Hiring administrative staff is an area that can be overlooked as an opportunity to help a business grow. Why is it so tough for a business owner to make this move? Because hiring a controller is a big step and it’s not necessarily cheap either. Going from having a bookkeeper or staff accountant to a controller is a much bigger shift in thinking and the expected activity that should be the result of this hire.
Below are four ways in which a controller can help a business owner grow their business and gain better control over their finances:
- A controller will own the financial reporting. This person should have complete responsibility for the data inputs into the accounting system, along with how reports are formatted and distributed for effective financial analysis. The controller will be familiar with your backlog of sales, why expenses increase or decrease and if something does not seem right in your financials.
- A controller should find cost savings. This person should look for ways to help improve your business’s bottom line. This includes looking at vendor relationships and the price you are paying for the goods and services you need to run your company. They look at your product profit margins to understand what levers can be pulled to help improve it. The right person enjoys finding cost savings.
- A controller is a data manager. This person will manage the staff who enters the data into the accounting system. You don’t want your six-figure controller entering data, but rather finding ways to enter it faster and more efficiently. This means looking at technology and applications that can enhance the speed and accuracy of the financial data entered to your systems. This person directs, manages, and advises in this role and makes sure action is taken where needed.
- A controller is the person willing to say “No.” You want your controller to have the confidence to say “no” and be at times with vendors and your staff as a pain. This does not mean the person is rude or unprofessional, but rather someone who has thick skin to handle tough discussions with vendors or staff in spending or policy issues. The controller is your partner who is watching out for the company and employee’s interests. This sometimes requires a person to say no.
Cheers to growing your business with a controller!
Mike