Building Finance Processes That Scale: The Operations Playbook

The hidden driver of finance success—processes that deliver consistent results as you grow.

Last Updated: April 2025|14 min read

Key Takeaways

  • •Process maturity enables scale—great people with bad processes still struggle
  • •Monthly close time is the single best indicator of finance function health
  • •Document processes before you have to scale them, not after
  • •Controls should be right-sized for your stage—not too loose, not too bureaucratic

You can have excellent finance people and modern systems, but without mature processes, everything depends on heroics. One person gets sick and the close is late. The controller leaves and institutional knowledge walks out the door. Growth accelerates and suddenly nothing works anymore.

Process maturity is what separates finance functions that scale from those that break. This guide covers the essential processes every growing company needs and how to build them at the right level for your stage.

The Monthly Close: Your Finance Function's Heartbeat

Monthly close time is the single best indicator of finance function health. A fast, accurate close means your processes work. A slow, painful close means something's broken.

Target Close Times by Stage

RevenueTarget CloseReporting Delivered
$5M-$10MDay 12-15Day 15-18
$10M-$20MDay 8-12Day 12-15
$20M-$35MDay 5-8Day 8-12
$35M-$50MDay 3-5Day 5-8

Close Process Components

Pre-close (ongoing): Bank reconciliations, credit card coding, invoice processing, payroll posting. Don't wait until close to do this work.
Close (Days 1-5): Revenue recognition, accruals, prepaid amortization, depreciation, intercompany eliminations, account reconciliations.
Review (Days 5-8): Trial balance review, variance analysis, adjusting entries, CFO/controller sign-off.
Reporting (Days 8-12): Financial statement prep, management reporting, variance commentary, distribution.

The Close Checklist

Document every step of your close process in a checklist with owners and due dates. This creates accountability, enables coverage when people are out, and provides the foundation for process improvement. No close should depend on one person's memory.

Reporting Cadence

Consistent reporting creates rhythm and accountability. Here's a typical cadence for growing companies:

ReportFrequencyAudienceContent
Cash PositionWeeklyCEO, CFOCurrent cash, 4-week forecast, AR/AP aging
Financial PackageMonthlyLeadership teamP&L, balance sheet, cash flow, KPIs
Budget vs ActualMonthlyDepartment headsDepartment P&L, variance analysis
Board PackageMonthly/QuarterlyBoardExec summary, financials, KPIs, outlook
Forecast UpdateQuarterlyLeadership, boardRe-forecast, scenario analysis

Approval Workflows

Clear approval processes prevent fraud, ensure accountability, and create audit trails. But they shouldn't slow the business to a crawl. Right-size for your stage.

Expense Approval Matrix (Example)

AmountApprover
< $1,000Department manager
$1,000 - $10,000Department head + Controller
$10,000 - $50,000CFO
> $50,000CEO

Other Key Approval Processes

Vendor Onboarding

  • W-9 collection
  • Bank account verification
  • Contract review (if applicable)
  • Finance approval to add to system

Contract Signing

  • Legal review threshold
  • Finance review for budget impact
  • Signature authority by amount
  • Contract management/storage

Don't Over-Engineer

A 5-person approval chain for a $500 expense kills productivity. Match control rigor to risk. Small, routine transactions need light controls. Large, unusual transactions need more scrutiny.

Controls Framework

Internal controls protect the company from fraud, errors, and compliance failures. For $5M-$50M companies, you don't need SOX-level controls, but you do need basics:

Segregation of duties: Person who requests payment shouldn't be person who approves it. Person who creates vendors shouldn't process payments.
Bank reconciliation: Monthly reconciliation by someone other than the person who has check-signing authority.
Access controls: Limit system access to what each role needs. Review access quarterly. Remove access immediately when people leave.
Physical controls: Secure check stock, limit who can issue checks or wires, require dual approval for large payments.
Documentation: Written policies for key processes. Even simple documentation prevents "we've always done it this way" drift.

Process Documentation

Document processes before you have to scale them. This doesn't mean creating 50-page procedure manuals—simple documentation is better than none.

What to Document

  • Close checklist: Every step, owner, due date
  • Account reconciliation procedures: How each account is reconciled
  • Revenue recognition policy: When and how revenue is recognized
  • Expense policy: What's reimbursable, approval process, documentation required
  • Vendor setup process: Required information, approvals, system entry
  • Payroll process: Timeline, approvals, system inputs
  • Approval matrix: Who can approve what amounts

Start Simple

A Google Doc with bullet points is infinitely better than nothing. Don't let perfection prevent progress. Document as you do the work, then refine over time.

Related Resources

Scaling Finance Guide

Complete guide for $5M-$50M companies

Finance Team Structure

Building the right team for your stage

Need Help Building Scalable Processes?

Eagle Rock CFO helps growing companies build finance processes that scale. Let's discuss your operational challenges.

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