Signs Your Business Needs a Financial Controller
Hiring a financial controller is not an easy task for a business owner. These positions need to be filled by highly experienced and knowledgeable individuals. Additionally, these professionals do not come at low costs, preventing small business owners from hiring them. After all, as a small business owner, you would look for ways to minimize your costs as much as possible.
However, certain situations make a financial controller or CFO necessary. They can handle your business’s financial operations and tackle any challenges you might be facing. Speak to the professionals in Phoenix accounting services for additional information.
Signs your business needs a financial controller.
- You are experiencing rapid growth.
When you open a new business in Phoenix, you hope for the best to happen, but you still need to keep your expectations low in case things go downhill. However, sometimes new businesses can scale up more rapidly than the owner can handle. For example, managing ten employees and a $40,000 revenue is not the same as managing a hundred employees and $3,000,000 revenue.
To handle and manage this growth, you need someone experienced in your finance department. You do not have experience handling millions of dollars, but a CFO does. They can help you keep track of your spending and earnings.
- You need budget planning.
When you start a small business, there is not much budgeting; even if there is, it is usually small enough and can be handled by you. However, your business needs a proper budget to streamline expenditures and investments as your business grows. A financial controller can help you prepare an effective budget and advise you about investing in the right places.
Since financial controllers are always up-to-date about the latest business trends and practices, they can be your biggest asset. Moreover, they are experts in all areas of business planning, whether small or big.
- You are relying too heavily on your accountant.
One common mistake that most new business owners make is assuming that their accountant should be managing their entire financial department. In reality, overseeing the bookkeeping and accounting activities is the job of a financial controller.
If you find yourself relying too heavily on your accountant and asking them for advice on how to manage your finance department best, then you ask them to do the job of a CFO. An accountant is supposed to organize your finances, file taxes, and generate receipts. However, a CFO entirely manages and oversees the financial department.