Running a company is never easy, and to make it a profitable one is even more challenging. In order to keep the finances in check and gain as much profit as possible, companies hire finance managers.
A finance manager plays a vital role in the growth of a company. They are responsible for overlooking all of the financial aspects. From creating strategies to managing the cash flow, keeping an eye out for the financial reports, all sorts of accounting decisions, and putting a framework in place are all responsibilities of a financial manager.
A day-to-day routine of a finance manager is very hectic as they have to look after the balance sheets, be aware of the profits or losses. If there are factors causing the company to lose money, they have to find a way to fix it all. They have a lot on their shoulders, and if there is any financial issue, managers are expected to develop a plan and its implementation to keep the organization afloat.
People assume that small businesses do not require a finance manager or financial advisor, but it is far from reality. The size of a business doesn’t matter; the financial knowledge a finance manager brings to the table is required for small and medium-sized businesses to grow and big companies to sustain. Considering the responsibilities a finance manager has, it is safe to say that running a business without financial guidance is possible but not in the long run.
Having an in-house finance manager is always a great thing as they are physically present to handle everything but hiring a freelance finance manager has its perks. Let’s see if it is a good idea to hire a freelance finance manager.
Pro: Less Expensive
Freelance finance managers charge less money than a full-time in house finance manager. When you hire a finance manager for your office, you have to offer them several perks such as medical, PF, gratuity, bonuses, increments, and much more. All of these expenses turn out to be millions of dollars, and as a small company, you cannot afford all this.
You don’t have to take care of all of the extra stuff for a freelance finance manager. You only have to pay them for the task they are supposed to handle for you. Yes, you might have to increase their payments after a while, but that’ll still be much less than the expense of hiring an office-based manager.
Con: More Than One Client
Managing finances as a freelancer creates a lot of opportunities. A freelance manager would have more than one client on their priority list. They won’t be working solely for you as they will have more clients to deal with. Experienced freelancers are capable enough to handle multiple clients but if you are looking for someone who provides all their attention to your business, then hiring a freelancer is not an option for you.
Pro: The Best Work
Freelancers always have to maintain the best quality of work, or else the chances of their contract renewal will decrease. They cannot compromise on having a bad day or making a mistake as they are aware of the quality they have to maintain.
Freelance finance managers will put their best foot forward to build healthy professional relationships with their clients.
Con: Supervision is Hard
You cannot constantly supervise a freelancer. You have to keep tools and rely on other social platforms to stay in touch with them and know what they are up to. Also, the response time may be an issue. You can’t connect with them whenever you want to, and if there is a time zone difference, they won’t be able to reply to you immediately.
Pro: Employment Flexibility
The best part about having a freelance finance manager is that you can hire them according to the need of your project. If you think you need a manager to look after and plan the finances of a project you are beginning, then you can hire a freelancer.
Once the project is over, or you don’t need as much financial help and guidance as you did earlier, you can always let them go without any hard feelings. Freelancers are already aware of this implication, so you don’t have to deal with firing someone. You can communicate your requirements at the beginning of the agreement to avoid issues in the future.
Con: Communication Gap
One of the biggest reasons why companies refrain from hiring freelance finance managers is a communication gap. Because the freelancer is not coming to the office or might be from a different city or country, you can’t have meetings and conversations with them one on one.
This creates a gap, and there are chances of issues bubbling up. You are physically present for an office-based employee, but a freelancer will get back to you after they are done with a report of anything else. You will have to send them your responses, and so this process gets prolonged.
There are pros and cons for everything in this world, and so for hiring freelance finance managers. The cons can always be worked on, and with mutual understanding, all the problems may be solved. The pros, however, are hard to ignore as they are beneficial for your company in the long run.
We have explained the risks and benefits of hiring freelance finance managers; now, it’s up to you to decide what you want. It is imperative to know your requirements and limitations before making such decisions. If you don’t have too much money to spend, a freelancer would be the best option. If you want the person to be focused entirely on your company responsibilities, go for an in house employee.
Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.
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