What Does a VP of Finance Do?

2 min read · Updated July 3, 2026

By Annabel Norman, Managing Partner · Norman Consultants

The short answerA VP of Finance leads and runs the finance function operationally — financial planning and analysis, reporting, budgeting, and often the finance team — usually with a hands-on, executional focus. Where a CFO owns financial strategy and sits on the executive team, a VP of Finance more often delivers the financial management the business runs on, though in smaller companies the roles merge.

The VP of Finance leads the finance function's day-to-day work — and is often confused with the CFO. Here is what the role does, and how the two differ.

What the role owns

A VP of Finance leads the finance function's core work — financial planning and analysis, budgeting and forecasting, management reporting, and often the running of the finance team and its processes. The role is typically hands-on and operational: making sure the business has accurate, timely financial information, sound budgets, and well-run financial operations. It is where financial management is delivered day to day.

VP of Finance versus CFO

The distinction is largely scope and seniority. A CFO is a strategic executive who owns financial strategy, capital, investor relationships, and the financial direction of the business, and sits on the leadership team. A VP of Finance more often leads the finance function operationally, delivering the planning, reporting, and management the business needs. In larger businesses a VP of Finance may report to a CFO; in smaller ones, the VP of Finance is effectively the top finance leader and the roles merge.

An operational and leadership role

A strong VP of Finance combines financial expertise with the leadership to run a team and deliver reliably. They own the rhythm of financial management — the cycles of planning, reporting, and analysis — and the accuracy and usefulness of the numbers the business relies on. Execution, reliability, and team leadership define the role as much as financial technical skill.

What it means for hiring

Define whether you need a strategic finance executive (a CFO) or an operational finance leader (a VP of Finance) — or, in a smaller business, someone who is both, potentially growing into a CFO role. Being clear about the level and remit before hiring prevents a common mismatch.

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Frequently asked questions

What is the difference between a VP of Finance and a CFO?

Largely scope and seniority — a CFO owns financial strategy, capital, and direction as an executive, while a VP of Finance leads the finance function operationally (planning, reporting, budgeting). In smaller businesses the roles merge.

They lead and run the finance function's day-to-day work — financial planning and analysis, budgeting, reporting, and often the finance team — as a hands-on, operational role delivering the financial management the business runs on.