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Reasons For Hiring Outsourced Controllers

Most company owners have at least entertained the idea of scrapping the idea of pricey, full-time, in-house controllers and hiring someone outside the organization to take on the task. In today's leaner-is-better economic environment, entities of all kinds and sizes are opting to move away from in-house controllers. What are the three basic situations where this strategy makes sense in relation to the size of the company doing the hiring?

  • Outsource controller for small businesses: Few small companies need to employ a full-time controller. In fact, the smaller the entity, the more common it is for owners to hire a third party to perform all or most of the controller functions.
  • Outsource controller for medium-sized businesses: Middle-sized firms often choose to outsource specific controller duties, like audit or acquisition prep, but keep an in-house accounting professional like a CFO to handle the remainder of the work.
  • Outsource controller for large companies: You'll typically find an outsource controller for large companies in situations where bigger organizations want to focus on core capabilities, like manufacturing or research, while hiring out the bulk of accounting-related controller duties to a third-party specialist.

Bringing In Outsourced Controllers

In truth, there are as many reasons to hire third-party controllers as there are companies. But speaking generally, organizations decide to hire an outsource controller for small businesses, an outsourced controller for medium-sized businesses, or an outsource controller for large companies based on one of five factors or a combination of factors. Below is a list of common factors

  • Support for an in-house CFO: An outsource controller often acts as support for an in-house team during periods of peak business or special company events.
  • There's no need for an in-house controller: Companies that just don't have the work volume to keep a full-time controller busy on a full-time basis usually turn to outsourcing the pertinent duties.
  • Transaction prep: If you need to prepare for an upcoming audit, sale, acquisition, merger, or special fund-raising activity, a third-party controller makes sense.
  • To cut expenses: Startups and smaller firms routinely hire outsourced controllers to reduce expenses for a few years until they've grown enough to justify the need for an in-house controller.
  • You need someone fast: An outsource controller often takes on complex tasks with little or no warning. Third-party controllers already have the training and skillsets to handle your controller-related chores in a "hit the ground running" fashion. That means you need not spend weeks or months searching for and hiring an in-house professional when you have a need for immediate help with a major job or special project.

Making the Decision

Our team here at Fusion CPA can act as an outsourced controller for companies of all sizes — we have the staff and the expertise to get the job done. Simply contact one of our team members to discuss your specific needs. Perhaps you just emerged from a growth spurt and need a temporary hand with putting your books in order, or need to prepare for an audit or merger. Regardless of the reason, we'll be happy to offer you a no-obligation consulting session so you can get a clearer idea of how to proceed. We look forward to hearing from you. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!

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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.