It’s hard to make good decisions with bad information. Yet, we find it’s increasingly common for entrepreneurs to put minimal to almost no thought into their business’s accounting function. Let us show you the clarity that comes with solid accounting and a financial controller, starting with a complimentary consultation.
Bookkeeper… controller… what’s the difference? Which one do you need? These are common questions among our clients, and, we believe, part of our responsibility as consultants to help you sort out. Let’s take a look at the responsibilities of each, and help you understand why having a controller empowers you and your executive team to make better decisions across the board.
What Bookkeepers Do
It varies by business, of course, but in general, a bookkeeper’s responsibilities include:
- Maintaining financial records and documents, including invoices, receipts, and payments
- Entering financial transactions into accounting software and ensuring the accuracy of the data
- Reconciling bank and credit card statements
- Maintaining and updating the general ledger
- Generating financial reports, such as income statements and balance sheets
- Assisting with budget preparation and forecasting
- Ensuring compliance with relevant laws, regulations, and professional standards
- Providing support to the accounting and finance team as needed
- Answering questions and providing information to stakeholders about financial transactions and records
- Maintaining confidentiality and security of financial documents and information
— Debby Jewesson, Founder: Branching Out Events & Owner: The Roots Group Coaching & Consulting
Let’s talk financial controller roles and responsibilities
The idea of hiring of a financial controller can be a bit foreign, especially if you’re not sure exactly what they’d do. You need to know the benefits. After all, paying for financial controller skills ought to be an investment that delivers a return.
In broad terms, financial controller roles and responsibilities include:
- Overseeing the organization’s financial accounting, monitoring, and reporting systems
- Ensuring the accuracy and completeness of financial records and reports
- Developing and implementing financial policies and procedures
- Analyzing and interpreting financial information to support decision-making
- Managing the organization’s budget and forecasting future financial performance
- Coordinating the preparation of financial statements, including the balance sheet, income statement, and statement of cash flows
- Ensuring compliance with relevant laws, regulations, and professional standards
- Providing financial advice to senior management and stakeholders
- Managing financial risk by analyzing and mitigating potential exposures
- Developing and maintaining relationships with banks, investment analysts, and other financial stakeholders
- Leading, managing, and developing the finance team.
A financial controller can do both bookkeeping and the controller functions, but a bookkeeper can’t do the controller’s job. A bookkeeper is the first step in building a solid accounting function. Bookkeepers do the day-to-day transactional work of accounting, including invoicing customers, processing vendor invoices, posting collections & payments, processing payroll, and frequently reconciling bank accounts.
A financial controller is a higher-level responsibility that maintains the integrity and control of the entire accounting function. They produce GAAP financials that your bank wants, prepare all the reporting for the management teamwork, taxing authorities, auditors, and bankers. They also have the skills to make sure all accounts in the financials are supported by correct details—and can explain all unusual activity to you.
As with any other position on your staff, these can vary based on your business’s needs. Clearly, a part-time financial controller won’t serve all these needs—because they work part-time. So which needs do you have?
Our financial controller services fit into two main categories:
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Bookkeeping /Transactional Services
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Outsourced Controller Services (monthly close and reporting)
Either of these services can be performed for a fraction of the costs of hiring a full-time bookkeeper. The best part: It starts with a free consultation.