As a business scales, finance quickly shifts from number-crunching to business-critical decision support. That shift often exposes gaps in the finance function — systems that don’t talk to each other, under-resourced teams, and a lack of strategic direction.
So, how to build a finance function that’s not just operationally sound, but commercially sharp too?
Build the right foundation early
A finance function is only as strong as its basics: people, processes, and systems.
People – You don’t need a CFO from day one, but you do need someone who can interpret numbers, spot risks, and support decision-making. That might be a finance manager, or a Fractional CFO.
Processes – Standardise workflows, especially for month-end close, budgeting, and reporting. Automate where you can.
Systems – Ditch the spreadsheets early. Cloud-based finance tools give better visibility, cleaner data, and real-time access. This goes beyond just your accounting system, and can cover payments, cashflow forecasting and reporting.
Get clear on the role of finance
Too many finance teams get stuck in transactional tasks — chasing invoices, processing payroll, reconciling bank accounts. Important, yes, but finance should be more than a back-office function.
The goal is to shift from reactive to proactive. That means moving beyond the numbers to explain why things are happening — and what to do about it.
Align finance with strategy
Here’s where a lot of scaling businesses fall short. Financial strategy isn’t just about fundraising or forecasting. It’s about making sure the business model stacks up.
Finance needs a seat at the table for key decisions such as:
- Pricing strategy
- Market expansion
- Resource allocation
- Capital expenditure and investment
If finance isn’t involved in these conversations, it becomes a reporting function, not a strategic one.
Bridge the Ops–Strategy gap
This is the hard bit. Finance ops and finance strategy often sit on different planets — one in the weeds, the other in the clouds. The key is connecting them:
- Use real-time data to feed strategic decisions
- Encourage analytical thinking in ops teams
- Create simple, digestible reporting packs for senior leaders
- Treat every operational process as a source of strategic insight
When ops and strategy are talking to each other, finance becomes a growth driver — not just a cost centre.
Build flexibility into the model
Scaling is messy. Plans change. Markets shift. Your finance function needs to flex with the business:
- Scenario modelling for key assumptions
- Clear understanding of downside risks
- Quick pivot capability on budgets and plans
Rigid budgets and static forecasts are no use in a scale-up. Agility wins.
Focus on clarity over complexity
Complex reports filled with jargon or irrelevant KPIs don’t help anyone. Senior leaders want clarity — not detail overload.
- Track KPIs that actually link to strategic goals
- Cut down reporting packs to what matters
- Have regular reviews with decision-makers, not just finance
The goal isn’t to produce more data. It’s to make better decisions.
Bring in strategic finance early
If you’re growing fast, it’s tempting to wait before bringing in senior finance expertise. That’s a mistake.
Fractional CFOs can bridge the strategy gap without the cost of a full-time hire. They’ll bring clarity, challenge thinking, and support growth — without dragging the business into over-engineered complexity.
Need to build a finance function that actually drives growth? Bring in someone who’s done it before — and build it right the first time.