Not all businesses have finance directors, and there is a common general attitude, the company’s level company needs it – and buy it. However, many growth businesses need help from the Finance Director before reaching the company’s level, understanding the role of the Finance Director can be the first step to get individual expertise which is literally able to make a difference between success or failure of business.
The main function of the Finance Director can be concluded in six points:
1. Finance Director is responsible for managing business financial functions that will include overseeing things such as transaction recording, cash flow management, internal control management and legal reporting, management and development of the Ministry of Finance, external auditors and tax advisors.
2. FD manages financial and business planning business, including budget, estimates, strategic business reviews, financial strategies, cash and financial requirements and formal business plans that can be presented to third parties such as potential investors.
3. FD manages relationships with important external parties including funders, bankers, external investors, lawyers and company investors and auditors and tax advisors mentioned above
4. Finance Director with commercial business background can often contribute and manage functions such as IT, Law, HR, property and other facilities. Special projects such as mergers and acquisitions and management of internal changes are also often handled by the Finance Director.
5. FD will be a number translator and translator. A good financial director will not only produce good quality numbers using systems and healthy and strong processes but will be able to describe what it means. Furthermore, this interpretation includes not only what happens but what might happen in the future, use the main indicators and metrics. The translation of numbers to facts in the field is probably the main differentiator owned by a good financial director of good financial controllers.
6. Finally, but most importantly, FD is placed perfectly to become business number two for MD, ideal business partners, advocates, conscience, sanity sound and where sometimes needed, brakes. A good FD can speak financially to finance people and current financial issues that affect their daily business in a clear and concise way to the management team.
It might be logical to conclude that with all these responsibilities, the Finance Director is the full time role needed by a larger company. However, the more businesses find that there are important periods in developing business life where skills and experiences that can provide services above are needed, but not in full time, and that flexible financial director. It is a low risk, the cost-effective bridge between using bookkeeping / combination of accountants and obtains the first full time FD.
What is the “Flexible” Finance Director?
FD is flexible, or part time doing anything that will be expected permanent finance director to do, as long as it is not illegal, unethical or immoral! Some clients only have bookholders, others have financial controllers leading to the financial team and flexible finance director adapted to client resources.