Insights

To grow as a company means consistently seeking innovative ways to optimise operations and financial health. Hiring a part-time finance director can be a game-changer, especially for small and medium-sized enterprises (SMEs) struggling to stay afloat.

A part-time finance director (FD) provides the knowledge and strategic insight of a full-time FD but on a part-time, flexible basis. For many companies, this is a good solution to providing high-level financial advice without any of the employee benefits of a full-time position. Part-time FDs work alongside business owners and management teams providing ‘the outside financial eyes’ to ensure financial oversight and support companies in achieving sustainable profitability. Let’s dive into how a part-time finance director can save your business.

Financial Expertise at a Fraction of the Cost

Perhaps the biggest advantage growing businesses see from having a part-time FD is cost savings. Full-time finance directors are expensive, and most smaller businesses can’t afford one on a permanent basis. A part-time FD brings you the same level of input at a much lower cost because you only pay for the time they actually spend.

Strategic Financial Planning

A part-time finance director needs to provide a strategic financial steer to your business and a good FD will provide the key to your strategic financial leadership. In short, this means sitting down with you and working through what your business wants to achieve over the next year or maybe over five years in some cases. That will result in the creation of a financial plan that the business wishes to follow to achieve its longer-term goals. This in turn means you need to budget, forecast and create key performance indicators (KPIs) that will allow you to measure and monitor yourself along the way.

Improved Cash Flow Management

Cash flow is the lifeblood of any business. If you don’t manage your cash flow well, financial distress can snowball. By managing cash flow in a professional way, a part-time finance director can help to make sure there’s enough cash in the bank for your business to operate without difficulty. They will monitor cash coming in and going out of the business, optimise working capital, and ensure that your business can meet its obligations without straining the business’s finances.

Enhanced Financial Reporting and Compliance

A business has to provides accurate and compliant financial reporting to survive and grow. By providing accurate and transparent financial information, investors, creditors and other relevant parties will be able to trust your financial position, making them confident in making further commitments to your business. Having a part-time finance director in your team will ensure your financial statements are accurate, timely and comply with relevant standards and regulations.

Risk Management and Mitigation

All businesses are exposed to risk – from market volatility to business cycle risk and via the inefficiencies of the organisation. Executing regular risk assessments and establishing strong internal controls to reduce risk is a fundamental part of a part-time finance director’s offering. A good part-time FD will take control of a small business by putting in place the correct procedures and protocols to run a profitable business efficiently, even when unforeseen risks threaten the health of your business.

Driving Business Growth

A part-time finance director can make a significant contribution to a company’s growth prospects. He can advise you on new projects and growth initiatives, helping with raising finance to get your company to the next level. An FD can be an excellent addition in terms of steering your business growth. Does your business need to expand into new markets, new products or technology start-ups? Then, a part-time finance director will assist in putting together a framework of simple yet robust financial checks and analysis, including the pricing, structuring and financing of your growth initiative.

Flexibility and Scalability

The part-time nature of a part-time FD means that they are ideal for businesses that are at different stages of growth. Swinging between intensive financial support at the start and scaling back as they establish themselves or a growing business requiring more hours or engagement level from their FD as their financial needs change. This works because you have their time and expertise there when you need it, but not too much at a time.

Making the Right Choice

The addition of a part-time finance director to your business can be a game-changer. If you are struggling to turn your business from red to black, then a part-time FD could well be your saviour.

Don’t allow your financial problems to become too big to handle. Consider what having a part-time finance director might do for your business today. Start down the pathway to a healthier, more prosperous future with tomorrow well in hand.

To speak to a professional on how a part-time finance director could really help your business, get in touch with us today!