| I have had a lot of conversations recently about | | | | affordable and flexible option to start-ups. |
| staffing the accounting and finance function in the | | | | |
| company. As companies grow and shrink, their | | | | As the company grows and has revenue, the |
| needs in this area change. We certainly do not want | | | | company should begin to look to hire full-time clerical |
| to be over-staffed, and we also want the most | | | | staff to handle most of the AR, AP, and payroll tasks |
| cost-effective staff doing as much of the work as | | | | while the bookkeeper remains part-time and delegates |
| possible. For example, we typically do not want our | | | | everything they possibly can to the in-house staff. |
| Controller or CFO entering payables – this task can | | | | One of the major challenges that usually emerges |
| easily be delegated to a much lower cost employee. | | | | during this process is that the part-time bookkeeper will |
| | | | | begin to struggle to keep up, especially with the |
| | | | monthly financial statement preparation and analysis as |
| This is a simplified organization chart of the different | | | | well as other management reports on how the |
| accounting and finance functions in an organization. | | | | business is doing and what improvements should be |
| The reality is that most start-up and emerging | | | | made to maximize cash flow. |
| companies cannot afford all of these positions. My | | | | |
| purpose in this post is to explain how to fulfill all of | | | | Often the next best step is for the company to |
| these necessary functions throughout the life-cycle of | | | | consider engaging the services of a part-time |
| a start-up company. I am making the assumption that | | | | CFO from a reputable CFO Firm. This individual will |
| we all understand the purpose of the accounting | | | | be a strategic direction to this department and may |
| finance function as well as the assumption that the | | | | only be needed about a half-of-a-day per month. As |
| company has or will hire the appropriate outside | | | | the company continues to grow, the part-time |
| professional(s), like a tax CPA, to help the company | | | | bookkeeper will need to be replaced by a full-time |
| remain compliant. | | | | Controller or Accounting Manager. All of the full-time |
| | | | | accounting staff will report to this person. In addition, |
| Even at the earliest stages of a start-up, it is usually | | | | this position will take direction from the CFO. |
| best to hire a part-time bookkeeper to fulfill all of the | | | | |
| roles listed above. They usually do not have the | | | | The last full-time hire should be to fill the position of |
| expertise of a high-level controller or CFO, and they will | | | | CFO. Often companies can do very well leaning on |
| be slightly over-paid for doing some of the more | | | | the part-time CFO services to exceed $50 or even |
| clerical tasks. But the bookkeeper gives an | | | | $75 million in annual sales. |