Learn how to structure your Finance & Accounting function
Learn how to structure your Finance & Accounting function 👇
Each company needs to have a “chain of command”…with roles & responsibilities outlined for each member in the org.
But depending on your company size & industry, that can all vary…Let’s take a look through some common Finance & Accounting org structures across different organizations:
➡️ MICRO
Typical company size: less than 10 employees
Most common approach here is to outsource everything for a few reasons:
• Odds are you don’t have enough work to justify a full time hire
• Even if you do have enough work to go around, odds are you need a bit of a junior hire, a bit of a senior hire, and a bit of a CFO
• Companies at this stage are often times cost conscientious, and you save money on payroll taxes & benefits when you hire an agency
Shoutout to Mighty Digits for outsourced Finance & Accounting!
➡️ SMALL
Typical Company size: 10-20 employees
At this stage, companies usually make their first in house hire as a senior role (manager, senior accountant / analyst), while continuing to outsource a junior role.
For those who have enough work to hire an in house junior role, it would typically be a staff accountant / analyst
➡️ MEDIUM
Typical Company size: 20-100 employees
Now comes some serious investing in Finance & Accounting
It’s common to start segregating your Finance & Accounting into both Accounting & FP&A…
with multiple layers of review at each department.
➡️ LARGE
Typical Company size: 100+ employees
There’s no limit now to where things can go with your Finance & Accounting…
most companies at this stage requires audits, and may have so much cash that they build out an entire treasury department.
Companies can still be privately held…or can even go public, in which case the need for resources & oversight would increase.
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As mentioned above, a lot of dependent on your team size, and industry…
but the general idea is that the bigger an organization gets, the more need there is for oversight…
and the more need for DELEGATING work.
Each department has their own nuances in what is required…
and each industry requires a different investment in resources
