FinTech is an exciting industry to be in. As accountants, we’re energised by the opportunities that FinTech startups are creating to streamline tasks and operations. We also know that for FinTech founders, accounting is one of their biggest challenges.
We’ve worked in the FinTech industry before, with clients like Spaceship Super. We know the challenges you’re up against. And we’re ready with solutions to match.
If accounting and finance for your FinTech is keeping you up at night, read on for some of the reasons why an outsourced CFO is likely the answer.
Regulatory compliance
There’s good reason why the FinTech industry is so heavily regulated. Compliance measures are in place to protect customers and prevent fraudulent activity. Failure to comply with regulations can result in not only hefty fines and legal action but also serious reputational damage.
When you’re looking after other people’s money or you hold a financial licence of some type, there’s a very small margin of error for your own business finances. The consequences of anything but tight reins over your accounting can be dire.
In a startup, it’s not easy to build the kind of robust and well-organised finance function that’s needed to maintain compliance. This isn’t the kind of situation where you can wait until there’s a problem until you call in help. Proactive monitoring, reporting and measurement is the only solution.
This is where an outsourced finance team can step in. We’re across the constantly evolving regulations and compliance requirements and we can ensure that you meet them. We know the red flags and what to do about them to save you a whole lot of stress and money down the track.
Laying strong foundations
It’s easy to get wrapped up in the challenges of compliance. But, at the end of the day, meeting your regulatory obligations starts with laying solid accounting foundations.
That means streamlining the basics. When the basics are clean, well organised and someone is accountable for the finance function. If you’re chasing accounts payable, there is no capacity to address the more complex accounting issues and requirements of the business.
Even in a business where there are much bigger problems to solve, we always start with the basics. That’s the value an outsourced CFO adds. Creating a finance function that can handle the complexities of the business’s accounting needs as you scale into the future. You’ll have insights about the financial performance of the business at your fingertips to make informed decisions about operations, strategy and growth.
When you outsource this function, you’re freeing up internal resources to focus on core aspects of the business. If they’re chasing invoices, they’re likely not spending their time where it is most needed.
Access to higher level skills
You can absolutely build an in-house finance function within a FinTech startup. But by outsourcing your finance function, you gain access to a whole other level of skills that you simply couldn’t get with an in-house team. And you get it at a fraction of the cost.
What we bring to the table is collective decades of experience. You aren’t just getting one mind, you’re getting access to a whole team and the diverse skill sets and capabilities associated with that. We bring insights, not just from the FinTech industry, but broad industry perspectives from across our client remit. We’re across the trends, best practices and emerging issues that will affect your business and the ideas and innovative solutions that will help you stay ahead of the curve and remain competitive.
Partnership for growth
Expanding into new markets can be a thrilling adventure, but it can also be a daunting task. Along with new opportunities come new challenges, particularly when it comes to managing the finances. As your business grows, so do your financial needs, and navigating these can be time-consuming and overwhelming.
Outsourced financial teams provide flexible and scalable options that can adapt to the size of your team and support your business expansion and changing financial functions, providing the right level of support at every stage of your growth, so you can focus on your core business operations.
At Vital Addition, our financial experts have experience dealing with businesses and organisations of all sizes, we integrate seamlessly with your operations, and offer insights and specialised talent when you need it, that internal finance teams can’t offer.
If your FinTech is ready to outsource your finance function, contact us to discuss your requirements.