While planning for 2024, the question of whether or not it's time to hire a financial controller may come up for many business owners. To help make that decision easier, this article explains the duties of a financial controller and the benefits of partnering with an outsourced accounting provider, rather than trying to find a controller of your own.
What is a financial controller and what does one do?
A financial controller is an accounting professional who oversees bookkeeping and accounting functions.
In small to medium-sized businesses (SMBs), the controller's responsibilities often extend beyond the capabilities of the company's bookkeepers. These detailed accounting tasks require specialized skills and expertise that go beyond basic bookkeeping duties.
Other duties may include:
- Managing accounting software systems
- Establishing and monitoring finance-related internal controls
- Assisting with budgeting and forecasting processes
- Assisting other executives in designing and implementing financial strategies
When working with SMBs, this financial officer may act in other capacities, such as serving as both the controller and the CFO. Some become the company investor liaison and manage fundraising activities.
What Does an Outsourced Controller Do?
Outsourced controllers provide day-to-day guidance and oversight to in-house or outsourced accounting staff. The controller is responsible for supervising accounting staff and maintaining standards throughout the department. This department head focuses on daily operations and ensures all accounts are accurate. The controller is responsible for implementing checks and balances that reduce internal risks and transactional errors.
Other duties include:
- Creating budgets
- Preparing financial statements
- Monitoring and measuring KPIs
- Comparing working budgets to actual budgets
- Maintaining regulatory compliance
- Working with external CPA and auditing firms
- Identifying internal inefficiency
- Informing upper-level management of financial status
Is now the time to bring on a financial controller?
The decision to add a financial officer to your roster, whether adding a remote workforce, expanding your in-house staff, or hiring an outsourced accounting partner depends on your current situation.
- Here are a few ways to tell if the time is right to add a financial controller to your team.
- Your business is expanding or ready to expand.
- Your business is struggling with cash flow challenges.
- Your business routinely faces compliance challenges.
- You have a limited technology team and are vulnerable to internal and external risks.
- Operating with paper-based accounting methods is slowing you down.
Considerations of what type of financial officer you should hire
Hiring an in-house controller for your company could be a large expense to take on, but fortunately, many reputable outsourcing partners are offering monthly packages that could save businesses money in the grand scheme of things.
AccountingDepartment.com offers outsourced full-charge client accounting service plans designed around your specific needs and budget. Reach out today to learn more about how we can set you up for future growth and profitability.
