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Our Virtual Finance Director Service

What is a Virtual Finance Director?

Firstly, let us start by explaining what this relatively new concept is; A virtual finance director (FD) is an experienced senior finance professional who can remotely support your business and provide financial assistance without the need to employ a full-time FD. A virtual FD will manage all of the duties and responsibilities of a traditional FD but will work remotely on a part-time basis thus saving on the cost of full-time in-house FD and yet providing businesses access to the same level of knowledge and experience.

The average salary of a finance director in the UK is c.£90k per annum and for a more experienced full-time FD this is often in excess of six figures and for many small businesses, this cost can be prohibitive. Furthermore, many businesses might not even contemplate hiring a finance director anyway, not realising the benefits that this experience could bring and in some cases, not realising that this decision could mean the difference between financial success or failure.


Should you consider working with a Virtual Finance Director?

So many new businesses fail within the first three years or during periods of rapid growth. Is your business growing and as a result, are you struggling to maintain control of your finances or keep track of your financial goals? Business failure in these circumstances could be for many reasons but often, failure to identify a profitable business model or failure to monitor progress against key milestones of your business model can be key contributors. Similarly, failure to find a unique selling proposition or to differentiate your product from that of the competition can also be a cause of business failure. By using a virtual FD you have an experienced professional with the benefit of access to diverse company and market ideas and views to provide new perspectives for your business.

The majority of small businesses and startups (approximately 80%) fail due to poor cash management. Do you need to concentrate on the day to day business operations and rest assured that your finances are under control? In addition to monitoring cash and future inflows and outflows, there are many financial tasks which need to be carried out in order to measure and monitor financial success. A virtual FD will handle the various duties of traditional in-house finance director meaning you will not have to. Such duties will include;

  • Recruiting, managing, coaching and developing any in-house finance colleagues.
  • Take responsibility for monthly management accounts and performance against budget.
  • Provision of financial insight and discussing financial performance.
  • Managing Cash flow and maintenance of rolling cash flow forecasts.
  • Validating or discouraging business decisions based on financial considerations.
  • Implementation of an accounting system to match your business needs.
  • Financial forecasting and preparation of a financial strategy.
  • Tax planning.
  • Ensuring your business is kept abreast of any regulatory changes.
  • Liaising with accountants/auditors and managing the statutory year end process and filings.

Few business owners possess the ability to carry out the above functions however, they are crucial to the success of any business.

Many businesses experience a fall in profit margins as they grow due to increased control or legislative requirements. Have you considered employing a full-time in-house finance director but feel the cost of doing so is restrictive due to insufficient budget and/or tight profit margins? A small business can benefit significantly from the lower cost of a virtual FD by avoiding the overhead cost of a full time in-house FD. You are able to achieve this with a virtual FD due to the flexible nature of the working arrangements which allow the service to be scaled up and down in line with business requirements.

Business or market opportunities can be missed by an inability to react quickly to changes in market conditions. Do you need a swift second opinion as to the financial considerations associated with a new business decision or idea? By using a virtual FD you have an experienced finance professional on hand 24/7 to bounce thoughts and idea’s off before you set off down your chosen path to profitability.

If you can answer yes to any of these questions then you should consider working with a virtual FD.


Summary

Financial challenges are not unique to large businesses, in fact smaller business are much more susceptible to the damage which might result from the smallest of mismanaged financial challenges but often they cannot afford to have a full-time finance director in their employ in order to resolve them. Engaging a virtual FD might be the perfect solution for them. We offer you a highly qualified, highly experienced finance director who can provide your business or startup with a broad financial insight at a significantly lower cost than a full-time FD. If you’re a forward thinking business owner who wants to drive your business forward on a sound financial footing then you should consider hiring a virtual finance director. We would be so bold as to say, it could be a game-changer.