Before deciding to hire a finance director, it’s important to define the duties a business considers the most important part of the job. This determines whether the job is served adequately on a part-time basis or if the need is great enough for a full-time position. In small and medium-sized businesses, a part-time finance director may be sufficient. However, if the job of Finance Director is a position in a municipality with a population of 100,000, as an example, it’s clear how much time will be required. Once this issue is fully researched, the actual duties of the Finance Director become more obvious.
Most business owners prefer to manage their own finances. This can be a big mistake from the standpoint of objectivity. Unnecessary business expenditures are far easier to justify when objectivity is compromised. Most often business owners view this job as a good cop/bad cop. Yet, not all business owners are experienced enough in finance to make serious determinations of changes that need to be made to salvage a flagging revenue situation. Nor do they possess enough experience in financial management to make financial projections that coincide with peripheral or external economic situations. These are just a few examples of the benefits of a part-time finance director.
In most cases, when a business owner finds time is of the essence to recoup losses in revenue, this is when hiring becomes vital. It takes a certain amount of personal review of financial skills for a business owner to recognize there is neither the time nor experience to manage the job of business finances on a day-to-day basis. It isn’t a sign of defeat or weakness to hire a part-time finance director. Rather it is a sign of professionality and strength that proves business commitment and innovation. The job role can be a business owner’s best ally when financial data is requested by compliance auditors. If this sort of management for small and moderate-sized businesses was just a matter of adding and subtracting, any employee could manage the job. Providing accurate, reliable financial reporting on a daily basis makes good sense and saves time. Whenever time is saved in business, so is money. Costs for a part-time finance director is always a return on investment.