Outsourced Controller Services Could Change the Trajectory of your Business

When businesses start out, they have very basic bookkeeping needs. As they grow, however, a gap develops between the day-to-day transaction recording and the need for strategic financial management. As organizations scale, they need greater financial oversight to make informed decisions and prepare for growth opportunities. 

Outsourced controller services bridge this gap, providing experienced financial leadership that turns basic accounting data into actionable business intelligence.

Understanding the Controller Role

Controllers are the financial backbone of an organization. They oversee accounting operations, ensure data accuracy, and help build financial roadmaps that drive business growth. While bookkeepers focus on recording transactions, controllers take a broader view of financial operations. They develop policies, analyze performance, and establish controls to protect company assets.

The controller transforms disorganized financial data recorded by the bookkeeper into reliable and comprehensive reporting that provides valuable data for decision making. In addition, they represent the company with auditors and other financial stakeholders. 

Some of the functions they perform include:

Financial Statement Preparation

Preparing financial statements is the foundation of controller services. Professional controllers will prepare monthly, quarterly, and annual financial statements that meet GAAP requirements. The documents will provide meaningful insights into the performance of a business. 

If needed, the controller will implement a standardized reporting format to allow for direct comparisons between periods.

Month-End Close Processes

Many businesses struggle with chaotic month-end processes that delay financial management reporting. Experienced controllers have the skill and knowledge to restructure these procedures into something that’s much more manageable. 

With the right policies, a significant amount of time can be saved, providing more accurate data more quickly than inefficient processes.

Internal Financial Controls Implementation

The implementation of financial controls is all about protecting business assets and keeping the integrity of financial data intact. Controllers assess the existing processes at a company and identify any control gaps. By implementing appropriate safeguards to cover these gaps, the security of the data is increased. These safeguards may include segregation of duties, hierarchical authorization levels, and improved verification procedures.

Compliance Management

At a growing business, cash flow management extends beyond basic bookkeeping. Controllers implement cash forecasting systems, optimize collection processes, and coordinate payments to vendors. This is all with the goal of improving the efficiency of the business’s working capital. Proactive financial planning makes it easier to anticipate future needs and avoid cash flow problems.

Audit Preparation and Industry Expertise

A professional controller becomes invaluable in the case of external financial scrutiny. Audits, due diligence processes, and regulatory examinations all require specific financial expertise to effectively navigate. Controllers provide that expertise, organizing documentation, preparing audit schedules, and serving as the primary contact.

The Case for Outsourcing Controller Functions

As a business outgrows basic bookkeeping, it doesn’t instantly develop the need for full-time controller services. This creates growing pains for some companies. They either do without the financial services they need or overpay for a full-time staff member that doesn’t have enough work.

Outsourcing controller functions solves this problem. Companies can get access to a financial professional with senior-level experience and the ability to scale their involvement based on business requirements. This provides the expertise needed at a fraction of the salary and benefits that a full-time on-staff controller would require.

There’s another, often overlooked, benefit to outsourcing controller functions. When businesses outsource, they gain access to a full team of experienced controllers. Rather than being limited to the skill set of one individual, companies have access to specialists in a variety of areas, covering a range of regulatory or industry-specific requirements.

Measuring Success and Implementation

As with any business process, it’s helpful to track key performance metrics. This allows businesses to see tangible proof that their controller services are providing real value. Commonly tracked metrics include:

• Month-end close times
• Decreased audit adjustments
• Improved cash flow predictability
• Enhanced financial statement reliability

To maximize the chances of success, businesses must clearly communicate expectations and define the scope of the work. The person providing the controller services should be made aware of the metrics being tracked and the expected rate of improvement. A good professional controller will be able to help develop realistic expectations around these numbers.

Strengthen Your Financial Foundation With Professional Controller Services

CFO Hub’s fractional controller services provide businesses of all sizes access to experienced controllers who integrate quickly with your existing team. Our team of professionals delivers comprehensive financial oversight, implementing best practices and systems that support your growth objectives. 

If you’re ready to elevate your financial operations, contact CFO Hub today to learn more about how our controller services can transform your financial management capabilities.