By Controllers play a vital role in managing a company’s financial health. They oversee accounting processes, financial reporting, budgeting, and internal controls, ensuring businesses stay on track financially through economic fluctuations. However, hiring a full-time controller might not always be the best option, especially when there’s a more cost-effective and flexible alternative available: outsourcing.
In this blog, we’ll explore why outsourcing your controller position can make sense for your business and provide an overview of a controller’s key responsibilities.
What Does a Controller Do?
A controller’s main job is to oversee the company’s financial operations. They ensure accuracy in financial reporting, help create budgets, manage payroll, and support decision-making with data analysis. Their responsibilities can include tasks such as:
- Preparing and verifying financial reports
- Assisting with budgeting and forecasting
- Analyzing financial data for decision-making
- Managing payroll and associated policies
- Leading and mentoring the financial team
While a controller can perform all these tasks, it’s not always necessary to have one person handle everything. Smaller businesses can delegate specific responsibilities across different team members to avoid the cost of a full-time hire.
Why Outsourcing Your Controller Role Makes Sense
Hiring a full-time controller comes with a hefty price tag. On average, a controller earns around $114,000 per year. For many businesses, especially small and medium-sized ones, this might not be a feasible option. Here are a few reasons why outsourcing your controller role could be a more effective choice.
- Flexibility in Services
Smaller businesses often don’t need complex financial oversight year-round. For example, you might need a controller’s expertise during tax season or to handle specific projects like audits. Outsourcing allows you to tap into these services as needed without the obligation of a full-time hire. This flexibility enables you to bring in a professional when necessary and eliminate costs during off-peak times.
- Access to Expertise Without the Hurdles
Attracting top-tier financial talent can be difficult, particularly for small businesses. Even if you’re willing to offer a competitive salary, the best controllers often prefer larger companies with more resources. Outsourcing solves this problem by providing direct access to a team of experienced professionals. You can quickly connect with experts without waiting for months or going through a long hiring process.
- Pay Only for What You Need
Outsourcing allows you to pay for the exact services your business requires, whether it’s help with compliance, budgeting, or financial analysis. With a full-time hire, you’re expected to compensate for the full range of their expertise, even if you only need assistance in one area. Outsourcing gives you the ability to scale services according to your current needs, ensuring you only pay for the expertise you require at any given time.
Conclusion
Outsourcing your controller role offers several advantages, including cost savings, access to high-level expertise, and the flexibility to adjust services as your business grows or faces specific challenges. If you’re looking to maintain financial health without the commitment of a full-time hire, outsourcing might be the best decision for your company.