Research shows that 49% of CFOs report gaps in financial planning and analysis (FP&A) expertise within their teams, limiting their ability to provide forward-looking insight.
In 2026, ambitious founders need an effective finance function that provides clear financial visibility. But full-time finance leaders and fractional CFOs are often expected to run a lean, high-performing function – without the team to do it. We discuss how to address that below.
Part of the challenge lies in how finance teams are traditionally built. Permanent hires come with high fixed costs, extended recruitment timelines and ongoing management responsibility. Even then, there is no guarantee the individual will bring the right level of seniority or the specialist expertise required across tax, compliance or international expansion.
In an environment where margins are tight and agility matters, expanding headcount is not always the most efficient solution. This is where a well-structured lean finance function becomes essential.
What does having a lean finance function really mean?
A lean finance function applies practical principles to eliminate inefficiencies, optimise workflows and introduce automation where it delivers measurable value. It focuses on controlling fixed overhead, ensuring senior finance time is not absorbed by routine processing and preventing manual workflows from slowing down reporting or decision-making.
Designing a structure like this is not about doing everything in-house from day one. It’s about making smart decisions on what to outsource, what to automate and what to keep in-house. With that in mind, let’s look at how different finance tasks can be carried out across outsourcing, automation and in-house ownership.
What parts of your finance function should you outsource?
A common response to rising workload is to increase headcount. While this can provide short-term relief, even experienced in-house hires can become absorbed in operational tasks when inefficient processes remain in place.
Building a lean finance function requires a more intentional approach. Before deciding what to outsource, finance leaders should step back and assess how the function is currently operating.
Key questions to consider include:
- What tasks are working well and should be retained?
- What outputs are being produced but not actively used?
- What information or analysis is missing but needed?
- Which processes rely heavily on repetitive manual efforts such as month-end close or recurring reporting?
Routine and repeatable tasks are often better suited to outsourcing or automation. This protects internal capacity and allows teams to focus on higher-value work. Finance leaders should consider outsourcing the following activities:
1) Corporate Tax Return and Year-End Accounts
Corporate Tax Returns and year-end accounts are commonly outsourced as this helps preserve internal capacity for planning, analysis and decision support.
An outsourced finance partner can support account reconciliation, prepare and file year-end accounts including the balance sheet and profit and loss (P&L) statement and complete the CT600, ensuring technical accuracy and compliance.
2) VAT Registrations and Returns
From VAT registration and calculations to the preparation and submission of returns, an outsourced finance partner can manage the process end-to-end. This helps reduce compliance risk and administrative burden for in-house teams across quarterly, monthly or annual VAT schemes.
3) Payroll & Pensions
Payroll and pension administration can be outsourced to support payroll compliance. This typically covers salary calculations, payslip preparation and HMRC submissions and pension reporting.
4) Vendor payments
Vendor payments are commonly outsourced to support accurate invoice processing and timely supplier payments. An outsourced finance partner works with existing banking and payment systems to manage approvals, scheduling and execution end-to-end.
5) Reporting
External finance experts can provide forecasting and valuations. They can also provide timely cash flow analysis and management reporting to support investor and growth plans.
6) Management Accounts
Monthly or Quarterly management accounts are commonly outsourced to ensure consistent reporting, disciplined month-end close processes and timely financial visibility. An outsourced finance partner manages reconciliations, accruals and adjustments before preparing structured management reports.
They also provide clear insight into income, expenditure and profitability across departments to support cash flow oversight and highlight areas where costs can be optimised or performance improved.
While these are the common tasks outsourced, the strongest finance partners will also design and implement a FinOps function, giving you clear visibility and control over what you’re spending on technology, software and operations as the business grows.
Outsourcing the finance function is less about delegation and more about building an operating model that balances efficiency, control and specialist expertise.
What should you automate internally?
Even when parts of the finance function are outsourced, some processes should be automated internally. This keeps information flowing cleanly between in-house teams and external finance partners. It reduces manual work, speeds up reporting and improves day-to-day visibility.
Finance leaders typically achieve this through the best accounting software such as Xero or QuickBooks. These platforms include built-in automation across routine finance tasks such as:
Invoicing and expense approvals
Invoice creation, approval workflows and employee expense claims should be automated within internal finance systems. This ensures invoices are raised on time and expenses are approved quickly.
This also enables outsourced finance partners to review, categorise and post transactions without delays caused by missing or incomplete information.
Bank feeds and reconciliations
Automated bank feeds pull transactions directly from bank accounts into the accounting system. Payments are matched to invoices and expenses with minimal manual input. This reduces errors and provides a current view of cash inflows and outflows.
Reporting dashboards for profit/loss and KPIs
Automated dashboards provide real-time visibility into profit and loss, cash position and key performance indicators. These dashboards are typically set up and maintained by the outsourced finance team while in-house finance leaders use them to monitor performance and support decision-making without waiting for month-end reporting cycles.
What should stay in-house – and why?
Responsibilities linked to strategy, growth and stakeholder relationships should typically remain in-house. While outsourced finance partners provide data, analysis and recommendations, internal ownership ensures decisions are made with full commercial and operational context.
The following areas should generally remain within the in-house finance function:
Strategic budgeting and planning
Budgeting at a strategic level should sit in-house as it reflects business priorities, growth ambitions and operational constraints. Internal teams are best placed to set direction with outsourced partners supporting through forecasts, scenario planning and financial insights.
Investor and funding activity
Managing investor relationships and funding strategies requires a deep understanding of the company’s vision and long-term goals. These responsibilities should remain internal even when external advisers support valuation, modelling or due diligence.
Commercial and sector-specific decisions
Commercial decisions tied to industry-specific drivers such as staffing models, pricing structures or project margins rely on detailed operational knowledge. These decisions should remain within the in-house finance function.
When responsibilities are structured this way, you maintain strategic control while still gaining the benefits of outsourcing finance and accounting services.
At Rise Accounting, we support many companies as an outsourced finance function. Our dedicated team handles bookkeeping, monthly management accounts and end-to-end compliance, so you can focus on growth, effective capital deployment and scaling with confidence.
Contact our team for a free consultation and explore how you can better optimise your finance function today.
