Bookkeeping Services vs. Controller Services: Finding the Best Fit for Your Company
Is accounting one of your biggest hurdles as a small business owner?
You’re not alone in this challenge.
In fact, surveys reveal that 60% of fellow business owners don’t feel as confident as they should be about accounting.
Investing in essential accounting services is the first step in conquering this challenge.
You’ll also learn fundamental knowledge along the way like the difference between bookkeeping services vs. controller services.
Should you invest in one or the other or both? This is a valuable question to ask as you nail down a plan of action for your small business accounting needs.
Discover more about bookkeeping advantages and the benefits of controller services in the following guide.
What Is Bookkeeping?
In its simplest terms, bookkeeping is the practice of keeping financial records.
This process typically applies to small businesses, but even households can benefit from integrating bookkeeping to keep track of spending, budgets, and utilities.
SMBs rely on bookkeeping to document:
- Financial transactions
- Invoices and receipts
- Expenses and spending
- Payroll (and processing fees)
- Business Sales
- Business and payroll taxes
- Building leases and rent
- Compliance fees
Every financial action needs a paper trail.
This is necessary for paying taxes correctly, investing in business services, and wise decision-making.
One of the wisest decisions first-time business owners can make is to hire a bookkeeping service from the start.
Professional bookkeepers are trained and licensed in all aspects of financial accounting.
They typically hold college degrees in accounting and finance and acquire other industry-standard certifications.
Business bookkeeping services include:
- Recording of business transactions
- Accounts payable and receivable (for paying bills)
- Identifying discrepancies in credit cards (reconciliation)
- Payroll processing services
- Tax Compliance management
- Preparations of financial statements
Typical financial statements for small businesses include cash flow reports, income statements, and accurate balance sheets.
Bookkeepers also stay current on the city’s latest tax laws and compliance regulations.
Professional bookkeepers complete accounting tasks daily to ensure diligence and accuracy.
What Is the Controller’s Role In Business?
A bookkeeping service may be all you need if you’re a small business or an entrepreneur just getting started.
However, if you’re planning to scale and expand your business to multiple locations, you’ll likely need an entire accounting department with a controller at the helm.
Hiring a bookkeeping service is just one responsibility of a company controller.
This role may be called “chief financial officer,” or CFO.
This position is also responsible for any strategic decision-making regarding finances.
A CFO or controller may be involved in company mergers, working with financial institutions, and resource allocation.
A CFO is also licensed in all aspects of financial accounting and is required to hold at least a master’s degree in accounting or finance; additional experience or degrees in financial technology, or fintech, is also a plus.
A controller’s responsibilities include all bookkeeping duties, including the following roles:
- Financial risk management
- Creating financial strategies
- Profit optimization
- Cash flow management decisions
- The closing of the fiscal period
- Setting internal controls for accounting
- Managing financial audits for a business
- Analyzing financial data insights
A controller will often hold meetings to discuss financial insights, including strategies for applying these insights to profit maximization.
Companies don’t have to manage these duties in-house, either.
Like bookkeeping services, controller services are also available for companies on the rise.
Types of Controller Services
Controller services include typical bookkeeping services like accounts payable and receivable and budgeting.
Budgeting services also include financial forecasting to help businesses allocate resources effectively.
These services go a step further in providing strategic guidance on financial adjustments; controller services also include fixed asset monitoring for improved decision-making.
A company controller must present a clear picture of the company’s current financial situation and future outlook.
This part defines the difference between bookkeeping and controller services.
Controllers must visualize and present data to company stakeholders.
Accurate revenue reporting makes the above duties possible.
A controller must prepare a statement of retained earnings, also known as the statement of owner’s equity.
Year-end balance sheets visualize a company’s financial liabilities, equity, and assets.
One of the controller’s most important roles is managing the company’s accounting compliance.
Compliance duties include staying current with the industry’s latest regulations.
Benefits of Investing in Controller Services
Entrusting an accounting company with your controller workload improves the security of your accounting department.
You don’t have to worry about turnover rates since an outside company manages these duties.
Therefore, single-point-of-failure situations are less likely to happen; these situations arise when an in-house controller is out of the office.
You’re more likely to save money on controller duties by hiring an accounting company.
The same applies to bookkeeping services.
Companies like Master Accounting and Tax Service have a team of accounting professionals who work diligently and quickly.
How to Improve Your Business Financial Management
Start by auditing your current accounting operations.
Then, book a consultation to discuss your accounting goals.
For example, if you want to scale your company, you’ll need a more robust accounting solution.
Talk to a professional about your accounting challenges, including how much you spend on accounting duties, from tools to overhead.
Master Accounting and Tax Service uses the latest accounting software to ensure accuracy and efficiency; this also includes tools for better financial forecasting.
Consider other accounting services you may need to optimize your operations, like tax preparation and payroll services.
Business entity services are also available for new ventures.
Learn More About Bookkeeping Services vs. Controller Services
Master Accounting and Tax Service, LLC is here to help optimize your business finance strategy.
Keep this guide handy as you navigate services that best fit your company’s goals, including long-term objectives.
Talk to an accounting professional about bookkeeping services vs. controller services.
Our leadership team brings over 25 years of accounting experience to the industry.
We’re proud to be a paperless office, offering clients a complete and trustworthy online experience.
Integrity in our work is a top priority; we also value professionalism, quality, and respect.
Browse our suite of small business services, or contact us today to book a consultation.
Looking for Bookkeeping Services in Scottsdale, AZ?
Master Accounting and Tax Service offers expert bookkeeping solutions tailored to your needs. Our dedicated team provides comprehensive services with a focus on integrity and affordability, helping you achieve financial clarity.
Call (480) 456-4999 or contact us today to get started!
