Many businesses, both large and small, see finance as a necessary evil, choosing to avoid the additional overhead that outsourcing an expert incurs. Some believe they are doing fine without a Financial Director, with managers or owners taking care of the numbers without any expert input.
While some business people do understand what they’re doing, it’s not necessarily the reason they began the business, it’s not what they excel at, and it’s not what they enjoy most. Some businesses end up struggling because they don’t have accurate or up-to-date management information; or don’t understand their balance sheets; or don’t know the rules regarding directors’ loans accounts.
It’s true that employing a full-time Financial Director can be an expensive overhead year on year. However, like with most positions, there are other options. We spoke to Julie Bickerdyke, Managing Director at Not Just an FD Ltd., to find out her views on the alternatives. She suggested outsourcing the financial side of a business to a part-time Financial Director.
A CIMA Qualified Accountant, Julie runs the Leeds-based business with her business partner, both of whom have previously worked at director level. Julie previously held the positions of Managing Director and Finance Director at Austin Hayes Ltd.
“An outsourced, part-time FD gives you the knowledge and expertise you need to take your business to the next level; develop an exit plan; understand your monthly management accounts; apply for funding and calculate how much is needed; reduce risks; and deal with your bank manager, insurance broker and auditors,” Julie explained.
She commented that with this method, business owners can gain an independent perspective on their businesses, while avoiding recruitment fees and employment costs. Julie’s company, for example, offers various services, which include the auditing of existing systems and practices; guidance on time-saving initiatives; forecasting of future profits; budget creation; and team training, among others.
As with any business decision, it is vital that those in charge carefully consider the various options available before deciding how to proceed. Experts in the industry are great sources of invaluable advice and information.
