More and more companies are opting for a finance team-as-a-service, a solution that gives businesses access to a full team of finance professionals without the need to hire internally. With the finance team-as-a-service model, you get the expertise of an entire finance department— bookkeepers, management accountants, controllers, CFOs and more — on a flexible basis.
Finding your perfect match
There’s no one size fits all solution when it comes to finance support. Deciding which option to choose will depend on your company’s size, growth stage, budget and strategic goals. Startups with lean budgets often find a finance team-as-a-service a practical solution due to its cost efficiency and access to expertise, while some companies may prefer the hands-on approach of a dedicated internal hire.
Before making a decision, let’s explore the pros and cons of a one-person finance team versus a finance team-as-a-service.
One-person finance team
Hiring your first finance professional internally is often a pivotal step for growing businesses. This initial hire typically becomes a one-person team, overseeing everything from bookkeeping to financial planning and analysis.
Advantages of a one-person finance team
- Dedicated focus
A dedicated finance hire will have an in-depth understanding of your company’s unique financial operations, allowing for personalised insights and long-term strategic planning. - Direct control
Having an internal finance professional means full control over financial processes, direct communication, and immediate access to financial data. - Cultural integration
An in-house finance professional can seamlessly align with your company culture, providing tailored support and understanding your business intricately.
Challenges of a one-person finance team
- Limited scope of expertise
A one-person finance team often lacks the broad expertise needed for all aspects of finance, from bookkeeping all the way through to strategic planning. While they might excel in some areas, gaps in knowledge could affect financial decision-making and lead to inefficiencies. - Capacity constraints
As the business grows, a solo finance professional will struggle to manage increasing workloads. The pressure of handling day-to-day tasks can create bottlenecks and prevent focus on strategic financial planning, slowing overall growth. - Higher risk
Relying on a single person for all finance responsibilities creates a high risk. If that individual leaves, gets sick, or is unavailable, it can disrupt crucial financial operations, putting the business at risk of errors or delays in important tasks. - Hiring dilemma
Finding the right person for a one-person team is a challenge. They are either too junior, lacking the experience needed to provide strategic insights, or too senior, unwilling to take on the routine, day-to-day financial tasks.
Finance team-as-a-service
This approach offers an outsourced solution for financial operations, combining expertise, technology, and scalability. Providers offer comprehensive services, from bookkeeping to strategic CFO support, tailored to meet specific business needs.
Advantages of a finance team-as-a-service
- Cost effective
Opting for a finance team-as-a-service transforms fixed staffing costs into variable expenses. Instead of paying for full-time salaries, taxes and pensions, businesses only pay for the financial services they need. This makes it an attractive option for startups or companies with tighter budgets or without the workload for a full-time team. - Access to expertise
Outsourcing in this way gives you a much broader pool of finance professionals with diverse expertise. You’ll have access to top-tier talent who bring a diverse range of skills and experiences without having to hire for individual and specific roles. - Scalability and flexibility
One of the most significant advantages is flexibility. Businesses can scale services up or down based on current needs without the administrative burden of hiring or downsizing staff. - Technology advantages
Providers of a finance team-as-service invest in the latest tools and technologies. Businesses gain access to these resources without incurring additional costs or subscriptions, ensuring efficient and accurate financial management.
Challenges of finance team-as-a-service
- Reduced control
Outsourcing financial functions means relinquishing some level of control. Whilst providers strive for transparency and alignment, companies may feel less involved in day-to-day operations. - Data security risks
Sharing sensitive financial data with a third party may introduce concerns around confidentiality and cybersecurity. It’s essential to partner with a provider that prioritises data protection. - Cultural misalignment
External teams may lack an in-depth understanding of your company culture, leading to occasional disconnects in communication or collaboration.
The best of both worlds
For most businesses, a one-person finance team isn’t feasible long-term. A more effective approach can be to combine an in-house finance hire with a finance team-as-a-service. The internal staff member can manage day-to-day operations, while the outsourced team brings specialised expertise and strategic support, ensuring all financial needs are met without the limitations of a solo hire.
This hybrid approach balances control with flexibility and ensures access to specialised skills without overburdening internal resources. Most providers of a finance team-as-a-service will be more than happy to work alongside an existing internal team and will even help them thrive with coaching and support.
Making the right choice
Both options have their merits and challenges. The key is understanding your business’s unique needs and selecting the model that aligns with your growth trajectory. If you’re unsure which path to take, consider chatting to a finance expert to evaluate your options.
At fin-house, we specialise in providing scalable finance solutions tailored to your business. Our experienced professionals seamlessly integrate into your business, handling everything from bookkeeping to high-level strategy. We’d be more than happy to chat if you’re unsure which approach is right for you—whether it’s outsourcing, hiring in-house, or a mix of both.
