A common characteristic of all entrepreneurs is lack of time.
This is caused by a number of smaller or larger problems business owners face when running day-to-day business operations, from care for the client, products, employees, all the way to dealing with legislations and regulations. Besides, an entrepreneur devotes an enormous amount of time to solving financial issues, regardless of whether they relate to cash flow, taxes, or required accounting documentation.
Entrepreneurs are overwhelmed with figures and administration, with trying to understand profits and losses, how to solve a dilemma between financial and operative leasing, find sources of funding, and manage internal and external accounting personnel and regulations. Because they are rarely skilled in dealing with critical financial issues, it inevitably leads to a greater amount of time and concentration being spent on activities of administrative-financial support than should, in reality, be required.
For various reasons oftentimes even accountants do not manage to provide the necessary pro-active support to the company’s business operations. Regardless of whether the accountancy function is organized within the company or outside of it, most accounting professionals are focused on delivering figures and reports, i.e. on a quality and comprehensive picture of what has already passed.Only rarely they will assist you in planning, managing, and controlling business operations, in the comprehensive understanding of business processes in the company, and in their adjustment to a demanding business environment.
How does one solve this problem? Simple.
By outsourcing a finance director. Even in a small business, a finance director will most certainly do his/her part to increase the quality of managing financial functions and entire business operations as a whole. Your company needs an experienced person who knows how to finance a business, cope with the demands of a growing company, present meaningful monthly figures, and procure the best offer from banks. Alongside the stated, such a person will know how to put the company’s processes in order, enable the tracking and correcting of cost items and sales activities, and within their authority, decrease business risk where and when possible.
Unfortunately, however, a person with such knowledge and experience costs a lot. A medium sized company is rarely able to afford a professional finance director with a high level of knowledge and experience. Additionally, such a company can hardly ever use the full potential of such a professional.
The solution to this situation is hiring a part-time finance director as a professional who will work in the company for as long as his/her services are required and whose cost will amount to a portion of the usual cost of a full-time finance director, all proportionate to the engagement.
With such support, the entrepreneur is free to focus on managing and developing the business, controlling costs and processes, existing and future clients, new products and capacities…in short, he/she can deal with what they know and do best!