Five Ways a Virtual FD Helps Your Business Reach for the Sky
As a scale-up business, you’ll probably have an accountant doing your year-end and taking care of your compliance, perhaps a bookkeeper too. Is that enough though to get your business to where you want to take it?
Don’t get me wrong, The Smart Team recognise the crucial compliance role accountants and bookkeepers play in managing your company’s finances but maybe you are starting to realise that you need more….
Have you considered recruiting a Finance Director?
Maybe your answer is…
“Yes, but they are a. too expensive, b. recruitment is a nightmare (too much time, money and risk) and c. I don’t need someone full-time or even part-time. My business isn’t at that point yet.”
We hear you! So, let’s fire up your own Virtual Finance Director to resolve those issues. We’ll help you to understand the financial implications of your strategy, understand the true performance of your business and help you to understand your numbers so that you make better decisions. Subsequently you have a better chance to get your business to where you want it to go.
What expertise a Virtual FD will add to your growing business
A Virtual FD (sometimes referred to as Outsourced FD) can supplement the compliance work of your accountant and bookkeeper by adding strategic finance leadership tailored to your business needs.
1. Strategic Financial Guidance
While accountants and bookkeepers focus primarily on the day-to-day financial operations, a Virtual FD takes a more strategic approach. They bring a high-level financial perspective to the table, helping you make informed decisions to drive your business forward. Virtual FDs possess a wealth of experience in financial leadership and management and can provide valuable insights into budgeting, forecasting, and long-term financial planning. Helping you make better informed decisions which will affect the future of your business.
2. Financial Planning and Analysis
A Smart Team FD can assist you in creating comprehensive financial plans and forecasts, which are essential for scaling up your business successfully. By analysing historical data and market trends, they can help you set realistic growth targets, identify potential risks, and develop strategies to mitigate them. Their expertise in financial modelling and analysis can greatly enhance your budgeting process and enable you to make more accurate financial projections. Taking some of the guess work out of setting budgets and targets.
3. Tactical & Strategic Cost Management
As your business expands, keeping costs in check becomes increasingly important. Outsourced FDs have a keen eye for identifying areas where costs can be optimized, wasteful expenditure reduced, and operational efficiencies improved. They can conduct thorough financial reviews, assess the profitability of different business functions, and suggest cost-saving measures without compromising the quality of your products or services.
4. Cash Flow Management
Maintaining healthy cash flow is vital for any growing business. A Virtual FD can help you monitor and manage your cash flow effectively. By implementing robust cash flow forecasting techniques, they can anticipate potential cash shortages, identify cash surpluses, and provide actionable recommendations to improve your liquidity position. This proactive approach ensures you have the necessary funds to fuel your growth plans. A critical part of cashflow management is Credit Control and Credit Management, and your Smart FD and Consultant Credit Manager will ensure that you have this firmly under control if you decide to work with The Smart Team.
5. Strategic Partnerships and Fundraising
If you’re seeking external funding or considering strategic partnerships, a Virtual FD can prove invaluable. They possess a deep understanding of the investment landscape and can help you prepare robust financial models, business plans, and investment proposals. With their expertise, you’ll be better equipped to negotiate favourable terms and secure the funding or partnerships needed to propel your business to the next level. Together with our Consultant Commercial Director, it’s the dream fundraising team!
How is a Virtual FD Affordable for a Scale-up Business?
You benefit from access to proven commercial finance leadership without the cost of hiring a full-time FD.
A full time FD can be an expensive cost for a growing business especially in the current economic situation of rising costs. Not just the obvious ongoing staff costs but the time and money involved in recruitment.
An Outsourced FD offers a cost-effective alternative, as we agree the monthly budget upfront which is created around your business needs.
What does every business desire – flexibility and scalability! You get that in bucket loads as our Virtual FDs are adaptable to your business’s changing needs. As you scale up, their services can be easily adjusted to accommodate the increasing complexity of your financial operations. They can provide support during critical periods, such as fundraising rounds or strategic initiatives, without the long-term commitment of a full-time employee.
You gain from the experience an Outsourced FD has in working with multiple clients and sectors, gaining exposure to diverse financial challenges and best practices. This breadth of experience equips them with a wider knowledge base and the ability to bring fresh perspectives and innovative ideas to your business.
The bonus – we’re collaborative! We work with your accountant and bookkeeper, ensuring seamless coordination and alignment between financial operations, strategic planning, and compliance requirements. Our Outsourced FDs work as part of a cohesive financial team (either yours or The Smart Virtual Team), enhancing the overall effectiveness and efficiency of your financial management.
Are you ready to give your business a boost in the right direction with your Virtual FD?
A Virtual FD adds strategic financial expertise, complements and supplements the work of accountants and bookkeepers, supports business growth, and offers advantages over recruiting your own part-time FD directly. Their contribution helps you make better financial decisions, optimize performance, and navigate the complexities of scaling up your business effectively.
Are you ready to make a wise investment and add a Virtual FD to your team to drive your business toward long-term success? Arrange a chat with Tracy Smart.
