I’ve had lots of conversations lately about staffing the accounting and finance function in the organization. As companies grow and shrink, their demands in this region change. We certainly don’t want to be over-staffed, so we would also like probably the most cost-effective staff doing because the job as you possibly can. For instance, we typically don’t want our Controller or CFO entering payables – this may be easily delegated to some reduced cost worker.
Inside a a simplified organization chart from the different accounting and finance functions, a CFO could be towards the top of the chart having a Controller reporting to her. The Controller might have staff in AR, AP, and Payroll together with a number of accounting managers over a number of individuals functions. In fact most start-up and emerging companies can’t afford many of these positions. My purpose within this publish would be to let you know that to satisfy many of these necessary functions through the existence-cycle of the start-up company. I’m making the idea that people all understand the objective of the accounting/finance function along with the assumption that the organization has or will hire the right outdoors professional(s), just like a tax CPA, to assist the organization remain compliant.
Even in the earliest stages of the start-up, it is almost always better to employ a part-time accountant to satisfy all the roles in the above list. They tend not to have the help of a higher-level controller of CFO, and they’ll be slightly over-compensated for doing a few of the more clerical tasks. However the accountant gives an inexpensive and versatile choice to start-ups.
As the organization grows and it has revenue, the organization should start to look to employ full-time clerical staff to deal with the majority of the AR, AP, and payroll tasks as the accountant remains part-some time and delegates everything they are able to towards the in-house staff. One of the leading challenges that always emerges in this process would be that the part-time accountant will start to struggle to maintain, particularly with the monthly financial plan preparation and analysis along with other management reports about how the company does and just what enhancements ought to be designed to maximize income.
Frequently the following best step is perfect for the organization to think about engaging the expertise of a component-time CFO. They is a proper direction for this department and could simply be needed in regards to a half-of-a-day monthly. As the organization keeps growing, the part-time accountant will have to be substituted with a complete-time Controller or Accounting Manager. All the full-time accounting staff will are accountable to this individual. Additionally, it will require direction in the CFO.