What Is A Virtual Finance Director?
A virtual Finance Director is a professional who provides financial advice and guidance to a company or organization remotely, usually by video conferencing software like Microsoft Teams or Zoom. By providing this service, businesses can save on the cost of hiring a full-time counterpart.
Virtual FDs can also be hired on a project basis to help with specific financial tasks or challenges. So if you’re looking for financial expertise but don’t want to commit to a full-time employee, a virtual Finance Director may be the right solution for you.
In this article, we’ll take a look at the role of a virtual FD, the benefits of hiring one, and how to know if it’s the right choice for your business.
What is a virtual Finance Director?
A virtual FD is an individual who provides financial leadership for a company from a remote location. Their role is to develop and implement financial strategy, manage financial risks, and provide financial advice and support to the company’s management team.
They are responsible for the overall financial management of the company, including the development of financial plans, the preparation of financial statements, and the reporting of financial results. The Finance Director also has a strategic role in the development and implementation of the company’s business strategy.
Despite working remotely, a virtual FD works closely with the CEO and other members of the executive team to ensure that the company’s financial goals are met. The virtual Finance Director model is becoming increasingly popular in today’s business environment as it allows companies to access the expertise of a highly experienced financial leader without incurring the cost of a full-time employee.
What is their role?
A typical day may involve:
- Directing financial planning and strategy.
- Reporting on financial performance.
- Overseeing audit and tax functions.
- Preparing forecasts and budgets.
- Training accounting staff.
- Reviewing department budgets.
- Assessing and managing financial risk.
Finance Directors require strong analytical skills, a strong aptitude in maths, and typically a degree in accounting, economics or finance. They will be technically proficient, with many years of financial management experience under their belt, and a broad knowledge of accounting, tax and finance.
What are the benefits of hiring a virtual FD?
These days, businesses are increasingly looking for ways to cut costs and streamline operations. One way to do this is to hire a virtual Finance Director.
They provide all the same services as a traditional Finance Director, but at a fraction of the cost. Virtual FDs are also often more flexible and can tailor their services to meet the specific needs of your business.
Hiring a virtual Finance Director can help you to free up office space and reduce your carbon footprint. So if you’re looking for ways to save money and be more environmentally friendly, this is a great option.
Is hiring a virtual Finance Director right for you?
Every business is different, and there is no one-size-fits-all answer to the question. However, there are a few general guidelines that can help businesses to make the decision.
Consider your growth stage. If a business is still in the early stages of development, it may not yet need the level of financial oversight that a Finance Director can provide. On the other hand, if a business is growing quickly and starting to scale up its operations, it may be time to bring in someone with financial expertise to help manage the company’s finances.
Assess your financial needs. Businesses should assess their need for financial guidance and advice. If a business is struggling to meet its financial goals or faces complex financial challenges, it may benefit from hiring a virtual Finance Director.
A virtual FD is cost-effective. Businesses should consider the cost of hiring. While virtual Finance Directors can save businesses money on overhead costs associated with bringing on a full-time FD, they also typically charge higher hourly rates. As a result, businesses should weigh the cost of hiring a virtual Finance Director against the potential benefits of having access to expert financial guidance.
Ultimately, the decision of whether or not to hire one depends on your business needs. If you have the budget and you need someone with experience to take the financial reigns, a virtual Finance Director can be a great and cost-effective solution.
Finding the right FD for your business
Lacking senior financial leadership in your executive team? We can help.
Leadership Services provides part-time Finance Directors – with a minimum of 10 years’ board-level experience and a proven track record of success – to support businesses’ in their short- and long-term goals.
Get in touch today to learn more about how we can help you find the right marketing leader for your company.