Hi everyone, I’m Bette Hochberger, CPA, CGMA. As businesses grow, managing finances becomes increasingly complex. For many small to mid-sized companies, hiring a full-time controller to oversee financial reporting, budgeting, and internal controls can be cost-prohibitive. That’s where a fractional controller comes in. 

In today’s blog, I’ll be going over what a fractional controller is, the benefits they offer, and how to determine if your business could benefit from one. So, let’s dive in!

What is a Fractional Controller?

A fractional controller is a finance professional who works with your business on a part-time or project basis, providing the expertise of a full-time controller without the associated costs. Fractional controllers are highly experienced in financial management and can offer services such as:

– Financial Reporting: Ensuring your financial statements are accurate and compliant with regulations.

– Budgeting and Forecasting: Helping you plan and manage your financial resources effectively.

– Internal Controls: Implementing systems and processes to safeguard your company’s assets and ensure accurate financial reporting.

– Cash Flow Management: Monitoring and managing the inflow and outflow of cash to keep your business financially healthy.

– Financial Analysis: Providing insights into your company’s financial performance to support strategic decision-making.

Fractional controllers typically work with multiple clients, dedicating a certain number of hours per week or month to each. This flexibility allows businesses to access high-level financial expertise without the commitment of a full-time hire.

Benefits of Hiring a Fractional Controller

Cost Efficiency

Hiring a full-time controller can be expensive, especially for smaller businesses. A fractional controller allows you to pay only for the services you need, making it a cost-effective solution.

Expertise

Fractional controllers bring a wealth of experience from working with various industries and companies. They can offer insights and best practices that may not be available within your current team.

Scalability

As your business grows, your financial needs will evolve. A fractional controller can scale their services up or down based on your business’s current requirements.

Objective Perspective

Bringing in an external controller can provide an unbiased view of your company’s financial health. They can identify issues and opportunities that internal staff may overlook.

Focus on Core Business

By outsourcing financial management tasks to a fractional controller, you and your team can focus on what you do best—running and growing your business.

Do You Need a Fractional Controller?

Here are some signs that your business could benefit from a fractional controller:

You’re Experiencing Rapid Growth

If your business is growing quickly, your financial management needs may be outpacing your current capabilities. A fractional controller can help you navigate this growth sustainably.

Your Financial Reporting is Inconsistent

If you’re struggling to produce accurate and timely financial reports, a fractional controller can bring order to your financial operations.

You Lack Internal Controls

Without proper internal controls, your business is at risk of fraud, errors, and compliance issues. A fractional controller can establish and maintain these controls.

You’re Planning for the Future

If you’re considering expansion, investment, or other major financial decisions, a fractional controller can provide the financial insights and analysis needed to make informed choices.

You Need Expert Guidance

If you don’t have a dedicated finance team or if your team lacks the experience to handle complex financial matters, a fractional controller can fill that gap.

They can be a game-changer for businesses that need high-level financial management without the full-time commitment. They offer expertise, cost savings, and flexibility, making them an ideal solution for companies in various stages of growth. 

If you recognize any of the signs mentioned above in your business, it might be time to consider bringing a fractional controller on board. Schedule a meeting with us if you’re interested, you can enhance your financial operations and set your business up for long-term success.

I hope you learned something new today, and I’ll see you all next time!