How to know when you need an Finance Director


If you’re tearing your hair out trying to keep up to date with day-to-day admin and bookkeeping, poring over Excel spread sheets and tackling HMRC when you should be concentrating on new avenues for growth, an FD is the solution to the problem.

Bivek Sharma, Head of Small Business Accounting at KPMG explains that no matter how large or small your company, and what sector you’re operating in, an FD will work with you to build a clear financial strategy – providing opportunities to evaluate overheads, costs, turnover and profit, in line with industry economics and performance rates.

Financial strategy needs to form an overarching framework in any business and is necessary to guide key decisions. With a clear strategic plan in place from the offset, businesses with an FD can set about executing plans safe in the knowledge that outgoings and turnover are 100% accounted for.

So how do you know when it’s time to outsource?

For those with a turnover of less than £5 million, a virtual FD will provide advice on business performance; scaling up, investment and expanding into new markets. If your aim is to perform better and grow, an FD is a no brainer. KPMG Small Business Accounting offers its customers the expertise of a virtual FD – meaning you reap the benefits of having an experienced UK-based professional on hand to offer all the services of an in-house Financial Director for a fixed monthly fee – a savvy alternative to bringing someone in house and avoiding costly overheads.

How do you know when to bring someone in house?

There does come a time when a virtual presence won’t cut it though – businesses with a larger turnover present complexities that require more hands-on time and focus. Especially if you’re planning a merger or acquisition, looking at developing an exit strategy or exporting into overseas markets, bringing an expert into your business makes sense. An FD that works in house amongst your team will be an extra cost, but their influence over the growth and commercial acumen and risk management of the business will tend to be worth the investment. They can bring a fresh strategic perspective to the board table as well as managing a finance team, perhaps in due course

Growing businesses are also likely to benefit from tapping in to external financial and consulting support. KPMG Enterprise is a team established specifically to help the privately-owned businesses achieve their ambitions. A business advisor will work alongside you, bringing value through their insight and by connecting you to market-leading insights, ideas and people

Whatever the size of your business, KPMG can offer a solution to match your ambitions. Financial planning is one of the most important things a business can do, so it’s important to get it right as soon as possible.

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