Do you have charm, brains and common sense?
That’s the question asked by the very entertaining Paul Clarke at the recent Quoted Companies Alliance conference that looked at the role of the finance director.
Clarke was in a jovial mood, no doubt aided by the fact he was retiring from Fuller, Smith & Turner the next day after 16 years as finance director. Fuller’s is on the main market and has a market cap of around £300m. His experience meant he was well-placed to give advice to the FD audience about how to be a super finance guru.
Among Clarke’s pearls of wisdom were: never forget cash is king (especially today), remember you audience (ie don’t use accounting jargon in front of, say, sales directors who can be “pretty hopeless”), chat to banks as they can be allies, manage your working capital as it's important, and concentrate on keeping everything simple.
Clarke also stressed the importance of observation. He says he never stuck to his office choosing instead to walk around the company and the finance team, often opening drawers to find cheques not banked or invoices not paid.
And, perhaps particularly pertinent given we’re in the throes of a credit crunch, he said you must never, ever disappoint the City. “You’re probably allowed one profit warning,” he said, advising to get it in early and get it big enough.
Paul Clarke…
…on supermarkets: They’re “bastards”. Send invoices electronically to ensure prompt payment.
…on road shows: Have three or four rehearsals. “Don’t do it the night before.”
…on management reporting: It’s the most important part of your role.
…on IT: “Get the best you can afford.”
…on free advice: Make contacts with people in your industry. Clarke used to meet with others in brewing where they’d discuss common problems such as accounting standards, VAT standards and auditors.
…on bosses: Play to their strengths. If he’s an entrepreneur “respect his genius”.
…on year-end accounts: Check the resultant press release to make sure the numbers add up. Get a good proof-reader to go through the annual report to check there are no mistakes and let the CEO pick the pictures.
Picture source