What questions should I ask my Financial Controller?
As we covered in What is a Financial Controller, at Control Room Finance an FC is so much more than simply a company historian, and can deliver more than just your monthly reports. They can deliver everything from strategic forecasts to systems and operational transformation. But what can you ask them and what else can you deliver? Sometimes knowing just what they can help with, and the right questions to ask can go a long way to working collaboratively with your interim Financial Controller.
It’s difficult to specifically define but an FC should be able to answer the following for any SME in order to help them develop and thrive:
· How much cash will we have over the next 12 months based on X, Y, Z?
· Is there anything we should be doing to increase our market presence?
· Can we improve processes to increase efficiencies?
· Who are our competitors, and have we really defined our offering?
· Are there any tax breaks we can investigate such as R&D claims?
· What is the latest regulation about VAT and imports/exports?
· What are our product margins by category and customer type?
· How do I access financial data immediately without having to ask finance?
As with all scenarios there are certain questions most FCs will not be able to answer and an FD/CFO is the right choice, but it’s all circumstantial and choosing someone who has demonstrated results for your requirements is paramount before you decide to work with them. Some questions that your would tend to need an FD or CFO would be:
· What is the exit value of our business?
· We want to do a Joint Venture, how do we go about this?
· We want to sell our business can you help prepare us for sale?
· We need to raise £x million in investment, where do we go and how?
It is often situation and solution-based whether a business needs an FD/CFO as well as an FC but the important thing to consider is how far their assistance can go with either.
The most invaluable part of who to hire is in understanding whether the person you chose for your business listens, solves problems (not presents them) and really ‘gets’ you and your business. Passion and involvement are key, the more you engage with any finance professional the more they should respond and treat the business like it’s their own.
Often you need that voice who will disagree with you or tell you what you don’t want to hear – any level of individual can do that within the realms of their experience and authority, what isn’t required is an expensive finance professional who isn’t willing to stake their reputation on honesty and results.
At CRF our finance support for small businesses is a critical part of our offering and we have wide-ranging experience in providing the right support to different business types. The difference in job titles in the finance world is often fickle: Senior FC vs Junior FD is an example of where there is little to distinguish in practical terms, and our FCs can often support you in answering many of the questions you have as a company you wouldn’t expect an FC to be able to answer. We will spend time getting to know your needs so we can help you identify the questions you really have, and look for further questions to answer that could help your business.
The closing note here is choosing the right person, not the right job title. FCs, FDs and CFOs all come with different experience, matching that with your needs and aligning their personality to you and your business is vital.