A finance director is a pivotal role in business. They oversee your accounts, address your inefficiencies and work to help you achieve your goals. However, this responsibility comes at a cost. In this article, we share five benefits of outsourcing a finance director instead of hiring in-house.
1. Cost effective
Outsourcing is an incredibly cost-effective strategy for small businesses – especially when sourcing finance directors.
Due to their breadth of knowledge and experience, the average salary for an in-house finance director in the UK has a midpoint of £105,000 and ranges between £95,000 – £120,000. So, naturally, they’re often unattainable for smaller businesses and start-ups. However, that doesn’t mean you cannot afford their services altogether!
By outsourcing a finance director, you have the ability to access their expertise for only a fraction of the price. Find out more about the LKA Virtual FD service.
2. Tailored service
When hiring in-house, you agree to pay a set salary each month. Whilst this promises consistently, it can actually be incredibly detrimental when working through a quiet period.
The benefit of outsourcing a finance director is that you can tailor their services to your needs. For example, you can scale their services if you’re expanding or reduce them if you’re going through a quiet spell. A luxury you cannot afford with an in-house employee.
3. Low risk
Often, people overlook the risks of hiring a new employee. Hiring and onboarding are expensive, time-consuming processes. Unfortunately, even the most diligent interview panel can still employ the wrong person.
Thankfully, you can significantly reduce the risk and cost of hiring by opting to outsource instead. With short-term contracts and several experts available, you have the option to shop around to find your perfect fit.
4. Objective advice
We can’t always trust our employees to deliver harsh truths. Why? Because we are in control of their careers. So we can’t blame them for wanting to appease us instead of exposing our flaws. However, with an external finance director, you can trust they will always offer you unbiased, objective advice.
Whilst confronting your inefficiencies may be hard, it’s also a surefire way to ensure you achieve your financial goals.
One of the greatest benefits of an outsourced finance director is their unwavering commitment to achieving your goals.
You see, because they are external to your team, they can focus solely on your goals without being distracted by other departments or employees. Ultimately, this allows them to make objective (at times) difficult decisions to optimise your growth, achieve your goals and support the longevity of your business.
Optimise your finances by outsourcing
Although outsourcing has had a bad rep in the past, outsourcing a financial director is easily one of the best decisions you can make for your business!
With flexible contracts, tailored services and a team of experts on-hand, it’s far more cost effective than hiring internally. So, if you’re interested in saving money and achieving your financial goals, we strongly suggest using a virtual financial director.
LKA Virtual FD service
With our Virtual FD service, we act as your company’s Finance Director by providing you with all the specialist skills, services and expertise, without the cost and complications of employing one full time.
We will become an integral part of your team, committed to your financial health, commercial success and continued growth. This frees you to focus on forming a long term strategy for running the business.
You can find out more about the LKA virtual Financed Director service here, plus read some examples of how the LKA service has helped businesses in our case studies. If you would like to speak to us about this service please call 020 3915 8585 or email us.