Part-time to Permanent FD
Adding a Finance Director to your team can be a game-changer for your business. In the early days, it might be unattainable for you to employ someone full-time in the role of Finance Director. It’s becoming more common for businesses to choose a part-time FD who works alongside them as the business grows, changing from part time to permanent when the time is right.
If you’re not sure what employment setup is best for an FD at your company, it’s always better to choose to start part-time. We’re taking a look at the benefits of choosing to take an FD from part-time to permanent.
Hiring a Part-Time Finance Director
Hiring a Finance Director part-time is a relatively approach within the industry. For years, it was assumed that a Finance Director is a position reserved for larger companies will a dedicated finance department. In reality, it’s small and medium businesses that benefit most from having a Finance Director.
Choosing to bring on board a part-time FD or CFO means that you can take advantage of their expertise and experience without paying a full-time salary. Most part-time FDs or CFOs are brought on board to implement the strategies and systems that SMEs need to support their daily operations. Beyond that, a part-time FD can focus on a specific project, such as fundraising and attracting investors.
An FD provides strategy and direction for your business, meaning it’s never too early to bring one on board on a part-time basis. When you choose to hire an FD part-time, you get all the benefits of a senior financial professional with a more flexible and affordable setup.
Choosing to hire your FD part-time suits most finance professionals as changes in IR35 regulations means it is less attractive for them to be working on a freelance basis. These changes to off-payroll working rules make it easier for FDs to be hired as part-time employees than as contractors through their own limited company.
The Benefits of an FD or CFO
If you think it’s out of your budget to hire a full-time FD or CFO, choosing to employ one part-time is your best alternative. Every business can benefit from having an FD on board to oversee the financial operations and development of the company. Whether it’s payroll, office budgets, or attracting investors, an FD’s role is far-reaching.
FDs are qualified accountants who are experienced within the industry and have a network of connections and colleagues that they can turn to. The difference between an FD and an accountant is that they are focused on the commercial success of the business and often play a leadership role similar to that of the CEO.
If you’re looking to expand your business and maximise your profitability, a Finance Director is key to articulating and developing a tailored strategy that acts as a roadmap for your business. Your FD oversees both day-to-day operations like office budgets, alongside long-term planning, like applying for public grants and fundraising initiatives.
One challenge that SMEs often face is cash flow problems. Whether you’re looking to implement a strict budget or apply for loans, an FD has the skills to make it happen. Having an FD on your team gives confidence to any third-party source of funding, whether it’s a bank or private investor. A key part of their job is to forecast cash flow to allow your business to plan for the future and identify potential issues as early as possible.
You might also decide to bring your FD on board to deal with crisis management. Whether it’s cash flow issues, developing relationships with suppliers, or improving your existing systems, a part-time FD can focus on a specific aspect of your business operations. Your FD can identify the problem and provide an actionable solution, even while working part-time.
Hiring an FD on a part time to permanent basis means that you can enjoy the strategic benefit of their expertise without paying them full-time. As your business grows commercially, you can choose to move your FD from part-time to permanent as the need arises.
An FD is an asset for your business, and their expertise comes at a price. Choosing to start your FD on a part-time basis allows you to take advantage of their expertise without going outside your budget.
Changing your FD from Part-Time to Permanent
With this setup, you can choose to change your FD from part time to permanent as your business grows and develops. You’ll naturally find that you’re relying more on your FD as time goes on. They’re largely viewed as the second in command to the CEO.
One of your long-term business plan goals should be to convert your FD from part time to full time. You’ll know it’s time to make the switch when it becomes clear that there’s more work for your FD to do. The reason you want to start by employing your FD part-time is that it’s more cost-effective.
The role of FD is an investment into the future of your business. When the time is right, you want to switch your FD from part time to permanent to facilitate further growth. Whether it’s overseeing day-to-day operations or attracting investors, your FD will always have something that they can be focusing on to expand your business.
Your FD or CFO should grow with your business. You can gradually bring your FD on board full-time as your business grows and requires them to be there more than a few hours or days a week.
At FD Capital Recruitment, we recruit Finance Directors and CFOs who are available on a part-time basis. Your FD can grow with your business, changing from part time to permanent as the need arises within your company. If you need an FD in London, the Southeast, or the West Midlands, reach out to us today. We have a growing network of highly skilled FDs and CFOs, located from Birmingham to London, who are available to work part-time with your business.
Finding a Part-Time to Permanent FD for your business
Here at FD Capital we focus just on Finance Directors and CFO’s so if you need a part-time to permanent FD reach out to us today and we will find the perfect candiate for your business.