Business owners often handle their own bookkeeping for many reasons that include fear of delegating sensitive financial information, wanting complete control and keeping staff costs lean. Those reasons, which may be valid for startups and smaller operations, grow increasingly impractical as your business grows.
Some owners delegate accounting duties to trusted family members or staff, but the most successful and savvy entrepreneurs learn quickly that accounting and finances are the lifeblood of business and deserve professional management from skilled financial specialists.
EFM financial controller, Tracy Lewis, has stated the importance of hiring an FC and how it can drive a business’ performance. “It doesn’t matter if you’re a micro business or a multi-billion international firm, the processes are the same and without sound financial foundation, your company will not be working at its optimum performance and the worst-case scenario is you will not survive financially.”
Knowing When to Hire an FC
Most business owners thrive on running every aspect of their businesses, especially now that accounting has become easier with simple to use and flexible accounting software packages. It’s entirely possible for business owners to maintain the accounts, but it’s not necessarily a good idea as the business grows. When mounting work begins to compromise time management, job satisfaction or efficiency, it’s time to consider hiring a Financial Controller. If you don’t want to hire a full-time asset, consider the benefits of outsourcing all or part of your accounting work.
Taking on an FC makes sense if any of the following apply to you and your business:
- You don’t really understand accounting but trust the software to tell you everything you need to know.
- You’re not familiar with payroll taxes and VAT.
- Your business experiences rapid growth in a short time.
- Investors, lenders or shareholders want professionally prepared reports.
- You’re spending more time doing the books than generating sales or new business.
Hiring a Financial Controller doesn’t have to be a painful process because you can begin by outsourcing the work. This is an especially effective strategy if you’re not familiar with accounting, hiring or vetting FCs or accountants for financial jobs.
Signs that indicate your company needs a Financial Controller
The bigger your company grows, the more likely you’ll need an FC. If you have stakeholders or a board of directors that consists of people who aren’t friends, close associates and family that you appointed, hiring a controller is a sound business practice that protects your company and assets.
As the company’s stakeholders expand, a controller provides tactical management reporting and staff supervision on accounting issues, whilst handling financial planning and bearing responsibility for the accounting team. Most small companies can’t afford a full-time controller, but as the business grows, you can’t afford to operate without a controller even if he or she functions on a part-time or consulting basis.
If you’re struggling to find a part-time Financial Controller for your business, EFM can help. Our team of experienced FC & FD EFM Experts are here to support your business.
Get in touch with the EFM central team to book your free 1 hour consultation with one of our experienced financial advisors.