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Three reasons companies use outsourced financial directors

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A financial director is responsible for the company’s finances, controlling cash flow and profit forecasts, attending meetings with funding sources, improving the performance and profitability of the businesss, and the development of an action plan. However, employing a full-time financial director is a significant investment that may not be required throughout the year. Outsourcing is the most cost-effective solution for many businesses, and here are three of the biggest reasons why:

1. Access to knowledge

Recruiting a financial director is a complex process, as you have to make sure that they have the required skills and knowledge for your company. By outsourcing, you will have access to a whole team of finance directors, with many years of experience, dealing with a variety of industries.

If your firm is within a specific sector, perhaps specialising in a particular industry like tool hire, you may also require the knowledge you will have access to when you outsource the function. Outsourcing to a professional with knowledge of your industry will increase your return on investment and boost the expertise within the firm.

2. Reduced investment

Investing in an in-house financial director can be a significant cost, as you will be expected to pay a higher salary for someone with the expertise and knowledge you require. Your company may not require a finance director throughout the year, which may mean that you are paying for services you only need now and then.

Although a finance director is a crucial role in a firm, in order to bring in the income, they are also one of the highest paid members of the company. The money saved by outsourcing the role to a management accountants could be used to invest in materials, services, products and even investing in new roles within the company.

3. A flexible option

Outsourcing will allow you to concentrate all other resources within the company on other aspects, like the creation of new products and services, or expansion. The necessary information will be given to you so that you can concentrate on managing the core business.

You will have access to the knowledge and support when you really need it, selecting and paying for the services you require. Not having to deal with the finance director role will leave you free to engage with the existing customer base, while attracting new clients.

If you require more information about outsourcing the finance director role, contact us for an informal chat.