Sometimes, in order for your business to thrive, you’ll need some expert financial input. As specialist accountants serving a range of clients, we understand what it takes to help you scale responsibly. One question we often encounter is whether a company needs a finance director.
In this article, we’ll explore the key signs that indicate your business might benefit from financial leadership and discuss potential solutions.
What does a financial director (FD) do?
A finance director, often referred to as a Chief Financial Officer (CFO), is responsible for the financial health and strategy of a company. Their duties encompass financial planning, risk management, record-keeping, and financial reporting.
They also provide strategic advice to ensure that financial strategies align with the company’s goals. In the same way that a CEO steers the company’s ship from a strategic perspective, a CFO (or FD) does this from a financial perspective.
15 signs your business might need a finance director
It’s not always straightforward to know if you should make such a significant investment in one hire. Here are some signs that the time might be right:
- You’re struggling with cash flow despite being profitable
- You’re unable to pay yourself adequately from a profitable business
- You can’t determine which business activities or projects are profitable
- You feel like you’re always fighting financial fires
- You don’t have the funds available to pay upcoming VAT or Corporation Tax
- You’re unsure how to improve your cash flow
- You feel out of control or unaware of what’s happening in your business
- You’re overwhelmed, doing everything yourself
- You’re unsure of the true value of your business
- You’re uncertain about when or how to take money out of the business
- You’re unsure how to grow your business
- You’re unsure about your business’s profitability
- You need help with national or international expansion
- You’re considering selling the business in the future
- You don’t know how to prepare your business for a future sale
Navigating the FD dilemma
While many businesses would benefit from a finance director’s expertise, the associated costs can be significant. Full-time finance directors often command salaries between £80,000 and £120,000 annually before additional benefits and bonuses.
This presents a big challenge for many small and medium-sized enterprises (SMEs) that need financial leadership but can’t justify the expense of a full-time hire.
Consider flexible working contracts
At Williamson & Croft, we recognise that every business requires financial strategy and clarity regardless of its size. That’s why it’s important to consider outside-the-box options. Here are 2 suggestions on how to access an FD’s expertise with a less premium price tag associated.
- Hire a part-time finance director
This option allows you to benefit from high-level financial expertise without the burden of a full-time salary. A part-time finance director can work with your business on a regular basis, scaling their involvement based on your needs.
- Hire a virtual finance director
Similar to a part-time arrangement a virtual finance director provides expert financial guidance remotely. They’ll connect with your team on phone and video calls to collaborate effectively from a different location.
These solutions offer some clear advantages:
Cost-effective: Access to expertise at a fraction of the cost of a full-time hire
Flexible: Scale involvement based on your business needs
Objective: Benefit from an external perspective, free from internal biases
Specialised knowledge: Tap into diverse experience across various industries
How Williamson & Croft can help
Our team of experienced finance professionals can provide the financial leadership your business needs to thrive. We offer:
Outsourced finance director services – Gain access to high-level financial expertise without the commitment of a full-time hire. We can manage your reporting, optimise your financial systems, and drive profitability.
Strategic financial planning – Align your financial strategies with your business objectives through robust modelling and forecasting. We assist in making informed decisions that support sustainable growth.
Risk management and compliance – Ensure your financial practices are sound and compliant with current legislation. We implement strong controls and improve overall financial governance to mitigate risks.
Whether you require ongoing financial leadership or targeted assistance for specific challenges, our team adapts our services to suit your unique situation. We’re ready to plug into your business’s finance team to give top-level strategic support.
Make our expert team your financial consultants
If you’ve identified with any of the signs mentioned above, it might be time to consider bringing financial expertise into your business. At Williamson & Croft, we’re here to help you navigate this decision.
If it’s not time for an FD but you need help with many of the aspects of a financial director’s role, our specialist team of accounting experts may be able to offer consultancy. That way, your business’s growth is never hampered.
Get in touch with our expert accounting specialists at Williamson & Croft today.