Andrew Singleton, Director, Inspire, answers your questions on bringing in an outsourced financial sounding board.

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Q: When is the right time to bring an outsourced Financial Director into my business?

A small, but growing business doesn’t always need a full-time Financial Director (FD).  Often an experienced part-time individual can provide all the support required, while being a sounding board for the business owner or directors.

This could take the form of a regular role within the business, two days per week, for example or to support the business for a set period of, say, six months.

Q: Has the pandemic had an impact on businesses needing a temporary (or permanent) FD?

There’s no doubt that the pandemic has had an impact on recruitment in general and many sectors are now facing recruitment challenges and a skills shortage.

For SMEs looking to grow and take on a FD to support the growth or development of their business, it’s a pivotal role to fill, but it’s often not one you can instantly recruit into.

If you do need that FD-level support, then outsourcing the role – at least for a temporary basis – is a very good option to consider.

These individuals can bring lots of relevant skills and experience, be that sounding board to the business owner and offer high-level advice on all aspect of funding, tax and business strategy.

Q: What do I need to think about?

If your business has a need for some form of FD support, spend time thinking about what that role is and the kind of support you need for that purpose. Understanding what you actually need and what that person should be able to offer, will help you make the right decision.

Q: What should an outsourced FD be able to offer my business?

In a nutshell, they should be able to understand the business and the challenges its facing, challenge you, ask questions and to be a financial sounding board.

Of course they need to have appropriate levels of financial knowledge and understanding, alongside being adaptable to the needs of the business and being timely with their advice.

I’d also say that they need to be willing to roll their sleeves up, to immerse themselves in the business and deliver what needs to be done.

As a business owner, don’t underestimate the value of bringing in someone who is not (and doesn’t need to be) involved in the day-to-day operations of your business – it’s the ability to look objectively at a business, from an outside perspective.

Q: Is it a one-size fits all approach?

No, you absolutely need to find the right person for your business.  They need to be adaptable to what you need, be able to challenge you in the right way and to tailor their approach and expertise accordingly.

But it’s not only about technical expertise; they also need to be right fit for you culturally.  Ask yourself, will they fit in with your business and your team, have they worked with similar businesses before, are they prepared to roll their sleeves up?

If this is a key time for your business, then you want someone who will provide you with timely advice, question you and above all offer a fresh, unbiased view.

Q: How do I set about finding the right person for my business?

Talk to your business advisors, friends and family – they may well be able to make recommendations of people for you to consider.  There’s lots of very good, independent FDs out there who have relevant experience working with owner-managed businesses.

The team at Inspire also offer a FD on Demand service, tailored to your business’ needs and goals.  Our experts can step into your business to help with funding needs, tax advice, forecasting, interpreting the numbers and lots more.  We also know the right time to step away, when you may need a more permanent solution. We’re passionate about helping our clients on their business journey.

Five top tips

1. Ask yourself – is the outsourced approach right for your business? Think about what you need and why
2. Understand what you need from the role? Be clear what that is
3. Seek recommendations. Talk to advisors, contacts and others in the business community for referrals
4. Once you have identified someone, carry out your own due diligence – understand their background, experience and qualifications
5. Meet them in person – are they right fit for your business, culturally and technically? Can they be adaptable and flexible?

If you’d like to find out more about bringing in an outsourced financial sounding board, you can listen to our latest 2 + 2 podcast episode, packed with more advice and tips.

There are also my thoughts and recommendations in my advice blog on the subject.

Alternatively, contact us or call 01202 717867 and our friendly team will be happy to help you.