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Controller Services: Is Your Business Ready to Recruit One?

Controller Services: Is Your Business Ready to Recruit One?

Controller services, the accounting department is the eyes and ears of the company.  You are asking "What does a controller do?".  In this article, you will learn the key functions of this role.  Why you shouldn't confuse it with a CFO or a bookkeeper. 

The saying goes “I’m feeling like I’m flying blind”. Personnel with less qualification and experience could lead to:

  • tax oversights
  • compliance, and
  • poor financial outcomes

Having a fractional controller to extend and to enhance the work done by bookkeepers. Many small and mid-sized businesses don’t have the budget to hire a full-time controller. Yet, you need a controller!

It is possible to get the higher-level skills and experience – on demand and when you need them. That’s by hiring a fractional controller (also known as a part-time controller) on a part-time basis.

 

What does a fractional (part-time) controller services do?

 

As your business grows and scales, the complexity of the bookkeeping also grows. Having a part-time (fractional) controller can find insights in your financial information.

Fractional controllers are responsible for:

 

Controller services Assist with budgeting, forecasting, and stakeholder reporting  · Helping you with cash flow planning  · Helping your business grow by evaluating the profitability of various service lines  · Monitoring compliance with bank agreements  · Liaise with your year-end accountant  · Making sure you’re up to date with the CRA  · Preparing for audit reviews  · Helping you assess new opportunities

 

A part-time controller is a very cost-effective way to manage your growing business. When you're larger, you can hire a full staff controller.

The fractional controller can work with you on a
• single project,
• an on-going contract, or
• as a single or part of an outsourced accounting package.

 

Fractional Controller vs. Bookkeeper vs. Fractional CFO

 

Fractional Controller vs. Bookkeeper

 

There are differences between a bookkeeper and an accountant. A bookkeeper's strength is in processing information and keeping them organized. Handling the computerized accounting system. They also do monthly reconciliations. 

A fractional controller is different from a bookkeeper. A controller focus on business accounting functions. Tying them to match financial to operational performance. A controller helps and supports business leaders with forward thinking ideas. Ideas backed up by financial proofs along with pros and cons.

 

Fractional Controller vs. Fractional CFO

 

A CFO (Chief Financial Officer) and a Controller are different roles. CFOs play a key role in accounting by being more focused on business strategy, being tactical. CFOs bring a wealth of experience and contacts to projects. If your business has a strong fractional controller, you often won’t need a fractional CFO.

 

Is your business ready for outsourced controller services?

 

Businesses with annual revenues between $500K to $1M should consider hiring a fractional controller.

The fractional controller assist complex bookkeeping transactions to preparing and interpreting financial reports.

If the company gets to $10M in revenues, having controller services is a must-have. That's to ensure internal controls, maintaining, overseeing of the monthly books closing process.

Besides, a fractional controller can help in targeting growth opportunities. It's true in growth companies where there are mountains of opportunities.

A controller can help assess:

 

  • The financial viability of the market or growth opportunity
  • The ROI (return on investment)
  • Estimate the timeframe on ROI
  • Project if there’s enough cashflows to start the project

 

A controller can help you take a confident step forward back by numbers. It can also instill confidence to banks and debtors and investors.

 

Sources: 

 

The benefits of working with a fractional controller

 

These includes: 

  • Ensure that your statutory remittances to the
    • CRA
    • WCB/Worksafe/OSHA
    • Provincial, state and city are current and up-to-date
    • Communicating on your behalf in the event of an inquiry

 

Controller also help by

  • Quarterbacking year-end and to ensure that it’s a breeze 
    A fractional controller will be valuable resource for year-end accountants and in-house bookkeepers.
  • Meet debt covenants
    Early warning system. Anticipating and communicating in advance when things don’t go according to plan.
  • Leverage experience in decision making
    Ensure the financials are accurate. It allows the fractional controller to provide better insights. Enable even better decision making.
  • Effective cashflow planning
    Cashflows is the lifeblood of any business. A fractional controller can expect “dry and wet seasons” of cash.

 

The number one reason many businesses fail is because they run out of cash. Next, is failure to find product-market-fit. With the help of a fractional controller, you will understand your financial data -- in good times and bad.

Contact us today to find out how you can take advantage of Forte Innovations’ flexible fractional controller services. We can help navigate your growth challenges!

 

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