As the pandemic has taken effect on almost every business in the land in some capacity or another, more business owners are realising the possibilities of automating and digitalising roles. Certain jobs which were part and parcel of the workforce, have since been shown to hold companies back due to the increasing demands and failure to bring in sufficient profits. By outsourcing or digitalising these roles, businesses are provided with a quality source of work without the high salary associated.
A finance director (FD) is one of the roles which has seen an increasing number of businesses take the virtual route. Finance directors usually warrant a large salary, however their role in a business shouldn’t be underestimated. FD’s deliver tailored strategic and financial guidance to ensure that the company’s financial commitments are met. As well as this, they also are a key component in developing all necessary policies and procedures to ensure the sound financial management and control of the company’s business. This leadership and expertise in finances can often be the difference between the success and failure of a business.
We analyse the benefits of acquiring a Virtual Finance Director (VFD), Norden’s bespoke offering in this field as well as take a look at some of the other roles in a business which could be virtually evolved in the future.
What Is A Virtual Finance Director & Why Should Businesses Hire Them?
A Virtual Finance Director may be the ideal option for you and your business if you need someone professional to manage your business finances, but you don’t necessarily have the funds to employ someone full time. Essentially, a VFD does everything that a regular Finance Director does, however they are not an employee and are most commonly outsourced to work remotely.
By handling all of the general responsibilities of a regular FD, a VFD allows you the peace of mind that your crucial financial information is dealt with care without a full-time wage coming out of your expenses. Many independent businesses or SMEs choose to go through the route of acquiring a VFD off the back of their business growing and they’re struggling to manage finances. By outsourcing this key job role to an appropriate professional, growth is continually achieved in a way that appeases all parties involved.
What Are The Benefits Of Switching To A Virtual Finance Director?
By hiring a VFD, you have chosen to take the next step towards securing the future of your business. Fortunately, here at Nordens we have a bespoke VFD offering which will only further support and grow your business past its current boundaries.
Unlike most VFD offerings from different companies, we pride ourselves on providing a whole team in doing the job of a business’s VFD. This means the accountability and resources are shared accordingly, whilst advising you on what key areas to focus on in order to achieve increased success and profitability. This naturally provides an efficient system of monitoring dealing with your finances, reducing the risk of errors and giving you the dedication and backing that your business deserves.
A VFD will be expected to:
- Prepare annual budgets & monthly accounts.
- Manage cashflow and rolling cashflow forecasts.
- Deliver crucial financial insight and critique business performance.
- Deal with tax planning.
- Implement a suitable, accessible, and high-quality accounting system.
- Create financial strategies to stimulate growth.
- Recruit and manage additional financial staff if needed.
- Notify you regularly of any updates as well as always being there as a support system.
Hiring a VFD will also avoid the full time overhead of a traditional FD, offering the flexibility and options to scale up or scale down operations to suit your preferred requirements. This cost-efficiency presents a high-quality service at the fraction of the cost. As well as this, due to VFDs working with a cross spectrum of clients, a new perspective is shared to solve issues, streamline processes, or invoke creativity when needed. VFD’s have the luxury of viewing your businesses as a separate entity to yourself and your employers, free of any conflicting emotions or biased views.
What Are Some Of The Other Roles Which Are Expected To Be Digitalised/Virtualised In The Workplace?
Due to the rapid acceleration of digitalisation and new technology in most industries globally, spurred on by the COVID-19 pandemic, it is predicted that many traditional job roles will become digitalised, virtualised or automated in the near future. A recent report by the McKinsey Global Institute, ‘The future of work in Europe’, estimated that up to 59 million jobs in Europe, or 26 percent of the total, are at risk in the short term through reductions in hours or pay, temporary furloughs, or permanent layoffs.
Leading Digital Sociologist at the University of Edinburgh, Karen Gregory, believes, “The digital divide is undeniable, as those that have access to and can use digital technologies will be able to create better life chances.” The mass evolution and reliance on technology for many businesses will likely see some jobs, such as admin, PA and receptionists to name but a few, slowly become obsolete in the workplace.
Most of these roles can seamlessly become digitalised or virtualised for employers, allowing them to focus on the growth and day to day operations of the company. For the people in these job roles, perhaps we’ll slowly see a shift in positions becoming readily available in agencies or companies which deliver a virtual offering to employers to outsource. One way or another, they will of course be needed, and their significance should never be minimised.
We hope this has outlined to you what a Virtual Finance Director (VFD) is and the benefits it can bring to your business. If you require any further information on our virtual role services, or anything accounting related for that matter, please don’t hesitate to get in contact with us at Nordens where one of our trusted advisors would be happy talking you through your query.