Hiring an Outsourced Controller Benefits

Have financial questions? Check out our Questions we get asked page to find answers to the financial question you may have. 

Benefits of Hiring an Outsourced Controller  

Are you a business owner looking to improve efficiency and reduce costs? If so, you may want to consider outsourcing. According to a study by Deloitte, more and more companies are turning to outsourcing to reduce expenses and improve efficiency.  

This practice involves hiring external contractors to handle tasks or functions typically performed in-house. One such function is that of a controller. A controller is crucial in managing a company's financial health and ensuring compliance with accounting regulations.  

Outsourcing this function to a qualified controller can bring various benefits, including cost savings, access to specialized expertise, and increased flexibility. In this article, we'll look at the advantages of hiring an outsourced controller and why it may be a smart move for your business. 

1. Cost Savings 

As a business owner, you always seek ways to reduce costs and maximize profits. One area where you can save money is by outsourcing your controller. According to a study by Accenture, outsourcing can reduce overhead costs by up to 60%. The cost of employee benefits, including healthcare, retirement plans, and paid time off, can add up to 30% or more of an employee's salary. Here are some ways in which outsourcing can save you money: 

• Reduced Labor Costs: Hiring a full-time, in-house controller can be expensive. Not only do you have to pay their salary, but you may also have to provide employee benefits, such as healthcare, retirement plans, and paid time off. These benefits can add up to 30% or more of an employee's salary, as mentioned by Investopedia. By outsourcing, you can avoid these costs and only pay for your needed services. 
• Flexible Services: Outsourcing allows you to pay for only your required services. This means you can scale up or down your services as your business needs change. You can avoid wasting money on services you don't use by paying only for what you need. 

• Elimination of Payroll Taxes: When you hire an employee, you are responsible for paying payroll taxes. These taxes can be a significant expense for businesses. By outsourcing your controller, you can eliminate the need for payroll taxes, saving you money in the long run. 

2. Expertise and Experience 

When it comes to financial management, expertise and experience are essential. That's where outsourced controllers come in. These professionals are typically more experienced and knowledgeable than in-house controllers, thanks to their work with various businesses. Here are some of the reasons why outsourced controllers can offer enterprises a higher level of expertise and experience: 

• Experienced and knowledgeable controllers: External controllers are typically more experienced and knowledgeable than in-house controllers, as they work with various businesses and industries. This exposure allows them to gain a broad perspective on financial management and best practices. 

• Specialized Expertise: External controllers can offer specialized tax planning, financial reporting, and budgeting expertise. They keep up-to-date with industry trends, changes in regulations, and technology advancements, enabling them to provide accurate and efficient services to their clients. 
• Insights and Recommendations: External controllers can provide valuable insights and recommendations to help businesses make informed decisions. Their expertise allows them to analyze financial data and provide customized reports to help business owners understand their financial health and make better decisions. 
• Certified Public Accountants: Outsourced controllers are typically certified public accountants (CPAs) with years of experience working with various businesses. They possess the necessary knowledge, skills, and expertise to handle complex financial matters and ensure compliance with regulations and accounting standards. 
• Higher Financial Expertise and Better Decision-Making: According to a National Association of Certified Public Bookkeepers survey, small businesses with outsourced accounting services reported higher financial expertise and better decision-making. The survey highlights the importance of outsourcing accounting and finance functions to a team of experienced professionals. 

3. Flexibility and Scalability 

When managing finances, small businesses often face challenges that larger companies may not encounter. One of the biggest challenges is finding the right balance between cost and quality. This is where outsourcing financial management services can make a significant difference.  

Outsourcing allows businesses to scale their financial management up or down as needed without the costs associated with hiring or firing employees. This means that companies can remain agile and responsive to changes in the market without worrying about the financial impact of staffing changes. 

4. Flexible Services Based on Business Needs

According to a survey by Clutch, 59% of small businesses that outsourced their accounting services reported greater flexibility and adaptability. This is a testament to the importance of outsourcing for small businesses looking to remain competitive in today's dynamic marketplace.  

External controllers are equipped to provide flexible services based on the needs of the business. They can provide various services, from basic bookkeeping to specialized tasks such as financial reporting, tax planning, and budgeting. This means companies can choose the services that best suit their needs without paying for unnecessary services. 

5. Focus on Core Competencies 

Outsourcing accounting services allows businesses to focus on their core competencies while leaving financial management to the experts. This can be particularly beneficial for companies that don't have the time, resources, or expertise to manage their finances in-house. By outsourcing accounting services, companies can free up time and resources to focus on other business areas, such as product development, marketing, and customer service. 

Work With an Outsourced Controller at Dillon Business Advisors  

By hiring an outsourced controller, businesses can save money, gain access to expertise and experience, and enjoy flexibility and scalability. With the financial management taken care of, companies can focus on what they do best and confidently grow their operations. Outsourcing your financial management to an outsourced controller allows you to save time and resources and focus on what you do best.  

If you're considering outsourcing your financial management, finding a reputable company with a proven track record of success is essential. At Dillon Business Advisors, we provide outsourced financial management services to small businesses in Texas and nationwide. Contact us today to learn more about how we can help your business thrive.