What is the role of the Finance Director?
The finance director is the second or third highest ranking position in most companies and they are responsible for managing the company’s finances, providing strategic guidance and developing the policies and procedures which govern the organisation. A finance director will work with all departments to develop an organization strategy and provide advice on business operations.
Responsibilities of a Finance Director
A finance director is responsible for overseeing the accounting, financial reporting, and operational risk management of an organisation. Their main responsibilities are typically to:
- Provide advice and guidance on financial strategy to help the company achieve its business
- Ensure that financial and legal obligations are adhered to as well as all financial targets are achieved by developing and controlling the firm’s
- Assist the corporation’s executives and employees in achieving their targets by providing financial advice and
- Keep track of contracts and supplier services to ensure that these operate efficiently and provide the corporation with the best
- Ensure that the company’s statutory accounts are prepared properly and on
- Ensure that the company maintains efficient and effective financial management through developing and maintaining all necessary systems, policies and
- Make sure that finance staff are adequately motivated and trained, so that they may perform their jobs to the required
- Managing and overseeing both internal and external audits.
Risk Management
Risk Management is an extremely important part of a Finance Director’s role. They are responsible for preparing the company’s risk assessment and identifying the main risks that could affect the company’s operations. They will then develop a risk management plan to mitigate these risks, as well as communicate the risks to other departments in the company. They will also be responsible for managing operational risk by ensuring that company policies and procedures are in place to manage it and that employees are following these policies and procedures.
Talent Development and Recruiting
In many companies, especially SMEs, the finance director is head of HR. This means that they will be responsible for managing talent development within an organisation and will be responsible for ensuring that employees have the necessary tools and resources to succeed in their roles. They will be responsible for mentoring employees (either directly or indirectly) and helping them develop the skills they need to do their jobs well. They will manage recruitment at the company and be responsible for the development of an Employee Retention Strategy which will drive the culture of the business.
Knowledge, skills and experience required
- Accountant with high level professional qualification (e.g. ACA)
- Extensive senior level finance and accountancy experience.
- Significant managerial experience.
- Strong commercial mind-set.
- Strategic thinker.
- Good knowledge of the sector.
- Excellent communication skills.
Conclusion
The role of a finance director is a highly demanding cross functional Board Role. Having a good finance director in your business will help you scale it more rapidly profitably. Even some access to a finance director on a part time basis or leading a strategic project can be immensely valuable at pivotal times in your company’s growth.
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