As a company grows and its finance team expands, it faces new challenges in reconciling and managing its finances. Each challenge can be addressed through careful planning and execution. Let’s look at every growing finance team’s key challenges.
Let’s dive in…
The Three Challenges
Leadership
When scaling a finance team, leadership is the first challenge to address. Poor leadership can impede growth and limit the department’s ability to support other areas of the business.
Although 83% of business organizations agree on the importance of developing leaders at every company level, only 5% did anything to implement leadership development programs.
That’s why firms must ensure they have strong finance leaders with the necessary experience and skills to guide the department through its growth phase. Without effective leadership, the finance team may struggle to provide valuable insights and information for decision-making.
Taking the time to assess and improve finance leadership can greatly impact a firm’s overall success as they continue to scale.
Technology
As a finance team, it can be tempting to work around issues rather than addressing them head-on simply.
Unfortunately, this tends to lead to band-aid solutions and missed opportunities. Building a strong technology foundation will improve efficiency and accuracy in the short term and create scalability for future growth.
It may require some time and investment initially, but it’s worth it in the long run. Don’t let a suboptimal tech setup prevent your department from reaching its full potential. Tackle the challenge head-on and build a strong foundation for success.
People
It is important to attract the right talent and retain them long-term. This requires finding an appropriate balance between budget and a competitive salary package. It is crucial to offer a comprehensive benefits package and opportunities for professional development and career growth.
In addition, fostering a supportive and motivating work environment can go a long way in attracting top talent and promoting employee retention. Ultimately, investing financially and emotionally in your employees will pay off in the form of higher productivity and overall company success.
The Bottom Line
Every finance team faces three key challenges: finding the right talent, improving organizational efficiency with technology, and strong leadership.
These challenges can be overcome by taking specific actions and making necessary organisational changes. With the right people in place and a clear understanding of the company’s financial picture, any finance team can overcome these common challenges and continue to grow.
The article has been published by the editorial board of the Fintek Diary. Happy Reading.
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