The importance of an FD and managing cash flow
This pandemic has highlighted the importance of cash flow. Thousands of businesses are now at risk of collapsing, and the government has taken considerable steps to help as many as they can… but it’s not going to be enough for some; devastating for those involved.
The severe lockdowns we’ve experienced have been extraordinary. The number of firms with less than three months’ cash reserves – a serious red flag – has risen sharply to one in three; despite the government support. So, bearing in mind Boris Johnson is making it clear that future pandemic upheaval is a matter of when, not if, what can businesses do to help protect themselves?
Working with a virtual finance director is one solution we’d put to you. Every business needs a strategic leader at the helm who is vehemently passionate about their cause; and that’s you, the owner. But every business also needs a pragmatic eye overseeing the finances and cashflow. Whilst you’re throwing your energy into growing your business, a virtual FD is covering the bean-counting drudge; drudge that includes protecting the business against the might of a pandemic in the future.
How a Virtual Finance Director can help
Strategic financial planning and reporting take time; but both are important. With someone focusing specifically on that area of your business, you have a clear picture of the state of your finances… including the risks you face. And that’s something that will give your bank manager a better night’s sleep too.
When you work with a virtual FD – an expense that doesn’t involve recruiting a permanent head on a full time salary – you benefit from:
- Your time being freed up
- Having expertise on tap
- Peace of mind the details are covered
- Accurate budgeting and forecasting
- The ability to make swift, informed decisions
- And… knowledge that red flags will wave early
That last one is particularly important… because it means someone else is doing the worrying for you, so you can get on with ensuring your business is set up to thrive.
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