As a small business owner, you wear many hats including managing your finances.

But did you know that within your financial role you are wearing multiple hats at once, because business finance covers several roles, each with their own skill sets, tasks and required knowledge.

It’s no wonder it can feel overwhelming to a small business owner!

Let’s look at each of these roles to help you appreciate the complexities of financial management and the skill sets you need.

Key Roles in a Finance Team

1. Sales Ledger Clerk

The team member who is going to make sure customers are invoiced, payments coming in are recorded and that customer accounts are managed and reconciled. This role is vital in keeping the money flowing in.

Cost:

Hiring a full-time sales ledger clerk on average costs £23,000 annually.

2. Purchase Ledger Clerk

This team member records and processes all supplier invoices, manages suppliers accounts and makes sure they are paid on time. The role also reconciles supplier statements and handles queries and discrepancies with suppliers.

Cost:

Similar to the sales ledger clerk’s salary, this role attracts as average salary of £23,000 per year.

3. Bookkeeper

Good bookkeeping is the cornerstone of accurate reporting and accounts, it is vital. The role of a bookkeeper is to record daily financial transactions and to ensure that all bank accounts are reconciled, tracking income and expenses.

Cost:

Hiring a full-time bookkeeper can cost you around £30,000 per annum.

4. Credit Controller

Vital if the cash is to come in on time and keep the business moving. A credit controller not only ensures timely collection of outstanding debts, but they will also assess creditworthiness of a new customer and will manage credit policies and procedures. This role requires strong negotiation and communication skills, as well as some knowledge of relevant legal regulations.

Cost:

The annual salary for a credit controller averages out around £31,500.

5. Payroll Processor

You and your team need paying. A payroll processor may sit in the accounting team or within your HR function, but wherever they sit they will be responsible for managing starters and leavers on and off the payroll. Payroll needs to be run and submitted to HMRC by the correct due dates, yearend reports produced, and statutory payments managed.

Cost:

A full-time payroll processor typically earns £26,000 per year.

6. Management Accountant

A management accountant will prepare financial statements (income statements, balance sheets, etc.) for the business on a regular basis. This role requires an in-depth understanding of accounting principles, proficiency in tax rules and good analytical skills.

They will analyse financial data to identify trends and opportunities, prepare budgets and forecasts as well as conduct financial modelling to support strategic decision-making.

Cost:

A full-time management accountant’s salary typically ranges from £40,000 to £50,000 per year.

7. Financial Controller

This role oversees all accounting operations and ensures the accuracy of financial reports. They implement internal controls and procedures as well as manage the accounting team. Their skill set needs to include strong organisational abilities, leadership, and management strengths as well as a comprehensive knowledge of accounting and finance.

Cost:

A financial controller typically earns £60,000 per year.

8. Financial Director (CFO)

Finally, the Finance Director’s role. Overseeing financial operations and strategy, they are responsible for strategic financial planning and risk management. They need to ensure the long-term financial health of the business and liaise between stakeholders and investors. This person needs extensive experience in finance and business strategy as well as strong leadership and communication skills.

Cost:

The salary for a financial director or CFO can range from £100,000 to £150,000 or more annually.

 The Real Cost of a Full Finance Team

Employing a full finance team is expensive; you can see that from the indicative salaries we have given above.  But as a small business owner it is important that you can access these functions and the skill sets or your business is missing out on crucial insights that can bridge the gap between functional record keeping and strategic planning.

So how can you access the skills and support your business needs and deserves?

The Outsourced Finance Function Solution

For many small businesses, the solution lies in outsourcing their finance function. Here’s why this approach makes sense:

• Focus: Allows you time to focus on core business activities while professionals handle the financial complexities.
• Expertise: Provides access to a team of financial professionals with diverse skills and experience, that you would otherwise not have access to.
• Accurate and timely reporting: have the information you need to make decisions delivered to you, alongside financial insights whenever and wherever you need them.
• Cost Efficiency: Pay for only the services you need, without the overhead of a full-time team.
• Scalability: Easily scale services up or down based on your business needs.
• Compliance and Risk Management: Stay compliant with ever-changing regulations and mitigate financial risks.

And that is where we can come in. By partnering with us, you gain access to a full spectrum of financial services, knowledge and experience tailored to meet your needs, without the financial burden of hiring a complete in-house team. Let us wear the financial hats for you, so you can concentrate on what you do best – running and growing your business.