Sales are up. Money is rolling in and your business is growing. It’s great because it’s what you’ve always hoped for. But it can be challenging, too, because the next level of success demands financial expertise you might not have on staff.
You might be wondering about things like debt financing, effective cash flow utilization, and if you’re using the right metrics for financial performance. You might be considering an acquisition or expansion into a new market—even abroad.
If so you’re in good company, as many business owners and leaders are facing the same questions and challenges. Let’s look at five reasons why hiring an outsourced controller is a smart investment for your business, especially when you’re growing or expanding.
What does an outsourced controller do?
An outsourced controller provides expertise in accounting and financial management. He or she also oversees the accounting function to ensure streamlined processes and up-to-date financial information. The controller sits between the level of an accountant or bookkeeper, who handles ground-level accounting functions, and a chief financial officer (CFO), who oversees all financial aspects of a business.
An outsourced controller handles or facilitates important financial and accounting functions including:
- Accounting documentation
- Budgeting and forecasting
- Detailed reporting about company operations
- Financial statement preparation
- Internal controls performance and evaluation
- Preparation of month- and year-end close
- Tax and regulatory compliance duties
Why hire an outsourced controller? Here are five reasons.
#1. Hiring an outsourced controller is more cost-efficient.
Many companies may lack the budget to hire a professional, full-time on-staff controller when you consider salary, benefits, and other compensation. An outsourced controller or fractional controller can be a more budget-conscious choice while also giving you access to the high-level expertise you and your business need.
#2. Hiring an outsourced controller can be faster and easier.
It may be difficult to find, hire, and retain a professional with the right fit and qualifications for an on-staff controller position. The hiring market can offer fierce competition for talent, and highly experienced controllers can command a good salary.
#3. Hiring an outsourced controller can save CFO time.
CFOs should be focused on the financial leadership of their businesses, and on any new opportunities or challenges in the market. The CFO is a strategic role, and any changes like potential acquisition, new market expansions, or regulatory shifts can take time away from oversight of the regular financial and accounting duties of their function. An outsourced controller can help a CFO save time and focus on decisions that are crucial to a business’s future.
#4. Hiring an outsourced controller can help to reduce business risk.
Hiring for expertise with an outsourced controller can help business leaders be more strategic about accounting and financial management. Controllers can provide greater insight and visibility into financial metrics, helping to connect the dots for business leaders and provide more clarity into current financial position and performance to evaluate and address risk. They can also enhance internal controls by having a greater awareness of risk and broader understanding of accounting systems.
#5. Hiring an outsourced controller can help business leaders make better decisions.
Knowledge is power. An outsourced controller can bring discipline and expertise to an accounting function, helping to provide a more accurate financial position and information to business leaders to improve decision-making for every aspect of the organization.
Looking for an outsourced controller? XPECT can help. XPECT is focused on helping businesses optimize business strategy, enhance operational effectiveness, and successfully leverage accounting as a strategic tool, so that business leaders can focus on the strategic aspects of growing the business and achieving business goals. Learn more.