Financial planning is the most important column of a growing startup. While growth is supported by ideas, technology, and promotion, good financial planning makes it sustainable, manages risk, and makes it profitable in the long run. Using an instant loan app can further support startups by providing quick access to funds during critical growth phases.

But most entrepreneurs wonder who should perform this vital task in a growing startup.

In this blog, we’ll explore why financial planning matters for startups, the roles typically responsible, and how businesses can make the right choice as they scale.

Why Is Financial Planning Important for Startups?
In the initial stages, startups often juggle limited resources, fluctuating revenue, and unpredictable market conditions.

A clear financial plan acts as a roadmap, helping founders make informed decisions about:

• Cash flow management
• Funding requirements
• Pricing strategies
• Operational expenses
• Profitability goals
• Growth projections

Without effective financial planning, startups are likely to run out of funds, spend too much money, or forgo expansion opportunities reasons most young companies collapse or stumble. In such situations, accessing an instant short term loan can provide a quick financial cushion to stay on track.

Who Generally Performs Financial Planning at the Early Stage?
During a startup's early stage, the founder or co-founder generally performs the financial planning task. The reason being:

• They have the finest ideas for the business plan and vision.
• They are personally answerable to stakeholders and investors.
• Professional money funds may be beyond their reach now.

Most entrepreneurs use crude financial tools, such as spreadsheets or basic accounting programs, to monitor revenue, expenditures, and profit and make high-level financial decisions.

When Should Startups Hire a Financial Expert?
As the startup expands, its financial operations become more complex payroll, taxes, inventory management, investor reporting, and scaling efforts. This is usually when startups can afford to hire specialized financial personnel.

• Below are indications that it is time to employ a financial expert:
• An unceasing influx of investor money
• Employment of employees and administration of payroll
• Several revenue streams or products
• Taxation and regulatory requirements are on the rise.
• Planning for scalability and long-term growth
• At this stage, founders may think about hiring:
• Chartered Accountants (CA) for tax, compliance, and accounting
• Financial Analysts for cash flow analysis, forecasting, and budgeting
• Fractional CFOs or part-time finance advisors for strategic financial planning and investor relations.

Should You Hire a Full-Time CFO?
Most early-stage startups would find it premature and costly to employ a full-time Chief Financial Officer (CFO).

• But as the business scales to a growth-stage startup with:
• Multi-crore revenues
• External investors
• Complex financial structures
• Merger, acquisition, and IPO plans

A CFO is a go-to asset. They provide financial planning, risk management, capital raising, and operational excellence skills. A CFO collaborates closely with founders to coordinate financial planning with the company's business objectives and maintains financial well-being at each growth stage.

What Are the Options for Startups Today?
Startups today have more multifarious options for financial planning:

• In-house accountant: Best suited for day-to-day bookkeeping, invoices, and simple tax filings.
• Financial Consultant or Advisor: Best for regular cash flow projections, budgeting, and profitability analysis without the expense of full-time hiring.
• Part-Time or Virtual CFO: A new trend where seasoned CFOs work on projects or part-time. Cost-efficient and suitable for fundraising support, long-term planning, and financial strategy.
• Financial Management Tools: Products such as QuickBooks, Zoho Books, RazorpayX, or Tally enable automating finance tracking and reporting with less reliance on large teams.

Founders must choose a set of these tools depending on their startup's stage, complexity, and available resources.

Why Founders Have To Remain Involved
Even when startups bring financial experts, founders must remain actively involved in economic decision-making. Financial planning is not merely about numbers it is about how numbers align with business vision, goals, and risk.

Founders need to:

• Know the firm's financial position.
• Review reports, projections, and cash flows regularly.
• Be involved in budgeting and strategic financial decisions.
• Acquire basic financial literacy, even if not financial experts themselves.
• This exchange makes the money decisions advance business goals with stakeholder transparency.

Conclusion
So, who plans the finances for a scaling startup

In the beginning, it's usually the founder. As the startup scales, accountants, consultants, or part-time CFOs must come in to deal with more complexity. Then, when size necessitates, a full-time CFO steps in.

Startups need to balance founder engagement and professional financial management to align financial decisions with short-term needs and long-term development.

Effective financial planning isn't a one-off activity it's a dynamic, ongoing process that must adapt to the evolving business. By making smart choices about who performs this work at each stage, startups can create stronger, more resilient businesses.