The Smarter Route to Financial Control:
Could an Outsourced Finance Director Fuel Your Business to Success?
This article appeared in Edition 23 of the Scots Autoscene magazine created by the Scottish Motor Trade Association (SMTA).
The current economic climate is challenging across many sectors. Tight margins, cashflow pressures, staffing shortages, fluctuating demand, and rapid technological change are all taking their toll—and the motor trade is no exception. That’s why more businesses are turning to an Outsourced Finance Director (OFD)—a modern solution that combines senior-level financial expertise with the flexibility of a part-time or outsourced role, without the cost and rigidity of a full-time hire. Whether you’re a growing business or a seasoned owner seeking strategic financial guidance to navigate uncertain times, an OFD could be the smart alternative you need. Here’s why:
Data-Driven Decision Making
In today’s fast-paced business environment, outdated reports just don’t cut it. An OFD leverages the latest digital tools to deliver real-time dashboards, forecasts, and scenario modelling—tracking key metrics like margins per vehicle, aftersales profitability, and departmental performance. These insights enable smarter, faster decision-making. They also help ensure that financial data is not just accurate, but actionable—turning numbers into strategies that drive growth and profitability.
Strategic Financial Expertise Without the Overhead
Hiring a full-time Finance Director can be costly, especially for SMEs. An OFD delivers the same expert guidance, without the burden of salary, bonuses, and benefits. This allows you to make confident, informed business decisions—without unnecessary expense. OFDs often bring cross-sector experience, which can be invaluable in identifying efficiencies, benchmarking performance, and introducing new financial models tailored to your business.
Scalable Support for Your Business Cycle
One of the biggest advantages of an OFD is flexibility. Their involvement ramps up or down based on your needs—whether you’re expanding rapidly, planning a dealership sale, seeking investment, or adapting to shifts like the rise of EVs. During steadier periods, support can be dialled back, ensuring cost-efficiency and practicality. This adaptability also makes OFDs ideal for project-based work, such as system implementations or financial restructuring.
Independent Perspective, Fresh Insight
Business owners and in-house teams can sometimes be too close to the day-to-day to spot risks or opportunities. An OFD provides an external, impartial viewpoint, drawing on experience across industries. They can identify blind spots, challenge assumptions, and introduce innovative ideas. Their objectivity helps foster better governance and accountability, especially when reporting to boards or external stakeholders.
Measure KPIs
An OFD can help develop tailored key performance indicators that are pertinent to the individual organisation. These data-driven insights can be used to quantify progress towards strategic goals, focusing efforts and improving performance by offering a clear benchmark for success.
Improve Cashflow and Stock Management
In the motor trade, high stock levels can put pressure on working capital. An experienced OFD can help to optimise stock turns, negotiate better financing arrangements, and implement robust cashflow controls—keeping your business liquid, even during seasonal sales fluctuations. They can also help forecast demand more accurately, reducing overstocking and freeing up capital for growth initiatives.
Support with Regulatory Compliance
Motor traders face a complex web of financial regulations, from VAT on vehicle sales to FCA compliance for finance offerings. An OFD can support your business to stay compliant with evolving legislation, reducing the risk of fines or reputational damage.
Improved Budgeting for Marketing and Promotions
Motor traders often run seasonal campaigns or promotions. An OFD can help allocate budgets more effectively, measure return on investment, and ensure marketing spend aligns with overall financial goals.
Risk Management and Contingency Planning
From economic downturns to supply chain disruptions, the motor trade is vulnerable to external influences. An OFD can develop contingency plans, stress-test financial models, and help build reserves to weather uncertainty.
Succession and Exit Planning
Whether you’re planning to retire, sell the business, or pass it on to family, an OFD can guide you through valuation, financial due diligence, and preparing the business for a smooth transition.
Conclusion
In a sector defined by tight margins and complex financial demands, strategic financial leadership is more essential than ever. An Outsourced Finance Director offers the expertise, flexibility, and insight needed to build a more resilient, profitable business. By embracing this smarter, scalable approach to financial control, motor trade businesses can not only survive but thrive in today’s dynamic marketplace.
Carrie Campbell – Partner
Carrie is the partner responsible for managing our Edinburgh office. She has extensive experience in business advisory, OFD, taxation and statutory compliance, understanding the challenges faced by owner-managed businesses.