Hi everyone, I’m Bette Hochberger, CPA, CGMA. Today I want to discuss how Fractional Controllers can provide businesses with meaningful financial analysis and track key performance indicators (KPIs) to monitor and improve financial performance.

In today’s fast-paced business world, financial adaptability is more than just a buzzword – it’s a necessity. Many businesses, especially startups and small to mid-sized businesses, may not require (or afford) a full-time Controller. Yet, the intricate financial analysis and insights that a Controller provides are invaluable. 

So, that’s where Fractional Controller’s come in. Let’s go ahead explore how employing a fractional controller can significantly boost your business’s financial analysis and KPI tracking.

What is a Fractional Controller?

Before diving into the benefits, let’s clarify what we mean by a ‘fractional’ controller. A fractional controller is a CPA, like myself, who offers controller services on a part-time or as-needed basis. This means businesses get the expertise of a seasoned professional without the full-time commitment and associated costs.

Financial Analysis at Your Fingertips

With a fractional controller on board, you get…

  • Deep Dive into Finances: Fractional controllers delve into your company’s financial data, providing insights that may otherwise go unnoticed.
  • Budgeting and Forecasting: They can help in creating accurate budgets, financial forecasts, and what-if scenarios that guide decision-making.
  • Profitability Analysis: Determine which products, services, or business lines are the most lucrative, and which may need revisiting.

KPI Tracking for Continuous Improvement

Key Performance Indicators (KPIs) are quantifiable measures that help businesses assess performance against objectives. With a fractional controller:

  • Customized KPIs: They help in identifying and setting KPIs tailored to your business’s unique needs and goals.
  • Regular Monitoring: Fractional controllers track these KPIs regularly, ensuring the company stays on the path to achieving its strategic objectives.
  • Data-Driven Decision Making: With regular KPI tracking, businesses can make informed decisions based on real-time data, ensuring adaptability and responsiveness.

Leveraging Advanced Tools

Fractional controllers often come with expertise in various financial software and tools that might be cost-prohibitive or unnecessary for businesses to purchase on their own:

  • Financial Dashboards: These give a visual representation of the company’s financial health, often in real-time.
  • Scenario Planning Tools: For understanding the potential financial impacts of different business decisions.

Proactive Risk Management

With their expertise, fractional controllers can identify potential financial risks before they become significant issues, helping businesses navigate challenges with confidence.

Scalability and Flexibility

As your business grows, the financial complexities increase. Fractional controllers can scale their services according to your evolving needs, ensuring financial processes and systems grow in tandem with the company.

In a nutshell, fractional controllers offer a hybrid solution, merging the expertise of a seasoned financial professional with the flexibility of part-time engagement. Whether it’s deep financial analysis, KPI tracking, or risk management, having a fractional controller in your corner ensures that your business stays financially astute and adaptable.

I hope you learned something new today. As always, stay safe, and I will see you next time.