As your company grows, things get complicated. More cash is coming in, which is good — but understanding what is really happening within your company’s walls and planning for the future can be more complex.
There are a wide range of ways to invest for further growth. Some will yield better results than others. Which products or services are the most profitable? Is an expansion needed? What about employees?
Accurate financials can help answer these (and other) questions. Your company’s financials are the foundation on which many companies build business decisions upon.
Your controller is an integral part to those financials. Your controller can ensure your financials are up to date and accurate. Using this information, the controller can assist by providing important data points to guide companies towards further growth.
While Financial Controllers may not be cheap, they are necessary for your growing business. Options such as hiring an outsourced controller can give decision-makers access to highly qualified professionals without breaking the bank.
First, we will discuss a bit more about the specifics of a Controller’s responsibilities.
What is a Controller?
Controllers head your company’s accounting department, overseeing all daily accounting operations and managing your accounting staff. They are also typically in charge of providing accurate and timely financial statements, preparing budgets, and ensuring accounting information systems integrity.
Controllers often have several years of accounting and finance experience. Many also have certifications such as Certified Public Accountant (CPA) or Certified Management Accountant (CMA)
Controller vs. Accountant
Accountants are responsible for the “ground-level” record-keeping and analysis of an organization’s financial transactions. The accountants then report to the controller. Larger organizations necessitate teams of accountants, each headed by a senior accountant. Senior accountants would then report to the controller — or, in the case of extraordinarily large companies, an assistant controller.
Controller vs. CFO
Controllers typically report to the Chief Financial Officer (CFO). Controllers focus specifically on the accounting of your business, while CFOs oversee all financial aspects of the company. Other departments that may report to the CFO include treasury and Financial Planning and Analysis (FP&A). With all that said, often smaller companies may combine both roles into one to save on costs.
What Does an Outsourced Controller Do?
Controllers are valuable team members to any organization. Given the level of responsibility associated with the position, finding a qualified controller may incur a significant investment in time and money to place the right individual. Outsourced controller services offer the same value of an in-house controller-level support growing organizations.
Some duties an outsourced controller can perform include:
- Accounting documentation
- Accounting systems implementation
- Budget and forecasting
- Compliance — tax and regulatory
- Preparation financial statements
- Coordination of financial statement audits with external auditors
- Evaluation of internal controls
- Oversight or preparation of the month-end close
Why Does My Business Need an Outsourced Controller?
At first, companies may be able to handle all the accounting functions — or perhaps with the help of a bookkeeper. However, managing your accounting becomes much more challenging as the business grows. Bookkeepers may suffice for tasks like payables and receivables, but providing accurate financial statements need a skilled and experienced controller.
Why should I hire an Outsourced Controller over an in-house Controller?
Controllers are expensive employees to hire, commanding high salaries and benefits. Hiring and training costs must also be considered, and the employment of a controller can be more expensive than doing the same for an entry-level accountant. The cost-benefit is clear.
Your finance team needs to be trusted and experienced. It may be difficult to know if you hired the best qualified individual for your specific needs. Outsourced firms are run by accountants who will place the perfect-fit employee, so you will rest assured knowing your financials are being properly managed, and your reporting is accurate and timely. CFO Hub tailors services around each client’s specific needs and assigns the best-qualified individuals to your company. In fact, many of our employees were initially hired on a project basis to match a client’s needs to ensure that our client gets the best experience and service possible. Contact us today for your free, no-obligation consultation.