Having an accountant is essential. But, as you grow, the basic support offered by your accountancy firm may become inadequate. There’s another level of financial advice and management, which should come into play eventually for your organisation. Appointing a part-time Finance Director is the next logical step. You may think that you’re some distance from having one, but trust us: the role can utterly transform what you’re able to accomplish, and you might be closer than you think… So is the time ripe for a Finance Director? Here are the questions you may want to ask of your business.
Do You Need to Improve Profit Margins?
The same business relationships you relied on years ago might be hampering your earning model today. Perhaps you’ve expanded fairly significantly, yet are finding that client or supplier costs are rising disproportionately. Upon closer inspection of your accounts, you may find that investments could have been hindered by a lack of knowledge. So what’s changed? What should you be aiming for now, in the heat of a larger, more expensive organisation where the goals have been redrawn?
An outsourced Financial Director can offer some much-needed clarity, and compile a game plan for what should happen instead. They can highlight renegotiations in line with wider sector-specific trends. Macroeconomic influences (such as political changes, currency laws, and national transitions like Brexit) can make their mark too, just as drastically. Basic accountants probably can’t help in this regard, but an FD can really embed themselves into your organisation to have the maximum impact.
Is Your Financial Management Stretched for Time?
Even basic accounting can take hours out of your day. Whilst you may love to retain control of your company, there’s a risk that you’ll never let go of anything – or have enough time to do everything effectively. An FD can take on the tasks that are filling up your schedule, letting you focus on the big, strategic decisions instead of the small but necessary details.
From bookkeeping and spreadsheets to invoice reminders, there’s so much to think about – which is why it’s better left to a professional with decades of experience, who will capably streamline it all. A part-time FD can oversee the small and large elements of your financial health. Additionally, they’ll deliver a report on overheads, outgoings, payroll costs… jobs you’re too busy to arrange yourself, but ones that offer analytics that could be crucial to the future success of your business.
Are You Unsure How to Scale Up?
An outsourced Financial Director can beat a path to rapid growth. Some companies stall the scaling process because they don’t have a set route forward. Yet an FD can resolve any uncertainty, especially if they have a history of leading businesses like yours. They can become aware of what you do well, how margins could be increased, and where new business may arise.
Any ambitious business will benefit from a Financial Director. Their influence can be as wide-reaching or focused as you prefer. And, if hired on a part-time basis, they won’t drill a large hole into your savings either. All it takes to get started is a conversation.