As a small business grows, the business owner may need assistance in managing the finances of a company. After all, having completely accurate financial data is essential to growing your small business and making better business decisions. Hiring an in-house full-time employee may be extremely costly, which is why outsourcing may be a viable solution. Outsourced financial controllers can offer small businesses the financial expertise they need at an extremely affordable rate. In fact, outsourced financial controllers offer more than just financial expertise and can actually handle everything from taxes to budgets to payroll.
What is a Financial Controller?
Financial controllers are responsible for all of the day-to-day operations in the finance department, reporting directly to the finance director. Controllers assist everyone in working together in their respective roles efficiently (providing support where need be) to provide accurate and fresh financial data and analysis in a form everyone can understand. Traditionally, a controller provides management with assistance in financial decision-making from information provided by the accounting team.
Why Do I Need One?
Accounting is one of the most vital aspects of your business, and, as such, you need appropriate accounting leadership. A financial controller provides a number of services that you can’t get from non-accountant employees.
In fact, 50% of businesses in most industries don’t know how to adequately track their costs per project. Proper accounting leadership could avoid such kind of problem. There are, however, several reasons why you need a controller for your company beyond basic accounting leadership.
1. Your small business is growing
If your small business is experiencing rapid growth, basic accounting practices won’t cut it for long. Your expansion could even start to have negative consequences if you don’t know how to manage income and expenses and other accounts.
2. A controller will supplement your accountant
It’s important to recognize the difference between a controller and an accountant. A controller is supplementary to an accountant, and it can supervise your accountants and their work as well as help managing your accounting or finance department much more fluidly
3. Your CFO is overworked
If you don’t have a controller, then your CFO may have to perform all the duties that a controller provides. In addition to its role as a chief strategist, the CFO may become overworked. Some of the services that controllers provide include:
- managing and maintaining day-to-day cash flow and accounting practices (payroll processing, accounts receivable, accounts payable, etc.)
- bringing financial models up to date and taking appropriate action
- managing the accounting department
- being the accounting “historian”
- implementing and understanding accounting software
- and performing simple human resource duties (creating offer letters, filing employee records, etc.)
7 Things A Financial Controller Can Do For Your Business
1. Financial Planning and Reporting
Financial controllers are responsible for all banking and finance activities, including negotiating lines of credit and vendor agreements as well as reviewing all financial contracts, financing agreements, and insurance policies. An outsourced financial controller is also responsible for providing accurate and comprehensive financial information to executive management for long-term financial strategizing. Unless a company has a CFO to provide the leadership for long-term financial planning, the controller will be required to fulfill this responsibility as well.
In any case, he or she must provide crucial financial data and work with executive management to coordinate all financial planning functions with business operations. Financial reporting duties include preparing financial statements, balance sheets, cash flow reports, budgets, budget-to-actuals, and financial projections.
2. Cash Flow Management
Poor cash flow is one of the main reasons small business fail. Your outsourced financial controller will oversee bank accounts and manage cash flow to ensure your business has the reduces it needs to operate daily.
Controller’s coordinate with external accountants for income tax preparation and auditors who prepare internal audits of the company, including keeping company records organized and readily available.
4. Accounting Procedures and Policies
Many small businesses don’t bother to establish accounting procedures and policies in the early stages of the firm. While you can get away with this at first, if you are serious about growing, you won’t be able to get away with it for long. It is crucial to have a clear accounting policy in place and continually tweak and change it as your business grows and develops. Your outsourced financial controller can implement and establish these policies and procedures.
5. Accounting Software Implementation
Accounting software is a blessing to any small business. The programs you’re using now may not continue to support all of your needs as your company grows and expands—or you may need to add on additional integrations or advanced tools. Who’s going to handle implementing new accounting programs and upgrading current ones? Who will train employees to ensure they know how to use such programs effectively? Rather than bear the brunt of this time-consuming burden, outsourced controller services
Payroll can be a daunting and time-consuming task for many small business owners. Outsourced controller services can handle employee salaries and compensation including bonuses, PTO, sick leave and payroll taxes.
Pricing is important since it defines the value that your product is worth for you to make and for your customers to use. It is the tangible price point to let customers know whether it is worth their time and investment. Outsourced controller services can work with the marketing team, especially product managers, to set pricing policies for the company’s products and services. They will ensure that all products and services are priced correctly because after all, it’s pricing that impacts your company’s bottom line fastest and most effectively.
Limitless Investment and Capital’s Outsourced Financial Controller Services
At Limitless Investment and Capital, our outsourced controllers are experienced professionals who offer expertise to business managers, including detailed insight into financials that allow you to make better business decisions. We also guide you through financial issues so you can spend time on growth instead of administration and overhead. By taking a proactive approach, together we can identify risks, evaluate options, and implement solutions at a cost that is well below the benefit. Contact us today to get started!