Hiring a Financial manager -The pros & consrichard
Some business owners feel that having a financial manager in their company is critical. However some think of it as a “nice to have”. So what are the pros and cons of hiring a financial manager?
Pro #1: Your financial manager has insight into the economic environment around you.
Your financial manager not only understands how to construct financial statements, they understand the market forces that are creating competitive pressure and consumer demand too. With a well-informed financial manager at your side, you can better plan for the future of your business – both financially, and as a whole.
Pro #2: Your financial manager can free up your time to do what’s most important.
There was a reason you started or took over the business, and it wasn’t to scrutinise your debits and credits. Let your financial manager take away the stress of financial oversight and chasing invoices, and allow you to focus on what you do best: building relationships, innovating and growing your business.
Pro # 3: Your financial manager can ensure that your money is optimally spent.
If there was ever a time that you needed to ensure your cash made the biggest possible impact, it’s now. With the economy under its current strain, there is little margin for error, and risk in most industries needs to be curtailed. Your financial manager can help assess the upsides with the risks you are contemplating. They make sure your business is spending its money in the ways that will bring the best returns. They will help you make the smartest – and best informed – decisions around these and other questions.
Pro #4: Your financial manager can help your finance team function optimally.
Your financial manager should implement control measures that allow you to more easily trace where money is coming in and out. It should also increase the efficiency of your invoicing processes – meaning cash comes in more quickly. Your finance team, which could be made up of any number of senior or junior accountants, bookkeepers or clerks, will now have a greater level of accountability.
The Con: Your financial manager could be – but doesn’t have to be – expensive.
This is the probably the biggest reason why you haven’t brought someone on already… the cost! Who can afford another expensive full time resource?
Your concern is, of course, a valid one. Finance professionals are highly qualified and experienced, and usually command a hefty salary. But that’s where The Finance Team comes in. We’re at the forefront of a solution in South Africa, where we’ve built up a network of trusted finance professionals who can provide services on a part-time, ad hoc or interim basis. Think only paying for the time you need, and no more. Then evaluate that against the cost of spending your time on non-core activities for the business, or having a team that is functioning under-optimally. Contact us today to find out more.