In many startup and emerging businesses, Accounting, Finance, and HR processes are not handled very efficiently. There are several common mistakes in managing the company’s back office needs:
- “Under-Kill” – Resources are tight. Founders and early employees are 100% dedicated to their product and customers. Maintaining accounting records, forecasting cash, and basic HR needs become delayed or ignored.
- “Over-kill” – The company hires a full-time CFO too early. Much of the CFO’s time becomes occupied by tasks that can be performed by a more cost efficient resource such as a Bookkeeper or Staff Accountant.
- “DIY” - The Founder, the brains behind the business, is incredibly organized and performs all of the accounting, finance and HR needs. The problem: The Founder’s time is valuable and better spent focused on marketing, selling, and building products and services.
- “Over the Fence” – At the end of the month, accounting data is sent to the Company’s CPA. A few days or weeks later, basic accounting reports are sent back. Fast paced start-ups and emerging businesses need constant customized information and metrics, not just basic historical reports.