Your business is booming, money is constantly rolling in, you are making strides with acquiring new prospects and growing your client base. In the midst of all, you are troubled by the gnawing concerns regarding how you are going to proceed further, whether you are utilizing your cash flow efficiently, and if you are employing the right marketing tactics to increase your ROI.

If you are facing these troubling questions, you are not alone. Many small business owners go through this phase at some point in their business lifecycle. Fortunately, you do not need to burden yourself or get your entire management team to answer these questions for you. What you do need is to simply look for outsourced controller services providers and opt for one that can help you achieve your strategic objectives.

Who Is an Outsourced Controller?

A controller usually is a person who is in charge of generating reports, reviewing data, and preparing payroll for a company. However, the most crucial aspect of their job is to assist the company through challenging yet necessary changes for continuous growth. They will utilize and examine the information provided by the bookkeepers and accountants to forecast future prospects for your company while also consolidating financial data to prepare budgets efficiently. Companies need the expertise of a full-time controller to assist them with managing financial records and providing accurate reports.

A controller can also provide complete oversight of day-to-day finances regularly. This includes detailed reporting about the company’s operations, infrastructure, and internal controls. All of these operations are critical for the success and growth of a business, so having a controller working for their organization is a must for every CEO. However, the dilemma that most small companies face is that they are not able to afford a professional, full-time controller for their business due to budget constraints.

For this dichotomy, controllership solutions provided by outsourced financial management services are perfect for such small companies.

Here are some of the most significant advantages you receive with outsourced controller services:

1. Ensures confidentiality 

The most common problem that small businesses face is how closely different departments are seated. If youraccounting department is seated in close proximity to other departments, then there is an increased possibility that classified information can fall into the hands of wrong individuals. It can either occur due to human error or done purposefully by an employee to sabotage the company’s finances and reputation. Said information can then either be exchanged, leaked, or used for ransom by the perpetrator, which leads the company further down the rabbit hole, and can result in employee turnovers or for the company to face bankruptcy.

When you have outsourced controller services managing your finances, you do not have to worry about these risks. This is because the information you wll be sharing with the outsourced consultant will be in a secure, protected server online. Your financial information is only shared and communicated between exclusive members of the team including you, the business owner, and the management service. The consultants will also provide you with a trusted business advisor in charge of analyzing and studying financial reports for your company. Your financial advisor will evaluate your business performance to assist you in making more proactive and strategic decisions regarding the growth of your company.

2. Helps you control turnover rate 

Employee turnover rate refers to the number of workers who leave an organization within a certain time span, and high turnover rates are common in both bookkeeping and controller positions. The reason why small companies usually face difficulty keeping an accountant for an extended period of time is because hiring, training, and keeping a full-time controller can be a very costly expenditure.

The national average income of a controller ranges between $94,000 and $146K. It could also go beyond this range depending on the scope of work and the size of business. In comparison, an outsourced controller costs up to $2,500 a month, or $30,000 per year, which is one-third of the expense of employing a full-time, in-house controller. But keep in mind that these costs are dependent on the size and complexity of your company.

3. Eliminates single-point-of-failure (SPF) 

Single-point-of-failure occurs when only one person is kept in charge of managing a single task or operation, and in their absence, everything is awaited. This also means that getting behind on your bookkeeping for one day would delay your accounting tasks and before you know it, you start noticing a negative impact on your cash flow.

By outsourcing your finances, you don’t have to put your business at risk, as instead of a single employee, you get an entire team of professionals tending to your company’s financial needs with the utmost precision and care. Even if one outsourced controller leaves their position, another one will quickly replace them before you know it.

4. Provides assistance to the CFO 

CFOs are constantly under pressure to look for new growth opportunities and development prospects for the company all the while monitoring its financial well-being and developing new investor relationships. When it comes to growth, CFOs are no different than any other member of your staff, and are greatly dependent on the assistance of a financial controller to take up the slack to keep your business on the path of success. With an outsourced controller, your CFO will be able to assign particular responsibilities to them to free up their agenda and focus more on their core responsibilities.

Outsourced controller services provide more than just bookkeeping and accounting. More importantly, they also provide managerial oversight and accounts monitoring to ensure that correct policies and processes are implemented and that accurate financials are always issued on time. They keep an eye out for ensuring uncompromising integrity of all accounting operations, provide tax details to your CPA, assist the accounting department with cash flow management, and even train new recruits to the company.

See Also: CFO vs. Controller: What’s the Difference?

Conclusion

Accounting is both a highly complex and sensitive business process, and tracking financial transactions can quickly become a time-consuming and challenging process if you’re not careful with it. Many small businesses try to work around this quandary by hiring a mediocre controller to oversee their finances, or exhausting their entire budget on one single controller. Either way, the company only faces disappointment and major financial setbacks. That’s why it’s recommended to remain safe, smart, and cost-effective by handing over your finances to a professional outsourced controller service.

With Monily’s advanced controllership services, you can put your numbers to work and will never have to involve yourself in the process. Our financial specialists will assist in managing your company’s accounting activities, increase your cash flow, and lower operational costs. This is perhaps one of the best strategic investments that a small business owner can make to achieve results that matter to them.

Farwah Jafri

Farwah Jafri is a financial management expert and Product Owner at Monily, where she leads financial services for small and medium businesses. With over a decade of experience, including a directorial role at Arthur Lawrence UK Ltd., she specializes in bookkeeping, payroll, and financial analytics. Farwah holds an MBA from Alliance Manchester Business School and a BS in Computer Software Engineering. Based in Houston, Texas, she is dedicated to helping businesses better their financial operations.