Why An Outsourced Finance Department?

As business owner you might be looking to optimise costs and get better strategic support (value). This is precisely why an outsourced finance department gives you!

Just to employ internally an accountant or financial controller will cost you £70,000 a year. They will look after:

-bookkeeping & payroll

-tax returns

-production of statutory financial statements compliant with law and accounting standards

-tax planning

-cashflow management

Then, you need support for your strategic decisions to grow and make a profit. For that you will need a finance business partner. They will look after:

- your budgeting to plan for the future and control costs

-product profitability to see which products you should sell and produce more

-the net present value of an investment, such as marketing, to see if it worth investing

-cost, price and volume analysis to increase profits

-optimisation of scarce resources

That finance business partner alone will cost you another £70,000 a year.

So to get both you are paying £140,000 minimum

An outsourced finance department will provide both of these for a fraction of that cost and with better qualified professionals since that outsourced finance department is run by business owners just like you who understand the importance of:

-a business strategy and how to craft it

-either to grow organically or by acquisition

-product lifecycle

-the importance of pricing products correctly

-how to lead a business and adapt to changes

Hence, an outsourced finance department also advise you on these 5 key areas above.

You don’t get that either with your accountant, which you might see quarterly (and that is too much) or with in-house employees who are not business owners.

Both the accountant or the in-house employees will cost you more and give you less than an outsourced finance department which offers more intrinsic value.