This is a common question – especially from experienced finance professionals stepping up. Over the years, the Headstar team has had many great finance people telling us that they already do the FD’s job, and so why can’t they have the FD role. One memorable conversation involved someone telling our Managing Director how they did the cash flow forecast, compiled all the management accounts information and managed the finance team, so what was the point of the FD. What they’d unwittingly just told us, was that they were carrying out the tasks of a classic financial controller.
The FD is a business leader first, finance specialist second
A Finance Director is, in many ways, a second Managing Director – but with a financial lens. But their remit goes far beyond finance. They shape strategy, influence operations, and take ownership for the long-term health of the business. Within a business, it’s rare you’ll find something that doesn’t have some kind of interaction or impact on finance.
As well as reporting the numbers they’re interpreting them, challenging assumptions, and guiding decisions across every department. From pricing models and investment plans to operational risks and customer contracts – FDs are deeply involved in the decisions that shape the direction of the business.
A seat at the boardroom table – and a duty to challenge
A FD is there to lead, but also to challenge. A key part of the role is to act as a counterbalance to the MD – providing clear, objective analysis. They report past performance to the wider board, but more importantly, they provide the commercial insight and foresight needed to navigate the future. Report to the wider board on both past performance, as well as performance indicators for the future. They’re there to spot and mitigate risk, ensure legal and statutory compliance and aligning financial plans to strategic goals.
Closer to customers than you might think
One often-overlooked part of the FD’s remit is their closeness to the customer.
Why? Because this is often where the greatest risks – and biggest opportunities – lie. Poor pricing, over-generous terms, unreliable supply chains, customer concentration – all of these sit at the intersection of finance and commercial.
A good FD will be deeply engaged with how customers behave, how the business makes money from them, and what could go wrong.
The modern FD is nothing like the stereotype
Gone are the days of a finance director being the bean counter in a back office. The modern FD is strategic, commercial, and visible across the business. They influence not just decisions, but culture.
They can and should be as important and involved across the business as the MD.
