What is a Virtual Finance Director and Why Should You Hire Them?
If you think your business has grown to the extent where you need a professional who can manage your finance, but you can’t afford to employ someone on a full-time basis, you may consider hiring a virtual finance director. A virtual finance director provides you with all crucial financial information and assists you in making financial decisions.
For those who don’t know, a virtual finance director (Virtual FD) is a financial expert who offers financial assistance to businesses without needing to hire them as regular employees. They can manage all the duties of a conventional finance director but work remotely on a part-time basis.
When Should You Look for a Virtual Finance Director?
- You may consider hiring a virtual FD if your business is growing, and you’re struggling to manage your finances.
- If you think you have reached the point where you need a financial expert to support continued success.
- You’re unable to employ a full-time time finance director due to insufficient budget.
Benefits of Hiring a Virtual Finance Director
You Avoid The Full-time Overhead
A small business can benefit a lot from the lower cost of Virtual FD. It happens because of the flexible arrangements associated with a virtual FD that lets them scale their services up and down depending on client requirements. Therefore, their services are cost-efficient comparatively.
Better Cash flow Management
The majority of small businesses and startups (around 82%) fail due to poor cash management. Fortunately, a virtual finance director can help you with this issue by keeping an eye on your current cash position and future ups and downs. They can plan a strategy to ensure adequate cash flow.
Handling of Multiple Responsibilities
A virtual finance director handles various duties of conventional FD but works remotely on a part-time basis. These roles include:
- Preparing an annual budget.
- Managing cash flow and rolling cash flow forecast.
- Preparing monthly management accounts.
- Offering financial insight and discussing business performance.
- Tax planning.
- Implementation of an accounting system.
- Financial forecasting and creating a financial strategy.
- Recruiting and managing financial staff.
- Keeping you fully updated with regulatory changes.
More Accuracy in the Financial Report
A virtual finance director gives you exact information on your finances; therefore, they help you eliminate the risk of financial reports’ errors.
Brings a New Perspective
Since a virtual finance director has the luxury of working with different clients, they get access to diverse company ideas and views. They can use their experience for the growth of your business. An experienced virtual FD can introduce a new perspective to solve various issues.
Like larger businesses, smaller businesses also face financial challenges, but they can’t afford to have a full-time finance director to resolve them. Hiring a virtual director can be an ideal option for them. A virtual FD can provide small businesses with a broad financial insight at a lower cost than a full-time finance director. If you’re a forward-thinking small business, you must consider hiring a virtual finance director; it can be a game-changer.