Financial Coaching for Directors
True or false: if your company Board has a qualified accountant as financial director, the other members of the Board have less responsibility for financial matters within the organisation?
FALSE!! All members of the Board have the same responsibility for financial matters. Directors need to determine financial strategy, understand the financial health and performance of the company, how it is being financed and the implications of this and what the future may hold financially. All decisions made by the Board ultimately have a financial impact on the business. Directors have a particular duty to ensure the company is solvent.
All directors are responsible for ensuring proper accounting records are kept, that the financial reports are reliable, that accounting concepts are observed, that a sound system of internal control is maintained and that all statutory accounts and tax returns are submitted to the relevant authorities and regulatory bodies on time.
The financial information provided by a company is used in so many ways. Uses of financial data include setting strategic goals, agreeing budgets and forecasts, determining risk management, monitoring operational performance, reviewing progress towards long-term targets, recommending dividends, deciding whether a company is solvent and many more.
“But I’m not an expert in finance” I hear you cry! That may be so, however, it simply is not possible to bury your head in the sand over such an important matter and one that, at its most serious level, can even lead to legal implications, e.g. for financial misconduct or wrongful or fraudulent trading. All directors must fully understand the financial health and position of their company at all times.
There are people that can help you understand the company’s finances: the finance director, the financial controller or manager or perhaps, if your company is large enough, the chair of the audit committee. A director has the right and duty to know what’s going on and therefore the right to ask questions.
I do appreciate that many finance directors, financial controllers, etc., are very busy people and it may be a challenge to obtain some quality time with them to run through the company’s finances.
This is where we can help you at Ripley Training! As a fully qualified FCCA accountant and an experienced commercial finance director in SME environments, I provide bespoke financial training and coaching on a 1-2-1 basis to ensure you can both understand and interpret the financials and ask the right questions in board and senior management meetings. All accounting and finance jargon will be clearly explained in plain English. Ultimately, this will result in you contributing more meaningfully to the strategy and performance of your company thus ensuring you can fulfill your leadership responsibilities as well as actively developing yourself personally and professionally.
What are you waiting for?! Email us on info@ripleytraining.co.uk or call us on 01423 861122 for further information and I’ll be delighted to help.
I look forward to working with you to improve your financial skills very soon!
Author: Mike Smith
