Scaling Your Business? Here's How to Manage Increasing Payroll Costs

Name: Scaling Your Business? Here's How to Manage Increasing Payroll Costs
Uploaded: 2023-11-05T13:30:01+00:00
Duration: 34 s
Channel: Jason M. Lemkin
Description: In this brief advisory segment, the speaker emphasizes that as a company’s payroll grows and cash burn increases, proactive financial and human‑resources…

5 Nov 2023 · 1 min

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In this brief advisory segment, the speaker emphasizes that as a company’s payroll grows and cash burn increases, proactive financial and human‑resources planning becomes critical. The recommended organizational changes include hiring a controller (the head accountant) to oversee a small team of accountants responsible for invoicing, billing, and collections, establishing a dedicated recruiting team, and adding a director of HR to manage broader people‑operations. These steps are presented as essential for maintaining control over rising payroll expenses while supporting continued growth.

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that is becoming a much more important function because your payroll has gone up a lot, you're burning a lot more money, you need to make sure you're planning that correctly. You now have a controller. A controller is a fancy term for head accountant. So you've gone from, you know, one IC accountant to actually having a controller for the company. They have a couple of accountants under them. They're doing stuff like invoicing and billing, making sure that they're actually collecting on your customer contracts. You now have a recruiting team and you now have— you actually need a director of HR. All right.