Defining the role of the next generation of Finance Directors

No More Bean Counters

Definition Finance Director:

A person who actively leads financial strategies to facilitate growth and improvement and manages a company's monetary resources and all processes relating to measuring and sustaining realistic company-wide targets.

What not to do

  1. Bookkeeping
  2. Financial controller accounts manager, or external accountant work. (Should help with recruitment but not including constructing job descriptions).

STEP 1

  1. Form a close working relationship with the Managing Director, other Senior Executives and Non-Executives.
  2. Provide leadership to the Board's Finance and Accounting strategy, to optimise the company’s financial performance and strategic position.
  3. Establishing the Board's ambitions and aspirations for the business and documenting a business plan.
  4. Contribute fully to the development of company strategy across all areas of the business, challenging assumptions and decision-making as appropriate and providing financial analysis and guidance on all activities, plans, targets and business drivers.
  5. Take overall control of the company’s accounting function.
  6. Documenting the route the business intends to take to achieve their business plan forecasts.
  7. Identifying exactly where the business is up to in relation to their business plan.
  8. Construct a business modelling solution, ideally with inbuilt simulation software. 

STEP 2

  1. Ensure that the company’s financial systems are robust, compliant and support current activities and future growth.
  2. Establishing the true relationship with the Bank, other investors and stakeholders.
  3. Recommend to the board alternative funding sources where appropriate.
  4. If not already present, introduce processes that measure exactly where the business stands in relation to any targets that are in place.
  5. Make recommendations relating to any urgent adjustments.

STEP 3

  1. Ensure corporate budgeting processes are carried out and reviewed monthly.
  2. Examine the processes and people behaviour/performance within every department to identify any black holes that need plugging.
  3. Take ultimate responsibility for the company’s cash management policies.

STEP 4

  1. Present annual accounts to investors, shareholders, stakeholders and the board. Ensure that the regulatory requirements of all statutory bodies are met.
  2. Manage company policies regarding capital requirements, debt, taxation, equity, disposals and acquisitions, as appropriate.
  3. Become the keeper of KPI reporting.
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