As the title suggests, a financial director is the person who makes sure that everyone in the company knows and understands company performance, the department budgets and the current targets. The financial director will create strategies in order to achieve the company targets, while delivering output at a profitable level. Although the financial director will have a team of staff to assist with the more routine matters, the role certainly demands a great deal of time from the chosen candidate, and financial outsourcing may be the solution.
When do you need a financial director?
A business will benefit from the skills of a financial director at any stage. Initially, the senior executives will deal with the business administration, but eventually the company will be ready for growth, which is where the skills and expertise of an FD will be required. To achieve strong growth, a financial director will manage the cash flow, with a budgeting and planning strategy to ensure that the company doesn’t grow too rapidly, while managing to fulfil potential.
What will the financial director do for your company?
An FD will lead the company through the development and implementation of new processes, helping to maintain efficiency as the business grows. A competent financial director will provide the necessary financial information and statistics to help the managers of the business to make sound financial decisions based on accurate statistical information. In addition to the finance of a company, an established financial director will also be able to advise on the legal protocol so that you remain compliant with legislation. By utilising the financial information, the financial director will assess any risks associated with various procedures or strategies, avoiding problems that could affect the company’s financial health.
Myths surrounding the role of financial director
The role is often misunderstood, with many believing that a financial director is actually another term for an accountant. In fact, a financial director will not only produce the facts and figures required by a business, but will interpret them so that directors can see how the current financial situation will affect the future of the company.
Some companies believe that they don’t need a financial director, as they have always been fine in the past. This may be true, but is almost certain that those companies haven’t experienced growth and run the risk of becoming stale or even insolvent.
If you would like to discuss the role of financial director in more detail, why not get in touch with us?