If you are a start-up or small business owner, you might not have the budget to hire an in-house Finance Director and probably miss out on all the benefits they bring. Yet if you are launching a new start-up business or SME, you need this expertise to help you grow and stay profitable. This is where an outsourced finance director comes in, and in this blog post, we will outline how using this type of service can benefit your business.

What Is the Role of an Outsourced Finance Director?

An in-house FD is traditionally responsible for the business’s budgeting, finances, reporting and financial strategy. The role of an outsourced finance director is no different to that of an in-house one, and they will typically assist with the following:

  • Monthly management accounts & reports with essential KPIs tailored to the business
  • Cash-flow forecasts
  • Compliance checks and advice
  • Strategic advice

It is also essential that your finance director is not a “yes person” and can tackle complicated topics and stand up to the CEO and owners when needed.

How an Outsourced Finance Director Can Help Your Business

The Benefits of Financial Directors

A financial director is a conduit between your internal staff and any external accountants, auditors, business owners, and investors with timely information and an extra set of eyes over how the company is performing. This helps the business in many areas, including:

  • Improved decision-making: The benefits of strategic information from monthly management reports, cash-flows and profit forecasts can help make informed decisions to drive the business forward.
  • Expert Advice: Financial directors can offer insights and expert advice on all aspects of business finances from an objective perspective.
  • Keeps the business compliant: Remaining compliant whilst running a busy finance department can be very complex and time-consuming. Finance directors help take some of this burden.

In-House or Outsourced: Which Is Best?

There is no right or wrong answer when choosing between an in-house finance director or outsourcing to someone like us here at RJF Accounting. The decision depends on the individual business and how they are set up. There are pros and cons to each, but often it can come down to cost and expertise. Having a full-time member of staff as a finance director is not visible for all businesses, more so startups, so this is where outsourcing is a big plus. However, if you are a multi-national business with thousands of staff, in-house probably makes more sense for your business model.

Outsourcing your finance director role to RJF Accounting can give you a lot of benefits, including:

  • Access to Systems and Tools: We already have all the tools and software at our disposal, so there are no additional costs for these for your business.
  • Knowledge and Expertise: We have decades of combined experience in the roles, so we bring everything you need for the position and more!
  • Option to Scale: Is business growing quicker than expected? Or slow down and need more space? RJF scales with you when and when needed without all the faff of recruiting or downsizing your finance dept.

Financial Management is Essential for Your Business

No matter the size of your business, good financial foundations and management are critical and having the right team at your disposal that can have those difficult conversations and help guide your business to success. If you need assistance with anything accounting-related such as VAT, bookkeeping, financial planning, investor relations, management accounting or outsourcing your finance director role, get in touch with the team here at RJF Accounting! We help clients of all sizes but specialise in small businesses and start-ups and help them to navigate the choppy waters of financial management and accounting. Speak to the team on 0161 5040629 or drop us an email at hello@rjf.uk.com – we are open Monday to Friday, 9 am – 5 pm!