18.12.2018

Could a Part Time Finance Director Boost Your Business

 Show Interest

Could a Part Time Finance Director Boost Your…

 Show Interest
When a business is growing one of the most essential requirements is to keep good control of the finances. Poor cashflow can kill a business very quickly and having someone who really understands the finances and how they can work can save a company from disaster.

The challenge is that when a company is in the early or mid stages of growth it generally can't afford a full time Finance Director (FD) or CFO, even when it's needed. A good FD or CFO is expensive because of the years of study, training and experience they have to undertake to achieve and maintain their qualification. They are also a scarce resource and the good ones can make a huge difference to a business.

So companies struggle through without anyone really looking at their financial strategy and underlying financial performance. They may bring in a bookkeeper or a firm of accountants to keep their books and put together some reports. However, more often than not, it's the CEO who has to handle anything to do with raising finance, figuring out commercial terms, dealing with investors, developing business plans and models and handling banks. And that's a big distraction for someone whose focus should be on building, marketing and developing the business and leading and motivating staff. And if they get it wrong, it could spell the end for the company or the CEO.

When a company is growing there's often no need for a full-time finance professional in the business and companies that do bring in a heavyweight CFO or FD can find that much of their time is spent on low value activities, such as bookkeeping and admin. Alternatively, they start to get involved in many other areas of the business or just spend a lot of time sitting around waiting for something to happen. This can be frustrating for them, as they're not fully using their skills, and it's an expensive luxury for the company that it can probably ill afford. And, with salaries for a good, experienced CFO or FD easily into the six figure range, and all the employment costs on top, it often doesn't make good business sense to take someone on full time.

More and more growing companies are recognising that using a part time Finance Director or CFO in their business provides a solution to these issues. There are a growing number of companies in the market providing finance professionals who work with companies anywhere from 1 day a month to 2 days a week as their CFO or FD. This provides a flexible solution to the needs of the company, allowing the CEO to focus on their stronger areas and ensuring that the finances of the company are being steered in the right direction. By using just a few days each month it ensures that the focus of the CFO/FD is on the right areas rather than getting involved in anything that comes up. And the good ones will tell you very clearly if they believe the work can be done by someone for a lower cost.

Another advantage of having someone who's also working with other businesses is that they can bring new insights into your company and are less likely to fall into the "we've tried that before" or "we don't do it that way" traps that hamper many companies.

A part time CFO or FD will agree a plan of action for the business and make sure that the fundamentals of strategy, business planning, cash flow forecasting, financial management and good commercial practices are applied. For the CEO, they have a great sounding board and business partner that they can turn to for advice, guidance or just to bounce ideas off. For many CEOs the value of a having a trusted advisor to hand hugely outweighs the costs.

  • Part time
  • FInance Director
  • Financial management
  • business advice
  • Accountancy

If you are an entrepreneur, CEO or Managing Director running an ambitious company with fast growth potential and looking to build your company to ensure you get the highest price for it when/if you…

Training and Development

Where to focus - objective or obstacle!

Too many of us focus on obstacles, the things that get in the way. To counter this we need to decide what we want out…
Business Management

Top Self-Confidence Techniques to Employ Before a Career...

‘Fake it ‘til you make it’... I’ve seen so many people claim that this is a good mantra for building self-confidence,…

More Articles

Health & Medical

Skin care. Products and treatments to improve our daily...

Skin care is probably more important than most people realize, and the harsh truth is that a lot of us neglect to do…
Training and Development

Do you have a vision for your future?

Have you written down where you plan to be in your career in 1 year, 2 years and 5 year’s time? If you have then I…
Training and Development

Winning an interview versus winning at an interview.

When pondering over your CV, an interviewer, in deciding whether to invite you for an interview, has to get the…

Would you like to promote an article ?

Post articles and opinions on London Professionals to attract new clients and referrals. Feature in newsletters.
Join for free today and upload your articles for new contacts to read and enquire further.

Find the right professionals in London

View The Full Index

Search By:

Submit your Enquiry here

Enquiry Details

Contact Details