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As your business grows, you will likely go beyond your finances several times. You might also experience increased business complexity and a huge amount of finance work that needs to be completed daily. Therefore, to successfully grow your business, you need to implement scalable finance operations. Here are a few practical ways to scale your business’s finance operations.
Create a solid foundation
The first step of scaling finance operations is to take stock of the existing business process to be sure it’s worth doing in the first place. Scaling an inefficient or broken process will create more problems as the business grows.
Ensure your current processes and systems are in good condition before assessing whether you can scale your finance operations. There should be an open line of communication between the finance team and other functional departments to have a solid foundation. You should also eliminate outdated processes throughout the business and ensure the finance team is thinking proactively.
Outsource your finance
Rather than waiting until you get enough revenue and resources to invest in an in-house CFO or controller, consider outsourcing your finance. Hiring a part-time or virtual CFO or controller can offer great benefits to your business, as you don’t need to create budget allocations to hire and train an accountant. You also don’t need to dedicate office space, equipment, and resources to an in-house finance department.
Consider outsourcing your business finance to a reputable company like CFO Dynamics and have access to a virtual chief financial officer (CFO) for your business’s financial requirements. When you know an expert takes care of your financial services, you can focus on other areas of your business.
Automation is one of the most powerful strategies in enabling your finance team to take on this value-oriented role. Finance automation can reduce your financial team’s burden by freeing it up to work on high-value tasks. Consider automating your planning, budgeting, reporting, accounting, forecasting, and intercompany transactions.
For instance, Robotic Process Automation (RPA) can allow for a wide range of processes to be automated in the finance team. This can help the finance team focus on being a more strategic partner to your business.
Improve your cash flow management
Cash flow management is extremely important for everyday business operations, whether a company is at the initial growth stage or is already created in the market. Poor fund management can make a business bankrupt, so it’s crucial to conduct proper cash flow management along with other management services.
Track all your expenses and income streams to see where every dollar is spent. The easiest way to do this is to create a spreadsheet with all your expenses and income. Once you have set up a spreadsheet, track your cash flow regularly to ensure you are not spending more than you are earning. You can also use financial tools or mobile apps to help you track and manage your cash flow more effectively.
Scaling finance operations isn’t just increasing spend and adding to the headcount. You need to find systems that empower your finance team to be more strategic without adding extra resources. Fortunately, with proper planning and thoughtfully implemented technologies, your finance team can scale operations for a positive and lasting benefit for their department and your business as a whole.
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