Are rising financial complexities bogging down your business’s growth potential? In today’s dynamic marketplace, every decision counts. That’s why forward-thinking businesses are turning to a game-changing solution: outsourced controller services. Imagine having a dedicated financial expert at your side, ensuring precision in your financial strategies, and freeing your team to focus on what they do best — driving your business forward.
Nonetheless, only a handful of business owners and chief executives today consider outsourcing financial services when looking for ways to optimize their operations. And this is unfortunate, because outsourcing accounting functions can be one of the most effective ways of reducing wasted spending, overhead, and personnel.
Let’s discover how outsourcing controller services can unlock new levels of efficiency, cost savings, and strategic clarity for your business. In this blog, we’ll discuss in brief why this outsourcing solution could be your key to success in an ever-evolving business landscape.
What is a Controller?
Before anything else, let’s discuss what a controller is. The company controller is the person in charge of keeping your accounting and finance operations on time. This senior position often requires years of proven expertise at multiple levels of accounting, which comes into play when overseeing a company’s accounting activities.
In a small business, the controller typically has final say on all financial decisions, such as budgeting, reporting, investing, and risk management. In larger businesses, the controller’s responsibilities are frequently more specialized, with certain financial decisions delegated to other executives, such as the chief financial officer (CFO).
What Does an Outsourced Controller Do?
An outsourced controller may work as a standalone expert for an organization to organize books and update reporting, or they may support a strategic CFO on projects such as determining cash flow issues, implementing new accounting systems, or assisting with capital raising. An outsourced controller’s primary skill is in financial data tracking and reporting.
The following are the primary roles and responsibilities of a financial controller:
- Accounting
- Bookkeeping
- Information technology management
- Regulatory and financial compliance
- Payroll
- Accounts receivable and accounts payable
- Balances in cash
- Preparation of financial reports
Outsourced Controller vs In-House Controller
The decision to outsource controller services or hire an in-house financial controller depends on the company’s unique needs and other considerations such as the company’s size, budget, and operations.
Smaller businesses with limited resources may benefit from outsourcing, which can provide a cost-effective solution with specialized and flexible skills. However, larger businesses might consider hiring in-house staff to provide more in-depth financial support.
Expert Tip:
Before deciding, companies must carefully evaluate their options and assess their financial and operational requirements.
Why You Should Outsource Controller Services
1. Reduced Training Costs
If you’re looking to hire a financial controller, their salary isn’t the only thing you should consider. There are also training fees, hiring costs, and perks to keep in mind, which raise the overall cost of doing business in-house. When you hire an outsourced controller, you only pay for the work you need done.
2. Reduced Distractions and Higher Efficiency
A single point of failure happens when one person is in charge of a function or process, and when they are absent, the obligations are not carried out. The controller’s services extend beyond bookkeeping and accounting. They oversee and manage accounts to ensure that policies and processes are implemented correctly and produce accurate financials on time.
3. Strategic Guidance and Access to Financial Tools
Outsourcing controller services provides greater financial knowledge, and future financial health also assists organizations in making better strategic decisions. Financial controllers already have and use the greatest tools for business owners who aren’t sure what financial software they need. Businesses save time and money while offering the finest possible service and assisting with critical business choices.
4. Assurance of Utmost Confidentiality
By outsourcing your controller services, you can avoid the risk and liability associated with data sharing. Most small businesses suffer from a lack of departmental separation. When employees work near the accounting department, confidential information may fall into the wrong hands. The lack of departmental separation in small businesses may lead to inadvertent sharing of confidential information, which may harm the employee or the company.
Key Qualities to Look for in an Outsourced Controller
Technical Accounting Background
Someone with a strong accounting expertise should fill a controller position. This should normally be the first thing to evaluate since the individual will be in control of the company’s accounting team. A person in this position must be foremost knowledgeable of accounting principles. The candidates for this position must also have proficiency in SEC reporting if the company in question is publicly traded.
Efficiency
Financial controllers should be skilled in strategic planning. Strategic planning is an excellent approach for a senior member of your company’s accounting and finance department to communicate with the executive team. They can assist with the establishment of priorities and control processes for a streamlining approach that will drive future goals forward.
Management and Soft Skills
Your controller will be in charge of big teams of financial and accounting professionals. Leadership and team management skills are needed; they must be able to command their team’s respect, inspire them to act, and guarantee that such activities are consistent with the broader vision of your company.
Because of the inherent pressures of the profession, leadership is also a key quality to seek for. Month-, quarter-, and year-end reporting times are frequently hectic, high-stress rushes to the finish.
When to Hire an Outsourced Controller
Here are usual cases that prompt a company to hire an outsourced financial controller:
1. Your books are a mess.
If your company’s books are in mess, it could be for a variety of reasons. You might have grown too quickly to keep information current and organized. Perhaps your company has never had financial systems implemented before, or you’re raising funds and realized you need clean, accurate books before approaching potential financers.
2. Your company has cash flow problems.
If your company encounters cash flow problems, such as not having enough cash to pay employees, having out-of-control spending, or having tight margins, you might need to hire an outsourced controller.
3. Financial data that is out of date or inaccurate
Regardless of the size of your business, information is critical when making all decisions, both big and small. Data is essential for understanding where you are, where you’ve been, where you’re going, and how and when you’ll get there. Instead of guessing, information allows the company to examine opportunities and decide based on previous data or reality.
4. You’re raising funds or planning a merger or acquisition.
If your company is planning to raise cash or carry out a transaction, hire an outsourced controller to guarantee your books are clean, organized, and up to date.
How to Hire an Outsourced Controller
1. Identify the type of outsourcing services you need.
Outline the tasks within the area that you need to outsource. This helps you to determine how many people you will need to hire. Next, estimate how much time it will take to accomplish the project. These procedures can assist you in identifying the type of outsourcing service as well as the cost involved. This would also assist the outsourcing team in delivering exceptional results.
2. Decide on which tools and apps you’ll use.
Today, there are many accounting tools and apps available. Therefore, before signing the project contract, ensure that their team uses the same tools as you. Ensure that you choose the same mode of communication as their team because most of the work will be sent online.
3. Check out the identity of the outsourcing team.
Aside from preparing the duties and tools required for the service, you should also investigate the background of the outsource team. Visit their website for reviews and resources, or their social media profile for more information.
Entrust Your Outsourced Controller Services to Outsource-Philippines
With the many challenges that come with running a business, Outsource-Philippines is here to provide a variety of bookkeeping and accounting solutions you can on to allow you to focus on your core duties. Indeed, managing the general ledger, balance sheet, cash flow statement, order entry, and transaction processing is a difficult undertaking. Entrust these challenging tasks to us — contact us today!
