Acting as outsourced Finance Director is a real privilege. I get an insight into so many different businesses, and a wide range of financial matters that clients need my help with
All in a day’s work for an outsourced Finance Director
I was in a client’s board meeting yesterday and the financial topics discussed were very varied. We began with the monthly management accounts and surprisingly good current financial performance. The discussions then moved on to finding new product development, and putting in place an overdraft to support the need for more working capital. We also discussed employee incentivisation and the preparation of the next year’s budget.
A Finance Director takes on responsibility for dealing with all financial issues in a business, relieving others from dealing with things that may not play to their strengths.
Why do businesses outsource this kind of advice and support?
Small businesses try and manage without anyone in this role. But that takes the rest of the management team away from the things which they’re good at, and for which they are needed.
Clients say they simply can’t justify the expense of a full-time FD. A well experienced professional who regularly deals with the diverse range of financial topics which most SMEs face daily is the key. But these people aren’t cheap to hire, and may not want to get their hands dirty with the day to day accounting work.
Why outsource the Finance Director role?
Businesses tend to outsource the FD role because it also solves a whole host of other problems. There’s no need to employ someone, and if you outsource wisely you can have a contingency plan. So in the event that your outsourced Finance Director is unwell, a good service provider will be able to provide someone to cover, meaning that there’s minimal disruption to you.
The other perk is that you ‘buy in’ the skills of more than just one person. That way you can cover a whole range of financial advice cost effectively. The single biggest reason for outsourcing is flexibility; you can turn the tap on or off as much as you need.
By outsourcing, it needn’t be expensive to hire a Finance Director
Outsourcing the role of the Finance Director can be so helpful to owner managed businesses. Buy the level of support you need, which can be flexible from month to month. Benefit from someone who deals with a range of businesses. They will have relevant experience to advise you on your own business issues.