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Every business owner shares the dream of expanding their business to the next level. The modalities of achieving this goal vary from one company to another. However, one underlying factor is common to all: cash flow analysis.

Need for a finance director

Even though SMEs form a large percentage of businesses worldwide, many do not have the critical advisory position of a finance director. Cost and limited resources may be some of the reasons. Nevertheless, in the current world, overlooking the value of a finance director, can, for some, be business suicide.

Getting to the next level becomes complex as the business grows, mostly due to the increased financial burden. A financial director becomes indispensable at this time. The core purpose of the FD is to understand the business objectives through the owner’s vision and then deliver practical solutions that improve the business value and profitability.

Some of the benefits of having a financial director are:

Future risk analysis: FDs play a pivotal role in analysing the possible risks that come with changes in the market. What are the implications of new tax laws, and the like on your business? They then come up with practical solutions to mitigate these risks.

Handling compliance issues: Keeping your business compliant with the changing financial regulatory requirements takes time and energy. Having an FD do this leaves you to focus on the other essential aspects of the company.

Evaluating growth opportunities: Experienced financial directors will highlight the financial implications of expanding your business and provide better approaches and timing.

Provide credibility: Having an FD on your team improves the credibility of your business when you are dealing with large prospects or clients, lawyers, banks and HMRC.

Virtual Financial Director

As an entrepreneur or small business manager, you probably realise that even if you could afford a financial director, you do not need one in a full-time position. Your best option is to hire an excellent virtual finance director.

Even though virtual finance directors do not need a desk at your office, they are always available when you need them. You contact them anytime to discuss ideas and answer questions. They can also attend board meetings to discuss strategy and financial results. In short, you can accelerate the growth of your business without paying the high cost of an in-house finance director.

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