The Vital Role of a Fractional Controller: Key Responsibilities and Benefits
Managing your business finances is essential if you want to save money, capitalize on tax deductions, and get loans.
However, it’s difficult to keep track of every part of your finances without a dedicated accounting department.
It’s even worse if you need to do all the paperwork yourself.
One way to stay on top of your finances is by utilizing outsourced accounting services.
In particular, a fractional controller can help you drive revenue and profitability.
Here’s what you need to know about the role of a fractional controller and what to look for when hiring one.
What Is a Fractional Controller?
A fractional controller is a person that handles the duties of a full-time controller as needed.
They are not an employee you hire for your company, but rather work with a service provider.
Larger companies often have financial controllers who are senior-level executives to get this work done.
They head up the accounting department and manage your finances.
However, smaller companies often lack accounting departments or senior-level executives to run them.
Role of a Fractional Controller
The role of a fractional controller largely depends on your business’s specific needs.
At the very least, they handle financial compilation and reporting.
However, their duties can also include tasks as such:
- Managing your budget
- Conducting financial forecasting
- Ensuring tax compliance
- Maintaining your payroll and taxes
- Providing financial insights
- Setting financial KPIs
- Tracking revenue flow
Although operating as an outsourced employee, a fractional controller counts as a high-level supervisor.
They’re here to handle all of your accounting needs, which is especially useful if you lack a dedicated accounting department.
In particular, small businesses can benefit from quality accounting services.
Fractional Controller vs Fractional CFO
It’s important to keep in mind that a fractional controller is different than a fractional CFO.
While both hold similar roles, they’re in charge of different levels of financial responsibility.
For example, a fractional CFO manages the financial actions of your company.
You give them a lot of power when you hire one.
However, they often have the most experience in the field and can help with cash flow management and financial planning.
In contrast, a fractional controller operates as the head of accounting.
Many of their tasks involve monitoring your financial actions, filling out reports, and analyzing your financial statements.
Benefits of Hiring a Fractional Controller
The key responsibilities of a fractional controller are to provide accounting services and help your business grow and thrive.
As such, the benefits of hiring financial assistance involve improving your company’s financial health.
It’s also a good way to save money without increasing oversight.
Focuses on Company’s Financial Health
It’s easy to lose track of your finances in the process of running your business.
After all, you have things like product development, delivery of services, customer service, and more to handle.
Your company’s financial health may end up taking a back seat to everything else.
When you hire a fractional controller, you’re putting more focus on your finances.
Brings Finance and Accounting Knowledge
The next benefit of fractional controllers is the knowledge and skills they bring to your company.
Not only do they have professional experience with accounting that your company may lack, but they also work with other businesses.
The time they spend with other clientele and industries can prove invaluable in solving your problems and managing your finances.
In general, bookkeeping services are essential if you want to track your expenses and profits while running the rest of your business.
Despite working with other businesses, you can expect them to maintain your privacy and keep your information secure.
Don’t Require Much Management
Even though a fractional controller works on behalf of your company, they don’t require much oversight.
They work much like a consultant, so they’re the ones bringing in expert skills and knowledge.
While it may benefit your company to learn from them, it’s expected that you’ll be the one relying on their experience.
In fact, fractional CFOs and controllers often manage your other departments for you.
They can help set up infrastructure on your behalf so you’ll rely on them less in the future.
This also frees up your time to focus on other parts of your business.
Lowers Costs
Even though you’re hiring outsourced help, a fractional controller can actually help lower your operating costs.
Since they’re not actually your employees, your business doesn’t have to provide benefits or compensation plans.
All you have to pay is their specific fee as per your agreement.
This means you don’t have to worry about providing health insurance or paid time off.
Their parent company already provides benefits for them.
In addition, fractional controllers rarely work the same hours as your full-time employees.
They split their time between various different companies.
That means you don’t need to provide an office or dedicated cubicle, either.
Flexible Arrangement
As previously mentioned, fractional controllers often work with your company on a part-time basis.
This is partly because they work with various other companies throughout the week as well.
You can easily modify this relationship to support the needs of your firm.
Hire based on the scope of your work and expand or shrink their role if necessary.
If the job is big enough, you can arrange for the controller to bring in their own team to finish up the work.
Hire Master Accounting Today
You don’t need to spend all of your time and money developing an accounting department if you can’t afford it.
Instead, outsource your help. After all, the role of a fractional controller is to help with your accounting, tax, and bookkeeping needs.
Master Accounting and Tax Service is here to help individuals and businesses in the Arizona and Southern California area.
Our services include accounting, tax prep, payroll, and more.
Contact us with any questions you may have.
Are you looking for the support and expertise of a professional financial controller without the expense of hiring one full time? We can help! Master Accounting provides experts to serve the role of a fractional controller for your Arizona or Southern California business. Contact the experts at Master Accounting for a free initial consultation! Call (480) 456-4999 or submit your request online here.
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