Are both an accountant and a financial director essential for a small business?
Say we have a business, turnover of about £1m per year and net profits of around £300k. The total staff is about 30. The company has an accountant and also a financial director. I am slightly confused for the need for both of these positions. Considering the company is fairly small, why would it need both roles? Surely the accountant could also carry out the responsibilities of the financial director? It would be nice to discuss the possibility of why both of these roles may or may not be necessary. Thanks.
Corporations - 1 Answers
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Answer 1 :
Financial Director decides how the company spends its money - or at least advises the other directors. In a small company, the duties of a financial director would be shared between the other directors, or taken by the Managing Director. An accountant records where the money has gone - this is a specialised job but is often done by an 'outsider' as it does not have any bearing on the company's performance.
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