Outsourced Controller – Why?

Why Small Businesses Should Hire an Outsourced Controller: A Conversation with an Expert

In this blog post, weʼre diving into the reasons why small businesses should consider hiring an outsourced controller. Iʼm having a conversation with Sarah, an experienced financial consultant who works with small businesses to streamline their finances and accounting operations.

Sarah: Hey there! Iʼm so excited to talk about why small businesses should consider hiring an outsourced controller. Itʼs a question I get a lot, and I think itʼs one of those things that can make a huge difference in a companyʼs financial health.

Me: Absolutely, Sarah! I know a lot of small business owners wear multiple hats, but the financial side of things is often a challenge. So, letʼs start there—why would a small business need a controller in the first place?

Sarah: Great question. Many small businesses start out with a basic bookkeeper, but as the business grows, so does the complexity of the financial operations. An outsourced controller is essentially the person who takes care of the bigger picture when it comes to finance. They oversee everything from cash flow management and budgeting to ensuring that financial reports are accurate and compliant with regulations.

Me: Got it—so it sounds like an outsourced controller is there to handle the financial strategy and ensure that everything is running smoothly. But why would a small business want to hire an outsourced controller, specifically?

Sarah: Well, first off, hiring a full-time, in-house controller can be expensive, especially for a small business that might not need a full-time financial leader. An outsourced controller allows businesses to get the expertise they need without the long-term commitment and overhead costs. They can step in on a flexible basis— whether itʼs a few hours a week, part-time, or just for a specific project.

Me: That makes sense. So itʼs more cost-effective to bring in an expert when the business doesnʼt need a full-time person but still needs high-level financial guidance. What are some of the key things an outsourced controller would help with?

Sarah: They can assist with a lot of things. For starters, an outsourced controller can help with financial reporting. They ensure that financial statements are accurate and presented in a way that makes sense for business owners, investors, and lenders. They also play a key role in budgeting and forecasting, helping the business plan for the future and stay on top of cash flow.

But itʼs not just about the numbers—they also bring a strategic mindset. A good outsourced controller will analyze financial trends, suggest ways to improve profitability, and even help identify inefficiencies or areas where costs can be reduced.

Me: So, theyʼre really a financial strategist, not just a number cruncher. That sounds like a big benefit. But Iʼm guessing some small businesses might wonder if they can handle this on their own. Why is it worth bringing in an expert rather than trying to manage it internally?

Sarah: Thatʼs a great point. Many small business owners are great at what they do —whether itʼs running a retail store, providing services, or creating products. But unless they have a background in finance, it can be difficult to manage the more technical aspects of accounting and finance. A lot of businesses start with basic bookkeeping software and manual processes, but as they grow, those methods often fall short.

An outsourced controller has the experience to set up solid financial systems, streamline processes, and make sure the business is prepared for taxes, audits, and potential growth. They also know the ins and outs of compliance, which can be tricky for small businesses trying to stay on top of local, state, and federal regulations.

Me: So, itʼs about making sure everything is structured correctly from the get-go, right? But what if a business already has someone doing the books in-house? Can an outsourced controller still be helpful?

Sarah: Absolutely! In fact, itʼs pretty common for small businesses to have a bookkeeper or office manager handling day-to-day transactions, while an outsourced controller provides higher-level oversight and strategy. The outsourced controller would complement the bookkeeper by ensuring that financial records are being accurately maintained and by overseeing the more complex aspects of finance—like cash flow projections, financial analysis, and strategic advice.

Having both roles covered helps the business operate more efficiently, and the business owner doesnʼt have to worry about whether their finances are in order— they have a professional team in place to manage both the details and the big picture.

Me: Thatʼs a good point. It sounds like an outsourced controller is also great for businesses that are scaling up. Can you elaborate on how they help with growth?

Sarah: Definitely. As a business scales, itʼs easy for financial management to become more challenging. An outsourced controller can help ensure that the company has the right financial infrastructure in place to support growth— whether itʼs implementing stronger accounting software, creating more detailed financial reports, or helping with cash flow management to ensure that the business can take on new clients or projects without jeopardizing its financial stability.

They can also help with fundraising—whether the business needs to take out a loan or attract investors, an outsourced controller can prepare the financial documents and projections that lenders or investors need to see.

Me: So an outsourced controller really becomes a trusted partner as the business evolves and takes on more complexity. But I imagine the transition to hiring an outsourced controller isnʼt always easy. What do you suggest for businesses that are considering this?

Sarah: I recommend starting with a clear understanding of what you need. An outsourced controller can be engaged for specific projects or on a regular basis, so itʼs important to outline your businessʼs needs up front. You might want to ask questions like: Do I need someone to help with financial reporting? or Am I planning to scale soon and need guidance on cash flow and budgeting?

Also, itʼs crucial to find someone with experience in your industry—outsourced controllers who understand the unique financial challenges that your business faces will be able to offer more valuable insights.

Me: Thatʼs really helpful advice! Any last thoughts on why hiring an outsourced controller is a game-changer for small businesses?

Sarah: Iʼd say this: small businesses often underestimate the value of having a financial expert on hand. By bringing in an outsourced controller, you get the benefits of experience and expertise without the overhead. Whether itʼs keeping your finances on track, improving profitability, or helping you plan for future growth, an outsourced controller adds value across the board. Theyʼre not just managing numbers—theyʼre helping you make informed decisions that drive the business forward.

Me: Thatʼs a great way to sum it up. Thanks for sharing your insights, Sarah! I think any small business considering scaling up or wanting to get a better handle on their finances will see the huge value in hiring an outsourced controller.

Sarah: Thanks for having me! It was great to chat about how an outsourced controller can really make a difference for small businesses. If anyoneʼs thinking about taking that step, donʼt hesitate to reach out—getting the right financial help at the right time can set you up for long-term success!

If you’re a small business owner and youʼre considering whether an outsourced controller might be the right move for you, itʼs worth having a conversation with a professional who can help you evaluate your needs and guide you toward the best financial strategies for growth. Stay tuned for more tips on building a strong financial foundation for your business!