The role of controller is one that doesn’t always get much attention in the world of corporate finance. However, a controller can make a huge positive impact on your business by helping with compliance, accuracy, and efficiency in all things money-related. Still, this role can be confusing for some business owners, and as your company grows, you might be wondering whether a controller is really a necessary addition to your team. Plus, you may be considering whether to add more full-time staff to your roster or work with someone in a fractional capacity. We’re here to help you answer all of these questions and more. Here’s a rundown of what a controller does and why you might need to work with one.
The Role of Controller Explained
A controller is the person who’s in charge of a company’s financial accuracy and compliance. They often work alongside a CFO (chief financial officer), who handles the business’s high-level strategy. More than a CFO, a controller is deeply invested in the day-to-day operations of a company and works hard to make sure that everything runs smoothly and that the business stays fully compliant with laws and regulations.
One of the biggest aspects of a controller’s job is financial reporting. A person in this role prepares financial statements and makes sure they’re completely accurate, and they oversee any audits that a company might undergo. While you never want your company to be audited by the IRS, having a controller in your corner during the process will help it go as smoothly as possible.
Budgeting and Forecasting: CFO or Controller?
Both a controller and CFO play key parts in creating a company’s budget and predicting its performance. However, a controller is the person most responsible for analyzing trends, tracking performance, and creating reports that include relevant data. The CFO is the person who will take this information and apply it to the company’s strategy for the sake of increasing profits.
In addition, the controller is one of the key figures in cash flow management. This is the aspect of a company’s budget that involves monitoring inflows and outflows of money and creating a healthy balance between liquid and illiquid funds. As is the case with many other responsibilities, the CFO plays a role here, too, but in a more strategic capacity.
Is a Controller a Manager?
A company’s controller is often in charge of a full accounting team. This means creating policies and processes that will help the entire team work efficiently and stay compliant with the law. Working with their team, a controller might also introduce automation and AI into the workflow, saving everyone time and freeing up brain power to focus on other work.
It’s worth mentioning that a full-time or outsourced CFO often has some managerial responsibilities as well. Where the role of controller differs is in the focus on policies and best practices. These are the areas where a controller is in charge of what an accounting team does with its time and resources.
Outsourced Controller or Full-Time Employee?
Many businesses simply don’t have the working capital to hire a full-time, in-house controller. This can be especially tough to work into the budget for small or mid-sized companies that are still in their early stages. That’s where the role of outsourced controller can be particularly helpful. An outsourced controller can save a business money and time, especially compared to hiring for this executive-level position and paying a hefty salary.
Working with an outsourced controller can have quite a few benefits. For one, someone in this role will have a diverse body of knowledge and experience from working with companies in many different industries. This means they’ll be fully equipped to handle any unique issues and unexpected circumstances that your business’s finances face. In addition, an outsourced controller can make it easier to scale your company by offering an extra layer of flexibility. By outsourcing, you can free up more money to invest in inventory, technology, or other needs rather than full-time staffing.
As an added (but very important) bonus, many outsourced controllers bring a level of expertise to the table that can be hard to find or afford in a full-time employee. Many outsourced controllers have decades of experience working with major companies, and they can offer their time and skills to you on a limited basis. However, even with limited time, an outsourced controller may be able to accomplish more than a full-time employee with less experience.
Is an Outsourced Controller Right for Your Business?
If you’re running a company and want to see it grow and scale sustainably, an outsourced controller might play a big role in reaching your goals. By saving you salary money and addressing your specific needs with their unique expertise, a person in this role can transform your company’s financial future and help your full-time staff reach their full potential.
