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Do You Need a Bookkeeper or a Controller?

The first step to finding effective accounting solutions for your business is determining precisely what you need. If you don’t know that, it’s impossible to make the kinds of financial decisions that will impact the growth of your company. So how do you know if you need a bookkeeper or an accounting controller? Here are a few details to help you sort that out.

What a bookkeeper does…

If you ask any bookkeeper if they feel their job is simple, they’ll likely respond with something like “Heck no!” But in the great scheme of accounting solutions, the role of bookkeeper is to perform basic tasks. Needless to say, this isn’t a job that just anyone could do and there’s a substantial amount of training that goes into the job – not to mention a keen ability to pay attention to detail. The bookkeeper’s job, in a nutshell, is to care for the financial recordkeeping of a business. In addition to implementing a system of tracking financial transactions, a bookkeeper is also responsible for handling accounts payable (A/P) and accounts receivable (A/R). When a bookkeeper makes mistakes, it can cost the company. Failure to keep up with accounts payable can result in lowered credit ratings with lenders, and a failure to keep up the same level of performance in accounts receivable can end with a company not realizing its income in a timely manner.

What a controller does…

Having an accounting controller is a major step up for many businesses. While the average mom and pop shop has little need for one, most SMBs will see significant value in having an accounting controller at the helm. Far beyond the accurate keeping of financial records, a controller helps a company realize impactful accounting solutions in the areas of cash flow management and maintaining overall control (hence the job title) of operational costs. An accounting controller is capable of handling the job duties of the average bookkeeper but in most cases acts in a supervisory capacity by answering high level accounting questions. Unlike a bookkeeper, who is generally only knowledgeable enough to create basic financial statements, a controller is capable of producing detailed financial reports on a daily, weekly, or monthly basis.

Why you might want both...

Well, you aren't going to replace your bookkeeper with a controller so the real question is do you need a controller in addition to your bookkeeper? The answer really depends on whether you want your financial team managing a more comprehensive accounting strategy than simply managing your day-to-day bookkeeping. Do you want to take that financial data and do more with it? See what insights are available to you and then translate them into actionable management decisions to drive company growth? If so, then you are probably ready for the next step in your accounting department team.

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