Content sponsored by Purple Lime
There are a lot of good arguments for a business to hire a finance manager. They can help drive your company strategy, push for maximum performance and profitability, and ensure you as the business owner are kept on track and making good, informed decisions. But it is also a big step, and it can be an expensive one too, which is why so many businesses put it off for so long. So what if we told you that there is an intermediate solution? Something that gives you access to all of those positives, without the downsides of having to hire an internal finance manager. The answer is an outsourced finance manager, and here are just 4 ways using one can really benefit your business.
Make informed decisions
Making the right decision for your business can feel impossible at times, particularly when it comes to finances. But the more information you have to hand, the more confident you can be that you are making the right choice. This is where an outsourced finance manager can really shine. They will be able to provide you with a wealth of information about your business now, and what it may look like in the future, including monthly management reports, cash flows, profit forecasts and other strategic information. They can even run prediction models to see what effect each decision may have on your business finances before you actually choose a route forward. It is by no means fool proof but having all of this data (and someone to explain it) at your fingertips ensures you are making the most informed decision possible at every step.
Finance is not a simple industry, and in many cases it can be an absolute minefield to navigate. One mistake or miscalculation could lead to years of penalties, so you want to make sure you are getting things right, first time. An outsourced finance manager is perfect for this role because, unlike hiring an employee, they will not require training or a learning curve, they will simply be able to start making progress from day 1. They will also be up to date on the latest financial trends, business practices and governmental requirements and changes, which means you do not need to worry about investing time into learning about them yourself. Instead, your finance manager can update you on anything you need to know and have the expertise to use all of that information to your advantage. They will likely also have access to the best technology solutions for their clients, which means you gain access not only to their knowledge and skills, but the tools you need to get in-depth and valuable insights into your own business, without having to make the investment yourself.
Decrease your costs
If you were to look at the administrative costs of two businesses in a similar industry, one who outsources their finance management roles and one who hires someone in-house, you will see that the costs are significantly higher for the firm with a hired employee. The reason for this is simple – outsourcing, when done properly, almost always decreases costs. This is because there are no benefits to pay (like holiday pay, sick days or pensions), which would otherwise contribute significantly to your bottom line. You also only pay for what you need, rather than a full-time salary, and you reduce your overhead costs for things like telephones, energy, office equipment and even rent. So if your business is at the stage where a finance manager is needed, outsourcing is almost always the more cost-effective route.
Focus your time
Business owners have a lot of plates to keep spinning at once, and finance is arguably one of the most essential yet complicated of the lot. But since you are in business to perform your business function, you are unlikely to want to spend a lot of time dissecting financial patterns, putting together reports or auditing payroll. Using an outsourced finance manager gives you the time and freedom to really focus and spend time on your core business, delegating the financial requirements to the experts while you work on growing your enterprise.
At Purple Lime, we understand that it can take some businesses a long time to need a full-time finance director in-house. However, every business can benefit from some specialist advice when it comes to financial strategy, which is where an outsourced finance manager can be the perfect fit. We provide a range of services under our outsourced finance manager function, including a finance director service, business planning and forecasting, board management and meeting attendance and more. If you would like to know more, please get in touch by emailing firstname.lastname@example.org or calling us on 01249 691360.