Why would you need an FD?
It is inevitable that as a business grows the finance burden increases. It is therefore likely that an increasing amount of the owner’s time is taken up with financial matters. This is not what you envisaged when you started the business and unlikely to be what you want to do or indeed what you do best.
Without efficient and effective finance management which takes care of forward planning AND the everyday routine it is unavoidable that you, the business owner, will need to get involved.
What does an FD do?
The main objective of a part-time FD is to free up busy Owners/MD’s by taking away the problems of finance management, whether that means managing staff or not, in an organised way, and putting in place an organisation structure for the company. This will be a solid foundation for now and future. The FD should also be a trusted sounding board and go to man for the owner/MD.
An FD will ensure that the processes put in place help the business have clear direction. As every function within a company has a financial impact, it is essential that these processes are communicated to everyone in the organisation, to enable all the different functions to be aware of the impact their contributions have.
The best Finance Directors spend more than half their time looking at the future of your business not it’s past. They’ll have a collaborative approach and will work closely with you and the rest of your team, and know your business inside out. They’ll have the confidence to challenge and influence you robustly but tactfully. Above all, they’ll add tangible value to your business and help propel it to the next stage of growth!
The most obvious things a Finance Director will bring to your business are:
- a solid reporting structure
- profit and loss reports
- management accounts
- cash flow projections
- market analysis
- product analysis, so you know whether you’re costing and charging appropriately.
You can take most of these things as a given, however a good FD will have a relentless focus on future cash flow. Someone who can put the numbers into plans and deliver a robust and achievable strategy for delivering the profits and growth from your investment. And importantly to give you the time for you to enjoy the benefits.
For an in-depth pdf e-book click HERE to download a FREE copy of ‘Your Own FD’
Peter Andrews – Part-time FD is Managing Director of Kent Financial Management Services