The Part Time FD

The position of Finance Director (FD) is key for many organisations, as their ability can have a tremendous impact on the stability and future of the business. Financial objectives are often set by the  Chief Executive Officer (CEO) and FD at the beginning of the year, so they have great influence over the strategic direction of their firm. It is even common for an FD to eventually become a CEO due to their ability to provide financial security to the business, so it is clear to see the positive impact an FD might have on an Small to Medium Enterprise (SME).

However, a full time Director comes at a significant cost, so SME’s often attempt to get by without an FD. This can have severe consequences if leadership lack financial expertise. Fortunately, it is possible to employ a part time FD.

As Stuart Smith of Watersmiths Business Services suggests, a part time FD will grant you the opportunity to have someone with a wealth of experience objectively review your organisation. This enables them to review strategic objectives such as cash flow, and make impartial recommendations that meet the needs of the business and are not influenced by existing relationships or loyalties within the organisation.

Employing an FD part time also grants the organisation the flexibility to scale up or down the role depending on growth. If you start to feel the need to create an FD position but the expense is too great to provide a full time role, then creating a part time position is a perfect compromise. If you are able to continue to meet your targets and grow the business, then maybe you might wish to increase your FD’s hours to meet your needs. Similarly, you might feel you find great value in having a superior source of experience within your business and an extra set of eyes and ears to depend on when making strategic decisions. It also gives you the luxury of trialling the candidate to see if they’re a cultural fit for your organisation!

Ultimately, you have a commitment to your stakeholders to ensure that your organisation is as financially secure as possible. If you cannot afford a full time FD or you feel there is no need, then having access to a part time Finance Director is a great solution if you require specialist expertise.

Contact Assured FD Services to find out more.

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