Accounting is one of the most vital aspects of your business, and, as such, you need appropriate accounting leadership. A financial controller provides a number of services that you can’t get from non-accountant employees. Of course, proper accounting is important, not just because it helps you keep good records. In fact, 50% of businesses in most industries don’t know how to adequately track their costs per project. Proper accounting leadership could avoid such kind of problem. There are, however, several reasons why you need a controller for your company beyond basic accounting leadership.
1. Your Business is Growing
If you have a small business that’s growing exponentially, then basic accounting practices aren’t going to cut it anymore. You may start to notice that your expansion is actually a negative because you don’t know how to manage income and expenses and other accounts. A financial controller can provide the steady hand that you need to organize your growth going forward. They could provide plenty of expertise in the field of accounting, ensuring that you can focus on other aspects of your company. A controller can also provide you with detailed reports on financial management that can be utilized by the CEO in making crucial decisions.
2. A financial controller will supplement your accountant
It’s important to recognize the difference between a controller and an accountant. A controller is supplementary to an accountant, and it can supervise your accountants and their work as well as help managing your accounting or finance department much more fluidly. They can also help you recruit and hire new accountants to give you a much more streamlined team of accounting professionals.
3. Your CFO is Overworked; A Financial Controller is necessary
First of all, it’s important to distinguish between a CFO and a controller. If you have a CFO, then you have, not only an accounting guru, but a strategist that helps you with major decisions. A financial controller, by contrast, stays mostly in the field of accounting. If you don’t have a controller, then your CFO may have to perform all the duties that a controller provides. In addition to its role as a chief strategist, the CFO may become overworked. Some of the services that controllers provide include:
- managing and maintaining day-to-day cash flow and accounting practices (payroll processing, accounts receivable, accounts payable, etc.);
- bringing financial models up to date and taking appropriate action;
- managing accounting department;
- being the accounting “historian”;
- implementing and understanding accounting software;
- and performing simple human resource duties (creating offer letters, filing employee records, etc.)
If your CFO is trying to do all of these along with their other roles, a financial controller is likely necessary. Even if your CFO isn’t struggling or you simply just need these services for your business, a controller is a great asset for your company. Controllers will give you better control over all your accounting processes.
Whether you are an established business or a brand new startup, a controller can help get all of your finances in order.
Contact ABIP today for more information on the reasons why you should hire a financial controller for your business.
