If your business is growing, acquiring or merging with another business, or establishing itself in a new market, things can get complicated fast. Planning for the future and making good business decisions can become really complex without an accurate picture of your financials.
A controller ensures your financials are accurate and up to date. But not every business has an experienced controller or can afford to hire one in-house—because salaries and benefits can be expensive, and talent can be hard to find. Hiring an outsourced controller can give you access to a highly experienced professional at lower cost. This article tells you how hiring an outsourced controller can help your business.
What does an outsourced controller do?
First, let’s define what a controller does. Controllers oversee all daily accounting operations in your accounting department. A controller:
- Creates accurate and timely financial statements
- Assists in preparing the annual budget
- Ensures integrity of your accounting information systems
Controllers go beyond the ground-level, day-to-day services of an accountant, bringing a more strategic and experienced lens to overseeing the accounting function. They typically report to a chief financial officer (CFO), who is responsible for leading all financial aspects of a business.
They can perform duties including:
- Accounting documentation
- Implementation of accounting systems
- Budgeting and forecasting
- Tax and regulatory compliance duties
- Financial statement preparation
- Coordination with external auditors
- Internal controls performance and evaluation
- Preparation of month- and year-end close
- Preparation of required reporting to a parent company or owner’s group
When to use an outsourced controller
Wondering whether to hire one? There are many situations in which a business should consider employing an outsourced controller. Examples include:
- Going through a CFO transition
- Revenue or profitability is declining
- Planned expansion into new markets
- Merger or acquisition opportunity – including financial and accounting due diligence
- Industry disruption or regulatory changes
- Turnover in the accounting department
- Software transition
- Collection issues
- Changes in accounting standards
Benefits of hiring an outsourced controller
An outsourced controller can help a business ensure continuity and accuracy in financial and accounting functions. This can help a CFO or business leader focus on higher-value tasks and have access to quality information for better decision-making. The benefits of hiring an outsourced controller also include:
- Accurate and timely reporting
- Reduction in costs to hire, train, and retain on-staff controller
- Access to specialized financial expertise
- Access to financial tools, software and systems
- Time savings for CFOs and other company leadership
Hiring for expertise is a sound business strategy—and hiring an outsourced controller can give your business access to accurate financials and experienced accounting oversight without adding to headcount.
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.