If you’re going to get a startup off the ground this year, or if you’re already managing a company, you know there’s always plenty to do. Every day probably seems packed with chores you must accomplish. You might need to do things like secure additional financing, hire new employees, expand into new markets, spearhead marketing campaigns, and more.
You need to hire individuals who can lighten the load and make your job easier. If you don’t, you might work yourself into a nervous breakdown one of these days.
That’s why you should consider hiring a finance manager who can help with your company’s monetary responsibilities. Let’s discuss how employing a finance manager can help your company considerably.
A Finance Manager Can Introduce Monetary Tools You Might Not Know
Unless you come from a financial background, like if you studied finance in college, you might not necessarily know about all the tools that can help protect your company’s monetary interests.
A finance manager might be able to introduce some that can make your life less complicated.
For instance, the financial manager might tell you about CLM solutions for finance. CLM stands for contract lifecycle management.
These are software suites that manage contracts into which your company might enter. Your finance manager can use a CLM solution to let them know if any of the prices are going up for the raw materials you’re buying. It will help them make on-time payments to the entities with which you are in financial relationships.
In other words, a finance manager can tell and show you about tools that can handle every aspect of your company’s money. Without those tools, you might scramble to handle a wide variety of monetary matters.
They Can Detect Possible Fraud
Putting someone with a strong financial background in charge of your company’s money also makes it more likely that you can detect fraud if anyone within your business or adjacent to it is doing something that they shouldn’t.
Finance managers can see the various revenue streams coming into your company and going out of it. They should be able to account for every dollar.
If one of your employees is trying to defraud you, your finance manager will probably notice that and point it out. You would like to trust your workers, but if anyone is doing something underhanded, you need to find out about it as soon as possible. You can either get rid of them or contact the authorities if you feel that is most appropriate.
They Can Determine When the Right Time is to Expand
Maybe you have the idea that you’re going to go from a local company to a national one at some point. Perhaps you’re already national, but you’d like to explore overseas markets in the near future.
Either way, a competent finance manager can tell you when the right time is to do that. Since they know everything that is going on with your company financially, they can weigh in on when you should expand aggressively and when you should be more conservative in your approach.
Without their knowledge, your movements in this area might get you in trouble. You need to expand at just the right moment from a financial standpoint. If you try to grow the company before you have the cash reserves in place to do it, that can hurt you in the long run.
They Can Tell You If You Need to Borrow Money
You might need to secure a business loan at some point, or more than one. You may not be eager to do it, but sometimes, that’s what makes the most sense. Also, you should understand that borrowing money does not necessarily mean that your company is on shaky financial ground.
A finance manager can tell you when borrowing money is a sound strategy, and they can tell you the best way to do it. If they feel like you should approach a bank or credit union to take out a loan, you can follow their advice.
They might also tell you to pursue a venture capital firm or try to find an angel investor for a cash infusion. You can trust the entity they tell you to approach because your finance manager will do the requisite research beforehand.
Having a smart money person at the helm can help your company immeasurably. If you have the money to pay them, it’s often a worthwhile investment.