Professional financial support for your business can mean the difference between success and failure. It is however an area of business management that many organisations attempt to navigate alone. While there is no doubt that no one understands your vision better than you, achieving your full potential is reliant on your willingness to accept the right support.
Often with support services, it is not until you engage in a dialogue that you truly realise the merits of that professional association.
In this article we look at the benefits of engaging a finance director and ask, ‘is it one of the support services you should maintain at all costs?’.
The Role of a Finance Director
The role of the finance director (FD) has surpassed mere financial management. Many businesses confuse the role of an accountant and that of a finance director. While accountants are invaluable their role traditionally has limits.
An accountant commonly supports you through aspects of your financial obligation such as tax returns and financial reporting. They are often engaged on an adhoc basis to aid you in specific tasks.
While a finance director can be engaged on a similar basis their role has always been significantly more integral and it continues to evolve. Your finance director is a fundamental part of your business, concerned with your entire financial future.
According to the Institute of Directors a finance director should possess:
- Extensive senior level accountancy experience
- Significant managerial experience
- Strategic thinking skills
- Excellent interpersonal skills
Finance directors offer support through the day to day running of a business. They contribute to financial policy, business plans and marketing strategies. Your FD will work proactively to make recommendations for amendments to policy and procedure ahead of times of crisis. Additionally, when crisis occurs, they aid implementation of your policies and develop counteractive procedures.
A finance director will ensure compliance with contractual and legal obligations. They will be able to scrutinise budget allocation and contract efficiency. FD’s can advise, plan and support funding applications, to maximise the success of your efforts.
Through appropriate use of their experience and expertise you maximise the potential for your company to; sustain itself, grow beyond your expectations and survive economic and industry related challenges.
The Final Word
There are always challenges to be met that are beyond our ability to predict. No matter the size or nature of your business this kind of support is instrumental to your success. It is also imperative that you take all necessary steps to prepare for the inevitable rainy day. At the very least, you need to acknowledge when you need support in times of crisis, and seek professional financial support for your business.
WrightCFO are a consultancy which outsources finance directors specialising in part-time contracts for small and medium-sized enterprises. While we advocate the commission of a full time support role where necessary, we have dedicated ourselves to providing flexible support on a part-time or interim basis. Why not get in touch today and find out how we can support you?