When you hear the words “Finance Director”, what springs to mind?
- They’re not for small, scaling businesses. Right?
- They’re sat in fancy corner offices of large, multinationals. Right?
- They’re too expensive and their services too complicated for scale ups. Right?
Wrong. Wrong. Wrong.
Finance Directors can be a vital resource for businesses of all shapes and sizes. No matter where you are in the lifecycle of your business, a Finance Director could be the difference maker. Unlike an accountant, whose focus sits with the history of your finances, a Finance Director looks to the future.
But here’s the thing. Scaling tech businesses can’t always afford a full-time Finance Director. The salary associated with the role often makes it a non-starter.
So, how do you access the skills and expertise of a Finance Director, without the deep pockets of a huge company? You go Virtual.
In this short blog post, we explore the 5 main benefits of hiring a Virtual Finance Director (VFD).
5 reasons to hire a Virtual Finance Director
1. Saves time, saves money
Naturally, hiring a VFD will cost far less than hiring a full-time, in-house counterpart. You don’t need to budget for a salary plus benefits, equipment, office space, or perks. You also sidestep the bedding-in period associated with a new employee. There’s no small talk or culture conflicts – the VFD can simply start working as soon as you’re ready.
In the fast-paced world of an ambitious and growing startup, time is money. Hiring a Virtual Finance Director saves both.
2. More flexibility & efficiency
Imagine working with a full-time Finance Director, and popping your head into their office to say “Hi John. We don’t have as much for you this month, so we’ll be paying you less. Thanks!”
That simply wouldn’t happen. But when you work with a VFD, you have access to that level of flexibility. You can increase or decrease the service level in accordance with your needs. This allows you to plan more effectively, streamline your cash flow, and improve internal efficiencies.
3. Access more skills and experience
Quite simply, outsourcing the FD role gives you access to more skills and experience than hiring an in-house equivalent. This is because most VFDs work as part of a larger firm. So, not only do you enjoy their expertise and guidance, you also have the skills of the rest of that firm at your disposal if required.
Your VFD (or any FD, for that matter) won’t have all the answers, but if they can turn around to one of their colleagues for help, your problems will be solved faster and more effectively.
4. Diverse background = better results
In most instances, VFDs work or have worked with a wide range of companies. While you may be encountering a financial challenge for the first time, they’ve seen and overcome it many times before.
You can’t underestimate this level of experience. It might be tempting to hire a VFD solely based on their knowledge of your industry, but if you do, you could be missing out on the sort of creative problem solving that only comes from a diverse career. Which brings us to our final point…
5. A new way of looking at things
An in-house employee of any description can get a little too close to the puzzle. They quickly adopt the same mentality as their colleagues and become reluctant to stray from the path.
A VFD gives you that voice from the outside looking in. They offer a unique perspective, and can often spot opportunities or threats long before they become obvious to you or your staff.
And that’s not all…
Working with a Virtual Finance Director can be a real game changer. They’ll put crucial financial information at your fingertips, and help you make sense of it. A VFD at your side will elevate your decision-making abilities, and take your business to the next level.
If you’d like to find out more about how hiring a Virtual FD can transform your business, get in touch today!