Your internal Finance team is an integral part of your organisation.
As a department, their role is to manage all the cash and figures flowing in and out of your business to ensure that:
- you’re always heading in the right direction
- you can depend on your data integrity and financial hygiene
- you’re on track to achieve your revenue and profit goals.
They also work to provide business leaders like you with the actual and projected figures that you need to help make more accurate decisions for the future of the company.
Unfortunately, however, there are several common problems that every Finance team faces at one point or another.
These issues, when left unresolved, can create a powerful ripple effect that goes on to have a major impact right throughout your organisation.
For this reason, it’s extremely important to be aware of these common issues, as well as what you can do to resolve them so you can restore efficiency and growth to your business.
Today, we’re going to take you through part one of our list of the most common problems you can expect your Finance team to face, as well as how to solve them when they do.
Finance Team Problem No. 1: Inaccurate and/or late reporting
Some Finance teams find it difficult to get access to the accurate data that they need promptly. This can then lead to financial reports and projections that are not entirely accurate or have been based on data that is not the most recent.
Given that business leaders like you use these reports to help you make better decisions for your business, it stands to reason that these reports need to be highly accurate and on time to yield the best results from your decision-making, especially in today’s ever-evolving business landscape.
You and your Finance team need to find a way to streamline their data collection and analysis processes so they can help your business to grow into the future.
Finance Team Problem No. 2: High staff turnover
Sometimes, building out your Finance team is one of the biggest challenges that your business will face.
Right now, the business world is experiencing an extremely high rate of staff turnover. With more positions than talent, job candidates are demanding ridiculous salaries and bouncing around from role to role as they please.
This means businesses like yours are having to spend large sums of money to bring new Finance team members on board and train them, only for them to get a better offer and leave your organisation (potentially) six months later.
Your business simply cannot afford for this to keep happening.
Problem No. 3: Lack of clarity around figures and margins
Typically, most businesses understand their overall finances, but when it comes to delving deep into their numbers, they simply don’t have the capacity to do so.
The problem with this is if your Finance team is unable to gain transparency on the finer details, such as where your greatest profit margins are, your business will struggle to grow. What’s worse, without this clarity, you may not even realise that some of your services are costing you more money than they’re making.
Your Finance team needs to be able to achieve real granularity across all your figures, so they can see where the real changes need to be made for your business to enjoy sustainable growth.
So, what is the solution to your Finance team’s problems?
In part two of this article [LINK TO PART 2], we’re going to discuss 3 more common problems that every Finance team faces, before outlining the best way to navigate and solve these issues so you can set your Finance team and business up for real success.
Dexterous offers a reliable finance department to help you deal with any business challenges
At Dexterous, we go far beyond virtual bookkeeping and external accounting services.
We provide a turnkey managed finance solution that works for you through a financial, operating and growth lens. This means that we leverage all the latest business tools including Robotic Process Automation (RPA), access global talent and manage your finance department with the local expertise of our Sydney team.
We also equip you with a strategic approach and cost-effective function not just to address the challenges of recession today, but to help you thrive and achieve more growth in the future.