Advantages of a part-time Finance Director for your Company

Financial Direction is just a phone call away
10th September 2019

Advantages of a part-time Finance Director for your Company

 

In large companies the Finance Director (“FD”) or Chief Financial Officer (“CFO”) plays a key role in strategic planning and operational performance to ensure that the company’s business and financial goals are properly set and are achieved.  So important is the finance function that often the FD or CFO becomes a main supporting role to the managing director of large companies, and typically such companies generate impressive financial performance over long periods of time.

However, FDs or CFOs of this calibre come at a price which often cannot be afforded by SMEs.  In many cases the owner or managing director of such enterprises carry out all of the strategic and financial roles themselves – and are limited to any financial support provided by the book-keeper or the accountant.  There is an affordable alternative which can provide all of the skills which the managing director of an SME needs, but either does not possess or simply cannot perform in the number of hours available in a 24-hour day!

A part-time Finance Director is the solution to SMEs.  Very skilled and experienced financial people are now available who are prepared to work by the day – and sometimes even in smaller multiples of time.  They bring with them all the skills to which larger companies have regular access – but at an affordable price, because they only pay for this highly-skilled time on an as-needed basis.

Using the services of a part-time Finance Director also has the advantage that people who provide such services are accustomed to being called in to deal with crisis situations.  They are used to helping companies to re-gain control of their cash flow, and to identifying the cause of the problems in the first place – whether it is pricing policy, supplier relationships, poor credit control or any of many other possible causes.  As a result, a part-time Finance Director is quickly able to get on top of issues which may be giving the managing director sleepless nights and – where necessary – identify what needs to be done to turn around the company’s performance, therefore adding value to the bottom line.

It’s also worth noting that companies which have a qualified Finance Director are often given higher credibility by other organisations, such as banks, insurance companies and other financial insitutions.

Now is the time to consider bringing on board a part time financial director as you plan for next year – making 2020 more focus and organised, especially in the upcoming uncertain trading times.

If you would like to know more about the role of the Finance Director or would like our help, please contact Stuart Smith at Watersmiths on 07785 556 450.