There is a simple explanation for the rising significance of outsourced bookkeeping and controller services. Business owners and managements don’t have the time to handle the bookkeeping and accounting operations. Moreover, almost all the businesses in the USA (about 99.9 percent) are small businesses.
Small and mid-sized businesses don’t find it feasible to maintain an in-house department to manage the accounting and bookkeeping operations.
Moreover, outsourced accounting and bookkeeping operations isn’t enough. A business needs to be able to manage the accounting and bookkeeping processes efficiently, effectively oversee the financial processes, and generate more profound insights. This is where the role of a business controller comes in.
Outsourced bookkeeping and controller services address these problems. Outsourcing the controller services is like killing multiple birds with the same stone. Let us look at the several benefits of outsourcing bookkeeping and controller services.
Who are Controllers?
A controller is a high financial officer who manages day-to-day bookkeeping and accounting operations. The controller goes beyond the accounting and bookkeeping to generate deeper insights. With an effective oversight of the financial operations, the controller ensures that the financial operations are conducted timely and properly, taking care of compliance. This fills the gap between the accountant and management.
What are Outsourced Controller Services?
Businesses don’t need to maintain an in-house accountant, which can be expensive. Most businesses today like to opt for outsourced bookkeeping and controller services. This provides them bookkeeping, accounting, and controller services at the same place.
Outsourced controller services have many benefits over an in-house controller.
Let us take a look at what an outsourced controller does for its clients, i.e., the businesses.
- Manage the bookkeeping and accounting procedures
- Financial disclosure
- Creating cash flow metrics and KPIs and comparing results to benchmarks
- Management of cash flow and projections
- Strategic and financial planning
- Forecasting and planning
- Software selection and implementation for third parties
- Tracking inventory and job costs
- Controlling the accounting team
- Providing guidance on financial choices
- Monitoring and reporting on month-end closings
- Benchmarking of key metrics
- Advisory and preparation services for audits
- Tracking marketing expenses and comparing them to budgets
- Putting internal controls in place
- Accounting paperwork, such as guidelines, instructions, and manuals
6 Signs a Business Must Opt for Outsourced Controller Services
Technically, it is never the wrong time to start working with a controller to manage financial operations better. Experts advise that a business must ensure efficient accounting operations and financial reporting from the very beginning.
However, there are some situations in which a company cannot overlook the need of a controller. Take a look at these six signs that are a warning bell for the business to enhance its management of financial operations.
1. Spotting Errors and Mistakes in Financial Records
If frequent errors in financial reports come up, it is the first wake-up call for a business owner or management. The mistakes in financial records aren’t just limited to the wrong reports. It has far worse consequences for the growth of the business.
Incorrect financial statements such as balance sheet or income statement mean the company has no way to gauge its performance, conduct in-depth analyses, and enhance productivity. The business needs a controller to oversee the financial operations and ensure they are conducted properly.
2. Lack of Efficiency and Productivity
A business can measure the efficiency of its operations and final productivity. When the efficiency is not high, and much of its income is spent on expenses, it is time to hire a controller.
A controller will oversee the financial operations and lead them to increase the overall efficiency. To save on expenses, the company can opt to outsource bookkeeping and controller services. If it is only feasible to hire one of bookkeeping or controller, compare the significance of bookkeeper vs controller for your business.
3. No In-Depth View of Company Finances
Is your business working with only a surface-level view of its finances? How would you then increase the efficiency, maximize the profit, and minimize the expenses? A business must have an in-depth understanding of its finances.
This is only possible if your accounting system generates deep insights that are correct. This can only be done by hiring a controller or outsourcing to controller services providers.
4. Lack of Communication Among the Financial Team
Financial operations cannot be conducted seamlessly if the team lacks proper communication. A controller helps lead the accounting and financial operations and cultivate teamwork in the company.
If you feel like your financial team is not working to its potential and there is scope for improvement, it is the perfect time to seek outsourced controller services.
5. Financial Data is Questionable or Hiding Something
When it comes to financial records, credibility, and correctness is mandatory. Internal and external audits help evaluate the financial records and verify their correctness. Suppose you are not entirely sure that your company’s financial records are correct.
This means your financial records are questionable, and in the worst-case scenario, it might be hiding financial fraud. In these situations, a business must hire a controller or CFO.
6. The Financial System isn’t Evolving
Is your financial system stagnant? If the financial system isn’t evolving over the years, you’ll find it hard to grow your business. With the growing business, the financial system should become more efficient in accommodating more data and increasing efficiency.
Even if the company is not expanding, improvement in the accounting system and financial operations can increase the profitability. If the financial system has remained stagnant for a while, it is time to look for outsourced bookkeeping and controller services.
Salient Benefits of Outsourced Bookkeeping and Controller Services
The bookkeeping and controller services couple the goodness of both bookkeepers and controllers. This means that businesses don’t have to worry about the accounting and bookkeeping operations or tax management at all; the whole process can be delegated to outsourced bookkeeping and controller services.
1. Eliminating Points of Failure
Hiring an in-house bookkeeper and controller means a company has several points of failure. The business operations can come to a halt if the accountant were to fall sick or go on leave.
Moreover, the company has to ensure proper communication and coordination between members of the financial team and with other departments. This is also a critical point of failure and needs constant management and supervision to ensure the processes go on seamlessly.
Outsourcing bookkeeping and controller services from a firm transfers this burden. The firm ensures the processes go on smoothly without any interruptions with the help of virtual accountant for small business.
2. Expertise and Resources
A controller needs years of experience and broad knowledge that spans across various subdomains of accounting and finance. It is hard and rare to find an in-house controller with years of experience in the budget of small businesses. Therefore, to obtain that expertise and resources, the business should opt for outsourced bookkeeping and controller services.
These service providers have experienced teams, advanced financial technology, and a vast network in the finance industry. This enables them to take care of your company finances efficiently.
3. Accurate Reporting and Insights
Outsourcing the bookkeeping and controller services revolutionizes the way the business functions. The company management no longer has to worry about accounting and financial operations. At every week, month, or designated period, the reports and financial statements would be generated timely.
The management would get accurate reports and insights to analyze and enhance performance. Moreover, the financial operations are conducted accurately with expert oversight and supervision. This significantly enhances the productivity and net income of the company.
4. Compliance and Litigation
Financial and state tax regulations for businesses are perhaps the most complicated thing. The business must ensure that all the financial operations and records are as per the government regulations. The business must ensure compliance with these regulations during accounting operations and tax preparation.
If the financial documents and tax returns violate the legal guidelines, this could result in penalties or lawsuits. This is where a controller is very helpful. Controller have a sound knowledge of tax regulations across different states and nations. They help businesses navigate the tax landscape and prevent litigations.
5. Huge Saving on Expenses
Often, the business doesn’t recognize the significant amount of money and income it is spending as expenses. This is a result of inaccuracy and inefficiency in financial reporting and analysis.
An expert oversight and insight into the financial operations and records can find these loopholes that the management fails to organize. They can also help you take advantage of tax-deductible business expenses and save precious money.
However, it all starts with accurate record-keeping and analysis. A controller streamlines the accounting system, ensures precise reporting, and generates correct insights to track the cash flow efficiently. In this way, the company is able to save largely on expenses and increase the net profit.
Top Notch Outsourced Bookkeeping and Controller Services
We know that you are looking for bookkeeping and controller services that are reliable, of high quality, and fit for your business. This is why we provide personalized bookkeeping and controller services with full integrity and dedication. Our clients have a happy experience of years of growth and good client-service provider relationships.
Allow us to be a part of your journey. Call us at +1(800) 580-5375, and take a free trial right now!