One of the biggest inhibitors to business growth for growing tech companies is the current skills shortage within the finance function.
It would be easy to blame Brexit, the pandemic or the UK’s escalating inflation rate, but the truth is that whilst the current economic situation undoubtedly is having a significant impact, the role of the finance function has evolved significantly over the last few years.
Several factors make accounting recruitment challenging, but the good news is that solutions exist, and we will look at them in this article.
The expectations of the finance function have changed in growing businesses
Whilst the primary role of the finance function is still to manage the company’s money, the finance functions of smaller companies in particular need to be outward-looking as well as inward-looking to:
- Monitor market trends
- Keep track of the changing political and regulatory landscape
- Benchmark the business and its products against the competition and the sector as a whole
- Keep a watchful eye on good practice
- Manage the relationship with key stakeholders, for example, investors, lawyers, suppliers and customers
They also need to become the information hub for the business to support the business planning process.
The skills needed in the finance function have evolved
All of this has implications for the skill needs of the finance function, which needs to move from a number cruncher to a value creator if the business is to continue to grow. It also requires a broad skill set to encompass all elements, from strategic planning to invoice processing.
The most effective way to quickly obtain this broad skill set is through an accounting services provider like Isosceles.
Why is accounting recruitment so difficult?
Aside from the UK economy, there are several reasons why accounting recruitment is so difficult at the moment:
- The introduction of disruptive technologies (process automation, machine learning, cloud-based SaaS (Software as a Service) tools, etc.) means that businesses need tech-savvy accountants, and they are still in scarce supply.
- Automation can now do the number crunching, so companies need accounting professionals with data analytics skills who can find and interpret trends and patterns in data and apply them to the business. These skills will take a while to flow into the workforce.
- Competition is fierce for the tech-savvy accountant. Good quality accounting professionals know their worth and are demanding compensation packages out of reach for most small and medium companies.
Related Article | The tech-enabled FD: How to become tomorrow’s FD
How can outsourcing to an accounting services provider bridge this skills gap?
The most significant benefit of using an accounting services provider like Isosceles for is access to a flexible blend of tech-savvy and highly skilled accounting professionals who come with the systems and processes needed for a best-practice finance function.
Perhaps a finance director is required for one day a month, a financial controller once a week and a bookkeeper twice a week. Or another combination. Alternatively, you may just need additional hands at month-end or year-end. No matter, an outsourced accounting service can be tweaked to your exact requirements, turned up during a busy time, and turned down when it is quieter.
There are no accounting recruitment headaches or costs, no training costs or HR worries.
Growing a business is not easy, but without experienced financial know-how, it will be almost impossible.
Please get in touch if you think we can help via our Contact Us form
Related Article | How to achieve a fit-for-purpose finance function
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