensuring that business operations and financial goals are aligned for optimal performance and growth.

Typically, a Head of Finance in Germany manages budgeting, forecasting, financial reporting, and risk management. They ensure that the company’s financial health aligns with corporate objectives while leading teams responsible for accounting, controlling, treasury and taxation. Depending on the company structure, they may report to a Chief Financial Officer (CFO) or a Managing Director, where the scope of their role can differ based on company size and complexity.

What does a Head of Finance do day to day?

The role of a Head of Finance varies depending on the company and industry, but a typical job description includes:

• Financial strategy and planning: developing long-term financial strategies to support business growth and profitability. This includes overseeing the financial direction of the company, identifying investment opportunities, and ensuring that the financial strategy aligns with the company’s broader vision
• Budgeting and forecasting: overseeing budgets, financial forecasting and cost-control measures to ensure that the company’s financial resources are allocated efficiently. A Head of Finance must ensure that departments adhere to budget limits and that forecasts remain aligned with actual performance
• Regulatory compliance and taxation: ensuring compliance with German tax laws, financial regulations and accounting standards such as HGB (Handelsgesetzbuch) and IFRS. This includes monitoring changes in regulations to avoid any legal pitfalls and ensuring the company’s financial reporting remains accurate and up to date
• Financial reporting: preparing financial statements and performance reports for the management team and stakeholders. This includes interpreting financial data and presenting it in a way that facilitates decision-making, while maintaining transparency for external stakeholders, such as investors and regulators
• Risk management and internal controls: identifying financial risks and implementing strong internal controls to mitigate those risks. A Head of Finance must proactively monitor market and financial risks and develop strategies to ensure the company is well-prepared for any economic shifts or unforeseen challenges
• Liaising with external stakeholders: managing relationships with auditors, banks, tax authorities and investors. This aspect of the role requires maintaining effective communication and collaboration with key external parties to ensure that the company’s financial dealings are sound, transparent and compliant with all regulations
• Investment and cash flow management: overseeing capital allocation, liquidity and financial investments to ensure optimal cash flow. A Head of Finance must manage financial assets to maintain liquidity while optimising returns and supporting strategic investment initiatives
• Team leadership and development: leading the finance team and enhancing efficiency in financial processes. This includes recruiting, training and developing talent within the finance department to improve performance and ensure the team remains adaptable to changing business needs
• Mergers and acquisitions: evaluating potential acquisitions and managing financial due diligence processes. A Head of Finance must assess financial risks and opportunities in mergers and acquisitions, ensuring that they align with the company’s strategic goals and financial health
• International finance operations: handling cross-border transactions and managing foreign exchange risks for multinational companies. For companies with international operations, this involves understanding the financial regulations in various jurisdictions and ensuring compliance with international tax laws

What does a Head of Finance earn in Germany?

The salary of a Head of Finance Germany depends on company size, industry and location. Professionals in cities like Hamburg, Frankfurt, and Düsseldorf often earn higher salaries due to the concentration of major financial hubs and multinational corporations. The demand for skilled finance leaders is high, making this a highly competitive role in the German job market.

The salary ranges for a Head of Finance are typically as follows:

• Entry-level: 80,000 EUR – 100,000 EUR per year. Professionals at this level may have just moved into senior finance roles and are gaining experience in managing financial teams and complex projects
• Mid-level: 100,000 EUR – 140,000 EUR per year. At this stage, professionals are expected to have a solid track record of overseeing financial operations and contributing to strategic decision-making within the company
• Senior-level: 150,000 EUR – 200,000 EUR+ per year, often supplemented with performance bonuses, stock options and other benefits. Senior Heads of Finance who have successfully led teams and driven financial growth can earn lucrative salaries, with the opportunity for further bonuses and perks

What skills and experience should a Head of Finance in Germany have?

To succeed as a Head of Finance Germany, professionals must possess a diverse skill set, including:

• Accounting and finance expertise: a strong knowledge of Buchhaltung, HGB, IFRS, and corporate taxation is crucial. A deep understanding of financial statements, balance sheets and income statements is necessary to make informed decisions and lead a team
• Regulatory knowledge: an in-depth understanding of German financial laws, including tax regulations, audit requirements and compliance frameworks, is critical. This ensures that the company remains compliant with legal standards and avoids costly penalties
• Strategic thinking: ability to align financial goals with business strategies. A Head of Finance must be able to think strategically and integrate financial planning with business operations to drive long-term growth and success
• Analytical and problem-solving skills: strong numerical abilities to assess financial risks, evaluate performance and identify opportunities. This includes the capacity to interpret complex financial data and make recommendations for improving the company’s financial position
• Leadership and stakeholder management: effective team management and collaboration with external stakeholders. This includes building strong working relationships with other executives and board members, as well as liaising with external parties like auditors and investors
• Technology proficiency: experience with ERP systems like SAP or Oracle is essential for streamlining financial operations and ensuring accurate reporting. Knowledge of emerging financial technologies is increasingly important for optimising processes and improving efficiency
• Communication skills: ability to explain complex financial concepts clearly to the management team, board members and other stakeholders, both in German and English. Strong communication skills are key in ensuring that financial information is presented effectively and understood by all parties
• Industry knowledge: familiarity with sector-specific financial regulations and business models, particularly in industries like manufacturing, healthcare, technology and finance. This helps ensure compliance and alignment with industry-specific standards

Many professionals in this role hold a degree in Finance, Accounting or Business Administration, often complemented by certifications such as CPA, ACCA or CFA. A background in a related field, such as economics or business consulting, can also be beneficial for this position.

Can a Head of Finance specialise?

Heads of Finance can specialise in various areas, including:

• Corporate finance: managing capital structure and investments, as well as overseeing financial growth strategies for the company
• Controlling and reporting: overseeing business performance, cost control and financial reporting functions, ensuring that business targets are met and financial data is accurately reported
• Tax and compliance: ensuring legal compliance, managing corporate taxes and implementing strategies to optimise the company’s tax liabilities
• Treasury management: overseeing liquidity, cash flow and investments to ensure the company’s financial resources are effectively managed
• Financial technology (FinTech): implementing digital financial solutions, such as blockchain, AI-driven analytics and automation tools to optimise financial processes and improve decision-making

What is the career path for a Head of Finance in Germany?

The typical career progression for a Head of Finance Germany includes:

• Finance Manager/Controller: a stepping stone to senior finance roles. Professionals in these roles oversee day-to-day financial operations and reporting, preparing them for higher-level responsibilities
• Head of Finance: leading the finance team, managing financial operations and driving strategic initiatives to align financial goals with business outcomes
• Chief Financial Officer (CFO): overseeing the entire financial function of the company, including strategic planning, capital allocation and financial risk management
• Managing Director (MD) or Board Member: transitioning into broader executive roles, where financial expertise is leveraged to guide overall company strategy and leadership

Some professionals may transition into financial consulting, investment banking or auditing, depending on their interests and skillset. The role also offers opportunities to work in international markets, especially for those with multilingual skills in English and German.

What opportunities does a Head of Finance have in Germany?

The demand for experienced financial leaders in Germany remains strong, particularly in key financial hubs such as Hamburg, Frankfurt and Düsseldorf. Industries such as banking, manufacturing, automotive and technology are actively seeking skilled Heads of Finance. As businesses become increasingly global and digital, the need for financial leaders who can navigate both local and international financial landscapes has only grown.

In addition to competitive salaries and the potential for career advancement, many companies now offer flexible working arrangements, including home office options, to attract top talent. As the role continues to evolve, professionals with experience in emerging technologies such as FinTech, blockchain and AI-driven financial analytics are in high demand, further enhancing the career prospects for Heads of Finance in Germany.

Get in touch if you are interested in becoming a Head of Finance and would like further information or to discuss your job search. We can help you throughout the full application process to onboarding and beyond.