Before we explore the plus points, let’s start at the beginning – a virtual finance director, often referred to as an outsourced FD, can supplement the compliance work of your accountant and bookkeeper with bespoke finance leadership.
We’ve broken this down into six key areas:
Better value – Using a virtual FD is cheaper than employing one in-house. The recruitment process for a new FD can be demanding and it is important to get the right person for the job, so outsourcing the role to a professional makes business sense.
Strategic guidance – While bookkeepers and accountants focus on day-to-day financial operations, a virtual FD can bring a fresh perspective, helping you make wise decisions to drive your business forward. Virtual FDs can provide insights into budgeting, forecasting, and long-term financial planning.
Financial planning – A virtual FD can help you create comprehensive financial plans and forecasts, which are essential for scaling up your business. They can help you set realistic growth targets, identify potential risks, and develop strategies to mitigate them by analysing historical data and market trends. Their expertise in financial modelling can enhance your budgeting process and enable you to make more accurate projections.
Board level support – Having someone who can provide financial help for company directors is invaluable for any business. A virtual FD will be able to offer advice and insight to the board and help inform decision making across areas including operations, technology and HR.
Cost management – As your business grows, keeping costs in check becomes increasingly important. Outsourced FDs can identify areas where costs can be optimised, wasteful expenditure reduced, and operational efficiencies improved. They can carry out thorough financial reviews, assess the profitability of different business functions, and suggest cost-saving measures without compromising your offering.
Cashflow management – Maintaining healthy cash flow is vital for any growing business. A virtual FD can help you manage your cash flow effectively. By implementing robust cashflow forecasting techniques, they can anticipate potential cash shortages, identify surpluses, and provide recommendations to improve your liquidity.
Fundraising and strategic partnerships – If you’re looking for external funding or considering strategic partnerships, a virtual FD can prove invaluable. They can help you prepare robust financial models, business plans, and investment proposals.
SHD are proud of being able to provide more than just a compliance service for our clients. If you would like to find out more about how a virtual FD can help your business grow, call us on 01905 622202.