Finance Competency Framework — by Role
Four competencies, four bands (Finance Executive → Senior Finance Executive → Finance Manager → Senior Finance Manager), for a solo finance function based in India running two entities (India + US) at a ~50-person company. Band titles are from the original and can be renamed.
How this is used. Primarily for performance review — the person self-rates and their manager rates independently against the four maturity levels, then compares. Within each band, Emerging → Developing → Proficient → Strong reads maturity in that band, so the same word means more at a higher band. The bar rises at every band, and the top of one reads much like the bottom of the next — that overlap is deliberate and is what promotion readiness looks like. Weights are shares of the review and sum to 100; they rotate across bands to match how the job changes.
A realistic caveat. Finance here is genuinely one person today, so these bands will mostly sit unstaffed. This exists as a ready reference — so that whenever someone joins or is promoted at any level, the bar is already defined. Because the work is similar across bands at this size, the levels differ mostly in autonomy, scope, and weight rather than in kind; that's inherent to a solo function, not a gap. Anchors that mention mentoring or developing finance hires assume a future team and read as "not yet applicable" while it's a team of one.
A note on regulatory specifics. The obligations named below (India: Companies Act / ROC filings, GST, TDS, statutory audit, transfer-pricing documentation; US: federal and state tax, state registrations, US-side reporting) are examples of what this role must stay on top of, not accounting or legal advice. Exact requirements — including anything touching inter-company transactions, transfer pricing, or cross-border money movement (FEMA/RBI) — should be confirmed with your CAs and tax advisors in each jurisdiction.
What each competency measures
Accounting, Compliance & Cross-Border Operations — India + US — Keeps accurate books for both entities and runs month-end close, and keeps each entity compliant with its statutory obligations (India: Companies Act/ROC, GST, TDS, statutory audit; US: federal and state tax, state registrations, US-side reporting). Handles inter-company transactions and transfer-pricing documentation, keeps records audit-ready, and coordinates external CAs, auditors, and tax advisors across both jurisdictions. The core of the function, because at this size the accounting is the cross-border work.
Financial Planning & Analysis — Prepares budgets, forecasts, variance analysis, and management reporting the leadership team can act on. Understands the business drivers behind the numbers and communicates financial performance clearly.
Cash Flow, Payroll & Vendor Management — Runs payroll for both countries, vendor payments, and receivables/payables accurately and on time, within internal controls. Monitors cash flow across entities and keeps payment processes clean and well-documented.
Business Partnership & Communication — Turns financial information into insight the business can use — on spend, investments, and trade-offs — and communicates it clearly to non-finance colleagues and founders. Maintains confidentiality and financial discipline, growing from providing information at junior bands to trusted strategic partner at senior bands.
Weights by band
| Competency | Finance Exec | Sr Finance Exec | Finance Mgr | Sr Finance Mgr |
|---|---|---|---|---|
| Accounting, Compliance & Cross-Border | 36 | 32 | 30 | 28 |
| Cash Flow, Payroll & Vendor | 36 | 32 | 24 | 18 |
| Financial Planning & Analysis | 14 | 18 | 22 | 26 |
| Business Partnership & Communication | 14 | 18 | 24 | 28 |
The shape: Accounting/Compliance stays the dominant core throughout, easing only gently as it turns from doing the books to owning the control environment. Cash/Payroll/Vendor drops sharply (36→18) — it's the biggest chunk of junior execution and becomes oversight at senior. FP&A and Business Partnership each roughly double on the way up (14→26 and 14→28) as basic reporting turns into forecasting and strategy, and providing information turns into partnering with leadership. Execution dominates the junior review; the core, analysis, and partnership balance out at senior.
Finance Executive
| Competency | Emerging | Developing | Proficient | Strong |
|---|---|---|---|---|
| Accounting, Compliance & Cross-Border | Handles bookkeeping and routine entries for both entities with guidance; learning statutory requirements, documentation standards, and audit trails. | Performs monthly accounting independently, supports statutory filings for both countries, and reconciles accounts accurately, escalating complex matters. | Independently runs month-end close, keeps complete supporting documentation, and ensures routine compliance for both entities; coordinates with external advisors when needed. | Consistently delivers accurate records, spots compliance gaps early, improves documentation quality, and keeps both entities audit-ready. |
| Cash Flow, Payroll & Vendor | Processes payroll, vendor invoices, and routine payments with guidance; learning approval workflows and controls. | Manages payroll, vendor payments, receivables, and payables accurately and on time with proper documentation. | Monitors cash flow, keeps payment processes clean, runs payroll accurately, and meets vendor obligations per policy. | Spots ways to improve cash management, strengthen payment controls, and streamline payroll and vendor operations. |
| Financial Planning & Analysis | Prepares basic financial reports and is learning the business metrics and drivers behind them. | Produces budget reports, variance analysis, and standard dashboards, and begins explaining movements in performance. | Builds reliable forecasts and simple models, identifies key drivers, and communicates financial impact clearly. | Provides useful financial insight, recommends improvements from analysis, and steadily improves reporting quality. |
| Business Partnership & Communication | Provides requested financial information and is learning how finance supports decisions; communicates clearly within finance and keeps information confidential. | Shares analysis with managers, explains routine financial information to non-finance colleagues, and builds productive working relationships. | Gives proactive recommendations backed by analysis, explains the financial impact of decisions, and translates finance into business context. | Shows commercial awareness by spotting ways to improve performance and efficiency, and promotes financial discipline through clear, accurate communication. |
Senior Finance Executive
| Competency | Emerging | Developing | Proficient | Strong |
|---|---|---|---|---|
| Accounting, Compliance & Cross-Border | Owns monthly accounting for both entities and ensures filings, reconciliations, and documentation are accurate and on time. | Coordinates accounting across the entities, strengthens internal controls, and supports statutory audits with audit-ready documentation. | Ensures accounting complies with both countries' statutory and regulatory obligations and partners effectively with external auditors, CAs, and tax advisors. | Continuously improves accounting processes, identifies compliance and transfer-pricing risks proactively, and strengthens governance across both entities. |
| Cash Flow, Payroll & Vendor | Owns payroll, cash-flow monitoring, and vendor management with timely, accurate execution within controls. | Improves working-capital management, strengthens vendor governance, and keeps obligations managed efficiently across entities. | Optimizes cash flow, introduces process improvements, and works well with payroll providers and vendors. | Builds scalable payroll and cash practices that improve control and reduce operational risk. |
| Financial Planning & Analysis | Owns budgeting, forecasting, and variance analysis for assigned areas and explains the drivers behind performance. | Builds models and dashboards that support operational and management decisions. | Partners with the business to evaluate financial impact, challenge assumptions with data, and recommend actions. | Improves planning processes and forecasting accuracy and influences decisions with high-quality analysis. |
| Business Partnership & Communication | Uses analysis to support business discussions and offers practical recommendations, communicating in a business-friendly way. | Partners with functional leaders to evaluate investments and budgets and improves financial literacy across teams. | Influences prioritization with sound analysis, flags risks and opportunities, and communicates complex concepts confidently to non-finance stakeholders. | A trusted finance partner who improves decision quality through commercial insight and fosters transparency and accountability. |
Finance Manager
| Competency | Emerging | Developing | Proficient | Strong |
|---|---|---|---|---|
| Accounting, Compliance & Cross-Border | Independently manages accounting and compliance for both entities and coordinates auditors and advisors while holding strong internal controls. | Strengthens processes and controls and identifies cross-border compliance risks (tax, transfer pricing, statutory deadlines) before they bite. | Leads accounting and regulatory compliance across both entities, standardizes processes, and resolves complex accounting and cross-border matters with advisors. | Drives financial governance — better controls, lower compliance risk, consistent audit readiness — across both jurisdictions. |
| Cash Flow, Payroll & Vendor | Optimizes cash-flow planning while payroll, vendor payments, and obligations run accurately across both entities. | Improves treasury practices, vendor governance, and payroll controls through better forecasting and discipline. | Introduces scalable cash-management practices, improves working capital, and strengthens banking and provider relationships. | Continuously improves financial operations — cash utilization, risk reduction, payroll and vendor processes. |
| Financial Planning & Analysis | Builds detailed forecasts, models, and management dashboards that support planning and business reviews. | Partners with leaders to evaluate investments, understand drivers, and improve forecasting accuracy. | Influences budgeting, resource allocation, and planning with proactive insight and data-backed challenge. | Leads planning that improves decision quality and aligns priorities across the company. |
| Business Partnership & Communication | Provides proactive recommendations by evaluating performance, costs, and investment opportunities, and communicates them clearly. | Partners with leaders on budgeting discipline and trade-offs, and strengthens collaboration and financial literacy across teams. | Influences planning by challenging assumptions and recommending sound decisions; mentors any junior finance help. | A trusted finance partner who shapes decisions, improves discipline, and builds a culture of financial stewardship. |
Senior Finance Manager
| Competency | Emerging | Developing | Proficient | Strong |
|---|---|---|---|---|
| Accounting, Compliance & Cross-Border | Owns the accounting and compliance framework for both entities, ensuring accurate reporting and effective controls across jurisdictions. | Leads statutory audits in both countries, strengthens governance, and works with leadership to manage financial and compliance risk proactively. | Sets accounting standards and consolidation practices across both entities and keeps the group consistently audit-ready. | Shapes the company's financial control environment — embedding governance, cross-border compliance, and continuous improvement into how finance runs. |
| Cash Flow, Payroll & Vendor | Sets the cash-management approach so payroll, treasury, and vendor governance support the business. | Improves financial resilience through better working capital, scalable payroll, and strategic vendor management. | Builds governance that improves controls, vendor performance, and efficiency across both entities. | Establishes scalable processes that strengthen cash management, financial discipline, and business continuity. |
| Financial Planning & Analysis | Sets the planning approach and aligns budgeting, forecasting, and reporting with company priorities. | Leads longer-term planning, scenario modelling, and investment analysis for leadership decisions. | Partners with leadership to optimize resource allocation and evaluate strategic initiatives. | Shapes company strategy through high-quality financial insight and commercial thinking. |
| Business Partnership & Communication | Advises leadership by evaluating investments, assessing risks, and guiding financial priorities, ensuring finance is in planning conversations. | Influences strategy through commercial insight and evidence-based recommendations, and develops any future finance hires. | Drives financial discipline across the company, balancing growth with sustainability, and builds a collaborative, transparent finance culture. | A trusted strategic finance leader who shapes investment decisions and long-term direction, and embeds financial awareness across the company. |
What changed from the original. The altitude was pulled down from enterprise/multinational language ("enterprise-wide financial standards," "seamless global finance operating model") to the reality of one hands-on finance person running two entities. Accounting & Regulatory Compliance and Cross-Border Finance were merged into one India + US core, weighted as the top competency — at two entities they're the same work, and separating them both buried the hardest part of the job and double-counted it. Business Partnership & Strategic Influence and Collaboration, Communication & Financial Stewardship were merged — for a solo function they're one competency, the same way HR's "advise leadership" thread ran through three rows. That took six competencies to four, which happen to be finance's four classic pillars (accounting/compliance, FP&A, treasury/cash, business partnering). Inter-company transactions and transfer pricing are now named explicitly instead of hidden in "multi-entity operations." Weights rotate across bands. Anchors are rewritten to be self/manager-assessable, and mentoring language is hedged since it's a team of one today. Typos in the original's descriptions ("uilds," "disciplin") fixed. This mirrors the HR treatment; the two frameworks are structurally parallel.