How often are Managing Directors working late at night trying to prepare financial information, when they should be concentrating on using their skills to develop the business?
Many expanding SME companies can not afford the cost of having a full time Financial Director! But they often need financial support on a temporary or part time basis in order to develop and grow their businesses. Their auditors / accountants are often unable to provide this type of service and if they do it is likely to be charged out at Partner rates. The growing SME needs someone who can bring in financial expertise, be independent of the their auditors / accountants, and most importantly someone who can be trusted and part of their management team.
Is this a cost effective service?
Having a part time finance director is cost effective. The cost is normally on a daily charge basis, and this will be significantly lower than the equivalent charge from a firm of auditors / accountants. Compared to a full time role the daily cost is likely to be higher, but the work will be focused on adding value and not so much involved in the daily administration.
Finding the right person and agreeing the scope of the role are perhaps the most difficult challenges for SME’s looking for help. After all, most people have never recruited a senior Accountant before! Their auditors / accountants will often be reluctant to recommend a third party. Recruitment agencies will not have many people on their books and are often discouraged by the part time nature of the work as it reduces their commission without reducing the effort required to find a suitable candidate. If they advertise themselves, there are many problems caused by the selection process.
The benefit of establishing a longer term arrangement is that over time the expert finance resource builds up a vast working knowledge of the business and becomes a very valuable sounding board for important decisions and it’s in this capacity that most value is added going forward. As the work is confidentially peer reviewed that expertise is shared within team so that other skills and resources can be used to provide support to the growing business, for example if it is looking to bring in additional funding.
If you are interested in having a part-time FD for your business then contact Martin Samuel email@example.com or look at our website https://www.helpfulbeancounter.co.uk/virtual-finance-director-to-smes/