Financial Controller for High-Growth SMEs

Financial Controller for High-Growth SMEs

Introduction

High-growth SMEs face a unique set of financial challenges. Revenue may be increasing rapidly, teams expanding, and opportunities multiplying — yet financial systems, controls, and reporting often lag behind growth. What worked at an earlier stage can quickly become a constraint, exposing the business to cash pressure, poor decision-making, and operational risk.

This is where a Financial Controller becomes a critical hire. For high-growth SMEs, a Financial Controller brings structure, visibility, and discipline to finance, while still supporting pace and ambition. They help founders and leadership teams move from reactive financial management to controlled, scalable growth.

This article explains the role of a Financial Controller in high-growth SMEs, when the hire typically becomes necessary, and how the right individual supports sustainable expansion.

What Defines a High-Growth SME?

High-growth SMEs are not defined solely by size, but by trajectory. Common characteristics include:

• Rapid year-on-year revenue growth

• Increasing headcount and operational complexity

• Pressure on cash flow and working capital

• Multiple products, services, or customer segments

• Founders stretched across operational and strategic priorities

At this stage, finance often needs to evolve from bookkeeping and compliance into a proactive, insight-driven function.

Why High-Growth SMEs Need a Financial Controller

In many SMEs, finance is initially handled by founders, bookkeepers, or external accountants. As growth accelerates, this model starts to break down.

A Financial Controller fills the gap between basic accounting and strategic finance leadership. They ensure the numbers are accurate, timely, and meaningful — and that management can rely on them when making growth decisions.

Without this role, high-growth SMEs often experience:

• Poor visibility over cash and profitability

• Delayed or unreliable management reporting

• Weak controls as transaction volumes increase

• Reactive decision-making rather than planned growth

The Role of a Financial Controller in a High-Growth SME

Establishing Financial Control and Visibility

One of the first priorities for a Financial Controller is creating reliable financial reporting. This typically includes:

• Consistent monthly management accounts

• Clear profit and loss, balance sheet, and cash flow reporting

• Reconciled and well-controlled balance sheet items

• Simple but effective KPIs linked to growth drivers

This visibility allows founders to understand what is really happening in the business.

Cash Flow and Working Capital Management

Cash flow is often the biggest risk in a high-growth SME. Growth consumes cash, even when the business is profitable.

The Financial Controller introduces:

• Regular cash forecasting

• Improved debtor and creditor management

• Working capital controls

• Early warning indicators for cash pressure

This enables the business to grow without repeatedly firefighting liquidity issues.

Budgeting, Forecasting and Planning

As growth accelerates, informal planning becomes insufficient. The Financial Controller supports structured planning by:

• Building annual budgets aligned to growth objectives

• Introducing rolling forecasts

• Supporting scenario planning for different growth outcomes

• Monitoring performance against plan

This gives leadership teams confidence to invest, hire, and expand with clarity.

Supporting Scalable Operations

Systems and Process Improvement

High-growth SMEs often outgrow their finance systems quickly. Financial Controllers typically lead:

• Finance system upgrades or optimisation

• Process standardisation across invoicing, reporting, and payroll

• Automation of manual tasks

• Improved data quality and reporting speed

The focus is on scalability — building systems that can grow with the business.

Controls and Governance Without Bureaucracy

As transaction volumes increase, controls become essential. The Financial Controller introduces:

• Approval frameworks and spending controls

• Clear responsibilities and segregation of duties

• Policies that support consistency without slowing operations

Good Controllers add discipline without stifling entrepreneurial momentum.

Risk Management in High-Growth SMEs

Rapid growth increases financial and operational risk. The Financial Controller helps identify and manage risks related to:

• Customer concentration and credit exposure

• Margin erosion

• Cost creep

• Compliance and regulatory obligations

By addressing risks early, the business avoids problems that can derail growth later.

Financial Controllers as Commercial Partners

In high-growth SMEs, Financial Controllers are often close to the commercial engine of the business. They support decision-making by:

• Analysing profitability by product, service, or customer

• Supporting pricing decisions

• Assessing return on investment for growth initiatives

• Providing insight into where growth is most valuable

This commercial insight turns finance into a strategic asset rather than a reporting function.

Building and Developing the Finance Function

As SMEs grow, the finance function often expands. The Financial Controller plays a key role in:

• Defining finance roles and responsibilities

• Hiring and developing finance staff

• Improving processes and team capability

• Ensuring finance can support the next phase of growth

Strong leadership ensures finance scales alongside the wider business.

When Should a High-Growth SME Hire a Financial Controller?

Common indicators include:

• Revenue approaching or exceeding £3–5 million

• Founders spending too much time on finance issues

• Increasing pressure on cash flow

• External reporting requirements (banks, investors, auditors)

• Plans for fundraising, acquisition, or exit

Some SMEs appoint a part-time or interim Financial Controller initially, moving to a permanent role as complexity increases.

What to Look for When Hiring a Financial Controller for a High-Growth SME

The most effective Financial Controllers in high-growth SMEs typically bring:

• Experience in growing or changing businesses

• Strong cash flow and control capability

• Systems and process improvement skills

• Commercial awareness and pragmatism

• Clear communication with non-financial leaders

Adaptability and mindset are often more important than sector background alone.

Conclusion

For high-growth SMEs, a Financial Controller is a pivotal hire that supports control without slowing momentum. By improving reporting, strengthening cash management, and introducing scalable systems, they help founders and leadership teams turn rapid growth into sustainable success.

As SMEs move through periods of accelerated expansion, the right Financial Controller provides the financial clarity and discipline needed to grow confidently — and to be well prepared for the next stage, whether that is further investment, acquisition, or exit.