Tips on how to become a finance director

by Josh Biggs in Finance on 26th February 2020

Are you planning to start your own business? Yes!!! That’s a fantastic idea. Thousands of businesses are taking birth every day. If you are dreaming of joining them, it’s easier than ever.

Start with a bang!!!

At the initial step, do proper research, create a business plan, plan your finances, register your company name, set-up your business location, build a team, develop quality product or services and promote them on different platforms. But, business is not a  “One-Man Show”. Therefore you need to have a group of directors to run a successful business. The board of directors are responsible for governance, strategic plans and accountability. While choosing a board of director make sure one of the directors is resident locally. According to legislation, a business should have at least one resident managing director to meet the requirement. Also, having a financial director is as important as the resident managing director. The financial director’s objective is to minimize the cost and maximize the profit.

Financial director is responsible for the financial health of a business. They manage business cash flow, create financial reports, develop strategies, direct investments and more. Also, the financial director set short-term and long-term financial goals to run a successful business.

Become a qualified accountant

It’s no secret financial directors should be pros at numerical and budgeting. Having an official accounting qualification is important for performing financial modelling and other financial activities.

A well-qualified accountant is responsible for developing business skills such as critical thinking, analysis, time management, decision making and more. These are important for every successful financial director. Also, these skills will help to improve time and budget management. Working under tight deadlines and pressure will give you an understanding of legal compliance requirements. On the other hand, the role requires outstanding time management skills, which accountant certification can help grow.

Bridge the gaps between teams

Do you have a gap between the finance team and other departments within the company? Yes!!! Then you’re in trouble. The disconnection between the team can be a problem for any organization.

Information is king for every business. Because information gives the team members the ability to make proper decisions while developing a product or promoting on different platforms. Conducting regular meetings, sharing views and ideas with each other is better to run a powerful business. Finance director plays a key role to bridge the gap between the team. Reaching the employees and collaboration is important for every finance director. Also, they need to analyze and understand the pain points of every department in order to make things sorted.

Use and understand ERP software

Say big thanks to innovative technology. Without a doubt, technology has changed people’s lives. With modern technology, businesses are building a lasting relationship with customers and improving brand loyalty. Let’s consider ERP (Enterprise Resource Planning) software, ERP software is a popular enterprise tool specially designed to manage and automate backend operations – technology, products, services and HR operations.

ERP software helps to connect everything together. It integrates all business facets under one roof such as product planning, designing, developing, sales, promotion and more in an individual database and application. Using ERP software, the financial director can know about the number of purchases, invoices and budget in a single glance.

Every operation and process will be stored in ERP software. Therefore the team members can get any information at a single click. Also, the finance director will have a clear idea about the number of products, purchased products, replaced products and more. This information is important to improve the efficiency of an organization.

Enhance your skills

As a finance director, you have no idea when a particular skill will come handy. Therefore, you need to keep your skills constantly polished. In an organization, a finance director needs to communicate with different teams from multiple backgrounds. Teams can be project team, trouble-shooting team, HR team, accounting team and more. In order to bring different team expectations together and solve the conflict, you need to spend time and talk with every member of a team.

A finance director should have good communication, listing and analytics skills. You are not just playing with numbers, you should put a special effort to be social in order to build stronger teams. Joining professional groups is the best way to know and meet other teams.

Gain knowledge from peers

Peer-to-peer learning helps to gain knowledge. Peer learning is the strategic way of learning new things, sharing ideas and experience between participants.

The amazing fact is there are thousands of ways to learn and gain knowledge from peers. Finance director can take part in FD events, co-mentoring schemes, etc. It can be a powerful approach to find out the strengths and weaknesses of an individual. When you share knowledge with the team, they will share their knowledge with you accordingly. Hence, setting a peer program will get a chance to develop skills and improve confidence.

Keep stakeholders in the loop

When you’re managing a product, it is important to inform stakeholders about the on-going process, implemented strategies and changes. Keeping every stakeholder informed is the best way to run a successful project. There are different software used to stay connected with stakeholders. These software helps to provide information about the current status of the project, in-detailed reporting, schedule meetings, etc. Analysing and understanding your stakeholders’ priorities is the best way to build an effective product.

This way you will have better access to maximum funding. Also, keeping the stakeholders in the loop will have a higher impact.

Get ready to change

As discussed earlier, strategic roles such as finance director are much more about in-depth analysis than playing with just numbers. The role of finance directors can change according to business requirements. The ultimate goal of the finance director is to develop and promote the product within a low budget. When developing a team working on building a product, help them with innovative ideas. Give suggestions to the marketing team and create the best marketing plan to drive maximum results. As the business is transforming with modern technology, the finance director should be ready for any role. Though the accounting experience is vital, the analysis is as crucial as ever.

In a nutshell,

Finance director plays a major role in every business. They should have great analytical skills. It helps to manage routine cash, budget management, complex transactions and investments. Are you a finance director? Looking for better ways to improve your skills? Yes!!! Follow the above tips and run a successful business.

Categories: Finance