In this blog, we discuss all about how hiring a Finance Director can impact your bottom line.
Well, first and foremost, why do you need a Finance Director?What Is The Role Of A Finance Director?
Well, the truth is – It’s hard work running a business and then all the paperwork and finance management. You can’t possibly know it all and do it all whilst running a business.
As a business owner/manager you’re constantly thinking about all aspects of your business. There are always questions that need answering, decisions that need making and sometimes you wish you could just get on with running your business and have someone else take care of the accounts and the finances. The role of a finance director is to advise on finance management, strategies, budgets, planning, accounting and all the paperwork that goes into keeping your business running smoothly. A good Finance Director can do that and much more.Why Hire A Part-Time Finance Director?
- Time Management: Free yourself from dealing with the accounts and use that time to create more value using your skills and experience in other areas of the business. Let the FD take care of the finances.
- Business Strategy: Make the figures work for you – improve your business performance and profits with a finance director at hand. A good finance director can help with regular accounts, budget, planning & analysis – budget preparation then monthly accounts vs this budget, KPI’s (if you want) and analysis so you get real time performance of the business and more accurate projections.
- Detailed Analysis: An experienced FD will know how to analyse your figures, will spot trends, identify anomalies and be able to use this information to change your business for the better. Detailed analysis can help identify cost savings or highlight areas of your business that are less profitable and how to improve this. Using the analysis you would get a strategy partner, advising and assisting you to get the business to where you want to be in the future. A Finance Director would be a sounding board as and when you need.
- Cash Flow Management: Finance Directors are well versed in dealing with cash flow issues with banks, customers and suppliers. They know the tricks that customers try to use to slow down payment and how to manage payments to suppliers. FDs are comfortable having those difficult conversations and it can often help that it’s the FD rather than the owner or MD of the business dealing with issues.
- Streamlining Processes: When you hire a finance director, you get insights to streamline and plan your business. Your business will be more proactive than reactive within the industry. An FD will ensure you are getting the most from your accountant and investment in the finance management.
And of course, when your business is growing there are many decisions to make:
- How much should you charge for a product or service?
- Will this new customer be profitable?
- What extra resources will you need to support a new venture or product? New vans, more staff, bigger premises?
- How can you finance the growth?
An FD can help with those questions and more. Sometimes you might just like to bounce ideas off an experienced knowledgeable person.
At Prosper Bailey Accountants, we do all of the above and more. We design bespoke packages for our small business clients tailored to their needs. Our experience Finance Directors can be hired on part time-basis and the role can grow with the needs of your business (for example; if you need at the beginning for 1/2 a day a month and then increase as the business becomes more successful and so on).