Start-up Business — Options for Accounting and Financial Operations (Part 3)
There are 3 different options for managing your Start-Up venture’s accounting and financial operations, the Do-It-Yourself approach, outsourcing to a CFO/Accounting Firm, or hiring the employees directly. Each of these approaches has both positives and negatives and each may be the right fit for your Start-Up at different times of the growth cycle. This blog will address the third option: hiring employees approach.
Hiring employees directly approach is where the entrepreneur will hire its own staff to handle the accounting, treasury and financial reporting functions. There are many positive and negative aspects to this approach, so let’s point out some of these to help determine if this approach fits your current business needs.
- Fully dedicated staff focused on your business only.
- As the size of your company grows, the cost benefits to having your own staff begin to take effect.
- You have greater control over financial reporting, software and process integration, and integration of financial operations into all other aspects of your company.
- The ability to make personnel changes in all levels of your financial team become at your discretion and budget.
- Time consuming in the early stages of implementation. You have to get your team hired, trained and fully implemented in to the company and its culture.
- The costs of bringing everything internal are much greater. You have full time staff, benefits, office space, software and hardware purchases, and training costs to incur.
- It is more difficult to adjust should your company’s growth hit a bump and you need to temporarily downsize.
This approach is where you eventually want your start-up venture to be. It shows that you are on the right path to growing your company into what you always wanted it to be. Deciding when the right time to take this approach will be crucial in the overall management of your company. It is important to make sure the process is completely thought out and thoroughly detailed for its implementation. If we at Jess S. Morgan & Company can be of any assistance during your analysis please feel free to contact me.