Services
Financial Director Leasing
Small and medium-sized enterprises (SMEs) form the backbone of the Croatian economy, and due to their specific organizational structure, they often do not have a designated position for a Chief Financial Officer (CFO). The reason is simple—because of the smaller scale of operations, many companies do not see the need or justification for employing a CFO on a full-time basis.
Therefore, an increasing number of companies in Croatia are turning to the solution of leasing a financial director as a more flexible and cost-effective option. This is particularly useful for companies that need financial expertise in certain stages of business, such as growth phases, restructuring, or when facing specific financial challenges.
Why do many entrepreneurs not see the need for a CFO?
Internal accounting departments or external accounting services are often perceived as sufficient for providing necessary financial information, reports, and analyses. Management believes that this information covers all aspects of financial management.
Overconfidence of Management: Management often believes they already have complete insight into the key financial segments of the business and do not recognize how an external CFO could contribute to business quality or improve current financial practices.
However, here lies a key misconception. The lack of expert financial management can result in strategic oversights, especially when a company faces growth challenges or when liquidity becomes threatened. Failing to recognize the need for a financial director in a timely manner often leads to problems with business sustainability and the ability to meet long-term obligations.
An increasing interest in leasing financial directors in Croatia reflects a shift in awareness among entrepreneurs.
Companies are increasingly recognizing how an external CFO can assist in key aspects such as cost optimization, financial planning, liquidity management, and supporting long-term goals. Regardless of size, companies in Croatia are increasingly choosing to utilize this option as a strategic advantage.
Advantages of Periodic Financial Director Leasing:
- Cost Efficiency: Hiring a financial director for a fixed period provides a more cost-effective alternative to full-time employment, especially for smaller companies that do not require constant engagement.
- Improvement of Business Performance: A financial director helps identify key performance indicators (KPIs) and enables quality monitoring of cash flows, thus facilitating financially informed decision-making.
- Investment and Financing Analysis: Provides expert analysis of investment opportunities and advises on the best methods and sources of financing, optimizing the company's resources.
- Increase in Profitability: With expert knowledge, helps improve business profitability through cost optimization and capital management.
- Budgeting and Control: Actively participates in budget preparation and helps monitor deviations, ensuring the business stays within financial goals.
- Reorganization of Financial Management: Offers advice to improve existing financial management, policies, and procedures, ensuring their alignment with business needs and legislation.
- Strategic Planning: Participates in setting strategic goals and developing a business plan, and monitors its realization, contributing to the company's long-term growth.
- Liquidity and Capital Management: Optimizes operating costs by managing liquidity and working capital, thus ensuring business stability.
- Department Organization: If necessary, can take over supervision and control of key departments like accounting, controlling, and human resources, optimizing their efficiency.
- Continued Support and Confidentiality: After the engagement is completed, remains available for consulting, respecting the confidentiality of business data, ensuring long-term support for the company.