Running a business in today’s economy can be challenging and complex, and the financial decisions you make can mean the difference between success – and a company that grows, thrives, and evolves – and the very real risk of failure.
Knowing which finance role to choose for your business is essential, and can have a major impact on the way in which your organisation is run and managed.
So, should your outsourced finance director be a Head of Finance or a Finance Manager? We took a closer look at these roles and put together all you need to know to make the right choice for your business.
What Is A Head of Finance?
As the name suggests, a Head of Finance is a senior-level role, and the individual in this position is responsible for overseeing all aspects of financial management within an organisation. This includes budgeting, forecasting, cash flow management, financial analysis, and reporting, as well as developing and implementing strategies to ensure the company’s long-term financial health.
The Head of Finance will also be responsible for managing the finance team and ensuring all financial processes are running smoothly.
Some of the pros of having a Head of Finance as part of your team include:
- Access To Strategic Help and Guidance
One of the main advantages of opting for a Head of Finance is their ability to provide strategic guidance and help. As senior-level experts, they can offer insight and advice on how best to manage the company’s finances, as well as provide support in developing long-term financial strategies.
- Access To A Great Deal of Experience
The Head of Finance will also bring a great deal of experience to the table. They are likely to have worked in similar roles before, and so will be able to draw on their knowledge and expertise when it comes to making financial decisions.
- Good Network of Connections
Finally, the Head of Finance will also probably have a good network of contacts in the finance industry. This can be invaluable when it comes to finding potential investors or partners, as well as providing access to new ideas and opportunities.
What Is A Finance Manager?
A Finance Manager, on the other hand, is more of a mid-level role, and the individual in this position is responsible for managing the day-to-day financial operations of an organisation.
This includes overseeing accounts payable and receivable, preparing financial statements, budgeting, and forecasting, as well as developing strategies to improve profitability and cash flow. The Finance Manager will also be responsible for managing the finance team and ensuring that all financial processes are running smoothly.
Some of the benefits of hiring a Finance Manager include:
- Cost-Effective
Hiring a Finance Manager is often more cost-effective than hiring a Head of Finance. This is because the role does not require as much experience or expertise, and so can be filled by someone with less experience and at a lower salary.
- More Flexible
A Finance Manager is also more flexible than a Head of Finance. As they are not in a senior-level role, they can be more easily moved around within the organization and can take on different tasks as needed.
- More Accessible
Finally, a Finance Manager is also more accessible than a Head of Finance. As they are not in a senior-level role, they are more likely to be available to answer questions or provide advice when needed.
Which Is Best For My Business?
The best role for your business will depend on the size of your organisation, as well as the complexity of its financial operations.
Some key questions to ask yourself when making your choice include:
- What level of experience and expertise do I need in the role?
- How much time and resources can I commit to the role?
- Do I need someone who can provide strategic guidance and advice?
- Do I need someone who can manage a team of finance professionals?
- Do I need someone who has a good network of contacts in the finance industry?
Answering these questions will help you to determine which role is best for your business, and can make it easier to find the right candidate.
Final Thoughts
When it comes to choosing between a Head of Finance and a Finance Manager, it is important to consider the size and complexity of your organisation’s financial operations.
A Head of Finance may be best for larger organisations with more complex financial operations, while a Finance Manager may be sufficient for smaller businesses with simpler financial operations.
Ultimately, it is important to assess your business’s needs and choose the role that best fits those needs.