When people think of the cost of starting a business, they often refer to financial investment. But starting a business also requires emotional investment. Growing a business is almost like raising a child, and therefore, most entrepreneurs get emotionally attached to the process. They want to do everything themselves, giving the logic that they are trying to create a system before delegating the task.
So, they will be the ones doing accounts, operations, customer service, maintenance, business development, and even janitorial work. Do you think this is sustainable? Simple answer: no. By doing everything yourself, you are strangling growth opportunities. You miss addressing customer concerns or things that matter most. In fact, if you aren’t particularly good at certain tasks, you end up making costly mistakes that can even lead to prosecution.
For example, consider finance. Instead of looking to hire financial managers, many entrepreneurs will try to manage accounts themselves, often leading to costly penalties, glaring mistakes, and even prosecution. Hence, the best way forward is to hire qualified personnel for the task.
When to Hire Financial Managers?
As we just mentioned, most entrepreneurs feel that they should have a system before beginning to hire. However, this logic is flawed. If you are starting out, you are building the system from the point you are at right now. Once your business gets going, then you will be at a different level. So, your system will look different from a different angle.
Hence, instead of focusing too much on the system, you should be focusing on the results. You can scale faster if you are doing it with someone else. Because in that case you won’t be alone but will be able to leverage the expertise that the remote resource brings in.
However, if you want to do it yourself, a simple rule of thumb you can follow is to do a task for a few months before getting it off your plate. Again, if you aren’t comfortable around numbers, it is best to hire a financial manager from the beginning.
How Hiring a Financial Manager Strengthens Business Growth?
A range of businesses, from banks to financial institutions, hire financial managers, and they are considered an essential part of the management team. This is because financial managers often bring a tremendous amount of financial skills, insights, and knowledge, which are key to growing businesses.
Here is how hiring a financial manager strengthens your business growth:
- More than an Accountant
A financial manager is not just an accountant who manages your books of accounts. Of course, they are responsible for the day-to-day accounts and financial commitments of the business. But that’s not all. Financial managers also handle multiple other tasks, including hiring employees, developing action plans for business growth and development, analyzing statistics, negotiating loans, and more. In short, they are an essential part of your management team and play a major role in business development and execution.
- Essential Pillar of Growth
You should especially hire a financial manager if you are planning business expansion. The right hire will take a lot of the burden related to financial operations off your shoulders, leaving you ample time to focus on core operations, strategy, and business development. Moreover, when you hire a financial manager, whether in person or remotely, you will have someone to bounce ideas off while also leveraging their expertise.
How to Hire a Financial Manager
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Hiring Locally
The obvious answer to how to hire a financial manager would be to source talent from the local talent pool. That’s what conventional wisdom tells us. But if we keep assumptions aside and dive deeper, a different story emerges. For instance, consider the following factors:
- Financial Aspect
Financial managers commanded a median pay of $161,700 per year or $77.74 per hour in 2024. Undoubtedly, this is a considerable sum, especially for small and medium-sized businesses. Added to this are contributions to social security schemes such as 401(k), 403(b), defined benefits, and more, which makes the total CTC for the company quite a formidable amount.
- Talent Scarcity
There were 868,600 financial manager roles in 2024, a number that is set to rise by 15% between 2024 and 2034. This means you will find it increasingly difficult to secure suitable talent if you are looking to fill the role from your local talent pool. By the law of supply and demand, top talent will come at a premium and become more selective about the companies they choose to work with.
- Attrition Rates
Even if you manage to find a suitable candidate for the financial manager role and provide training, there is always a possibility that the candidate may leave for a better opportunity. High attrition not only results in financial losses for your company but also puts you at a disadvantage compared to your peers.
- Long Hiring Cycle
Another challenge with filling vacancies from the local talent pool is the time involved. A limited local talent pool often leads to longer hiring cycles, which further inflates hiring costs.
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Remote Hiring Advantages
All of these disadvantages can be easily solved if you open up to the idea of hiring remote resources. Here are some of the benefits you can gain when you hire financial managers remotely:
- Finance
The first clear advantage of hiring remotely is the financial impact. You can access top talent in a country like India at a fraction of your local hiring costs. Moreover, the remote staffing agency takes care of all operational, legal, and administrative expenses, thereby helping you save around 50–60% on monthly costs.
- Talent Availability
By choosing to hire remotely, you open your doors to a much wider talent pool. This allows you to fill vacancies faster. Additionally, when you partner with a remote staffing agency, they handle the heavy lifting and present you with a curated pool of highly qualified candidates to choose from.
- Shorter Hiring Cycles
When you partner with the right remote staffing agency, you can onboard the right talent for your organization within a week. This results in a much shorter hiring cycle at almost zero hiring cost. Moreover, companies like Remote Resource® allow you to try the candidate for a week before making a hiring decision.
- Hedging
Another benefit of choosing to hire a financial manager remotely is hedging. By spreading your operations across multiple countries, you can shield your business from geopolitical, natural, and other risks and continue to operate during times of adversity. Moreover, having a financial manager from India can offer your business fresh perspectives and support future expansion plans into the country.
Final Words
As discussed above, a financial manager is an important cog in your management team who not only helps manage your accounts but also supports strategic initiatives. By hiring a specialist for this role, you can focus your attention on what matters most and grow faster. And as clearly illustrated above, remote team hiring is often more advantageous than hiring talent locally.
So, what are you waiting for? Connect with Remote Resource® now and enjoy a one-week free trial on your first hire.