What is the role of a Finance Director?
- The Finance Director in any large organisation works very closely alongside the Managing Director, as candid friend and confidant, helping guide the decision making processes based on the financial implications they have on the business.
- The Finance Director is a pivotal role in every business, no matter what its’ size, so care should be taken to ensure the FD is not only technically competent but also fully understands the realities of the business world.
- The reality for small and medium sized businesses is that quite often it is the business owner/manager that takes on the responsibility for this role, often without the appropriate skills.
Good financial management is at the heart of a successful business. A lack of financial expertise around the board room table will at best significantly hamper a business’s growth and at worst lead to poor decisions and business failure.
Why Successful Businesses have Finance Directors?
The role of the Finance Director is to educate on how to better manage your money. Not only does the Insight Associates Finance Director help you to keep your business on track through sound financial management it helps you to improve your business strategy skills and gain better control of your business.
Specific tasks might include:
- Monthly review of management accounts and cash flow, and underlying integrity beneath them
- Attendance and contribution to board meetings, and other high level meetings as required
- Financial input into strategic business issues such as investment in new plant, factory move etc.
- Managing relationships with external stakeholders
- Assistance with strategic planning and forecasting
- Overseeing compliance issues such as year-end accounts completion, Audit, VAT compliance, payroll year end, P11D completion and general Inland Revenue compliance.
How an Insight Associates Finance Director Helps
Insight Associates are Chartered Certified Accountants with over 20 years’ commercial and practical experience in supporting all manner of business at all stages of growth. Most of the key members of our team have worked at the sharp end in business before being part of the Insight team.
The benefits to businesses under our care include:
- Accurate and appropriate financial management information
- Robust accounting and management processes
- Confidence in published financial results
- Strategic business input that provides focus to planning and development
- Decision support on key issues
- A managed relationship with external stakeholders – particularly funders to the business
- Advice and management of cost control
- Administrative support as needed on legal and tax issues, often by engaging the help from outside advisors and managing the relationships with those advisors
- Added value from commercially experienced accountants. Insight Associates has a wealth of commercial and practical experience in supporting all manner of business at all stages and its proactive approach to the financials mean most problems are resolved before they even occur.
Insight Associates are Chartered Certified Accountants
Is the lack of a Finance Director holding back your business growth?
- Businesses are often created by people who do what they do – they are technicians in their own field – but suddenly need to become experts in all the other areas required to run a business. It may be possible to ‘get by’ for a while in many of these roles, but managing the money and strong financial control is required immediately.
- Many business owners recognise the need for outside financial help and assume this will come from their accountant. Unfortunately this is not the case. Many only provide historical data on what has already happened within the business. An Insight Associates Finance Director works inside your business to help it develop and grow. They help you understand the financial implications of the decisions you make and guide you towards the best possible ones for success to steer your business in the direction you want it to go.
- Insight Associates Finance Director can be a lifeline to a distressed business. They help struggling businesses to regain control and establish a much better relationship with external stakeholders and lenders. Knowing that the business has sought practical and commercial professional assistance can help to reassure financial institutions on the viability and stability of the business going forward.
- Having accurate and reliable accounting and financial information can really help to give you the edge over your business competitors. For example, if you and your competition are bidding for the same work knowing how far or how little you can stretch your profit margins can go a long way towards winning the business. It can tell you how ready you are for expansion, whether you can afford to purchase that new state-of-the-art piece of equipment – and of course the best way to fund it!
- An Insight Associates Finance Director can help to establish a healthy cash flow position which in turn can enable you to take advantage of many benefits including early settlement discounts, better bargaining positions for purchases and improved stock levels. More importantly than that though it will mean that you are controlling the business, not the money or lack of it!
Every week, Garry Mumford of Insight Associates chats to Mark at the Business Hub – listen to the podcasts here.