Head of Finance: The Process Champion Every NGO Needs
- Dohit Muranjan & Ritu Jain
- Dec 8, 2025
- 5 min read
Updated: Dec 10, 2025
NGO Finance Series – Part 5
By Dohit Muranjan & Ritu Jain
Lessons from working with 400+ NGOs over the last 15 years at Aria CFO Services
When people think about finance leadership in non-profits, the spotlight often falls on the CFO - the strategist, the storyteller, the voice at the board table. But behind every effective CFO is a Head of Finance who makes sure the engine runs smoothly every single day.
If the CFO is the architect, the Head of Finance is the process champion - the person who ensures systems work, teams follow discipline, and the organisation’s daily financial life is both compliant and efficient.
Most NGOs underestimate this role. But from our experience at Aria CFO Services, after supporting 400+ organisations, one truth stands out:
A strong Head of Finance can transform the entire finance function; a weak one can cripple it.
This article highlights the role, responsibilities, and leadership value of this critical position.
What Does the Head of Finance Really Do?
Reporting to the CFO, the Head of Finance ensures that all daily financial operations are compliant, timely, and error-free. They sit at the nerve centre of three pillars:
Legal & Compliance
Accounts
Finance Operations
While each pillar has its own team or specialist, it is the Head of Finance who ensures alignment, integration, and discipline across all three.
Think of them as the person who ensures:
Audits do not become firefighting
Donor reporting follows structure, not chaos
Processes are followed, not improvised
Compliance is proactive, not reactive
The CFO receives insights, not excuses
In short, they keep the system running without surprises.
1. Legal & Compliance: Keeping the Organisation Risk-Free
Non-profit compliance in India is complex: FCRA, GST, TDS, PF, ESIC, professional tax, Shops & Establishment, labour laws, and more. Deadlines are frequent, rules change, and documentation is critical.
The Head of Finance ensures:
Timely and accurate filings (TDS, GST, PF, PT, etc.)
FCRA compliance and reporting discipline
Grant agreements are reviewed for financial clauses
Vendor and employee compliance documentation is captured
Audits - statutory, donor, internal are smooth and predictable
Compliance calendars are maintained and adhered to
A good Head of Finance never “remembers” compliance deadlines — they run systems where nothing needs to be remembered.
2. Accounts: Ensuring Structure, Accuracy & Closure Discipline
The accounts team focuses on recording transactions. But without leadership from the Head of Finance, these records can quickly become inconsistent, donor-wise allocations get mixed up, and monthly closures slip.
The Head of Finance ensures:
A unified chart of accounts across all projects
Timely monthly closure with complete ledgers and reconciliations
Donor-wise and project-wise accuracy
Accrual entries (expenses, provisions, commitments) are recorded properly
Trial balances are reviewed, not just generated
Documentation and audit readiness throughout the year
The greatest strength they bring is discipline - because financial clarity is not created at year-end, it is created every month.
3. Finance Operations: Powering Program Teams With Financial Clarity
Finance Operations is the bridge between financial systems and program execution. The Head of Finance ensures this team provides timely, accurate, and decision-ready information across the organisation. Their responsibilities typically include:
Preparing Budgets & Tracking ActualsWorking with program and fundraising teams to prepare annual, project-wise, and donor-wise budgets, and tracking actual spending against these plans.
Donor-wise Reporting & Utilisation CertificatesEnsuring expenses are correctly mapped to donors and budget lines, enabling accurate donor reports and timely utilisation certificates.
MIS Reports for Internal Decision-MakingGenerating project burn rates, fund balances, variance analyses, cash flow updates, and other MIS reports that help leadership and programs make informed decisions.
Budget Support During Proposal Submissions
Assisting program and fundraising teams in building realistic, compliant, and well-structured budgets during grant proposal development.
Why the Head of Finance is the Audit & Donor Report Champion
If audits drag on, donor reports are delayed, or data inconsistencies appear, the root cause is almost always a breakdown in process.
A strong Head of Finance ensures:
All schedules and annexures are ready for audits
Donor reporting formats are mapped at the outset
Fund utilisation is tracked continuously, not during last-minute panic
Documentation is complete, organised, and easily retrievable
Teams know what to do, when to do it, and how to do it
They make both auditors and donors trust the organisation - because trust comes from predictability.
From Operations to Leadership: The Real Impact of a Head of Finance
Beyond systems and processes, the Head of Finance plays a leadership role by ensuring:
The CFO has clear, accurate information for decision-making
Programs receive timely financial data
Risks are spotted early
Variances and budget gaps are escalated
Policies are actually implemented, not just written
Teams work cohesively across finance, HR, admin, and programs
When this role is strong, the entire organisation feels the difference: smoother workflow, fewer surprises, more compliance confidence, and better relationships with donors and auditors.
What Makes a Great Head of Finance?
After 15 years of working with NGOs of every size, here are the qualities that consistently stand out:
Process-oriented
Deadline-driven
Strong reviewer
Knowledgeable in NGO-specific compliance
Clear communicator
Zero-tolerance for documentation gaps
Hands-on and practical
Calm under pressure
Builder of systems and teams
They are the backbone of the finance function - the people who ensure the mission is powered by reliable systems.
Final Thought
The Head of Finance may not always sit in board meetings, but their work shapes every financial discussion that happens there. They turn strategy into structure, policies into practice, and compliance into habit.
Without them, the CFO cannot think strategically. With them, the NGO’s financial system becomes robust, predictable, and trustworthy.
How Aria CFO Services Can Support Your NGO
At Aria CFO Services, we’ve seen how a strong Head of Finance can transform an organisation’s financial backbone. Our team works closely with NGOs to:
Design and strengthen finance processes across compliance, accounts, and finance operations
Build the capability of in-house finance teams through hands-on mentoring and training
Provide outsourced CFO and Head of Finance support where organisations need interim or part-time leadership
Set up systems for donor reporting, audits, and compliance that are robust, predictable, and easy to run
If you’re looking to strengthen your finance function – or specifically the Head of Finance role – we’d be happy to explore how we can help. Write to us at dohit@ariaadvisory.in or ritu@ariaadvisory.in or reach out through our website to start a conversation.
This article is Part 5 of our NGO Finance Series, where we’ve been unpacking what it takes to build a strong and reliable finance function in NGOs. In case you missed the earlier pieces, you can read them here:
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