Not every business can afford a Finance Director but there is now a growing industry and market for Portfolio Finance Directors. This is where an experienced FD works for more than one company at the same time and therefore has several part time jobs at the same time.
There are many benefits for everyone concerned.
For the Company it means the business can afford an FD and the great skills they bring but without having to pay the full cost of one.
Also the skills an FD brings may not be needed all the time but still regularly enough to have someone on board rather than being brought in on an ad-hoc basis.
From the FD's side it means their working life is more varied and more of their higher skills are made use of. Often but not always they are paid on a daily rate so whilst their income is a little more uncertain the total itself is higher.
As an example an experienced FD outside of London, can expect to earn around £90K per annum whilst a Portfolio FD will earn £125K if they work 5 days per week, however often they work 3 or 4 days, which in itself brings a better work life balance.
Most Portfolio FD's work via their own personal services company, this also has a number of benefits as the travel to work mileage can be claimed as a deductable expense rather than being home to work mileage it is home base to client.
Dividends are not subject to National insurance so drawings can be taken from the business in a way that attracts a lower amount of National insurance contributions.
An experienced Portfolio FD has to either belong to a networks of Accountants which brings new clients or otherwise be something of a sales person spending some time each week looking and prospecting for business for example by attending busines breakfast events or other networking opportunities.
A lot of work does get refered by Auditors and Lawyers so there is an existing network for this type of thing but it can be a challenge at times to break into these if you dont start out with exisiting contacts.
https://t.co/JhxKElnbPK nice post on theodysseyonline
— FD Capital (@FDsCapital) April 22, 2019
