Which Model is Right for Your Business?

Choosing the right finance team structure is a critical decision for any business. Whether you rely on an internal team, engage external professionals, or adopt a hybrid model, each approach has its own strengths and challenges. Ultimately, the best option depends on factors such as the complexity of your finances, the expertise required, and the level of flexibility your business needs.

Internal Finance Teams

An internal finance team consists of employees on payroll who manage financial tasks in-house, from bookkeeping to financial reporting and compliance.

Pros:

  • Direct access & business familiarity – Employees, whether full-time or part-time, are embedded in the business, providing continuity and operational insight.
  • Deep understanding of internal processes – Since in-house teams work closely with other departments, they are well-equipped to handle daily financial operations.
  • Control over priorities & workflow – Businesses maintain full oversight of tasks and can align finance functions closely with overall operations.

Cons:

  • Higher costs – Hiring and retaining finance staff can be expensive. In addition to salaries, businesses must cover superannuation, training, and software costs. Furthermore, recruitment can be time-consuming and costly.
  • Limited expertise range – Smaller businesses may only have junior finance staff who lack the experience to provide higher-level financial oversight.
  • Leave coverage gaps – If one or two people handle finance functions, the business is vulnerable when they take leave or resign. As a result, financial processes may be disrupted.

Considering these factors, some businesses look for alternative solutions to ensure financial stability and flexibility. This is where external finance professionals come into play.

External Finance Teams

An external finance team consists of bookkeepers, accountants, or CFOs who provide financial services independently of the business, usually on a contract or retainer basis.

Pros:

  • Access to expertise – External professionals bring specialised knowledge and must stay up to date with compliance and regulatory changes through Continuing Professional Development (CPD).
  • Scalability – As business needs change, companies can adjust service levels accordingly, increasing or decreasing support based on workload, growth, or complexity.
  • Flexible cost structure – Rather than hiring full-time finance staff, businesses can engage external experts for BAS preparation, financial reporting, and payroll, ensuring they only pay for the services they need.

Cons:

  • Less immediate availability – Unlike internal employees, external professionals may not always be instantly accessible.
  • Less familiarity with day-to-day operations – Because external teams are not embedded in the business, they rely on strong communication with internal staff to stay informed.
  • Perceived lack of control – Some businesses worry about not having direct oversight of financial processes and decision-making.

For companies that want external expertise but also prefer some internal control, a hybrid finance model may be the ideal solution.

Hybrid Finance Teams

A hybrid finance model blends in-house employees with external consultants or providers. This setup allows businesses to combine internal operational knowledge with external expertise, making it ideal for companies in growth phases or with complex finance requirements.

Pros:

  • Best of both worlds – Internal staff manage routine finance tasks, while external consultants provide additional expertise. This might include high-level financial strategy or bookkeeping support.
  • Cost-effective solution – Businesses with internal bookkeeping staff can supplement them with high-level financial oversight instead of hiring a full-time CFO. Likewise, companies with a CFO can delegate routine bookkeeping externally.
  • Flexibility and continuity – External professionals support businesses during busy periods and cover leave absences. This ensures consistency and reduces reliance on a single employee.

Cons:

  • Requires strong coordination – To ensure smooth processes, businesses must have effective collaboration between internal and external teams.
  • Defined role allocation is essential – Without clear communication, businesses risk duplication of work or gaps in responsibility.
  • May require multiple systems – Businesses need secure and efficient platforms for data sharing and collaboration.

However, with the right approach, these challenges can be effectively managed.

How POD Overcomes the Challenges of External & Hybrid Teams

At POD Business Solutions, we understand that businesses may have concerns about relying on external finance teams. To address these concerns, we have developed structured processes and proactive communication strategies that ensure seamless collaboration.

  • Comprehensive expertise across all financial functions – Our team includes certified bookkeepers, registered BAS Agents, and chartered accountants, ensuring businesses receive the right level of financial support. We manage everything from day-to-day bookkeeping to compliance and CFO-level insights, working hand in hand with our clients’ accountants to ensure a streamlined and aligned approach.
  • Maintaining strong communication – We use technology to manage messages efficiently, ensuring nothing is missed. Furthermore, our team collaborates internally and shares information regularly, so clients always receive informed responses.
  • Defined role allocation & transparency – Clients have access to detailed manuals outlining clear roles and responsibilities. This prevents duplication of effort and ensures seamless collaboration.
  • Flexible response times & priority service – Some businesses require fast turnarounds. To meet these needs, we offer priority service with guaranteed response times, ensuring that critical issues are handled promptly.
  • Secure data management – We follow best practices for cybersecurity and use secure data portals to protect sensitive financial information.

By tailoring our services to fit each client’s needs, we help businesses get the right level of financial expertise—whether they need full external support or additional expertise to complement an internal team.

Seamless Integration with Your Business

At POD, we don’t just work externally—we embed ourselves as a trusted extension of your team. Having worked within internal finance teams before, we understand the importance of collaboration, communication, and alignment with business goals.

We actively participate in meetings, whether on-site or virtually, ensuring we stay informed and connected to your business operations. This approach allows us to provide proactive financial insights while maintaining the flexibility and efficiency of an external provider.

Which Finance Model is Right for Your Business?

The right structure depends on your business size, industry, and financial needs:

  • Internal teams work best for businesses with consistent finance tasks and the budget for full-time employees.
  • External teams offer expert insights and cost flexibility, particularly for businesses that don’t require full-time finance staff.
  • Hybrid teams provide a customised approach, ensuring businesses get expertise where they need it while maintaining internal control.

If you’re unsure which model suits your business best, we’d be happy to discuss how POD Business Solutions can help optimise your finance function.

Final Thoughts

There’s no single “right” way to structure a finance team—it’s about what fits your business best. Whether you need full external support, additional expertise for an existing team, or high-level strategic insights, a well-structured finance team ensures your business stays compliant, efficient, and financially strong.