36
TRAFFORD BUSINESS connect
June/July 2014
non exec fd’s
The importance of a financial director role Whilst not all businesses will be at the point of turnover that warrants the appointment of an in-house Financial Director (FD), however if your business is growing rapidly, and you want to achieve sustainable structured growth, then you should consider the option of outsourcing the role of an FD to an experienced and qualified accountant. Alongside the Managing Director and fellow directors or investors, the role of the Financial Director is a complex yet vital part of any successful SME or family business. Rather than just managing adherence to the financial and tax obligations of a firm, which should be carried out by a suitably qualified accountancy practice, a key part of the FD’s job should be to outline, implement and ensure the achievement of a business’s financial strategies as part of the overall goals. The role in part is to report to the other members of the board, providing timely financial information,
and liaising with other parties such as shareholders and financial institutions. In addition to the external connections, the FD will provide a leadership role to employees in relation to many other aspects of the business. Examples of strategic and managerial tasks that the FD or outsourced consultant should implement or oversee include: • Offer guidance to the Managing Director when determining the corporate objectives of the business, regularly advising on the projected success or failure based on availability of finances for budgets.
underachieving against projections, insurance, suppliers and import-export and suggesting solutions or alternative requirements. If they are a formal director of the company, in addition, routes to success. they will be required to exercise the • Understanding, analysing and duties and responsibilities of a director. presenting regular reports on external Regardless of whether you employ an factors such as financial trends, stock market movements, competitor in-house Financial Director or appoint the responsibility to a qualified and activity, market opportunities and their potential effects on the business. competent external consultant, the successful fulfilment of the duties • Working alongside other board outlined above will help to ensure or management members such as achievement of your corporate goals, Logistics, Sales and Marketing and and ultimately see your business grow. HR, for example in the recruitment, selection, training, motivation and promotion of financial staff.
• Supervising the timely and accurate • Collating the financial strategy and production of legislative requirements departmental budgets for the business such as tax returns, audits, accounting and the effects on the business goals. procedures, and payroll. • Understanding, analysing and • Managing any company investments, presenting regular reports on internal dividends, and capital reserves. factors including turnover, profit, • Preparing tender documents and income targets, and productivity with implementing purchasing practices. comparison projections to results. • Analysing where there are or could be potential failings based on
The FD may even have the responsibility for instructing company
Les Leavitt Leavitt Walmsley Associates Chartered Certified Accountants www.lwaltd.com
