How can growing companies determine the right size of their finance function?

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As businesses shift rapidly, it is possible that finance might not be able to catch up immediately with the business developments.  So how would a growing company calibrate the right size of its finance function during periods of constant change?

In addition to the job descriptions for each finance person, a task list of all the activities finance is responsible for —along with the persons in charge of preparation and review—is essential.  Workflow documentation could be a good investment for some.  The task list must always be updated and assessed at least every year.

Finance leaders should consider two key areas other than monetary cost:

First, resources necessary to accomplish those tasks in one year, two years and beyond.  The timeline can be aligned to the budget period, as a minimum.  

Second, time needed to accomplish each task.

Time spent and resources allocated to tasks can change over time due to technological improvements, progression in resources or simply as a result of cost-benefit analysis.  For example, a task that previously required intensive human intervention could be replaced by an investment in software.  Another example is the promotion of certain employees.   Setting up a shared service center to handle common tasks across the group is another example.   Certain tasks can be handled by third-party service providers.  The point is that finance leaders must take a long-term view in assessing the resources and time necessary to accomplish all tasks.

Navigating growth and need finance function guidance? Contact VMC.

VMC's views are general insights—not one-size-fits-all advice. Every company's situation is unique.