Businesses generate a huge amount of information, from sales and expenses to customer behaviour. Regardless of your business size, industry or growth plans, your data is your secret weapon for growth, efficiency and ultimately profit.

What does a Finance Director do?

A Finance Director (FD) plays a key role in collating and analysing your business information and transforming data into strategic decisions.

• They take responsibility for financial planning, including regular forecasting, budgeting, risk management and Management Accounts.
• They greatly reduce stress points and allow you to focus on day-to-day operations and business growth.
• They are also typically in charge of financial compliance.
• They can help you reduce aged debt, improve your revenue cycles, monitor spending, help drive pricing decisions
• They are instrumental in fundraising/investment efforts, as well as ensuring your business is transaction ready (should you be thinking about selling)
• They reduce the risk of financial mismanagement or fraud within your business
• The robust financial management that an FD brings can also increase trust among investors and stakeholders.
• They can also help upskill your existing team in financial best practices, bookkeeping, automation and various helpful apps.

But a full-time FD may not work for every business

A Finance Director is an essential part of a business finance function, bringing unique skills and expertise that your existing directors may not have.

Suppose you are software start-up; your directors may have extensive experience in IT, programming or software engineering – but it is unlikely that they will also be the finance expert you need.

If an FD is such a clear and obvious asset for a business, what stops every business from having its own? This ultimately comes down to cost versus benefit.

• Recruiting an in-house FD will not be cheap. These skills are very valuable, and you can expect an experienced full-time FD to command a high salary.
• An in-house FD commits you to a full-time hire, and you may not need this expertise in-house all throughout the year. This is often the case for start-ups.
• Actually finding the right FD with the right skills and experience may be tricky, especially in certain locations or industries.

The benefits of an Outsourced Finance Director

In simple terms, an Outsourced FD brings you the extensive skills and experience of a Finance Director, with greater flexibility and potentially a lower overall cost.

But the benefits aren’t just financial.

An Outsourced FD will work with other businesses too, meaning they are exposed to a significantly wider range of issues and demands, across various industries. When bringing an Outsourced FD in, their accumulated experience becomes your own.

Futureproofing your growth and compliance

An Outsourced FD is particularly well suited for businesses embarking upon a period of growth but may not be ready to hire a full time Finance Director yet. This is particularly important for compliance.

They can also help ensure your business is audit ready should your growth push you over the statutory audit threshold. This means keeping every transaction and policy in line with financial guidance. It’s a big job but need not be an issue with the help of a qualified professional.

The importance of flexibility

One of the principal benefits of an Outsourced Finance Director is flexibility. They can work with you for a set number of days per week or month, and this can be tailored to your business needs.

Alternatively, an Outsourced FD can be brought in to assist with specific projects like the implementation of a new accounting system.

A valuable partner in exit planning and transactions

Another great time to consider outsourcing your FD needs is if you are planning your exit from the business. An Outsourced FD can be brought in temporarily to help ensure you are transaction ready, have maximised your valuation, and are able to navigate the complex exit process from start to finish.

Innovative approaches and efficiencies

Digital accountants who offer an Outsourced FD service will work at the cutting edge of accounting technology, particularly AI and automation. By bringing one in, you benefit from their technical and software expertise, as well as their financial wisdom.

If this sounds like something that would benefit your business, speak to the Gravitate team today

The Gravitate team specialises in providing an exceptional Outsourced Finance Director service. Our team promises honesty, professional scepticism and clear communication on your risks, challenges and opportunities. We will also take the time to fully understand you and your business and will tailor our service to be of maximum value and benefit.

If this sounds good, get in touch today!