Business Advisory

What does a Finance Director do?

Bright Beany 17 small By Max Polkey

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So what does a Finance Director (FD) actually do?

In most businesses the FD wears many hats, but they are primarily responsible for managing your company's financial operations and strategy. It is a highly demanding role overseeing Financial Control, Cash Management and Financial Planning & Analysis.

Here are some of the key responsibilities of an FD that you should be aware of:

Financial Control

  • 01

    Financial reporting; oversee financial statement preparation, both for internal management reporting and statutory reporting as well as liaising with external accountants and auditors.

  • 02

    Internal controls; develop and maintain an appropriate internal control framework to reduce the risk of fraud and error.

  • 03

    Tax compliance; manage tax planning, filing, and regulatory compliance.

Financial Control is the foundation on which a high performing finance function is built; without getting these key elements right, everything else will be less effective than it otherwise could be!

Cash Management

  • 01

    Monitor cash balances; make sure your customers are paying you on time and there is enough cash in the right place to pay your people and suppliers on time.

  • 02

    Debt and capital management; manage the capital structure of the company, optimising the cost of capital and maintaining financial flexibility.

  • 03

    Maintain banking relationships and oversee financial covenant compliance.

Managing cash efficiently is incredibly important for small businesses - We can help you plan accordingly with our Cash Forecasting Service.

Financial Planning and Analysis

  • 01

    Budgeting and forecasting; lead the annual budgeting process and develop rolling forecasts to help the company plan for the year ahead and monitor performance against this.

  • 02

    Profitability and cost analysis; understand, prepare and report on the profitability of the company at the appropriate level in order to inform key decisions to improve the performance of the business.

  • 03

    Business intelligence and financial modelling; develop and maintain financial dashboards, reports, and key performance indicators used for decision making.

Planning ahead and having the right tools to analyse performance are critical to succeeding.

Additional responsibilities and functions a Finance Director may perform

  • Mergers and acquisitions; evaluate and execute M&A transactions (due diligence, valuation, reporting, integration)

  • Investor relations; manage the transparent and accurate communication with shareholders and analysts

  • Human resources and payroll

  • Information technology; support the implementation and maintenance of efficient financial reporting and data security systems

  • Procurement; ensure cost-effective purchasing and management of key supplier relationships

As your business grows, you may find that you need the support of an FD. However, it might not be the right time or you may not have the budget to hire someone full time. At Bright Beany we offer Outsourced Finance Director support, and by working with us you will get access to a team with over 20+ years working as senior finance leaders across multiple industries.

We offer a personable service, with accessible advice and a bespoke solution that is right for your business.

We’re dedicated to saving your business time and money. 

Get in touch.

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Every business is unique, and no one-size-fits-all. From finance transformation to outsource Finance Director support, we care about helping businesses achieve their definition of success.

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