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
- Financial controller accounts manager, or external accountant work. (Should help with recruitment but not including constructing job descriptions).
- Form a close working relationship with the Managing Director, other Senior Executives and Non-Executives.
- Provide leadership to the Board's Finance and Accounting strategy, to optimise the company’s financial performance and strategic position.
- Establishing the Board's ambitions and aspirations for the business and documenting a business plan.
- 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.
- Take overall control of the company’s accounting function.
- Documenting the route the business intends to take to achieve their business plan forecasts.
- Identifying exactly where the business is up to in relation to their business plan.
- Construct a business modelling solution, ideally with inbuilt simulation software.
- Ensure that the company’s financial systems are robust, compliant and support current activities and future growth.
- Establishing the true relationship with the Bank, other investors and stakeholders.
- Recommend to the board alternative funding sources where appropriate.
- If not already present, introduce processes that measure exactly where the business stands in relation to any targets that are in place.
- Make recommendations relating to any urgent adjustments.
- Ensure corporate budgeting processes are carried out and reviewed monthly.
- Examine the processes and people behaviour/performance within every department to identify any black holes that need plugging.
- Take ultimate responsibility for the company’s cash management policies.
- Present annual accounts to investors, shareholders, stakeholders and the board. Ensure that the regulatory requirements of all statutory bodies are met.
- Manage company policies regarding capital requirements, debt, taxation, equity, disposals and acquisitions, as appropriate.
- Become the keeper of KPI reporting.