Benefits of Fractional Finance Teams

Contents

• Introduction to fractional finance teams
• Cost-effectiveness of the fractional model
• Time-saving benefits and improved focus
• Access to expertise and technology
• Scalability and flexibility for growing businesses

Introduction to Fractional Finance Teams

As a business owner myself specialising in financial services, I believe it's crucial to start by clearly defining what a fractional finance team is. Many business owners might not be familiar with this concept, so I'll begin by explaining:

Fractional finance teams are a modern solution for businesses that need high-level financial expertise but don't have the resources or need for full-time, in-house finance departments.

These teams provide part-time or "fractional" services, allowing companies to access top-tier financial professionals at a fraction of the cost of hiring full-time staff.

In the context of Innovate Accountancy Limited, this model aligns perfectly with our service offerings. We provide tailored financial services for businesses, particularly in the manufacturing and construction sectors, with a focus on leveraging technology and automation to enhance customer service and provide strategic advisory support.

Cost-effectiveness of the Fractional Model

When discussing the cost benefits of fractional finance teams, I think it's important to highlight Innovate Accountancy Limited's tiered pricing structure. This allows me to demonstrate how businesses can choose a level of service that fits their needs and budget:

1. Compliance only (From ￡695pcm + VAT)
2. Compliance plus management accounting (From ￡1500 + VAT)
3. Full finance function with CFO support (From ￡3150pcm + VAT)

By comparing these costs to the salary and benefits package of a full-time CFO or finance team, we can clearly illustrate the potential savings. For instance, a full-time CFO in the UK might cost a company upwards of ￡130,000 per year, not including benefits and other overhead costs. Even at the highest tier of Innovate Accountancy's services, a company would be paying ￡45,500 per year for CFO-level support, along with a full suite of financial services. This is a fixed retainer with no hidden surprises and regular contact - as an extension to your team.

This cost-effectiveness allows small and medium-sized businesses to access expertise that might otherwise be out of reach, levelling the playing field with larger competitors.

Time-saving Benefits and Improved Focus

One of the key advantages of fractional finance teams is the time we save for business owners and executives. I'll emphasise how outsourcing financial tasks allows business leaders to focus on their core competencies and growth strategies.

For example, Innovate Accountancy Limited's use of tools like Zapier, Vuala.app , Dext, and Hubdoc along with botkeeper for automation of mundane tasks demonstrates our commitment to efficiency. This not only saves time for our clients but also allows the fractional finance team to focus on more valuable, strategic services.

I'll include a recent client testimonial to illustrate this point:

"Before partnering with Innovate Accountancy, my internal team was spending 75 hours a week on financial tasks between them and costing me over ￡200,000 a year on salaries PLUS associated costs. We now outsource this for ￡60,000 annually and I no longer need to hire team or have delayed reports and I no longer have to spend time micro-managing the team! Now, I can dedicate that time to business development and client relationships, knowing our finances are in expert hands."

Access to Expertise and Technology

A significant advantage of fractional finance teams is the access we provide to a wide range of expertise and cutting-edge technology. Innovate Accountancy Limited's focus on RPA (Robotic Process Automation) and use of cloud-based tools positions us as a forward-thinking partner for your business.

I'll highlight how this benefits clients:

1. Access to a team of experts with diverse skills and experience
2. Utilisation of the latest financial software and tools without the need for in-house investment
3. Continuous updates and improvements in processes and technology
4. Strategic financial input for business growth

This section will emphasise how Innovate Accountancy's approach goes beyond traditional accounting, offering strategic advisory support that can drive business growth.

Scalability and Flexibility for Growing Businesses Start with basic compliance services

1. Add management accounting as the business expands
2. Incorporate full CFO support when strategic financial guidance becomes crucial

This flexibility ensures that businesses only pay for the services they need, when they need them, avoiding the overhead of an underutilised full-time finance department.

Conclusion

In conclusion, fractional finance teams, as offered by Innovate Accountancy Limited, provide a modern, cost-effective solution for businesses seeking high-level financial expertise. By leveraging technology, offering scalable services, and providing access to a range of financial professionals, this model enables businesses to focus on growth while ensuring their financial operations are in expert hands.

For companies looking to optimise their financial functions without the burden of a full-time finance department, partnering with a fractional finance team could be the key to unlocking new levels of efficiency and success.

For more information on how outsourcing your finance team can save you and your business time and money - pop us a message or visit www.innovateaccountancylimited.co.uk and download our Virtual Finance Team Brochure.