When Should You Bring Your Accounting In-House

When Should You Bring Your Accounting In-House

As your business grows, the way you handle your accounting needs to grow with it. You might start by doing the bookkeeping yourself, then move to a contracted bookkeeper and eventually bring that role in-house.

At some point, though, you need more than someone recording receipts and providing financials. As the business gets bigger, you may need a controller, a fractional CFO, and eventually a CFO to manage a larger accounting team.

Your Accounting Needs to Grow With Your Business

When your business is small, you might be able to handle the accounting yourself or work with a bookkeeper who is contracted out. As the business grows, though, the amount of financial information and the number of people involved grows too.

At that point, your accounting needs to become part of the business itself. You may already have an in-house administrative person and a contracted bookkeeper. The important thing is to keep the two roles separate.

Bring Your Bookkeeper In-House

Once the business has grown to that point, bringing your bookkeeper in-house is the next step. The bookkeeper’s job is to record all of your receipts and make sure you’re getting your financials on a timely basis.

You may already have an administrative person in the business, but the bookkeeper shouldn’t be responsible for the same work. Keeping the roles separate allows the bookkeeper to stay focused on maintaining accurate, up-to-date financial records.

Move Beyond Financial Accounting

Once you have a bookkeeper in place, the next level is looking at a controller. A controller goes beyond financial accounting and gets into cost accounting and management accounting.

Now you’re looking more closely at profitability and how different parts of the business are performing. You want to know what’s happening with your locations, your products, or your jobs, rather than only looking at the business as a whole.

Managing More Than the Books

After the controller, the next step is a fractional CFO. You might have them come in one or two days a week, or for a few hours a day, depending on what the business needs.

At this stage, the focus starts moving beyond the accounting itself. The fractional CFO helps make sure the staff are being managed properly, the right controls are in place, and the business is being taken care of.

When Your Business Needs a CFO

Once the business is doing multi-millions, has a lot of jobs and dozens of people, you’re going to need a CFO to manage the staff. At that point, you may have a number of administrative staff, bookkeepers, and possibly even controllers working within the business.

The CFO’s role changes at this stage. They’re not there to record journal entries anymore. They’re there to manage the people, work well with the team, and make sure the accounting function is being properly managed.

The Right Financial Support at Every Stage

The accounting support you need will change as your business grows. Early on, you might handle the bookkeeping yourself, then move to a contracted or in-house bookkeeper, a controller, and eventually a fractional or full-time CFO.

Where your business is today should determine the level of support you have. As the business gets bigger and the accounting team grows, the focus shifts from the day-to-day accounting to managing the people and systems behind it. That’s how you move from handling the books yourself to having a full accounting team supporting the business.

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation.

As your business grows, the way you handle your accounting needs to grow with it. You might start by doing the bookkeeping yourself, then move to a contracted bookkeeper and eventually bring that role in-house.

At some point, though, you need more than someone recording receipts and providing financials. As the business gets bigger, you may need a controller, a fractional CFO, and eventually a CFO to manage a larger accounting team.

Your Accounting Needs to Grow With Your Business

When your business is small, you might be able to handle the accounting yourself or work with a bookkeeper who is contracted out. As the business grows, though, the amount of financial information and the number of people involved grows too.

At that point, your accounting needs to become part of the business itself. You may already have an in-house administrative person and a contracted bookkeeper. The important thing is to keep the two roles separate.

Bring Your Bookkeeper In-House

Once the business has grown to that point, bringing your bookkeeper in-house is the next step. The bookkeeper’s job is to record all of your receipts and make sure you’re getting your financials on a timely basis.

You may already have an administrative person in the business, but the bookkeeper shouldn’t be responsible for the same work. Keeping the roles separate allows the bookkeeper to stay focused on maintaining accurate, up-to-date financial records.

Move Beyond Financial Accounting

Once you have a bookkeeper in place, the next level is looking at a controller. A controller goes beyond financial accounting and gets into cost accounting and management accounting.

Now you’re looking more closely at profitability and how different parts of the business are performing. You want to know what’s happening with your locations, your products, or your jobs, rather than only looking at the business as a whole.

Managing More Than the Books

After the controller, the next step is a fractional CFO. You might have them come in one or two days a week, or for a few hours a day, depending on what the business needs.

At this stage, the focus starts moving beyond the accounting itself. The fractional CFO helps make sure the staff are being managed properly, the right controls are in place, and the business is being taken care of.

When Your Business Needs a CFO

Once the business is doing multi-millions, has a lot of jobs and dozens of people, you’re going to need a CFO to manage the staff. At that point, you may have a number of administrative staff, bookkeepers, and possibly even controllers working within the business.

The CFO’s role changes at this stage. They’re not there to record journal entries anymore. They’re there to manage the people, work well with the team, and make sure the accounting function is being properly managed.

The Right Financial Support at Every Stage

The accounting support you need will change as your business grows. Early on, you might handle the bookkeeping yourself, then move to a contracted or in-house bookkeeper, a controller, and eventually a fractional or full-time CFO.

Where your business is today should determine the level of support you have. As the business gets bigger and the accounting team grows, the focus shifts from the day-to-day accounting to managing the people and systems behind it. That’s how you move from handling the books yourself to having a full accounting team supporting the business.

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation.