In a contracting business, each senior financial and commercial role carries unique responsibilities aligned with the company’s objectives of maintaining profitability, managing cash flow, and minimising financial risk. Understanding what each role does — and how they interconnect — is essential for business owners deciding how to structure their team.
Managing Director (MD)
The MD holds ultimate responsibility for the company’s financial performance. Key responsibilities include setting financial goals and strategy, overseeing financial performance through regular updates on profitability and cash flow, managing financial risk through systems and controls, communicating financial performance to stakeholders, and ensuring regulatory compliance.
Finance Director (FD)
The FD is the senior financial officer responsible for overseeing financial operations and guiding financial policy. Responsibilities include financial planning and budgeting, ensuring accurate and timely financial statements, treasury and cash flow management, establishing internal controls to prevent mismanagement, and providing strategic financial advice to the MD and board on capital investments and financing options.
Financial Accountant
The Financial Accountant maintains accurate financial records and manages reporting processes. Key responsibilities include preparing monthly, quarterly, and annual financial statements; ensuring compliance with accounting standards; managing accounts payable and receivable; performing reconciliations and financial analysis; and handling tax compliance including VAT submissions.
Management Accountant
The Management Accountant focuses on providing financial insights to guide internal decision-making. Responsibilities include preparing budgets and forecasts, tracking project costs and calculating profit margins, preparing regular management reports broken down by project or business unit, monitoring project expenses against budgets, and providing guidance on pricing strategies and contract negotiation.
Commercial Director
The Commercial Director holds a strategic role focused on managing revenue-generating activities, client relationships, and contract negotiation. Responsibilities include establishing revenue targets, monitoring profitability by project, negotiating client contracts and payment terms, assessing commercial risks on new projects, expanding the client base, and developing competitive pricing and bidding strategies.
Commercial Manager
The Commercial Manager works closely with the Commercial Director, focusing on day-to-day project and contract management. Responsibilities include monitoring project costs against budgets, preparing and issuing client invoices, following up on outstanding payments, handling contract documentation and variations, managing claims and contractual disputes, and contributing data to financial reports around project cost performance and profitability.
How the Roles Interconnect
The MD and FD oversee the company’s financial health from a strategic level, while the Financial Accountant and Management Accountant focus on record-keeping, cost control, and reporting. The Commercial Director and Commercial Manager handle client relationships and project-specific financial management, essential for driving revenue and achieving financial stability. In smaller contracting SMEs, several of these roles may be combined or partially outsourced — but the functions themselves must still be performed.
