Digital Finance Director was formed to provide growing firms with access to a finance director on flexible terms. To make this model work the first step is to ensure that the accounting systems, processes and people (the “finance platform”) are designed to meet the requirements of the business, are aligned with its future strategy and can support a flexible finance director arrangement.

A flexible finance director arrangement will only work with remote access in place (i.e. a cloud based system) and an extremely efficient accounting system. This is important, as the FD cannot afford to spend excessive time checking, producing and amending accounting reports and management information. This needs to be automated, utilising paperless accounting principles where possible. Digital FD will ensure that the finance platform is designed and implemented, where necessary, to meet these requirements.

Once the right accounting platform is in place, then a flexible FD arrangement can be formed. In practice this means partnering with the business to ensure strategic objectives are met. To meet these objectives, management information needs to be relied on, analysed and used to assist with decision making. The FD needs to ensure that the accounting function is meeting all of its statutory and regulatory requirements, the less glamorous but all the same essential part of the role. The FD is also critical in directly adding value to the business by helping with tax planning, fund raising, exit strategies, incentive programs and by on occasion acting as an auxiliary MD.

A flexible FD arrangement can take many forms, but is unlikely to require more than a day in the office each week supported by remote working.