- September 11, 2021
- Posted by: finalert
- Category: Insights
A financial professional who assists you in keeping your accounts up to date is known as an outsourced controller. They also provide accurate and fast financial reporting and information.
In-house or outsourced controllers are available. If the controller is outsourced, it usually means that they are working as an independent contractor for an external professional outsourced financial controller firm rather than as an employee for your company. When compared to hiring a comparable experienced financial controller in-house, engaging an outsourced controller typically provides a more experience controller at a lesser cost. This is because the company just pays for the work that is required, rather than the higher cost and perks of a full-time employee.
What Are the Functions of an Outsourced Controller?
While many controller positions differ depending on the firm for which they work, there are some commonalities across controllers across industries and business types.
An outsourced controller may operate as a stand-alone specialist for an organization to arrange books and bring reporting up to date, or they may assist a strategic CFO with initiatives including analyzing cash flow concerns, establishing new accounting systems, or assisting with capital raising.
The major areas of expertise for an outsourced controller are financial data tracking and reporting.
The primary functions and responsibilities of a financial controller are as follows:
- Technology management
- Regulatory and financial compliance
- Accounts payable/accounts receivable is a term used to describe the process of transferring money from one account to another.
- Money in the bank
- The drafting of financial reports
Why would a company need to engage a financial controller who isn’t based in-house?
When a company requires assistance with financial data gathering or reporting, it typically turns to a skilled outsourced controller. Consider the following:
1. There’s a Problem at Work Timely Closure of their Books
Information is critical to all crucial decisions in every firm, from start-up to enterprise. Knowing where you are, where you’ve been, where you’re going, and how you’ll get there all need data. Information aids in the organization’s analysis of prospects and decision-making based on past data or facts rather than guesswork. Information is what transforms a business into a strategy-based rather than a chance-based game.
2. Your company’s books are a complete disaster.
There could be a number of reasons for your company’s books to be in disarray. It’s possible that you’ve developed too quickly to keep information structured and up to date. Perhaps your company has never had financial processes in place before, or you’re raising funds and know you’ll need clean, accurate accounts to approach potential investors. An outsourced controller could be the best option for whatever reason. A third-party controller can organize, correct, and complete books that are chaotic, inaccurate, or incomplete. This service is frequently used in conjunction with an outsourced CFO who can assist in the definition and implementation of financial systems that will keep books orderly and manageable in the future.
3. You’re Having Cash Flow Problems in Your Company
When a company is suffering cash flow problems, such as not having enough cash to pay employees, having excessive AR or AP, having out-of-control spending, or having tight margins, an outsourced controller is sometimes hired. The controller will be able to assist in the organization and distillation of data so that a CFO can make strategic decisions.
4. You’re raising funds or getting ready to merge or acquire another company.
If you’re planning a capital raising or a transaction, an outsourced controller can help you keep your books clean, organized, and up to date. They will also be able to assist with any financial data needed for due diligence on poultry.
Why should you hire an outsourced controller instead of one who works in-house?
- You might not be able to keep a controller occupied if you don’t have enough work Full-Time
One of the key reasons why companies select an outsourced controller is that they don’t have enough requirements to justify hiring a full-time employee. Many companies that engage an outsourced controller have never had a controller on staff before and use the service as a launching pad until they are large enough to warrant an in-house appointment.
- To add to a financial team that already exists
Your company may already be set up, but the books may have been out of hand as a result of expansion or transfer. An outsourced controller may be hired on a project basis to assist you to clean up your books so that your staff can better handle them in the future. This service can be utilized in combination with an outsourced CFO who can assist in the implementation of financial systems and the training of personnel in more efficient accounting procedures.
- How to Get Ready for a Deal
An outsourced controller is frequently brought in to assist with the preparation of a transaction such as obtaining financing, merging or acquiring another company, or selling a business. When the business’s projection is dependent on the transaction’s result, an organization may not wish to hire a full-time employee in this scenario. Prior to the acquisition, the company could desire to avoid hiring another salaried staff. Alternatively, the company may have all of its financial bases covered in daily operations and only requires control to assist with the transaction.
- To Assist a CFO Who’s Been Outsourced
While some financial issues can be fixed by simply cleaning up the books or giving correct reporting, others require the assistance of a strategic CFO. A powerful pair consists of an outsourced CFO and controller. The CFO plans for the future and strategizes the most efficient and beneficial path forward, while the controller offers historic data and reporting so the CFO has the most up-to-date and proper information with which to plan.
- It is a Faster and Much more Secure Hiring Process than an Internal Hire.
Each controller on staff has been thoroughly vetted by a certified outsourced controller firm. Because information is such a crucial element of any company’s day-to-day operations, the outsourced controller firm is picky about whom they choose. You won’t have to post job openings, sifting through resumes, or conduct multiple interviews when you engage an outsourced controller. Instead, the outsourced controller company will assess your requirements and propose a solution that best meets your demands.
- It’s Usually Cheaper Than Hiring an In-House Controller
A full-time employee with benefits, bonuses, and raises is referred to as a W-2 employee. You just pay for the task you need to be done when you engage an outsourced controller. You’re also getting more bang for your buck in terms of knowledge.
How can I hire a controller who isn’t based in the USA?
Rather than hiring an independent controller, companies who need an outsourced controller usually prefer to go through a well-established company. Finding an independent controller can be just as time-consuming and irritating as looking for a full-time salaried job. An independent controller is also less likely to be verified as thoroughly as one employed by an established outsourced financial services firm. Finally, if your company doesn’t get along with the controller chosen by your outsourced financial services organization, they can easily replace it, whereas, with freelancing, you’d be back to square one.