The burden of complying with regulations means that many finance directors either have or are considering outsourcing specialist functions.
Noble Corporate Management polled finance directors of 100 AIM listed companies to discover their attitudes to outsourcing.
The research found that some 88 per cent of AIM company finance directors would like to achieve best practice in complying with corporate regulations, but 75 per cent are concerned about the increasing amounts of time spent on these.
Over 50 per cent do or would consider outsourcing health and safety risk management, over 40 per cent do or would consider outsourcing company secretarial and over 35 per cent do or would consider outsourcing HR.
The main reasons for outsourcing cited by respondents, were: it frees up time to focus on core business, it’s cost effective and it provides access to high-quality personnel.
David Page, chief executive of Noble Corporate Management, commented: “Clearly companies must run their businesses in line with EU and UK regulatory rules and regulations.
“Directors of small to mid-sized businesses are considering outsourcing as a way of managing the very real risk of non compliance. This may be as a result of just not being aware of rules they need to follow or not having sufficient time and the right resources to comply with regulations without distracting from their core business efforts.
“Outsourcing, when well managed, can free up directors’ time so they can focus on core business as well as giving them the confidence that they are complying with their legal and regulatory requirements.”