How To Build an Accounting Team for Your Small Business / Business Resources
Finance is a crucial part of any business without which a business cannot run successfully. To get a hold of small business accounting and finance one should hire a bookkeeper, an accountant, a controller or a chief financial officer. Each of these professionals can be use at any stage of business.
The world of business finance can be a bit confusing. The financials of small business at any stage will provide a performance management tool to aid you in making the right decision to maximize profitability, handling the cash flow and providing a competitive benchmark.
There are not very clear-cut rules of when one must hire or build their small business accounting team, considering the following guidelines to help make a decision easy.
1. Hiring a Bookkeeper:
A bookkeeper is a good option for start up businesses that have no plans on building an empire. A bookkeeper will help start-off with a good record keeping system, handle financial transactions and produce financial statements. If cash flow planning and balance sheets make your head spin, then a bookkeeper can be of great help. He can help in basic understanding of the financial aspects of running your business. A small business will have a need to keep their expenses low. The cost of an accountant can be too much for a small business that has just start. Therefore, it is better to have a bookkeeper in the team.
2. Hiring an Accountant:
At a stage in your business life, you will feel the urge to expand your financial team form one person to more. Hiring an accountant for your small business will help with all financial matters like payroll advice, staffing sots and ideas to improve profits. If you plan to change the company ownership structure then you must take help from an accountant. They can also help with the financial and tax implications changing from sole proprietor to partnership. In case any business with complex billing cycle and account and account management will often require the experience of an accountant over a bookkeeper or owner. An accountant can aid in cash and billing to keep the company stable on financial grounds.
3. Hiring a Controller:
An establish business with a solid management team will want to focus more on the bigger strategic issues and hire a controller to manage the budget and financial operation. Your small business accounting team can add a controller not only to manage your financial but also to help select a financial software system.
4. Hiring a CFO:
Businesses experiencing growth or are planning for an expansion can be good if you add a CFO to your small business accounting team. A chief finance officer can provide strategic advice to companies who are planning to add products and require financial management for complexities. Applying for a new business credit line at the bank will not require a CFO but if you are planning for complex money raising tactics then a CFO can add value to the small business.