How to hire a Finance Manager for a Start-up

A healthy inflow and outflow of money tells us about the financial health of a company. 
 
But as a start-up, we might have started off doing this manually, simply, by keeping a log in pen and paper, or on an excel sheet. This might work for a while, till you reach that point on your growth curve that demands the expertise of a Finance Manager. Or sometimes, even sooner, if number crunching is not your strength and starts to feel like a chore. Missing a few entries or thinking you can update it later, is barely an option!
 
                                        
 
It is important to stay on top of it, as at the end of the day, cash flow is king! 
 
But if you have never hired a Finance Manager, then where do you start?
 
And what do you look for?
 
In this article, we are hoping to help you understand the basics of what a Finance Manager does and how you can go about hiring one for your organization. 
 
But before we do that, let us first look at what a Finance Manager does. 

Why do you need to hire a Finance Manager?

As a start-up, it is common for one of the founders to be one to play this role in the initial days.  Though this might be your strength or not, it is a critical step as it allows the founder to be involved in the day-to-day transactions and understand the way money flows in and out of the organization. 
 
                                         
 
All this learning from managing your accounts on your own will help you understand and evolve the process when you later manage it, so you can set them up for success. 
 
So when should you hire a finance manager?
 
When you are on the growth curve and you do not have time or the skills to do any of the following: 
 
• Thorough financial planning and interpreting financial information and trends and suggesting a future course of action
• Comparing budgeted vis-à-vis costs and implementing different cost reduction strategies
• Setting financial goals of the finance department and designing a robust framework to align it with organizational missions and deliverables. 

Role of a Finance Manager

Finance Managers are responsible for the overall financial management and health of an organization. They could be responsible for the day-to-day handling of cash flowing in and out of the organization, but in the long term, are responsible for analyzing and producing financial reports for long-term financial goals of an organization. They also strategize investment activities for maximizing profits and ensure that all financial transactions adhere to legal regulations. As the financial responsibilities evolve and the organization grows, they make financial recommendations to the management. 
 
                                    
 
Some of the responsibilities include: 
  • Identify new metrics to drive business performance while minimizing risk
  • Drive value within the business through margin enhancement, lowering costs and driving operational efficiencies
  • Execute accurate reporting to analyze options and make financial recommendations
  • Provide insight into business performance against competitors and industry trends
  • Manage relationships with bankers, auditors, and tax authorities
  • Maintain compliance with federal, state, and local financial requirements by studying new and existing legislation

The Average Salary

The average salary of a Finance Manager in India is about  (INR) ₹991,180 per annum. This includes bonuses, profit sharing and commissions. The actual salary depends on multiple factors including experience, the exact role (junior vs senior), skill set, and location. 
 
                                                    
 
Once you are convinced that you need to hire a Finance Manager, the next step is to figure out the characteristics you are looking for. In this process, you should first define what your ideal hire looks like. You can create a checklist of characteristics, traits, experiences and skills. Many of these can flow from your experience in managing your accounts. 
 
Here is a checklist that can help you: 

What characteristics should you look for? 

  • Strategic planning  and Analytical Thinking
  • Tech-savvy and up-to-date with the relevant latest technology in the industry including Oracle, Hyperion, and Xero
  • Adaptability and the ability to think on their feet to match the changing needs of the organization and to keep up with the demands of a mercurial market 
  • Honesty and integrity - even though there are strict guidelines for finance managers to adhere to, transparency, accountability and strong values can be highly valued. 
  • Strong communication skills  so that they can build strong relationships with clients, external stakeholders, and internal teams
 
                                          
 

How to find the perfect Finance Manager for your organization?

The next obvious question is to figure out where you can find the kind of talent you are looking for. There is no one way to do this. There are many avenues for you to try. You can choose based on your budget and time available. Here are some options: 
 
  • Direct recruiting: This is probably the most effective way to find & hire top finance managers for your organization. This means doing it yourself - by going onto platforms like Linkedin, sifting through profiles, matching skills and contacting the people who make the cut. 
 
                                        
The obvious downside is that this can be a time-consuming and often frustrating process. And it might mean you will have to convince someone who was not actively looking for an opportunity to quit and join you. 
 
Pros: You will find hand-picked candidates that perfectly fit your needs. 
Cons: Time-consuming, inability to match skills perfectly due to lack of experience
 
  • Job portals: This is the easiest step from the organization’s point of view. All you need to do is create a profile and post it on all the major job portals. But there is a common belief that you might only get suboptimal candidates as the great ones are always snatched up. 
 
This might be a good way to start off and get the word out there. And if you have a strong screening process, it might be worth the effort. 
 
Pros: Quick, easy, inexpensive, wide-reach
Cons: Possible low quality of candidates, loss of time in the initial screening process
 
  • Referrals: Referrals are an excellent way to find candidates for your organization as you can be convinced of the quality of the candidates. But sometimes, it could add unnecessary pressure to make the hire even if it is not the best fit for your organization. Hiring the wrong candidates often ends up being very expensive for the organization. 
 
It can also sometimes present a skewed impression of the candidate: a good fit for one organization might not be a good fit for another. 
 
Pros: Reliable, easy, inexpensive
Cons: Limited reach, social pressure, sometimes unreliable 
 
  • FlexiBees: We, at FlexiBees, invest time and effort to understand every client's needs and perfectly match them using our deep vetting process. You can choose the candidates based on your specific needs, including a number of hours. 
 
All you have to do is fill in a form to tell us what you need, and we will get our team in touch with you to get the process started. We will send you curated profiles to choose from and then hire. 
 
Pros: Cost-effective, agile, on-demand, vetted and experienced talent with no geographical constraints
Cons: Only remote working candidates are available
 
Finding the right sales talent can be challenging. Remember as a start-up, you need to first sell your start-up to potential candidates. 
 
If you want to see the kind of people we have recruited for our clients, click here. 
If you are convinced, then click here to reach out to us.