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Common Problems Every Finance Team Faces and How You Can Solve Them

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. Here’s a 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. The business world is currently 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.

Problem No. 4: Multiple systems that don’t communicate with each other

To streamline your business and bring true efficiency to your financial reporting and forecasting, you need an automated data collection and analysis system where each piece of software communicates effortlessly with the next to provide you with the figures you need when you need them.

If your Finance team is still collecting and analysing your business data manually, you need to review your existing setup to determine how you can implement more automation and enable your team to work with greater speed each day.

Problem No. 5: Limited resources

Sometimes, the biggest problem that your Finance team can face is a complete shortage of the resources that they need to be able to carry out their tasks and responsibilities. This lack of resources can come in the form of staff shortages, limited access to the right technologies, or even budgeting limitations that mean your Finance team simply cannot afford the resources they require.

When you have a lack of resources such as those listed above, this makes it very difficult for your Finance team to reach their full potential as they’ll have a general lack of engagement from performing tedious tasks for longer hours. This, in turn, can prevent your business from growing to its full potential.

In a recent article, we listed 6 great tips to help you and your Finance team get your business ready for investment [LINK TO MARCH BLOG]. This is a great place to start when looking to address this problem. So, how can you solve these 6 common challenges and set your Finance team up for success? Easy. By adopting a managed finance team with Dexterous. Our Finance Department as a Service addresses all of the limitations and challenges faced by an internal Finance team.

So, how do you solve these common challenges and set your Finance Team up for scucess?

Easy. By engaging one or more of our bookkeeping and accounting personnel and/or adopting a managed finance team with Growbiz Solutions. Our Finance Department as a Service addresses all of the limitations and challenges faced by an internal Finance team.

Growbiz Solutions has everything you need to solve these problems and many more

If your Finance team or the systems they use are struggling to support your business, Growbiz can provide you with a tailored solution that will help to boost your business and achieve your goals. At Growbiz, our team serves as your finance department working internally for your business.

We take care of your business’ financial function, so you can be more agile and capable of scaling throughout a recession and beyond. The beauty of the Growbiz model is that it’s entirely flexible to help meet your unique business needs and eliminate the challenges that a Finance team will typically face.  Want a reliable finance department to help you deal with any business challenges?

Want a reliable Finance team member or members to help you deal with any business challenges, get in touch with us

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