Should you Hire a Financial Controller or a Finance Director for your Scale-up Business?
Is it best to recruit a Financial Controller or a Finance Director? Will a Financial Controller be able to do all you need strategically or do you try to attract a Finance Director, at a higher cost. The reality is in a perfect world you need both, they complement each other, but you are unlikely to need them both full-time so this feels like a waste of resources.
With The Smart Team, you don’t need to add them to your headcount, nor do you need to take both on full-time.
You can pick and mix!
As a business owner looking to scale-up, bringing in financial expertise is crucial for sustained growth. However, managing overhead costs is equally important to ensure profitability, and as we know staff costs can be one of your highest monthly costs. It also takes time and money to recruit the right person with the right finance experience your business needs at each stage of development
Let’s explore how both a Financial Controller and Finance Director support your business in different ways. We’ll uncover why both the FC and FD skillset, and experience are necessary for sustained growth of your business. You don’t need to recruit for both, there is a solution that can provide you with the best of both worlds.
What does a Financial Controller add to a scale-up business?
A Financial Controller (FC) is responsible for managing the day-to-day financial operations of a business. They focus on maintaining good financial control, accurate financial records, preparing financial statements, managing cash flow, and ensuring compliance with financial regulations. The FC’s role is critical in providing timely and accurate financial information to support decision-making, budgeting, and forecasting. They play a pivotal role in monitoring costs, optimizing financial processes, and implementing internal controls to safeguard assets.
Why would a small business need a Finance Director to support business growth?
A Finance Director (FD) brings a higher level of strategic financial leadership to a small business. They work closely with the executive team, act as the CEOs wingman, providing financial insights and guidance to inform long-term planning and strategic decision-making. The FD’s responsibilities typically include financial strategy development, capital management, raising funds, risk assessment, financial modelling, and performance analysis.
They leverage their experience and expertise to identify growth opportunities, evaluate investments, and establish key performance indicators (KPIs) to drive business growth.
FDs would also help you to prepare your business for sale and make it an attractive proposition to potential buyers.
Complementary expertise for business growth
While the FC and FD have distinct roles, they complement each other in supporting business growth. The FC’s expertise lies in managing day-to-day financial operations, ensuring control and accurate financial reporting, and maintaining financial discipline. Their focus on compliance and financial control helps to optimize financial processes, reduce financial risks, and provide a solid foundation for business growth.
On the other hand, the FD’s strategic expertise is essential for developing and executing financial strategies aligned with the business’s growth objectives. They evaluate financial risks and opportunities and provide financial insights to guide strategic decision-making. The FD’s role is crucial in identifying potential funding sources, assessing expansion strategies, and optimizing the allocation of financial resources for maximum growth impact.
Best of both worlds
Rather than recruiting in-house for both positions, outsourcing your finance function allows you to access the expertise of both an Outsourced Finance Director and an Outsourced Financial Controller in line with your specific needs. This approach offers several advantages for scaling businesses.
- Outsourcing provides a cost-efficient solution by eliminating the need to hire, train, and manage full-time employees. You can engage outsourced financial professionals on a part-time or project basis, reducing overhead costs while gaining access to high-level expertise.
- Using an outsourced finance team enables you to pick and mix the services you require when you need them. As your business scales, you may require more strategic guidance from an FD during certain phases, while the day-to-day financial operations can be efficiently managed by an FC during others. This flexibility allows you to optimize how and when you use the financial expertise and resources based on your business’s current requirements.
- Outsourcing brings a fresh perspective and diverse industry experience to your business. An outsourced Finance Director and Financial Controller often work with multiple clients, gaining exposure to various business models and sectors. This breadth of knowledge and experience can be invaluable in identifying innovative solutions, best practices, and growth opportunities specific to your industry.
"Tracy and The Smart Finance Team have helped us with control processes, management reporting and budgeting as well as the more strategic leadership aspects which come with participating in Board Meetings, reviewing Funding Agreements, and help with Acquisitions and Due Diligence. I particularly like how we get access to the different skills and specialities each of them brings to our team as we continue to grow our business."
Outsource your business finance function
Scaling up a business requires the right financial expertise to navigate complexities while managing overheads effectively. The roles of a Financial Controller and a Finance Director are crucial in supporting business growth. The FC ensures financial control and reporting, while the FD provides strategic financial leadership.
Outsourcing your finance function, including both an Outsourced Finance Director and an Outsourced Financial Controller, offers a cost-efficient and flexible solution. You can access the expertise you need, when you need it, without the burden of recruiting and managing two separate roles. By adopting a pick-and-mix approach, you can leverage the best of both worlds and propel your business towards sustainable growth.
If you’d like to minimise your overheads and maximise on expertise, arrange a call with Tracy Smart to discuss your business scale-up.
