How should businesses adapt their finance teams to grow successfully?
This article provides a strategic guide for small to mid-sized businesses on structuring their finance teams effectively to support and drive business growth at various stages of revenue development.
Stage 1: Small Business, under $5M in Revenue
At this stage, most companies are just starting out and growing. Â
Accounting services, such as bookkeeping and tax compliance, are typically outsourced.Â
CFO Advisory services are suggested to develop long-term plans, with focus on cash flow forecasting, budgeting, and KPI/Reporting.
Stage 2: Small/Mid-size Business between $5M to $50M in Revenue
At this stage, most companies are starting to invest in additional finance functions.
Accounting services may remain outsourced as investments are made to strengthen both accounting and finance teams.
Fractional (part-time) CFO services are added to handles complex projects, nurturing team development as the company advances.
Stage 3: Mid-size Business $50M+ in Revenue
At this stage, most companies start to invest in internal hires for their accounting and finance functions.Â
An internal full-time CFO is hired to continue to build upon the accounting and finance functions.
Having the right team at the right time is crucial to your business. As your company continues to grow, consider Modern CFO to help with your strategic vision, and let our data-driven approach provide the insights you need to achieve results.
Article by Rush Shah
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