Outsourced Controller

A controller is a financial expert which keeps a business's financial books up-to-date. Financial reporting and information are also provided by an outsourced controller in a timely manner.

An outsourced controller works independently as a part of an outsourced financial controller organization instead of working as a regular employee in an organization. In most cases, hiring an experienced outsourced controller is cheaper than hiring an experienced in-house financial controller. This is because the organization only pays for the work needed instead of paying a higher cost to a full-time in-house employee.


Working of an Outsourced Controller

Controller roles vary according to the company for which they work, there are general similarities of controllers across all companies and industries.

An outsourced controller acts as a financial expert for an organization to organize its books and get reporting up-to-date. He can also act in a supporting role for a strategic CFO for projects such as determining implementing new accounting systems, cash flow issues or helping raise capital. The main expertise of an outsourced controller lies in tracking financial data and in reporting.


Following are the main duties of a financial controller:

Record-keeping
Accounting
Payroll
Tracking and monitoring inventory assets
Establishing formal financial procedures
Providing insights on the organization's current financial position
Recognizing financial risk
Managing information technologies
Financial report preparation
Accounts payable/accounts receivable
Financial & regulatory compliance
Cash balances

Reasons to hire a financial controller

1. Your business is growing

When a business is growing exponentially, then basic accounting practices are not enough. If a business owner doesn’t know how to manage income and expenses and other accounts, then he should consider hiring an outsourced financial controller. A financial controller can help your business, so that, your business growth going forward in a positive way. With the help of expertise provided by a controller in the field of accounting, a business owner can shift his focus to other aspects of the company. Detailed reports on financial management, provided by a financial controller, can be utilized in making crucial decisions.


2. When your business is experiencing cash flow issues

If a company is experiencing cash flow issues like not having enough cash to pay employees, having out-of-control coats, tight margins, having high AR or AP. In such situations, a company should hire an outsourced controller. The controller will organize and distill information that a CFO can use to make strategic adjustments.


3. Reduces company's risk of fraud

The risk for fraud is not just limited to only big businesses. Small businesses are also at risk for fraud. Small-business owners need to conduct fraud risk assessments on a regular basis. A financial controller mitigates risks. Auditing and reporting functions are managed by the controller, not by business owners who have spending powers or authorization.