What Role Does A Virtual Financial Director Play?

Virtual FD services are perfect for start-up businesses, small enterprises or corporations that require expert financial strategic support but do not have the ‘need’ or ‘cash’ to recruit a full time Finance Director.

An Financial Director (FD) will support businesses direct their strategic performance by identifying key factors that should be implemented, to help management maintain financial health, make informed decisions, reduce risk, analyse costs and improve profitability including:

  • Developing structured forecasts to identify short- and long-term objectives.
  • Support business owners to ensure that key stakeholders are invested in budgets and have their own objectives that align with the overall business objectives.
  • Recommend KPIs that will demonstrate how effectively a business is meeting their objectives and support in measuring those KPI’s.
  • Analyse and review cash flow regularly, identifying solutions that will ensure a business can continuously meet their costs.
  • Support with implementing adequate systems and reporting to analyse data. Conduct regular reviews of financial performance, identifying opportunities and risks to continuously ensure a business maintains their strategic position.
  • Identify process improvement strategies to simplify and standardise operational procedures. Keep businesses informed with economic changes that may impact their financial performance.
virtual finance director

What value can a 'Virtual Finance Director' bring?

Strategic Planning & Financial Analysis

When a business starts initial trading, the requirements for a business plan and cash forecast will be essential to ensure their vision of success is realistic and to mitigate the risk of failure. As a business grows, their processes become increasingly complex — this includes tackling a growing database of customers and suppliers, the need to employ staff, requirements for VAT registration, transactional volume increase, and growing operational demands. These can all be onerous and time-consuming for business owners to manage and often they will not have the support they need to manage costs and resources effectively, whilst leading successful operations. Often growing enterprises will have a mechanism for managing their day-to-day financial transactions, including the processing of sales invoices and recording purchase costs — but what happens to the information once it is processed into the system? How often is it reviewed against a plan, and what value does it bring to the day to day decision making? Can your cash receipts cover your expenses? Do you have favourable credit terms? Who are your most profitable customers? What are the real margins of your products/services after absorbing fixed costs? This is where the true value of a Virtual FD will be, our expertise and knowledge of using past information, will help drive forward-thinking strategic planning, analyse ‘What is working’ or ‘What could change’ and support businesses to have comfort their financial position is strong as they grow.

Legislation & Compliance
A Virtual FD will also ensure businesses are kept up to date on their legal requirements. For example, depending on the outcome of Brexit, there could be a significant change to the reporting requirements for a business that trade within Europe, including additional import/export trading rules, changes to VAT reporting and potential investment in technology to align to HMRC digital reporting. These may not only increase resources but also impact bottom-line performance which will need to be identified and actioned to ensure minimal impact to day-to-day trading.

Conclusion

At Wilkinson Accounting Solutions Ltd we recognise the knowledge and skills an FD can bring to any organisation is much more than finance, we are true business partners providing strategic support and specialise in translating our expertise into terminology, that will help management define and measure their overall business objectives.

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