If you own or manage a small business, one of the most important roles you need to fill is that of a controller. A controller is responsible for managing the financial operations of a business, including accounting, financial reporting, budgeting, and financial analysis. In this article, we’ll explore what a controller does, why it’s important to have one for your small business, and how to find the right person for the job.
Introduction
Running a small business is no easy feat, especially when it comes to managing finances. That’s why it’s crucial to have a skilled professional on your team who can help you stay on top of your financial operations. A controller is the person who can help you achieve this goal. In this article, we’ll cover everything you need to know about controllers for small businesses.
What is a Controller?
A controller is a senior-level financial professional who is responsible for managing a company’s financial operations. They oversee accounting, financial reporting, budgeting, and financial analysis. Controllers are typically part of a company’s executive team and report directly to the CEO or CFO.
Why Do Small Businesses Need a Controller?
Small businesses need controllers for several reasons. First, controllers help ensure that a company’s financial operations are accurate and transparent. They also provide valuable financial insights that can help owners and managers make informed decisions about the future of the business.
Second, controllers help small businesses stay compliant with financial regulations and laws. This is especially important as small businesses may not have the resources or expertise to keep up with constantly changing regulations.
Finally, controllers can help small businesses save money by identifying areas where costs can be reduced and developing strategies to increase profitability.
What Are the Responsibilities of a Controller?
The responsibilities of a controller can vary depending on the size and type of business they work for. However, some common responsibilities of controllers include:
- Overseeing accounting and financial reporting
- Creating and managing budgets
- Conducting financial analysis
- Developing and implementing financial strategies
- Ensuring compliance with financial regulations and laws
- Managing cash flow and forecasting
- Communicating financial information to management and stakeholders
- Identifying areas for cost savings and increasing profitability
How to Hire a Controller for Your Small Business
Hiring a controller for your small business can be a daunting task, but it doesn’t have to be. Here are some steps you can take to find the right person for the job:
- Determine your budget: Controllers can be expensive, so it’s important to know how much you can afford to pay before you start the hiring process.
- Write a job description: Your job description should include the key responsibilities of the position, as well as the qualifications and experience required.
- Advertise the position: You can advertise your job opening on job boards, social media, and other relevant websites.
- Review resumes: Once you start receiving resumes, review them carefully to identify candidates who meet your requirements.
- Conduct interviews: Conduct phone or in-person interviews to get a better sense of each candidate’s skills and experience.
- Check references: Before making an offer, be sure to check each candidate’s references to ensure they have a track record of success.
What to Look for in a Controller Candidate
When hiring a controller for your small business, it’s important to look for candidates with the right mix of skills and experience. Here are some key things to look for:
- Accounting and finance expertise: Controllers should have a strong understanding of accounting principles, financial reporting, and budgeting.
- Industry experience: Look for candidates who have experience in your industry or a related industry. This will help them understand the unique financial challenges your business faces.
- Strategic thinking: Controllers should be able to think strategically and develop financial strategies that align with your business goals.
- Attention to detail: Controllers must be able to pay close attention to detail and ensure that financial information is accurate and error-free.
- Communication skills: Look for candidates who can communicate financial information clearly and concisely to both financial and non-financial stakeholders.
- Leadership skills: Controllers must be able to lead and manage a team of financial professionals effectively.
How to Onboard and Train Your Controller
Once you’ve hired a controller, it’s important to onboard and train them properly to ensure they can be successful in their role. Here are some tips for onboarding and training your controller:
- Provide an orientation: Give your new controller an overview of your business, its goals, and its financial operations.
- Develop a training plan: Create a training plan that covers all of the responsibilities and duties of the controller role.
- Provide access to financial data and systems: Give your controller access to all of the financial data and systems they will need to do their job.
- Assign a mentor: Assign a mentor or supervisor to your new controller to help them get up to speed quickly.
- Conduct regular check-ins: Check in regularly with your controller to ensure they have the support and resources they need to be successful.
Tools and Technology for Controllers
Controllers can benefit from a wide range of tools and technology that can help them do their job more efficiently and effectively. Here are some examples:
- Accounting software: Controllers can use accounting software to manage financial transactions, create reports, and track budgets.
- Financial analytics software: These tools can help controllers analyze financial data to identify trends, opportunities, and risks.
- Business intelligence software: Business intelligence software can help controllers gather and analyze data from multiple sources to create a comprehensive view of the business.
- Cloud-based systems: Cloud-based systems can provide controllers with real-time access to financial data from anywhere.
- Project management software: Project management software can help controllers manage budgets and timelines for specific projects.
Tips for Working with Your Controller
Working with a controller can be a collaborative and productive experience if you follow some best practices. Here are some tips:
- Set clear expectations: Be clear about what you expect from your controller in terms of financial reporting, budgeting, and analysis.
- Provide regular feedback: Provide regular feedback to your controller about their performance and how they can improve.
- Keep communication lines open: Maintain an open line of communication with your controller to ensure you are both on the same page.
- Involve your controller in strategic decision-making: Your controller can provide valuable financial insights that can help inform your business strategy.
- Trust your controller: Trust your controller to do their job effectively and give them the autonomy they need to make decisions.
Best Practices for Controllers in Small Businesses
Here are some best practices for controllers in small businesses:
- Stay up to date with financial regulations and laws.
- Be proactive about identifying areas for cost savings and increased profitability.
- Develop strong relationships with key stakeholders, including management, investors, and auditors.
- Use technology to streamline financial operations and improve efficiency.
- Continuously improve your financial reporting and analysis processes
- Focus on developing your team’s skills and knowledge to ensure they can support your business’s financial goals.
- Communicate financial information clearly and effectively to both financial and non-financial stakeholders.
- Be open to feedback and suggestions for improvement.
- Continuously assess and adjust your financial strategies to align with your business goals.
- Foster a culture of accountability and transparency in financial operations.
Conclusion
In conclusion, a controller is a vital role for any small business that wants to stay on top of its finances and make informed decisions about its future. By understanding the responsibilities of a controller, how to hire the right person for the job, and how to work effectively with your controller, you can set your small business up for financial success.
FAQs
- What qualifications should a controller have?
Controllers should have a degree in accounting or finance, as well as relevant professional certifications, such as a CPA or CMA.
- How much does it cost to hire a controller for a small business?
The cost of hiring a controller can vary depending on factors such as experience, location, and industry. However, you can expect to pay anywhere from $80,000 to $150,000 per year.
- Can a small business outsource its controller function?
Yes, small businesses can outsource their controller function to a third-party provider, which can be more cost-effective than hiring a full-time employee.
- How often should a controller provide financial reports to management?
Controllers should provide financial reports to management on a monthly basis, as well as on an as-needed basis for special projects or initiatives.
- What should I do if I suspect financial fraud in my small business?
If you suspect financial fraud in your small business, you should contact a forensic accountant or other financial experts to investigate the matter. It’s also important to involve your legal counsel and take steps to protect your business from further harm.