Finance Director

The job of a finance director is not just about producing accounts: they can help your company with strategy and development. A good FD is key if you are growing your business

because FDs develop strategic financial forecasts , business growth and ensures that the Company maintains a healthy cash flow

 

Why appoint an FD?

Don’t regard a finance director as just another wage to pay. If you want to build a successful management team, an FD is a vital component.

Think about hiring if you are looking to increase your profits, reduce financial risk or raise funds.

You will not have to devote as much time to dealing with financial issues, and be able to concentrate on other areas of your business

Your FD will ensure your finances are compatible with your growth strategy and will give you commercial input into key strategic decisions.

If you do not have accurate and up-to-date information then it will be difficult to continue supporting your growth

 

When should you appoint?

Assess whether you know exactly where your finances are. When you have reached a point where you can no longer manage and control – or even understand – everything that’s happening with your business, it’s business, its time

If you are going forward to seek a large loan, or preparing to float the company, an FD is a very good idea

Your bank, and potential investors will give more credibility to your business if you have a financial director as part of the negotiations

Think about how an FD could help your decisions on growth. Early stage companies will be too small to support an FD; but the earlier you hire, the quicker your company will be geared towards growth

 

The role of a FD

Your FD will be responsible for producing monthly management accounts, annual budgets, cash management and implementation of financial controls

They will advise and report on your business’s financial performance

They will deal with all tax, treasury, and audit requirements and ensure that you comply with all legal financial obligations

He/she will help you with delivery of your growth strategy and ensure it corresponds with your business’s actual and projected financial strengths

They will ensure that your business has enough working capital for each month’s trading and will assess whether you need additional finance to grow further

 

Finding the right person

Draw up a job specification. Consider what you want the new post and post-holder to achieve

Look for someone who has years of experience of working in a commercial environment: you want someone who understands good corporate governance

They will be a qualified accountant and should have solid experience of dealing with auditors, lawyers, and tax advisers

The new FD will become a vital part of your management team with input on key strategic decisions, so make sure that you have a good, trusting relationship with them.