Financial outsourcing is when a company contracts outside providers to handle various financial and accounting functions instead of in-house.
An outsourced finance director (FD) is bound to be a great addition to your business that will help you scale up your business. FDs are essential members of the management of any ambitious company. It’s their job to provide business leaders with on-the-spot advice, guidance and financial analysis.
A Director of Finance is responsible for the company’s long-term financial health and growth. They establish strategies that will earn profits, oversee accounting operations, produce accurate reports on where money is going within the business and improve or change current practices to increase efficiency.
Types of outsourced finance activities
There are various categories of outsourced finance:
- Professional outsourcing.
- IT outsourcing.
- Manufacturing outsourcing.
- Project outsourcing.
- Process outsourcing.
- Operational outsourcing.
Benefits Outsourced Finance Directors Offer
- Improved decision making
Businesses benefit from strategic information from monthly management reports, cash-flows and profit forecasts that can help make informed decisions to drive the business forward. - Expert Advice
Outsourcing gives businesses access to experts that they might not be able to afford on a full-time basis - Compliant
Remaining compliant whilst running a busy finance department can be very complex and time-consuming. External advice on new legislation and how to adapt systems and reporting can be invaluable. - Cost-effective
Outsourcing allows businesses to access the advice of specialists that they could not usually afford on a full-time basis. - Scalable
As a business grows, the input of a part-time financial controller or director works can be quickly increased. Naturally, at some point, it might be more cost effective to bring the function in-house, which can be quickly achieved.
There are multiple benefits of hiring a finance director, some of which are listed; yet, many businesses choose not to go down this route because of the high costs. However, by outsourcing these duties, you gain all of the benefits at a fraction of the price.
Why Outsourced Finance Director is Needed
We firmly believe that everyone has strengths and weaknesses and that teamwork is essential. Therefore, rather than employ one person to take on this mammoth and vital role, why not employ an entire team whose combined skills and knowledge can push your business forward?
This is possible and can be cost-effective if you choose an outsourced finance director. We believe in building teams that fill talent and knowledge gaps to offer a greater service than the sum of its parts.
Requirement of Finance Director?
Directors of finance need a minimum of a bachelor’s degree in accounting, finance or another related field. Many companies prefer candidates who have a Master of Business Administration (MBA) or another masters-level degree with a concentration in finance or economics.