Outsourced Financial Controller: The Future of Financial Management

Outsourced financial controller is a financial expert who works with you to maintain accurate financial records. In addition, they provide accurate and timely financial reports and data.

You can use either internal or external controllers. If you decide to hire a financial controller through an outsourcing firm, they will likely be classified as independent contractors rather than W2 employees. Choosing an outsourced controller typically provides a company with access to a more experienced controller at a lower cost than hiring an in-house financial controller with a comparable level of experience. With this arrangement, the company saves money by not having to pay a full-time worker’s salary and benefits, but rather just for the time they spend working.

What Does an Outsourced Financial Controller Do?

Although the specific duties of a controller can vary widely from one organization to the next, there are some universal aspects of the job that remain constant across all sectors and sizes of business.

An outsourced controller can work with a company as a standalone specialist to clean up their books and get their reporting up to date, or they can work with a strategic CFO to do things like analyze cash flow, implement new accounting systems, and help with capital raising. In most cases, a company’s outsourced controller will focus solely on financial reporting and record keeping.

A financial controller’s primary responsibilities are:

  • Accounting
  • Record-keeping
  • Managing information technologies
  • Financial & regulatory compliance
  • Payroll
  • Accounts payable/accounts receivable
  • Cash balances
  • Financial report preparation

Why Would an Organization Need to Hire an Outsourced Financial Controller?

Outsourcing financial controller services can provide businesses with numerous benefits, including:

  • Cost savings: Outsourcing financial controller services is often more cost-effective than hiring a full-time financial controller. Businesses can save money on salaries, benefits, and overhead costs associated with hiring an in-house financial controller.
  • Expertise: Outsourced financial controllers have extensive experience in financial management and can provide businesses with specialized knowledge that they may not have in-house.
  • Flexibility: Outsourced financial controllers work on a contractual basis, which means businesses can adjust their services according to their needs. This allows businesses to scale up or down their financial management services as required.
  • Efficiency: Outsourced financial controllers are experts in their field and can often complete tasks more efficiently than an in-house team, which can help businesses save time and resources.
  • Reduced risk: Outsourcing financial controller services can help businesses reduce the risk of financial errors, fraud, and non-compliance with financial regulations.

 

Why Hire an Outsourced financial controller over an In-House Controller?

  1. The Work You Have May Not Be Enough to Keep a Controller Busy Full-Time

Organizations prefer outsourced controllers because they may not need a full-time employee. Many organizations hiring an outsourced controller have never had a controller on staff and use it as a stepping stone until they can justify an in-house hire.

  1. To Augment an Existing Financial Team

During growth or transition, your organization’s books may have gotten out of control. A project-based outsourced financial controller can help clean up your books so your team can better manage them. This service can be used with an outsourced CFO to set up financial systems and train employees in better accounting.

  1. To Prepare for a Transaction

Preparing for a capital raise, merger, acquisition, or sale often requires an outsourced controller. When business projections depend on the transaction, an organization may not want a full-time hire. Before the transaction, the company may want to avoid hiring another salaried employee. Or the organization may have its financial bases covered in everyday practices and just need a control for the transaction.

  1. To Support an Outsourced CFO

Some financial issues can be solved by cleaning up books or improving reporting, but others require a strategic CFO. Outsourced CFOs and controllers are powerful. The CFO plans for the future, using historical data and reporting from the controller.

  1. Shorter Hiring Process

Professional outsourced financial controllers have been screened. The outsourced controller organization is picky about their controllers because information is so vital to any business. Outsourced controllers don’t require job boards, resume screening, or multiple interviews. Instead, the outsourced controller will assess your needs and propose a solution that fits your company.

Outsourcing financial controller services can provide businesses with numerous benefits, including cost savings, expertise, flexibility, efficiency, and reduced risk. When choosing an outsourced financial controller provider, businesses should consider experience, qualifications, reputation, communication, and cost. By doing so, businesses can find the right provider to meet their financial management needs and help them achieve their financial goals.