Most businesses have an accountant, but not all businesses have a Finance Director.  An outsourced finance director could be a first step in you building a comprehensive in-house finance function in your business at a fraction of the cost of hiring.

An outsourced finance director can bring many benefits to your business including cost savings, greater efficiencies, improved financial management and reporting, reduced risk, better decision making, increased compliance and strategic financial planning for future growth.

What is an outsourced finance director and does my business need one?

Firstly, let’s look at the role of a Finance Director (FD). FD’s are generally responsible for the management of your company’s financial performance. However, a modern FD will undertake much more than that within their role. For example, an FD will be responsible for the following:

• Analysing current and past financial performance.
• Setting fully integrated budgets and Key Performance Indicators (KPIs).
• Building strategic financial plans and strategies that drive business growth.
• Ensuring full compliance with current and future legislation.
• Creating sound financial procedures and policies.
• Minimising business and financial risks.
• Assistance and support when seeking additional finance.
• Advice and support in taking your business forward and growing the business.

Bringing an FD into your business can bring a wealth of benefits, but a full-time in-house FD can be a costly addition to your team. However, by using an outsourced FD, these benefits can be realised but at a fraction of the cost. . Many company owners use their accountants to provide these types of outsourced FD services as your accountant will already know the business inside out.

Benefits of an outsourced Finance Director

Cost efficiency & cost savings

Investing in a full-time FD can be a big investment and a very important one. Finding and recruiting the right person can be time consuming. Outsourcing is an extremely cost-effective way of beginning to better manage your financial operations and provide help and advice as your business grows.

An outsourced FD will be able to carry out all the core services an in-house FD can but at a lower cost than having a full-time employee.

Often an outsourced FD can be more versatile and flexible in the time you need from them. An outsourced FD service can be scaled with the needs of the business, adding additional time or responsibilities as the business changes. For example, if you’re looking to make an acquisition or are in a period of rapid growth, it may be useful to have additional support from your FD.

It can also be the start of the build your in-house finance team initially without the need for a huge financial investment. So, an outsourced FD can provide an excellent short-term solution.

Financial management & improved financial reporting

One of the key roles of an FD is to set up your company’s financial reporting in a way that works for you, potential investors and potential future purchasers.

Managing your finances closely and assessing your financial health regularly can help to identify areas of improvement quickly and help you to make faster decisions.

Having accurate, up to date, tailored financial statements and reports will help you make more informed decisions, track your financial performance and manage risks.

Increased efficiency

An FD can have a significant impact on your company’s efficiency by streamlining your financial processes and procedures whilst maintaining levels of control. Having efficient processes and procedures can save both time and money.

Access to extended expertise

Outsourced FDs (such as Barnes Roffe) will work with other businesses across a range of sectors. Because of this, an outsourced FD is likely to have a much wider range of experience and knowledge compared to an in-house FD.

Add to this extended experience of dealing with a wide variety of other professionals such as banks, solicitors and stakeholders – the breadth of knowledge an outsourced  FD can bring to your company can be huge.

Reduced risk

An FD should be responsible for managing financial risks in the business. An FD can help to protect your company from financial losses and ensure that your company is financially stable.

Improved strategic decision-making

An FD should fully understand your business goals and help you to make long-term decisions about your company’s future, growth, investments, acquisitions, products and services. What’s more, you can make these decisions based on sound financial insights and analysis.

Compliance

Financial and tax compliance can be a complex area and whilst your accountant will fulfil this role, an FD can add to this by having a more in-depth knowledge of the day-to-day processes and procedures in the company.

An outsourced FD can also be the bridge between you and your auditors. They can field the queries and release some of the pressures that come with that process.

Assistance with business growth and raising capital

It may be that you are looking to acquire another business as part of your growth plans, launch a new product or service or expand your premises and workforce. All of these things may require a business plan, funding and in-depth financial management and analysis.

An outsourced FD should have experience in all of these areas and relationships with potential funders. An FD can help you to develop a financial strategy that will support your business’s growth goals.

Objectivity

An objective and unbiased perspective on your business is another benefit of an outsourced FD, rather than an in-house FD. An outsourced FD will not be involved in potential day to day politics within the business, will be less emotionally attached and may be less afraid to push back and challenge you.

Flexibility

An outsourced FD’s scale of involvement can be tailored to your needs. You may already have a good finance team but need help with the annual compliance, financial statements and audit or you may need a full hands-on service. Having an outsourced FD allows to chose what level you need and to tailor that service as and when required.

How does an outsourced FD add value to a business?

One of the key factors that will drive your future business value relate to the financial management of your company. If you want to sell your business in the future, then the financial elements that will affect and increase business value if managed well are:

Cash flow – Buyers will calculate the value of your business by estimating future cash flow and predictable cash flow, assessing the risk associated with generating that cash flow. An FD can help with cash flow management, which is key to increasing value.

Revenue – Buyers are likely to look at the previous three years’ financial data. Showing steady but consistent revenue growth is better for business value than sharp spikes in revenues. Forecasts of future revenue are important to the value of your business. An FD will be responsible for ensuring your financial reporting and forecasting is accurate and up to date.

Capital structure – Capital structure is the combination of debt and equity that you use to fund operations and growth. An FD can help you to reduce debt or refinance debt to a cheaper source of debt to increase value.

Clean financials – Having clean financials and a number of years of audited accounts can also add value to your business. Both an FD and undertaking an audit process can help to highlight areas of improvement such as ways to improve management information, compliance, and minimise risk. All these areas, if acted upon, can add business value.

Download a copy of our increasing business value guide here for more information.

How to work with and make a success of an outsourced FD

An outsourced FD still needs to be integrated in the business and have access to areas of your business including:

• Visibility into the future plans and goals and potential future financial requirements.
• Access to your accounting and key business intelligence systems.
• Attendance at director and board meetings.
• Clarity on any current targets, financial goals and KPIs within the business.
• Access to other members of the management team and external funders/suppliers.

Summary

There is no doubt that an outsourced FD can not only bring huge benefits day to day in your business but can ultimately help to add value to your business longer term.

Having an outsourced FD can provide innovative solutions to financial challenges, reduce risk, help with strategic planning, implement compliant systems and processes, advise on long term growth and help you to make better informed financial decisions.

Here at Barnes Roffe, our partners often take on the role of an outsourced finance director for their client’s businesses. Our experienced team deal with a wide range of different businesses and can bring that experience to your management team.

Contact us today for more information about outsourcing all your financial director needs.

Related articles:

Does my UK subsidiary require an audit?

How do I increase the value of my business?

Payrolling benefits in kind to become mandatory from April 2026