What is the Role of the CFO or Finance Director?
Correctly managing and directing the team results in the production of the right reports and information to the Finance Director and Board of Directors.
The Finance Director guides the team and identifies the most useful information to report that facilitates decision making and growth.
Properly designed and implemented systems and processes to increase the accuracy of reporting.
The ability to identify and select the most appropriate accounting software and tools for the business now and the future as you grow.
The right KPIs drive profitability in the business by ensuring the right behaviours are concentrated on
Does your Chartered Accountant have the right skills to advise here?
Is the business structured to optimise your tax position both now and at exit?
Having advance warning of funding needs can be critical so the bank has time to go through their due diligence before lending
When will we need some funding to meet a shortfall in cash?
Create an integrated forecast model with sensitivity analysis so you can see what the cash balance sheet and profit and loss will look like in the future by changing assumptions.
Good FDs direct and manage the team.
Great FDs develop the team to the benefit of both the individual and your business
Preparing the information required by the buyer or investor managing the sale or investment process including due diligence
For a full description of the role and skills required of the Finance Director or CFO please read our White Paper ‘The 5D FD’.
What is the difference between a CFO (Chief Financial Officer) and a Finance Director?
However in larger organisations the CFO will have FDs, usually divisional, reporting to them.
See our white paper The 5D FD for the detailed breakdown of skills and duties of an effective CFO or FD.
What is the difference between a Finance Director and a Financial Controller?
The financial controller generates and provides information to the FD.
The financial controller will ensure that the day to day operations of the finance team run smoothly.
What is the Role of the Financial Controller?
Produce Monthly Management Accounts including KPIs.
Mentor and coach the team.
Collaborate with business stakeholders to transform and define new processes.
Manage the budget and forecasting cycle in conjunction with the Finance Director.
Statutory Accounts, audit and corporation tax submissions in liaison with Chartered Accountants.
Proactively manage cashflow.
How do you interview a potential Finance Director you want to hire?
Most Finance Directors will have an accounting qualification.
However, an accounting qualification is awarded at the beginning of an accountant’s career and it is not guaranteed that a candidate has developed the full suite of Finance Director skills since they qualified. The full suite of skills are listed in our White Paper ‘The 5D FD‘.
So just because a candidate has “Finance Director” written on their CV that does not mean they have all the skills of an FD.
The Acuity Method™ can be used to ascertain whether an FD actually has the skills required to be properly effective in the role.
To learn more about assessing a Finance Director candidate with The Acuity Method™ contact 020 3405 3080 or email email@example.com.
What are Finance Directors paid?
Rates vary geographically and also by sector.
Why become a Finance Director?
In larger businesses progression from CFO to CEO is not unusual.