In the past, non-executive financial directors (NEFDs) were often only hired by public companies and very large private companies. Today, a growing number of small and medium-sized businesses are realising the benefits of hiring NEFDs.
What is the role of an NEFD?
Once your business has decided to engage the services of a non-executive financial director, you need to establish what the exact role will be. By carrying out an audit of the financial strengths and weaknesses of the business, you will be able to find the right NEFD for the role.
For example, you may require a non-executive financial director which has an understanding of a new growth market. They will be able to assist with establishing a sound financial environment to execute new deals for growth.
What are the benefits of NEFDs?
One of the key benefits of engaging the services of a non-executive financial director is the fresh perspective they provide. A NEFD is not involved in the day-to-day running of the business, which means they can offer an external perspective on key financial discussions.
Their independent advice and expert knowledge can be used to overcome challenges, which an in-house finance team may struggle with. The services of a NEFD can provide invaluable insight and experience, which can be used to critique and improve the financial objectives, from an independent and unbiased manner.
It is clear that the growing interest in NEFD for SMEs is here to stay. An increasing number of businesses are using NEFDs to bolster their company and drive them forward towards expansion.
When is the best time to engage a non-executive financial director service?
There is no ideal time to hire a NEFD, although the decision should be based on the strategic growth plans of the business. For example, is the business planning on growing into new markets? Is the company increasing its number of employees? Are the executive directors unsure which financial decisions to make?
If your business is entering a period of change or is increasingly needing to seek the advice of external consultants, it may be time to bring a NEFD on board.
Our non-executive financial director service.
Here at Highwoods and Associates, we offer a non-executive financial director service, designed to improve your company’s financial performance and strategic position. We can manage your overall accounting function, or simply help you gain a deeper understanding of your finances.
Whether you require a financial representative in your board meetings or management of financial action points, our NEFD service can help. Our expert knowledge will instil a commercial mindset across your whole team while improving overall industry knowledge. We will ensure your team understand the financial implications of their roles, whether they work in sales, marketing or operations.
It is always our aim to work closely with you so that we can identify and prioritise potential areas for financial improvement. To find out more about our non-executive financial director service, please contact our experienced team today to discuss the available options.