See our Register of Part-time Finance Directors in the UK

The right person can be difficult to find as many part time FDs don't have their own websites. To avoid having to rely on word of mouth contacts, we've set up a register of people who are interested in part-time Finance Director roles and we hope this will grow into a list that covers all of the UK.

If you are an experienced FD and you are interested in adding your name to the list please read our terms and if acceptable email me, Paul Simister at paul@plancs.co.uk

What's in a name?

If you are not keen on the phrase "part-time Finance Director" please don't worry. I don't like it either but it seems to have been generally adopted by the trade and industry although other people use Virtual Finance Director, On-call Finance Director, Flexible Finance Director or Outsourced Finance Director.

I'm sure you get the core principle of the idea - the right person with the necessary financial skills available at the right time but only when you need it.

A better alternative may be the phrase used in the Beermat books - the "finance cornerstone" - the rock that the financial aspects of your business are built on.

The Difference Between Accounting and Financial Management

Many smaller businesses don't appreciate the key differences between accounting and financial management until they experience it for themselves.

Put simply, your internal (or external) accountant keeps the books and records of the company and is responsible for transaction processing and the reporting of those transactions.

By its very nature, the role is mainly backward looking as it focuses on the recording and reporting of past events.

Your financial director has a forward looking financial management role where the primary concern is the future financial health of your company.

This is about changing the future to one where your business can thrive and prosper. It's a proactive wealth creation role that involves making sure that the right commercial and financial decisions are made at the right time for the right reasons.

While different people on the Finance Directors register may work in slightly different ways, have a read of the pages describing our monthly financial review, decision support and strategic business planning services.

What To Look For When Recruiting A Part Time or Virtual FD

1. You need a part time Finance Director who you can work with and trust. The right person will be an invaluable member of your management team.

2. You must be confident that your part time Finance Director has the right skills and abilities that your business needs.

We recommend that you look for a chartered qualification - FCA, ACA, CA, (chartered accountants) FCCA, ACCA (chartered certified accountants) or FCMA, ACMA (chartered management accountants).

The F stands for Fellow and the A means Associate.

After the accountant passes the final exams and satisfies their Institute or Association that they have also had appropriate experience they become Associates. After a certain number of years they can apply to become Fellow members if they can show more extensive experience.

3. Your virtual FD should be interested in your business and will want to get to know it in detail. Every business is different and you want someone who will look for and value those unique features that make your business special.

4. A good part time Finance Director will be experienced in working in different industries and in different sizes of businesses.

It can seem counter-intuitive but often it's a good idea if the person doesn't have experience of your particular trade. That way you get a fresh approach rather than the same old tired industry recipes that may have contributed to business success 20 years ago or those practices that are currently being used by all your competitors.

5. Your virtual Finance Director should be comfortable working under pressure and achieving deadlines. Part time does not mean any less than full commitment.

Your part time FD must care about your finances as if they were his or her own. There is no room for half-hearted commitment when it comes to money.

Look for someone who has made the career decision to work this way and has a small portfolio of clients rather than  someone with a full time job who will handle your business finances in the evening.

6. A part time FD who's been there and already done it.

If you are close to your bank overdraft limit? Then find a part time Finance Director who is used to working in turnaround situations.

Are you growing fast? Look for a virtual FD who has helped companies through the inevitable growing pains.

7. Your virtual Finance Director must be prepared to take responsibility and be held accountable.

8. The true nature of the on call or part time FD is that they must be capable of giving you a flexible time commitment. If you need a meeting during the day then your part time Finance Director service can't be limited to an after hours service.

Improved financial performance comes through the successful integration of business strategy combined with appropriate sales, operations and financial tactics.

The more commercial your part time FD is, the more your Finance Director understands the real drivers of performance, the more successful the appointment will be.

We believe we might be the answer for your business and that's why we offer a part time Finance Director service.

If you are based in the West Midlands, why not give me (Paul Simister) a call on 0121 554 4057 to arrange a chat. There is no charge, obligation or selling pressure.

When You Really Need A Part Time Finance Director

There are some particular situations where it is very important to establish strong financial controls by having your own Financial Director:

1 - You don't know how your business is performing - that's a bit scary when you stop to think about it but very common.

2 - Profits are not increasing as fast as sales - "turnover is vanity, profit is sanity" is an old banking mantra but many business owners have been fooled by top line growth.

3 - Your business is growing fast, putting strains on cash, staff and systems. Growth is exciting but demanding, constantly moving the company outside of its comfort zone.

4 - The business is losing money - this can't be sustained long term and the sooner something is done, the better the chance of a successful turnaround.

5 - You're held back by a shortage of funds. Banks and investors need confidence in the management and the lack of a skilled finance person will make your team appear unbalanced and hold back your ability to raise finance.

Check to see whether you are making these common finance mistakes?

The engagement process

When you have found the right part time or virtual Finance Director for your business, you need to clarify the rules of engagement.

If you take the person onto the payroll then normal employment rules should apply with the person issued an offer letter followed by a contract of employment.

However I would usually expect the part time Finance Director to be self employed, possibly through a company.

In this situation the professional accountant will send you an engagement letter explaining his/her understanding of the issues and the proposed work activities and details of fees. You would then sign a copy and send it back.

How much is this going to cost?

That depends on the experience and skills of the person you find as your part time Finance Director, your company's particular needs and your location.

This is a senior position and you do need to be prepared to pay for quality advice.

I'd encourage you to look on this as an investment in your business. The right person will save you money and help you build your business in the way you want to develop it.

Think in terms of £300 to £1,000 per day (or perhaps even more in Central London). It is a big range but you might be selecting between Finance Directors who can earn annual salaries of between £50,000 and £150,000 plus if they return to full time employment plus all the usual benefits.

There will be a big difference in the nature of the advice you are likely to get between the bottom and the top of the range.

You also pay a premium because you only pay the FD for the small amount of time you really need the specialist high calibre skills.

Remember when you are paying an hourly or daily fee it takes away all the employment issues of national insurance, pension contributions, car allowances, training costs (qualified accountants have an obligation to remain up-to-date in the areas they work), computers, recruitment fees, sick pay and if for whatever reason it didn't work out, in lieu of notice or redundancy costs.

This is definitely a situation where the Pareto 80/20 principle applies. You could get 80% of the benefits of a full time finance director through 20% of the usual time commitment.

How can we keep costs down?

You will find that some part time Finance Directors will offer a fixed monthly contract price while others will offer an hourly or daily rate with their time commitment depending on particular circumstances.

Each method has its advantages but you don't want your part time FD to be dragged into book-keeping issues and general administration. It is a waste of their special skills and would prove to be very expensive for you.

Make sure that you have good processes - both computer systems and the general procedures that affect inputs and outputs - and make sure that your accounts staff are well trained and motivated.

If you don't have good systems and staff, then this should be one of the first tasks that your part time Finance Director should tackle.

Your virtual Finance Director will want to minimise time spent working in the record-keeping and more time in making sure that you understand how the company is performing and how you can make it better.

Call me (Paul Simister) on 0121 554 4057

If you'd just like to discuss the concept of part time Finance Directors or ask any general questions that I haven't answered here before contacting someone on the register then just give me a call.

Part time or virtual finance directors bridge the gap in the finance function between a small company and big business.

While it's not a new concept, it is still not as widely known or used as it should be. Instead growing businesses recruit a full time accountant but they don't make this crucial jump from accounting to financial management - this jump from record-keeping to future  wealth creation. And that means that they don't get the full benefits of their investment in financial management.

Please don't make that mistake - find yourself a flexible finance director, a part time finance director, a virtual finance director. The term doesn't matter, but the role could be crucial and there is no better place to start looking than our Register of Finance Directors.

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