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Finance Essentials for Business Leaders

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  1. Module 1: Introduction to Finance
    5 Lessons
  2. Module 2: Financial Concepts and Principles
    5 Lessons
  3. Module 3: Financial Planning and Cash Flow Management
    5 Lessons
  4. Module 4: Building Your Financial Model
    5 Lessons
  5. Module 5: The Financial Implications of Business Decisions
    5 Lessons
  6. Module 6: Interpreting Financial Data and Analyzing Performance
    5 Lessons
  7. Module 7: Managing Finance Through Your Business Life Cycle
    5 Lessons
  8. Module 8: The Requirements of a Modern-Day Finance Function
    5 Lessons
  9. Module 9: Positioning Your Finance Team for Growth and Expansion
    5 Lessons
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In an established business, the finance leader will likely report directly to the CEO, although the initial head of finance may report to another board member such as the COO. When it comes to designing a finance team structure, there are several key considerations. The first big decision is to determine the first team hire. This will create the foundation of your finance team and set the tone for future hires, so make sure you choose wisely. 

The next thing to consider is how many direct reports the finance leader should have. The number of direct reports will depend on the size and scope of your business, as well as what kind of financial expertise is required. It’s important to make sure that you have enough managers and specialists to ensure proper oversight and coverage for all finance matters.

You may also need to consider whether to split the Controller and FP&A (Financial Planning & Analysis) activities. These are crucial roles that may divide into two sub-teams or combine within specific roles. In some instances, these may replace the Finance Manager and Bookkeeper roles, depending on the team’s needs.

Leaders must also decide how many tiers there should be in their team hierarchy given the complexity of their organization and the amount of financial knowledge required. A flat structure may be more suitable for a smaller organization, while a larger company may require multiple levels of management.

Finally, you should think about which specialists to bring into the team. Depending on your needs, this could include treasury experts, finance business partners, and data scientists. Having the right people in place with the right skill sets will ensure that your finance team is well-equipped to handle all of your business’s financial needs.

Here is an example of a scaled up finance team, which may vary considerably per company:

Companies may also choose to recruit specialists such as Finance Business Partners, Treasury Managers and Data Scientists, or create additional team management positions, for example, Finance Directors, Group Coordinators and Finance Managers.

Selecting the Right Candidates

Recruiting the right finance team members is essential for any business leader wanting to stay ahead of their competition. Finance knows no boundaries and has become a cornerstone of every successful organization in today’s market. Having the right people on board who understand and can strategize financial operations will give you an edge over your competitors.

Here are five factors to consider when recruiting a finance team member:

  1. Investigate their background and experience level in the field of finance. It is important to understand what kind of financial knowledge and skills your prospective employee will bring to the table. Consider whether their level of technical skills and professional qualifications are appropriate for your requirements and whether they can cover the existing skills gaps of other team members.
  2. Look for someone who has creative problem-solving abilities that can help boost efficiency and productivity. Financial planning and budgeting requires an analytical mind, but also the ability to envision creative solutions that can help a business grow.
  3. Make sure your candidate is comfortable with financial software programs such as Excel and other accounting tools. These are essential for tracking business finances and should be at the fingertips of any qualified finance team member.
  4. Consider the financial team member’s communication skills. While being a great accountant or budgeter is important, it is equally important that they fit well into the team and can communicate effectively with other team members, supervisors and external stakeholders such as banks and investors.
  5. Look for someone with a commitment to professional growth and development in the field of finance. The best finance team members are constantly striving to stay ahead of the game, learning new methods and ways to improve their skills. This kind of dedication will help ensure your business has access to the most up-to-date financial expertise.

By taking these factors into account when recruiting a finance team member, you will increase your chances of choosing the right person for the job. With the right team members in place, your business can start to reap the rewards of a strong finance function that supports the delivery of your business plan.

Summary

Structuring and recruiting a finance team can seem daunting, but with careful consideration and forethought, you can build a team that is well-suited for your organization and its goals. By taking into account the various factors discussed above and making sure you have the right people in place, you can create an efficient and effective finance team that will benefit your business for years to come and add significant value to your key stakeholders.