Why outsource your Financial Controller?

A Financial Controller is a key part of the finance function of your business, they ensure the accounting department is following the correct procedures and accounting standards, produce month end reports and help the directors of the business make key business decisions. Outsourcing this function has a number of potential benefits for a business which will be covered below, and while it may not be right for all companies it is worth considering as you develop and grow.

Outsourcing this function can free up the people in the business to focus on growing the business rather than worrying about the accounting and month end reports. Your outsourced controller can provide you with the reports you need to make decisions that drive performance and profitability.

Staffing Costs

Let’s start by looking at a big benefit of outsourcing your Financial Controller work, the cost savings. Due to the knowledge and experience a good full time controller needs they can be an expensive member of staff for a company, and this is not always the most effective or cost efficient way to get the skills your business needs.  The national average salary for a controller is £65,000 and can easily be more depending on location and expertise. Outsourced controller services can easily be a third or less of the cost of hiring a full-time on-site controller. There are also cost savings with not having to provide benefits package, office space and equipment or pay national insurance for the employee.

Knowledge and Experience

When outsourcing your Financial Controller you will have access to a number of people, with a variety of knowledge and experience. Hiring a controller in house means you only have one person and for anything outside of their scope of knowledge you may need to look at seeking additional specialists.

Importantly you will not suffer from a single point of failure with an outsourced service as well. What happens If your Financial Controller gets hit by a bus tomorrow? Do you have the processes and knowledge in house to ensure the accounting department and month end processes are still completed on time. This could have a serious impact on your business and when this function is outsourced there will always be someone to step in and carry on.

Away from the office politics

While having outsourced staff increases the importance of good communication systems and information sharing they won’t get involved in office politics and gossiping during the day. Your outsourced Financial Controller will be focused on producing your reports and providing the information you require to make good decisions. They are less likely to get held up in endless meetings for the sake of having meetings and the time they are working for you they will be totally focused on the work they are doing for you. They will also have an easier time remaining objective to ensure that the processes are followed and the numbers they provide you are correct than if they are  in the business.

Easier for business growth

If your business is growing rapidly you need a flexible structure to keep up with the needs of the business. With in-house staff this can be hard to manage with the time it takes to recruit and train new staff members, and budgetary constraints. However when you have outsourced staff they will be able to provide more time, staff and expertise as you require it without tying your business in to significant cost increases.

If you would like to look at outsourcing your Financial Controller role or another part of your finance function please get in touch with 2 Sisters Accounting and we will happily talk to you about the options and how to make it work best for you.