Where to start? The FT top 250 companies all employ a Finance Director (FD). This is a dedicated finance professional who looks after the finance function of the business.
The Finance Director is usually a Qualified Accountant. Not a bookkeeper who keeps the records and not the firm of Chartered Accountants who do the audit, if required, and give tax advice.
The Finance Director manages all the financial aspects of the business. Here are some questions you should ask yourself:
- Do you understand the financial statements that your bookkeeper or accountant produce for you?
- Do you understand how to write a business plan?
- Do you understand the difference between Profit and Cashflow?
- Do you know the right questions to ask new Investors, Banks, HMRC, Companies House?
- Do you know how to deal with Investors?
- What method are you using to calculate your Prices?
- Do you know you annual and monthly break-even points?
- Do you know how to get information from your finance system?
- Have you set Key Performance Indicators specific to your business?
- Do you have a strategy for survival and growth?
- Have you thought about your exit strategy, for you and the effects on the business?
If you say no to any of the above questions then you may need to talk to a Finance Director who can help you understand what you need.
Most small businesses have a need for a Finance Director but cannot afford one full time. This is where a Part Time Finance Director can be employed to help you with the expertise you need when you need it at an affordable price.
If you want to know more give Edward Tudor a call on 01483 453755
Written by Edward Tudor