Businesses rarely outgrow their finance function all at once. It tends to happen gradually.
New markets, acquisitions, or additional revenue streams add complexity. New investment can also bring greater expectations around reporting, cashflow, and performance visibility. Finance keeps things moving, often with more spreadsheets and more work, but management and investors start needing something different. As businesses grow, finance leaders and management teams often start asking deeper questions about performance, profitability and future investment, such as:
- Where are we actually making money?
- Can we afford to invest?
- Why does it take so long to get the numbers?
- And do we trust them?
At that point, the issue isn't necessarily whether the accounting is being done properly. It is whether the finance function has kept pace with the business.
Understand what needs to change
Month-end takes too long. Forecasts aren't available when decisions need to be made. Information sits across different systems and spreadsheets. These can be signs that the finance set-up needs a fresh look.
Start by looking at how finance works today: the team structure, responsibilities, month-end process, reporting and systems. What suited the business a few years ago may not suit what it needs now and in the immediate future.
Before deciding what to change, I would separate three things: work that genuinely needs more hands, work that needs different expertise, and work that shouldn't need doing in the first place. They can all look like a busy finance team. Another hire may help with the first but won't necessarily solve the other two.
A month-end deadline can still be met through repeated chasing and manual fixes. The numbers arrive, but the process leaves little time to understand what has changed or what management should do next. For me, that is an important distinction: getting the numbers out isn't the same as having time to use them.
The right mix of people and support
Recruiting may be exactly the right decision. If it is, understanding the gap first helps define the role and the experience needed. But a permanent hire isn't the only way to build the finance capability the business needs.
An acquisition, a reporting problem and a systems change may each need different experience. Be clear about whether that need is ongoing or relates to a particular piece of work.
It doesn't have to be a choice between keeping everything in-house and outsourcing the whole function. Some businesses need a mix of the two, and that may change over time.
Knowing what needs to change is only part of it. Someone also needs the time to get it done, alongside the day-to-day work.
Start with the process, not the system
First, understand what should happen each month, who owns it and what information management needs. A new system won't fix unclear processes or responsibilities.
Technology is changing quickly, and it can be difficult to know what is worth adopting now. Sometimes the immediate benefit comes from getting existing systems to share data properly, removing duplicate entry or automating routine steps. AI may have a role, but be clear about the task it is helping with and how the output will be checked. The latest tool isn't necessarily the one the business needs most.
When is it time to change?
There isn't a turnover figure that automatically means you need a CFO, a bigger team or a new system. What matters is whether your finance set-up supports the decisions you need to make and the direction the business is taking.
Before adding another person or changing the system, it is worth understanding what is making the work difficult. Otherwise, the business can spend more time, energy and money without resolving very much.
Contact us
