How to Outsource Your FD or CFO

Building a strong team can be challenging, particularly for start-ups or SMEs. Outsourcing presents a practical solution for companies facing skills gaps or growing their teams. As the roles of Financial Directors (FDs) and Chief Financial Officers (CFOs) have evolved, outsourcing has become the preferred method for many businesses when making their first executive finance appointments. This approach allows companies to access experienced financial leadership without the long-term commitment, providing flexibility and expertise tailored to their immediate needs.

Recruiting an FD or CFO internally is difficult if you don’t have an existing financial team in place. Outsourcing your FD or CFO gives you the flexibility to appoint a financial executive on a full-time, part-time, or interim basis.

At FD Capital, we work with companies to identify their specific needs when outsourcing an FD or CFO. Every company is different, whether you’re focusing on fundraising, growth strategy, or undergoing a merger.

We like to think of CFOs as a company’s ‘chief future officer’. It’s a leadership position that involves more than just number crunching. Understanding the benefits of outsourcing your FD or CFO can help you unlock the potential of adding a financial executive to your leadership team.

What a CFO Brings to Your Company

Every company is unique and there’s a CFO out there for every organisation. While CFOs offer a variety of benefits for companies, they have several key responsibilities that apply to every company.

Working with a recruitment agency allows you to tailor your search for a CFO who meets your company’s specific needs. You can streamline the process and outsource a CFO who fills your skills gap.

1. Financial Strategy

The principal job of an FD or CFO is to oversee a company’s financial health strategy. Most CEOs don’t have the skills for scaling a company and navigating financial systems, including cash flow and recession planning.

CFOs provide data-driven insights into the company’s position, translating their forecasting and analysis into more accessible language for the leadership team and stakeholders.

A company may hire a CFO with the purpose of restructuring its financial systems, developing a new strategy, or engaging with fundraising partners.

2. Strategic Insights

A CFO acts as a second-in-command to the CEO, providing them with the strategic insights to fuel their decision-making process. Their forecasting and financial analysis feed into the company’s strategy, from supply chain resilience to employee retention.

A company will rely on their FD or CFO to determine whether a proposed strategy is financially viable and put plans in place to guide the company through financial turbulence and market volatility.

A CEO needs an FD or CFO to provide an unbiased perspective on the company’s finances and work in unison with them to develop short and long-term strategies.

3. Fundraising

One of the most common reasons why a company will outsource a CFO is when they’re fundraising. Companies choose to hire an FD or CFO when they are seeking to raise capital, whether from independent investors or PE houses.

It’s a win-win for start-ups and SMEs as investors are more likely to have confidence in a company with CFO on their team. Investors will expect a CFO to keep them up to date on the company’s financial situation and provide an unbiased point of view.

4. Internal Audits

When a CFO joins a company, they need to get on top of its financial health. Many FDs and CFOs start by conducting an internal audit to understand the company’s cash flow, supply chain, and internal systems.

Outsourcing an FD or CFO allows a CEO to hand over the company’s financial tasks to an experienced professional. Carrying out an audit enables a CFO to understand the full picture and identify potential areas of cost saving or growth potential.

Why You Should Hire an FD or CFO

CFOs and FDs aren’t just number crunchers. Both work alongside the company’s CEO to oversee the financial department and act as senior advisors, while engaging with stakeholders and colleagues.

The versatility of a CFO or FD means you can outsource a financial professional who meets the specific needs of your business. FD Capital’s portfolio of senior financial executives includes experts in rapid growth, e-commerce, turnarounds, and venture capital. We’ve connected companies with CFOs skilled in debt refinancing, mergers, and acquisitions.   FD Capital offers both an FD and CFO headhunting service so you can find an ideal candidate.

1. Fill your skills gap

Every start-up and SME has a skills gap, especially at the top. Companies outsourcing for their CFO or FD should identify the gaps in their team. It’s not uncommon for a company to hire an interim CFO for a specific task, such as fundraising or restricting the company’s finances after a loss of income or investment.

A company may choose to fill the skills gap of its CEO to create a complementary partnership between the CFO and CEO.

2. Affordable Hiring Options Available

Companies often assume they need to be making millions in turnover to afford a CFO. The benefit of outsourcing is that you can recruit an FD or CFO on a part-time, interim, or remote basis. It enables start-ups and SMEs to access the experience of top financial professionals without the financial burden of a full-time position.

Choosing a part-time CFO is cost-effective and removes the burden of additional costs, such as training and equipment.

3. Lower Company Risk

Choosing to outsource an FD or CFO lowers the risks the company faces and allows you to trial the position and your chosen candidate. Your company can expand the CFO’s responsibilities as the company grows and there’s a greater need for a full-time employee.

Outsourcing is a win-win for smaller organisations, giving you all the benefits of an in-house FD while determining if your chosen candidate fits your company’s culture.

4. Develop a Growth Strategy

When should you hire an FD or CFO? When you’re preparing to grow your company to the next stage of its cycle. Hiring a part-time or remote CFO will unlock your company’s potential with a growth strategy that accounts for its financial situation.

A CFO or FD will put systems in place that will prepare the company for expansion, including ensuring cash flow. They’ll prepare a strategy for transition periods and identify areas of potential growth, even during market uncertainty if the company is well positioned.

Growing Demand for Outsourced Part-Time CFOs

At FD Capital, we’re sustainable growth in demand for outsourced part-time CFOs. More skilled financial professionals are choosing to work on a part-time basis, lending their skills to various start-ups and companies. Part-time CFOs can work in hybrid offices, in your office, or fully remote.

Some part-time CFOs are hired with specific projects in mind, such as fundraiser engagement. Others are brought in permanently, developing their role alongside the company’s growth.

The role of CFO has evolved more than ever before, moving beyond spreadsheets and data charts. A part-time CFO removes the financial responsibilities from a CFO’s workload. Hiring an FD or CFO gives your CEO more time to work on product development, recruitment, and stakeholder engagement.

Outsourcing your CFO means they can support your core team, allowing them to focus on their individual responsibilities.

Why You Should Consider an Interim CFO

Outsourcing an interim CFO is ideal for companies that have a specific problem that the CEO requires help with. An interim FD or CFO works full-time on a short-term contract, usually up to 6 months. They’re typically outsourced at short notice with a specific purpose. You could choose to outsource a CFO to cover a leave of absence for another senior financial executive or to oversee an internal audit.

An interim CFO can work on debit refinancing or prepare your company for a merger or acquisition.

1. Experiment with the role of CFO

Hiring an interim CFO gives you the chance to test the position within your company. Working with a CFO helps the company’s CEO to focus on other aspects of the business while curating the position to the needs of the business.

A CFO is the CEO’s second-in-command and it can take trial and error to create a seamless working relationship. Outsourcing a CFO on an interim basis enables companies to explore what the role has to offer and adapt it as necessary.

2. Overseeing a Merger or Acquisition

If your company is transitioning into a merger or acquisition, you’ll need to lay the groundwork by outsourcing an interim CFO or FD. They’ll optimise the valuation of your company and ensure it meets M&A due diligence.

Most CEOs don’t have the specific skillsets for overseeing such tasks, whereas you can outsource a CFO who specialises in this area. The CFO will engage with relevant stakeholders, including board members and investors to keep them up to date.

3. A Fresh Perspective of Your Finances

Not every company starts with a financial executive on board. You can find yourself navigating tricky financial situations, especially when growing rapidly.

Working with a recruitment agency like FD Capital will identify your company’s needs and tailor the process to find a candidate who will fit your company culture. Most companies benefit from outsourcing a CFO to provide a fresh perspective on their finances. A CFO or FD will implement new financial systems and invest in technology to create a more streamlined workflow.

Outsource Your CFO or FD With a Recruitment Agency

How can you outsource a CFO or FD role? The best option is by working with a specialist recruitment agency. At FD Capital, we take a tailored approach to recruiting, identifying the individual needs of each business by working to connect them with a candidate who can hit the ground running.

1. Saves your company time and money

Conducting recruitment internally can be expensive and time-consuming. It takes the average recruiter 30 days to fill a position, even longer if they’re not an HR professional. Using a recruitment agency is more cost-effective and removes the manual labour involved, allowing your CEO to focus on the day-to-day running of the company.

You’ll still be actively involved in the recruitment process and will have access to an extensive talent pool of CFOs and FDs.

2. Shortlisting Candidates

Overseeing recruitment isn’t easy. Most of it involves administration work, including candidate screening and shortlisting. Working with a recruitment agency removes these tasks and gives you a short list of the most suitable candidates to interview.

We’ll narrow down the applicants and CVs to the candidates who best fit the specific needs of your organisation with experience in your industry. It means your company is more likely to find the ideal candidate quickly.

3. Agencies Have Industry-Specific Knowledge

FD Capital specialises in recruiting CFOs and FDs in a myriad of industries from e-commerce to construction and publishing. We have our finger on the pulse of financial recruitment, understanding salary expectations and industry trends.

Working with an agency means that you know what to expect, including how to onboard your new CFO or FD.

4. Agencies Excel at Temporary Positions

Are you outsourcing a CFO or FD at short notice? A specialist recruitment agency will have a pool of candidates available to start work within a few days of notice. This process is quicker than advertising externally, while still ensuring that you get a shortlist of high-quality candidates.

Building Your Remote and Hybrid Office

The key to outsourcing internationally? Developing a remote or hybrid working environment.

The pandemic turbo-charged the transition to remote working, making outsourcing easier than ever before. If you’re considering outsourcing a CFO or FD, you might be doing so on a remote basis. Your company needs to be prepared for building a remote or hybrid office to create a streamlined workflow.

Technology is key to achieving this. Investing in high-speed internet, video conferencing software and project management apps means you can outsource your FD or CFO position internationally to a wider talent pool. You might be interested in FD Headhunters.

One aspect of outsourcing internationally that you should consider is adjusting to a global office. You may choose to continue to work on your local time, making reasonable adjustments for an international CFO or FD.  You might be interested in CFO Headhunters.

Outsource Your CFO or FD Today

Enable your company to realise its potential by outsourcing a CFO or FD to guide your company’s success. At FD Capital, we pride ourselves on taking a curated approach to recruitment, connecting start-ups and SMEs with the right financial professionals for them. Start your outsourcing today by contacting our team at recruitment@fdcapital.co.uk.