Hiring a part-time FD when scaling up will put the company owner’s mind at ease, as he/she can rest assured that a professional and experienced individual will be offering their expertise to ensure that the company’s growth leads to success, and that any problems are solved, and mistakes are avoided as they appear. The Chairman of the FD Centre, Colin Mills, writes: “The reality is that there is great value in having someone from the next level if you’re aspiring to get there.”
FDs’ services do not stop at offering advice, instead they will also help you implement improved practices and processes. Appointing an FD will ensure that your company stays focused during the transition period, so that you do not get lost in the day-to-day operations of your business. Some of their services might include: business planning and budgeting, capital structuring, risk management, auditing and reporting, tax preparation, investor communication, research and development, and working capital management.
An interim FD will provide your company with invaluable insight and guidance, and they offer a brand-new perspective which might be just what your company needs for better growth. Companies that refuse to hire an FD may lose out on growth opportunities and increased profits.
When appointing an FD, you can expect:
The role that an interim FD will play in your company is dependent on certain factors like the size of your company, the industry you work in, the expectations you have, your company’s goals, and your corporate strategy. Regardless of these factors, however, any professional FD will immediately start working on your company’s finances – both operations and strategies – to ensure that all processes are compliant and profitable.
- If you are the CEO of the company, a part-time FD will become your strategic partner in all financial processes. He/she will provide you with insights on developing improved strategies to increase your company’s profitability and cashflow.
- Do not expect that your FD will approve all your decisions – they are there to be supportive, but also to help you make important decisions that will affect your company’s future. Therefore, count on your FD to make informed decisions on their own.
- An FD might challenge certain strategies, which is beneficial for your company as it will force you to reassess and improve certain issues in your business.
- When your profits no longer match your business strategies, your FD will be the first person to bring your attention to it. This can encourage your business to change certain strategies to ensure that your ROI assumptions and actual numbers match.
- A capable FD will help to identify opportunities for growth, increase effectiveness, and manage risks and capital structure.
- With their knowledge and experience, they can liaise with financial institutions, investors, and auditors on behalf of your company.
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