Contract or Permanent Finance Roles: What Each Does to Your Career
Contract finance roles are a big part of the market in Australia and New Zealand. Businesses hire contract Financial Controllers to cover parental leave, fill a gap after a resignation, fix a problem or get through a system implementation. Contract Finance Managers step in during restructures, audits and busy periods.
Contract work can be a smart career move. It can also slow your progress if you drift from contract to contract without a plan.
If you are weighing up a contract role against a permanent one, or wondering whether contracting suits you long term, this article explains what each option does to your career, your resume and your next move.
Why people choose contract roles
People take contract finance roles for many reasons.
To get back into work quickly after a redundancy
To try a new industry or type of business without long-term commitment
To get experience at a more senior level than a permanent employer would offer
To earn a higher daily or hourly rate
To have flexibility between assignments
To work on projects, such as system implementations or turnarounds, rather than business as usual
Each of these can be a good reason. The key is knowing which one applies to you.
The advantages of contracting
Variety. You can work across different industries, systems and business sizes in a short time. That breadth can make you more adaptable and more valuable.
Access to bigger roles. Businesses sometimes take a chance on a contractor for a role they would not give a permanent candidate with the same experience. A contract Financial Controller role can be your first taste of the job.
Speed. Contract roles often move quickly. Interviews are fewer and decisions faster.
Pay. Contract rates are often higher than the equivalent permanent salary, although you usually give up paid leave, bonuses and security.
A way in. Many contract roles turn into permanent positions when the business likes the person.
The disadvantages
Less depth. Short contracts can mean you fix problems or maintain processes without seeing the long-term results.
Resume questions. A string of short roles can look unstable to permanent employers if it is not explained well.
Limited leadership development. Contractors are sometimes kept away from long-term team decisions, hiring and development.
Income gaps. Time between contracts can be unpredictable.
Slower progression. Without a permanent role, it can be harder to build the long record that leads to Head of Finance or CFO.
How contract work reads on a resume
Permanent employers look at contract roles in one of two ways. Either as valuable, varied experience, or as a sign that the person could not find or keep a permanent job. The difference is almost always in how the roles are presented.
Make it clear that each role was a contract. Include the reason, such as parental leave cover, vacancy cover or a project. Show what you delivered. That turns a list of short roles into a record of results.
Contract Financial Controller (six months, parental leave cover), national retailer
Led a finance team of five for a $140 million retailer through year end and audit.
Delivered the full-year audit with no material adjustments.
Fixed a $300,000 inventory reconciliation issue that had carried for 18 months.
A reader immediately understands the context and sees a clear contribution.
Grouping contract roles
If you have had several short contracts, consider grouping them under one heading. “Contract finance roles, 2023 to 2025” with each assignment listed briefly underneath can make your resume clearer and reduce the impression of instability.
Put the most relevant contracts first or give them more detail. Short assignments with limited results can be listed in a single line.
Contract roles as a stepping stone
Used deliberately, a contract role can accelerate your career. A contract Financial Controller role gives you real experience in the job. A contract role in a new industry gives you sector knowledge. A contract on a system implementation gives you project experience.
The key is choosing contracts that add something to your story. Before accepting, ask what the role will let you show in two years’ time. If the answer is “the same as I have now, in a different building”, it may not be the right contract.
When permanent is the better choice
A permanent role is often better if:
You want to build a long-term record of results in one business
You are aiming for Head of Finance or CFO within the next five to seven years
You want to lead and develop a team over time
You value security, leave and benefits
Your resume already has several short roles
Permanent roles let you see the results of your work over time. That is what builds the strongest evidence for senior roles.
What about interim and fractional work?
At more senior levels, contract work often becomes interim or fractional. An interim Financial Controller or CFO steps in for a defined period, often to fix a problem or lead a change. A fractional finance leader works part time for one or more businesses.
These can be excellent options later in your career. They depend on a strong reputation and network. For more on how these options compare at senior level, see interim, fractional or permanent CFO.
How to talk about contract work in interviews
If you are applying for a permanent role after contracting, expect the panel to ask why you want a permanent role now, and whether you will stay.
Answer clearly. “I took contract roles after my redundancy to stay active and gain experience in three new industries. Now I want to commit to one business and build something over several years.” That is honest and reassuring.
Show that you have enjoyed contracting but that you are ready for the depth that a permanent role offers.
Negotiating contract rates
If you do take a contract, understand the rate. Contract rates are usually expressed per hour or per day and need to cover your leave, super where applicable and time between contracts. Recruiters will often give you a range. Know your minimum before the conversation starts.
Also check the contract terms. Notice periods, extension options and whether the role could become permanent all matter.
Why businesses hire contractors
It helps to understand the other side. Businesses usually hire contract finance professionals for one of four reasons. To cover an absence, such as parental leave. To fill a gap while they recruit permanently. To deliver a specific project, such as a system implementation or audit clean-up. Or to add capacity during a busy period, such as year end or a restructure.
Each reason creates different opportunities. Vacancy cover can turn into a permanent role. Project work builds strong achievements. Leave cover gives you a clear end date and a clean story. Knowing which type you are taking helps you plan your next step before this one ends.
Keep building your network
Contractors rely heavily on recruiters and referrals. Every assignment is a chance to build your reputation. Deliver well, leave on good terms and stay in touch with the people you worked with.
The CFO who hired you for six months may be the person who calls you for a permanent Financial Controller role two years later. Many strong careers in finance are built on exactly these relationships.
Protect your references
With several short roles, your references become even more important. A permanent employer will want to hear from people who saw your work. Before you finish each contract, ask your manager whether they would be willing to act as a referee, and keep their details current.
A consistent set of strong references across contracts is one of the best ways to reassure a permanent employer that your contract history reflects choice, not instability.
Staying current between contracts
Gaps between contracts are normal. Use them well. Keep your CPD up to date, learn a new system, complete a short course or help a not-for-profit with their finances. When a recruiter asks what you have been doing, you will have a clear answer.
Contracting in a slow market
When the permanent market slows, contract roles often hold up better, because businesses still need work done but are cautious about adding permanent headcount. That can make contracting a useful option during uncertain periods.
It can also be a way to keep your skills current and your network active while you wait for the right permanent role. Many finance professionals use a contract to bridge a gap, then move into a permanent role through someone they met on that assignment.
Tax and admin
Contract arrangements vary. Some are through a recruitment agency as a temporary employee. Others require you to work through your own company or as a sole trader. Each has different implications for tax, super, insurance and paperwork.
Understand the structure before you accept, and get advice if you are unsure. As a finance professional, you will be expected to understand it, and getting it wrong can be costly.
Common mistakes
Drifting from contract to contract without a plan
Not labelling contract roles clearly on your resume
Taking contracts that add nothing new to your experience
Assuming a contract will become permanent without asking
Not explaining your move back to permanent work in interviews
Your next step
If you are choosing between a contract and a permanent role, write down what each will let you show in two years. Choose the one that adds more to your story. If you already have contract roles on your resume, label each one clearly and add the result you delivered.
If you want your resume and LinkedIn to present contract work as a strength, my Gold package covers your resume, cover letter, LinkedIn and positioning strategy.
If you are unsure whether to take a contract or hold out for permanent, book a complimentary Clarity Session.
