Hey guys, it’s Bette Hochberger CPA, CGMA here. Today, I’m going to discuss the top signs your business needs a fractional controller. As your business grows, so do the complexities of managing its finances. Hiring a full-time controller may not always be feasible, especially for small to medium-sized businesses. That’s where a fractional controller—a part-time financial expert who provides controller-level services on a flexible, as-needed basis—comes in.
So, take a look at the top signs that it may be time to bring in a fractional controller for your business:
Your Financial Reports Are Inconsistent or Inaccurate
If you find that your financial reports are frequently delayed, inaccurate, or hard to understand, it’s a clear sign that your current accounting processes aren’t keeping up. A fractional controller can help streamline your financial reporting, ensuring that you have reliable and timely information to make informed decisions.
You Lack Strategic Financial Insight
Are you only getting basic bookkeeping reports but not the strategic financial advice you need to grow your business? A fractional controller can provide the financial analysis and insights necessary for making long-term, strategic decisions. They can help you set realistic financial goals, monitor cash flow, and provide key performance indicators (KPIs) to guide your business growth.
Cash Flow Problems Are Slowing Down Growth
If cash flow issues are a recurring problem, despite having solid sales, it may be time to reassess your financial management. A fractional controller can help you develop better cash flow management strategies, ensuring that your business has the capital it needs to grow without running into cash shortages.
Your Business Is Experiencing Rapid Growth
Growth is great, but it often leads to more complex financial needs. A fractional controller can step in during periods of rapid expansion to ensure that your financial systems and processes scale with your business. They’ll help manage increased revenues, additional employees, and larger operating expenses, giving you the financial infrastructure to support growth.
You’re Planning for Major Changes
If your business is considering a major financial move—such as securing financing, expanding into new markets, or merging with another company—you’ll need expert financial guidance. A fractional controller can help you prepare for these changes, ensuring that your financial systems are robust enough to handle the transition.
You Need Better Budgeting and Forecasting
If you’re operating without a formal budget or financial forecast, or if your current forecasts are often inaccurate, a fractional controller can help. They’ll implement detailed budgeting and forecasting processes, helping you track performance and make data-driven decisions.
Your In-House Team Lacks Expertise
If your current accounting team is overwhelmed or doesn’t have the skills needed for higher-level financial analysis, a fractional controller can fill the gap. They can provide the expertise your team lacks without the full-time commitment or cost of a full-time controller.
You Want to Improve Profitability
If your margins are shrinking or you’re not as profitable as you’d like to be, a fractional controller can help identify areas where you can cut costs or improve efficiency. By analyzing your financial data, they can suggest strategies to increase profitability and optimize operations.
Hiring a fractional controller can provide your business with the financial expertise it needs without the cost of a full-time hire. Whether you’re experiencing rapid growth, struggling with financial complexity, or simply need better financial insights, a fractional controller offers flexible, high-level financial guidance to help your business succeed.
If you think your business could benefit from a fractional controller, reach out to us today to discuss how we can support your financial needs!
I hope you learned something new, and I’ll see you all next time!
