Settle x Rainbow CFO: Building a Finance Team for Each Stage of Growth

LearnMarch 8, 20244 min read

At Settle, we're focused on providing software and financing solutions to help brands optimize their financial operations. Our Head of Partnerships, Anna Briggs, recently sat down with Andi Ruda, founder of Rainbow CFO, to get her advice on strategically managing finances based on her many years as both an in-house and fractional CFO.

Andi shared practical guidance on clarifying finance roles, determining when to bring on support, finding the right people and agencies to work with, and maximizing those relationships to set your business up for success.

Key Responsibilities of the Finance Function

No matter the size of your business, finance teams are focused on a few core functions:

This includes reporting on performance, planning and modeling for the future, supporting operations, and securing financing when needed:

There are a few key finance roles that cover these responsibilities:

  • CFO: Owns everything from the financial statements to forecasting models to banking.
  • Controller: Liaison between accounting and leadership, ensures processes are buttoned up, and oversees timely financial statement preparation
  • Accountant/Bookkeeper: Handles day-to-day transactions and monthly financial statements.
  • Financial Analyst: Manages financial and department-specific data to inform decision making within business.

Having an understanding of what each role entails will help you build out your team in a way that sets everyone up for success.

Know When It's Time to Bring on Finance Support

Deciding when to bring on accounting and finance support depends more on key milestones than a specific timeline.

"There's no formula timewise - it's more about when these milestones start to happen at your company."

Top triggers include:

  • Lack of existing finance experience in leadership team: It's harder to set things up properly without know-how and bringing in a bookkeeper can help maintain your books or hiring a fractional CFO can help with financial planning so you can focus on other aspects of your business
  • Revenue growth: Growing revenue most of the time correlates with growing responsibilities for the CEO/founder and greater need for financial planning.
  • Increasing business complexity: Even without more revenue, multiple business units or distribution channels create more need for oversight.
  • Completed fundraising: Investors want to see proper stewardship of new capital.

Andi emphasizes not over-hiring finance roles just because you raised funding - start with support proportional to your needs and invest more in revenue-generating roles or initiatives.

Find the Right Finance Resource for Your Stage

Should you use an agency or freelancer? Does industry expertise matter? Here are key questions to help assess options:

  • Do you a one-stop-shop firm or multiple resources for each subject are? A single agency provides coordination, but multiple vendors allows for "healthy tension" between advisor roles.
  • Do you prefer an agency or freelancer? Agencies offer access to more resources while individual freelancers offer more focused partnership and accountability.
  • Is product or industry expertise critical? Some CPG brands require in-depth knowledge around their industries (e.g. food brands may benefit from someone who understands the co-packing process or how long shelf-stable products last).
  • Will your team work directly with them? Finance may influence company culture and operations, so cross-functional collaboration is ideal.
  • Is there enough workload for a full-timer? Don't overspend on a CFO if a manager or analyst better matches your needs.

Thoroughly vetting candidates based on your priorities will help ensure a mutually beneficial relationship.

Maximize Your Finance Relationship

Once you've brought on accounting and finance support, be an engaged partner:

  • Communicate openly: Keep them looped in on strategic plans that may impact budgets or performance.
  • Create routine touchpoints: Include them in relevant meetings to strengthen integration such as leadership, marketing, inventory planning meetings, etc.
  • Track forecast vs. actuals: Provides visibility into budget issues and forecasting model effectiveness.
  • Own your numbers: In the end of the day, it's still your company! Don’t shy away from learning your own business model and don't expect an outsourced resource to be fully responsible for your numbers.

How Can Settle Help

Ready to take your finance team to the next level? Whether you're hiring your first fractional CFO or looking to build a complete finance team, Settle offers the tools and support to drive your company's growth. With Settle's innovative financial operations tools built specifically for CPG brands, automating your financial operations and streamlining processes has never been easier.

From fast and easy vendor payments to seamless PO 3-way matching, Settle empowers your team to work more efficiently and effectively. Get started for free and see firsthand how our solutions can transform your business.

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