How to Implement Your Finance Team Structure the Right Way By Mesh Content Team December 8, 2021 The right finance team structure can improve your financial decisions, cash flow, and even productivity. After all, it’s one of the most crucial teams of your business. The performance of your finance team can make or break your business and affect your bottom line. So, here is a guide to help you structure your finance department like a pro. How to Structure a Finance Team The size of your business will determine the best way to structure your finance department. Additionally, you will have to consider the roles you want your team members to perform. They can even include advanced roles like financial strategist apart from regular accountants. Below are a few departments for a finance team structure: Accounts receivable (AR): Handles payments from clients and customers Accounts payable (AP): Manages payments to suppliers, vendors, and services Bookkeeping: Maintains day-to-day accounting and financial statements, creates reports Expense management: Controls and manages all employee expenses and reimbursements Tax: Prepares and handles all tax implications for the business Payroll management: Manages all payments to employees like wages and bonuses Internal audit: Ensures the company’s books comply with applicable laws Budgeting & forecasting: Sets and controls budgets, guides the business on financial decisions Enterprises generally have a big finance team spread across several department. In comparison, a few employees may handle all the financial responsibilities of a startup. Therefore, you should structure your finance team based on your business scale and requirements. How to Implement Your Finance Team Structure Below are the steps you can follow to structure your finance department. Start with the basics as it will be difficult to step back and rectify your errors later. 1. List all the work performed by the financial department. Get familiar with all the tasks that your finance team performs. You can ask your team members to write down all the responsibilities they handle. Make sure you don’t forget to include any workflow. 2. Determine the skills every task requires. The finance department handles a wide range of responsibilities. Each role needs specific skills that not all employees in the department may possess. Therefore, determine the skills required to carry out the tasks you listed in step 1. For example, your accountant will need basic bookkeeping skills to maintain your daily accounts. After you are done, group the tasks based on the skills required to perform them. 3. Identify the skills of each member of your finance team. You need to know where you stand before you can implement your finance team structure. Start by assessing the skill of every person on the team, including administrative and communication skills. Additionally, some tasks may require traits like time management or creative thinking. As a result, assess each employee carefully to make an accurate evaluation. 4. Assign team members based on your group of tasks. You will now have a group of tasks and corresponding skills you need to fulfill them. Along with that, you also have a ready list of the skills each of your finance staff possesses. All that remains is to match your employees with the right tasks. So, if a task group requires basic accounting knowledge, you can assign it to your bookkeeper. Additionally, empower your team with the right tools to work productively. Along with an accounting solution, you can consider additional tools to streamline workflow and automate processes. The list can include resources like spend management software or SaaS payments tool. Some companies also use a standalone travel payment tool for more efficiency. Best of all, you can integrate the tools with your accounting solution, ERP, or CRM to achieve interoperability. 5. Outsource repetitive or low-impact tasks. (Optional) Businesses can choose to outsource finance processes to save time and cost. You may outsource your bookkeeping or payroll processing to cut costs. Outsourcing is also suitable when you lack adequate in-house talent. Final Thoughts Focus on the responsibilities of your finance team and assess the skills required to complete them. Next, find the right member to perform the said task. You can also structure your team based on the common roles mentioned above. However, don’t forget to provide the right tools to your finance team to excel at their work. You can always choose Mesh payment solutions for reliability and peace of mind. Get the latest blogs from Mesh by subscribing to our newsletter Manage Your Payments With Full Control & Visibility Get Started Mesh Content Team
Top 20 Books for CFOs January 25, 2023 Continuous learning is a key element of any career. So here are our top book recommendations for CFOs to stay current and inspired. Read the Article
Business-Breaking Mistakes to Avoid When Hiring a CFO December 7, 2022 Hiring a CFO doesn't have to be hard. Learn what to look for and where, and how to ensure your new CFO is the perfect fit for your company culture and needs. Read the Article
How to Hire an Amazing Controller for Your High-Growth SMB November 2, 2022 Hiring an amazing controller is a critical task for your finance team. Mesh CFO, Anna King, provides tips on how to find the right candidate. Read the Article
How Real-Time Insights Reduce Your Company’s Burn Rate September 9, 2022 Learn how to calculate a company’s burn rate, why it’s so important, and how to keep your burn rate at a manageable level. Read the Article
Mesh CFO, Anna King, On Bringing More Women into the C-suite July 28, 2022 Mesh Payments CFO, Anna King, had a conversation with American Banker about women in the C-suite and female leaders in fintech. Watch the Webinar
Bracing for Economic Pendulum Swings – How CEOs and CFOs Can Prepare Together June 14, 2022 Mesh CFO Anna King looks at steps CEOs and CFOs can take together to prepare for economic downturns that keep businesses strong and growing. Read the Article