There’s no such thing as a full time Finance Director role in most small or medium businesses.
But if this is true then what can a small or medium-sized business do when it needs some experienced, practical financial input? A part time Finance Director (FD) might be the answer.
How do I know I need a part time Finance Director?
The challenge is to recognise that you have some business problems that can’t be dealt with by your existing finance team or as business owner without a finance background.
This may be tough to do because you don’t know what you don’t know. However, some common indicators that all is not well with your business financials may include:
- slow payment of your sales invoices
- cashflow problems
- inaccurate, late or no management accounts
- unpaid suppliers calling too frequently
- HMRC not being paid PAYE and VAT
- surprises in the numbers after the event
If you are concerned about some or all of these indicators, then a part time FD may well be the answer you’re looking for.
What are the advantages of a part time FD?
Someone who knows what they’re doing who can very quickly diagnose the financial issues in your business. Once identified, these issues need to be prioritised and resolved.
What you see next will probably include:
- a cashflow model that shows whether there are very serious problems with the solvency and the future of the business which need to be addressed as a matter of urgency
- correct, meaningful management accounts being produced
- a plan to improve profitability and lower the cost-base
- changes to systems and processes and the introduction of new workflows
- a to-do list for non-financial staff to get on with to improve other parts of the business. Particularly based around the profitability of products, services and customers
- training of your existing finance team to do a better job in a slightly different way
- a recruitment plan to plug any gaps
All of this can be done quickly, some of it may need to be!
The race is on to get the business working more profitably in a systematic way. Once this is in sight, then the work of the part time Finance Director can scale down.
Other business phases we can help you with are:
- exit planning and implementation – selling the business or buying another business.
- growth periods – decision making and steps to take towards increasing profitability.
- consolidation periods – reviewing financial planning and offering accountancy advise on cash flow health.
The ongoing role of a part time FD
Once the financial side of your business is ticking over properly why not continue the relationship?
After all, you now have an experienced financial expert who knows your business and your people and still has a lot to offer:
- oversight of business performance
- promoting financial awareness across your business
- sounding board for new ideas
- input into important decisions such as new markets, acquisitions
- liaison with investors and your bank
Over the years, we’ve found companies that use our part time FD services hugely benefit from having us as a sounding board for impartial advice on their business, whether to update accountancy software or plans on growing the business. Not to mention ongoing accounting advice and the ever changing HMRC rules and regulations! Creating long lasting and trusted business relationships.
Businesses evolve, the path is not always easy, but having a trusted, experienced FD alongside you can help you get where you want to go.
Blue Dot Consulting as your part time Finance Director
“If I were the FD of this business, how would I organise its financial management?”
That’s the first question we ask after we’ve met an MD and look at their business. Working collaboratively to get down to the bones of the business can be a relief if the business owner or MD has felt lost struggling on their own.
We know the answers. And we know how to implement the answers.
So, if you’re wondering whether your business needs a part time Finance Director, give us a call on 020 7125 0270 or visit our contact pages.