Do you find it difficult to control and management your business finance?

Are you looking to engage a part time FD but don’t know what to expect or how they can add value?

Are you looking to exit your business?

Do you need to raise money and need an FD to hold your hand through the process?

Do you have sleepless nights, worrying that your business might not be as profitable as you want?

Successful entrepreneurs are those who appreciate bringing in expertise and are not afraid of hiring people better than themselves.

Larger companies usually have an experienced qualified accountant as their Finance Director and this person's specific responsibilities include:

• the accurate and timely reporting of performance measurement
• financial planning and budgeting
• providing help, encouragement and support to other senior managers to improve performance
• managing the company's cash flow and banking arrangements.

Unfortunately the cost of employing a suitable person as Finance Director is prohibitive for a smaller company but that doesn't remove the need for someone to fill the role.

So Just What Is A Part-time FD?

A part time or on call Finance Director is a cost effective solution to the problem for a smaller company but you don't need to appoint someone formally as the finance director.

The advantages of a part time or virtual Finance Director include:

• the skills you need only when you need them - the person is on call ready for when you need them.
• a new view of the business and the issues you face
• a trusted friend that will give you an unbiased independent opinion
• proven ideas from other businesses that can improve your results
• improved credibility with your bank - just imagine the increased confidence the bank will have if they know that a qualified accountant is working as your part time Finance Director
• it frees you (the business owner) from having to devote too much of his time to financial issues. Many business owners don't enjoy accounting and finance so don't feel guilty if you like the idea of delegating the responsibility to a suitably qualified part time FD.

Don't worry if you don't like the phrase "part time Finance Director". We don't either but it seems to have been generally adopted by the trade and the accounting industry. A better alternative may be the phrase used in the Beermat books - the "finance cornerstone" - the rock that the financial aspects of your business are built on.

The Difference Between Accounting and Financial Management

Put simply an accountant keeps the books and records of the company and is responsible for the transaction processing in a company and the reporting on those transactions. By its very nature, the role is mainly backward looking as it focuses on recording and reporting past events.

A financial director has a forward looking financial management role where the primary concern is the future financial health of the company. This is about changing the future to one where your can thrive and prosper. It's a proactive role that involves making sure that the right decisions are made at the right time for the right reasons.

What To Look For In A Part Time FD

• You need a part time Finance Director who you can work with and trust.
• Your virtual FD should be interested in your business and will want to get to know it in detail. Every business is different and you want someone who will look for and value those unique features that make your business special.
• A good part time FD will be experienced in working in different industries and different sizes of businesses. Often it's good that the person doesn't have experience of your particular trade. That way you get a fresh approach rather than the same old industry recipes that may have contributed to business success 20 years ago.
• Your part time time Finance Director should be comfortable working under pressure and achieving deadlines. Part time doesn't mean not committed.
• A part time FD who's been there and already done it.
• Your part time Finance Director must take responsibility and be held accountable.
• The true nature of the on call or part time FD is that they must be capable of giving you a flexible time commitment. If you need a meeting during the day then your part time Finance Director service can't be limited to an after hours service.
• Make it clear that you’re not just employing someone in a treasury role but someone to be involved in overall strategy. The modern day FD is a quasi-pseudo business person with expertise in finance and you need to look at their wider role within the management team.
• A good part-time FD’s ambition should be to do them self out of a job as a part time FD shouldn’t necessarily be for life
•  With growing profits and exit strategies come a nice little problem called tax. Your part time FD (whilst not necessarily a tax expert) should be able to point you to the right direction to ensure you keep more of what you earn.

What Situations Does A Part Time FD Suit Best?

There are some particular situations where it is very important to establish strong financial controls by having your own Finance Director:

• You don't know how your business is performing - that's a bit scary when you stop to think about it but very common.
• Profits are not increasing as fast as sales - "turnover is vanity, profit is sanity" is an old banking mantra but many business owners have been fooled by top line growth.
• Your business is growing fast, putting strains on cash, staff and systems. Growth is exciting but demanding, constantly moving the company outside of its comfort zone.
• The business is losing money - this can't be sustained long term and the sooner something is done, the better the chance of a successful turnaround.
• You're held back by a shortage of funds. Banks and investors need confidence in the management and lack of a skilled finance person won't be overlooked.

YOUR NEXT STEPS
If you found the above useful, then it may be a good idea to have a chat with us about your current needs and how we can help. We offer a part time Finance Director service. Why not give us a call on 0845 009 8845 to arrange a chat. There is no charge or selling pressure.
Alternatively, if you have any queries, click here to ask a question.