How to Know If Your Business Needs a Financial Controller?

How to Know If Your Business Needs a Financial Controller?

Running a business is not an easy task. When an expert enters to provide a service for a new product, they do not always think about the operational part of running a business, which requires strategy, management, bookkeeping, finance, and accounting. It also requires consulting, engineering, marketing, etc. 

You should contact Tacoma, WA bookkeeping services if you need a financial controller in your business.

How to know if your business needs a financial controller?

A financial controller is a senior management member, usually from the company’s accounting and bookkeeping department. They are responsible for overseeing the company’s accounting procedures and system and processes in addition to financial reporting, compliance, internal records, tax filing, and helping the company’s CFO with financial strategy.

Mentioned below are the signs your company needs a controller.

  • You are relying too much on your accountant.

Many new company owners tend to think that their accountant will manage the whole financial department of their business. As you know, the roles of bookkeeping, management, and accounting oversight belong to the controllers.

If you think you are relying on your accountant to give you advice on how to set up your accounting system and bookkeeping, processes, department, and procedures and check that your strategies are secure, sound, and well-managed, then you are asking them to perform the job of a controller for you. 

  • Your business is growing.

Once your business starts growing, which includes bringing new partners, opening up in new locations, and expanding and exploring the market with the latest product lines, you will need someone to manage the accounting procedures and to bookkeep for your company.

  • Your CFO is overwhelmed.

The CFO’s main responsibility is to focus on the business’s long-term, big-picture financial strategy. The CFO should make decisions about how the company will use its profits, how it will invest, and how it can attract customers as well as investors. 

Suppose your CFO spends much time on operations (overseeing the company’s accounting system, dealing with the accountant directly, or managing the bookkeeping). In that case, the most important job will get neglected or completely overlooked. 

  • You are concerned about compliance.

Management and oversight are a financial controller’s responsibilities ensuring financial compliance with all rules and regulations. A controller will perform internal audits to make sure our finances are in order. Without this oversight, you may end up paying fines or even damaging the company’s reputation due to non-compliance.