Financial Directors vs. Accountants – what is the difference?
You could easily say the work of an accountant and a financial director goes hand and hand, as both can help your business to put your finances in order, manage financial risks and ensure that you invest wisely.
Yet if we had to make a distinction between the two then I would have to say that financial directors can offer your business more specialist accounting advice.
This is not to say that an accountant cannot offer you detailed knowledge of your industry. But the bonus of hiring a part-time financial director is that you can receive access to the following services, but only pay for them as and when you need them:
- Manage financial risks and investments
- Assess long term financial planning
- Keep financial records
- Financial reports
Your accountant on the other hand is accessible all year round, for an annual or monthly fee and can offer you a more diverse range of accountancy advice, such as:
- How to handle acquisitions
- Tax planning
- Corporate finance
- Saving a business from financial difficulty
- Raising finance
See what we mean?
Both accountants and financial directors can offer you the financial/taxation support you need to develop your business and ensure your long term profitability.
The question really is: how often do you want access to this advice and how much are you willing to pay?
Like we mentioned before, you can hire a financial director on a part-time basis and pay for their work by the hour.
So if for instance your business is small or you are looking for a more affordable way to handle your accounts then you may find a financial director is more useful.
However, if you want access to accountancy advice around the clock and without limit, then you may find that a chartered accountant is more suitable.
Whichever you choose to use, in the current climate it is important to ensure your finances are order. With their support you can ensure all your taxes and audits are done on time.