If you’re like most business owners, you wear a lot of hats. You may be responsible for sales, marketing, product development, and customer service. But what about finances? Do you have someone specifically responsible for managing the financial health of your business?
If not, you should consider hiring a finance manager. Here are four reasons why:
- To keep track of expenses and budgeting.
A finance manager can help you stay on track with your expenses and budget. They can create reports that show where your money is being spent and identify areas where you can save money.
- To develop long-term financial plans.
A good finance manager will help you develop long-term financial plans for your business. They can create projections for revenue and expenses, as well as cash flow forecasts. This information is essential for making informed decisions about the future of your business.
- To manage debt and investments.
A finance manager can help you make smart decisions about using your company’s debt and investments. They can create a plan that minimizes your risk while maximizing your return on investment.
- To keep track of tax liabilities.
In order to stay in compliance with tax laws, it’s important to have someone responsible for tracking your company’s tax liabilities. A finance manager can do this and develop strategies to reduce your tax bill.
Hiring a finance manager may seem like an unnecessary expense when running your own business. But in the long run, it will save you time and money by helping you make better decisions about your company’s finances.
How to Hire a Finance Manager?
A good finance manager should have experience in accounting, taxes, and financial planning. They usually have an accounting or business degree and certification as a Certified Public Accountant (CPA). It is also invaluable if they are knowledgeable of your industry’s latest trends.
Your finance manager can come from outside of your company or be an employee with the right skills and experience. If you hire someone with strong technical skills but not much industry know-how, it may be prudent to assign them to specific areas for improvement first before making them the full-time finance manager. Some companies split up these responsibilities among several employees to save on costs. For example, one person may manage budgeting while another is responsible for accounts payable.
No matter where you hire your finance manager, make sure that they have strong working relationships with other company departments. This way, your business’s decisions about spending and financial planning won’t become the source of conflict. Instead, everyone will work together towards a common goal: Making your company profitable and sustainable for years to come.