Many businesses worry that they cannot afford an outsourced controller. They don’t see a value to the service, and don’t want to allocate resources (money) to the position. And to be honest, they don’t even know what a controller DOES.
Let’s look at the bookkeeping function, for just a moment. I have spoken with clients that have calculated the work they do on the accounting every week takes 10-12 hours. That’s invoicing clients, receiving payments, making deposits, and (hopefully!) reconciling the bank statements and credit card statements. They’re positive they’re looking to hire someone for 10-12 hours a week to fill that void.
When you hire a professional that does this for a living they can process transactions at roughly 8-10 times FASTER than someone, like a CEO/Owner, that doesn’t include accounting in their skills. So what may take them 10-12 hours to do per week, I’m doing in a fraction of that time. First, that’s a major cost savings. You’re not paying $100/hour times 10-12 hours, but only a few hours. That leaves plenty of time for the higher-level activities and analysis business owners need but don’t have time to even think about, and still with a cost savings and reduced time. This is drastically increasing the business owner’s time to work on their business – what they originally intended to do when they started their business in the first place.
Through bookkeeping, I can see how financial resources are being allocated, and provide feedback to the owners/managers about better utilizing those finances. So within just a few hours a week or month, executive management can have significant insights into their business; strategic insights that help them steer their business toward success. Basically it’s giving them an arial view of their business rather than the transactional level. In just a few hours then, the bookkeeping can be kept up to date, and a business overview provided so strategic decisions can be made for the business. That strategic decision can be as simple as focusing on accounts receivable in the next week, up to planning when and where to expand the business, or when to make a new product launch.