Building a finance function does not start with headcount. Process first, then roles, and people last. Getting the order right saves a company years.
In growing companies the decision to build a finance function is usually taken after something has gone wrong: a collection has slipped, a tax penalty has arrived, or a reconciliation has turned into an argument. At that point the first decision is almost always the same: "let's hire an accountant."
Hiring is not the first step in building a function, though. It is the last one. Someone brought in before the processes are defined will build an order of their own making, based on personal habit, and that order walks out of the door when they do.
The right sequence
Step 1 — Map the flow you have now
Write down the process from the moment a quote goes out to the moment the cash lands. Who does what, which document goes where, whose approval does each step pass through? Most companies, mapping this for the first time, discover that the same task is being done twice.
Step 2 — Define roles, not people
There are four core roles: the person who records, the person who checks, the person who approves and the person who reports. In a small company these can sit with the same individual, but which role sits with whom must be written down. The critical rule: separate the person who records from the person who checks as far as the organisation allows.
Step 3 — Put the control points on a calendar
- Daily: posting bank transactions
- Weekly: collections and payments list, cash position
- Monthly: ledger reconciliation, close checklist, management report
- Quarterly: budget versus actual
Step 4 — Fix the reporting set
A small number of reports produced every month in the same format is worth more than a large number produced irregularly. Three are enough to start with: cash position and forecast, accounts receivable ageing, and a revenue, cost and margin summary.
Step 5 — Size the capacity properly
Only now does the real question arrive: who is going to run these processes? There are three options, and all three are right at a particular scale.
| Model | When it fits | What to watch |
|---|---|---|
| In-house headcount | Transaction volume fills a full-time role | Single-person dependency and cover |
| Outsourced team | Volume is variable, or several capabilities are needed | Setting up the digital document flow |
| Hybrid model | Some work genuinely requires on-site checks | Drawing the role boundaries clearly |
What to expect in the first year
When the structure is in place, the first thing companies notice is usually not savings but visibility: which customer is running late, which cost line is growing, and when cash is going to get tight all become visible. Savings tend to arrive in the second year, as a natural consequence of that visibility.