For many business owners, the thought of not having an office-based financial director might seem an alien one, but an increasing number of companies are seeing the advantages of outsourcing.
Let’s take a look at some of the common reasons why firms come to this decision, and what they can benefit from afterwards:
Reduced costs
Hiring an in-house financial director can be expensive for the company. The costs of recruitment, salary, paying for sick absence, annual leave and other associated costs are all a drain on the business resources. In addition, employees require office space, IT equipment, training and other expenses. Outsourcing is cost effective, as you pay for the services you require at the time when they are needed.
Specialised financial experience
A financial director must have the knowledge and experience of your particular industry to be able to produce outstanding results. Outsourcing finance to a reputable provider ensures many years of experience in various sectors, with the required level of skill and expertise. Proven financial expertise, combined with an established track record in the industry, can be difficult to find, which is why outsourcing is a preferable solution.
Better use of time
As the manager of a business, you may find that you are being pulled in all directions, and responsible for various functions within the company. This can leave you short of time and may result in errors that could have a serious impact on the company’s finances. The operations and development of a business are necessary and demanding roles in a company, and require full-time attention. The finances may only require attention for a few hours a week, but neglecting to fulfil those duties could have a high cost. Outsourcing will alleviate the time constraints, leaving you free to concentrate on other aspects of the business.
Secured finance
As you’ll know from running a business, it can be difficult to secure the best deal, especially in a weak economy. Business owners sometimes find it difficult to approach and communicate with potential funding sources, often not knowing which data is necessary to secure funding. Outsourcing the services of a financial director will provide access to a skilled professional who knows how to present a solid business case, and how to source the appropriate funding. Better still, it may lead to increased funding at improved rates, with minimal risk to the business.
If you are still weighing up the pros and cons of outsourcing the FD position, or would like to know more about this matter, contact us for an informal chat about your requirements.