Welcome to Accountancy Capital, the specialist finance and accountancy recruitment business recruiting qualified finance professionals across the UK.In this episode, we are looking at Head of Finance recruitment and why getting this appointment right can make a major difference to a growing business.The Head of Finance is often the senior finance leader responsible for running the whole finance function. But the title can mean very different things depending on the size, ownership and complexity of the business.For some companies, Head of Finance is essentially a senior Financial Controller. For others, it is the person reporting directly to the Managing Director or CEO, responsible for the entire finance function, cash, budgets, forecasts, the bank, auditors and the finance team.And sometimes a business thinks it needs a Head of Finance when it actually needs a Finance Director.That distinction is extremely important.Accountancy Capital specialises in helping businesses define the role correctly before starting the search.You can find out more about the service here:https://www.accountancycapital.co.uk/head-of-finance-recruitment/WHAT DOES A HEAD OF FINANCE DO?A Head of Finance will normally take responsibility for the finance function as a whole.That can include month-end and year-end accounts, management reporting, cash management, banking relationships, budgets, forecasts, audit and the management of the finance team.But the role is about more than producing accurate accounts.A good Head of Finance should provide the Managing Director or CEO with financial information that can actually be used to make decisions.They need to understand what is happening in the business, where cash is going, whether margins are changing, whether forecasts are realistic and where financial risks are emerging.They also need to be able to explain those issues to people who may not have a finance background.That combination of technical finance, leadership and commercial judgement is what separates a genuine Head of Finance from someone who simply has the title.HEAD OF FINANCE OR FINANCIAL CONTROLLER?One of the most important questions before beginning a recruitment campaign is whether the business actually needs a Head of Finance or a Financial Controller.A Financial Controller is normally more focused on accounting, financial controls, month-end, year-end and audit.A Head of Finance usually has wider responsibility, taking ownership of the whole finance function while also dealing with budgets, forecasting, cash and the wider leadership team.There is significant overlap between the two positions.The important point is that the scope of the role should determine the recruitment strategy, rather than the title.If the main problem is inaccurate accounts, weak controls or a poorly managed month-end, a Financial Controller may be the right appointment.If the business needs one qualified finance leader to run the whole function, manage the team, control cash, produce forecasts and advise the MD, a Head of Finance is likely to be more appropriate.Accountancy Capital helps businesses make that distinction before starting the search.WHEN IS IT REALLY A FINANCE DIRECTOR?There is also a danger of going too far in the other direction.A business may advertise for a Head of Finance but expect the person to manage investors, arrange funding, lead acquisitions, oversee a sale or take responsibility for finance strategy at board level.Those are generally Finance Director responsibilities.If the role requires a statutory director, regular investor or lender discussions at strategic level, or responsibility for a fundraise, acquisition or sale, it may be a Finance Director a