Are you a business owner looking to take your finances to the next level? If so, consider outsourcing your controller. An outsourced controller can give your company expert financial advice, save money, and help you make better business decisions.
In this blog post, we’ll dive into the world of outsourced controllers and explore what they do, how they can benefit your business, and when to consider hiring one. Get ready to take your financial management to new heights!
What Does an Outsourced Controller Do?
An outsourced financial controller is a professional who works with companies to ensure they have accurate and timely financial information.
Your outsourced controller reviews the company’s financial statements, analyzes the data, and provides recommendations for improvement.
The key responsibilities of an outsourced controller include:
- Reviewing the company’s financial statements regularly to ensure that they are accurate and complete
- Conducting research into trends in your industry so you can make better business decisions about where your company should be investing its resources
- Analyzing past performance to determine whether current strategies are working well to achieve future growth goals
How to Choose an Outsourced Controller
When you’re looking for an outsourced controller, there are a few things to keep in mind. First and foremost, you want someone with experience in your industry who can provide you with relevant advice.
You must also ensure they have the qualifications to help your company succeed. Here are some specific qualifications to look for when hiring an outsourced controller:
- Technical Accounting Skills
An outsourced controller should understand accounting principles and practices, including financial statement preparation, accounts payable and receivable management, cash flow management, and tax compliance.
They should also know accounting software such as QuickBooks, Xero, or NetSuite.
- Industry Knowledge
As mentioned, a great outsourced controller should have experience working in your specific industry. They should understand the unique accounting challenges and regulations that your organization may face.
This knowledge can help them provide valuable insights and solutions tailored to your business.
- Communication Skills
Strong communication skills are essential for an outsourced controller. They should be able to explain complex financial information clearly and concisely to non-financial stakeholders.
They should also be able to collaborate effectively with other team members, including executives, department heads, and external stakeholders such as auditors or tax advisors.
- Leadership Abilities
An outsourced controller should have strong leadership skills, as they will manage the accounting team and ensure that all financial processes and procedures are followed.
They should be able to delegate tasks effectively, provide constructive feedback, and develop strategies to improve your organization’s financial performance.
- Attention to Detail
An outsourced controller should have an eye for detail and be able to identify errors or discrepancies in financial reports. They should also be able to review financial data and identify trends or areas for improvement.
- Strategic Thinking
A great outsourced controller should be able to think strategically and provide insights and recommendations to help your organization achieve its financial goals.
They should be able to analyze financial data and develop strategies to increase revenue, reduce costs, and improve overall financial performance.
Who Needs to Hire an Outsourced Financial Controller?
Here are the companies that need to hire an outsourced controller:
Companies Struggling to Close Their Books on Time
Companies struggling to close their books on time often hire an outsourced financial controller. Your controller will oversee the accounting process, ensuring that all information is accurate and that transactions are recorded and reported on time.
This is especially important for companies that have reporting requirements to investors, banks, or other stakeholders.
Companies With Cash Flow Issues
Outsourcing might be the way to go if you’re a small business and need a controller but don’t have the resources to hire one full-time.
You still get access to the full expertise of an experienced controller for a fraction of the price of hiring an in-house.
A quality controller can help you optimize your operating cash flow.
Companies With Disorganized Books
You can use outsourced controller services as needed or on a part-time basis. This is especially helpful if your company is growing and lacks clarity on business performance
Companies Raising Funds or Preparing for a Merger or Acquisition
A company might need to hire an outsourced financial controller when raising funds or preparing for a merger or acquisition.
A company looking to raise capital may need to hire an outsourced financial controller because the business needs help managing the company’s bookkeeping, accounting, and reporting.
The outsourced controller can ensure that all the financial statements are prepared on time so the investors can see how well the company performs.
The controller also helps prepare presentations for potential investors so that they understand what makes your business unique and why they should invest in it.
Preparing for a Merger or Acquisition
Companies might need to hire an outsourced financial controller if they merge with or acquire another firm. This type of transaction requires significant financial analysis work and reporting, which you can’t do if you’re busy running your business.
An outsourced controller can help you understand how your business will be affected by the change and provide timely information so that you can make informed decisions about whether or not to go through with the deal itself.
Most of the time an outsourced controller works remotely, with occasional onsite visits; however, they’ll still provide all the same services as someone who works in-house would—and at a lower cost!
The Benefits of Hiring an Outsourced Controller
There are several advantages to outsourcing your controller functions.
- Reduced Training Costs
Hiring an outsourced controller means less time training them compared to promoting a bookkeeper or accountant because of the experience the controller brings. In addition, getting an outsourced controller costs less than hiring and training an in-house controller that you will have to train.
- Financial Expertise
Outsourced controllers often have many years of experience in accounting and finance. They can help you understand your business finances and make more informed decisions about how to grow your business.
- Access to Financial Tools
You also gain access to technology and resources that would be difficult for you or your internal accounting team to obtain independently.
- Taking Your Time Back
Outsourcing allows you to focus on other aspects of running your business while knowing that someone else is efficiently handling the finances.
- Protection Against Fraudulent Activities
Companies must strictly oversee their financial activities to reduce the risk of fraud. Outsourcing offers fresh perspectives that can help catch errors missed by employees who have become invested in their jobs.
Also, opportunities for external security breaches and internal cover-ups by disloyal employees are significantly reduced when companies properly outsource financial functions.
Work With Mighty Startup to Get Your Books in Order
Mighty Startup believes that companies of all sizes should have access to financial guidance, so we offer outsourced controllership services. If an outsourced controller is right for you, schedule a call with us.
Our team will help you to focus on your core competencies while ensuring your company stays compliant. We can also provide expert advice on how to improve your business performance.