No matter how good your business is, there may be times when it hits a rough patch. One of the most valuable people you can have by your side is a controller. They can help with a myriad of tasks that enhance the company, ranging from tightening up a budget to honing the details of financial reporting. You can think of this person as a necessity for the financial backbone of your business.

What does a controller in financial challenges really do? Learn how their expertise can help businesses make confident, strategic moves even when the economy feels uncertain.

What Is A Controller And What Do They Do?

If you had to sum up a controller with one phrase, it would be the financial backbone of the business. They essentially make sure every dollar is accounted for, reports are done with fidelity/accuracy, and all transactions are run smoothly. Some of their other core responsibilities can include:

• Overseeing accounting operations and financial reporting
• Stay on top of compliance issues that are often found with tax laws/regulations
• Managing budgets and financial reports
• Creating internal controls to prevent fraud or errors
• Providing insights to guide leadership decisions

Business owners have a lot to deal with, and knowing what the raw numbers mean. There can often be errors that are made with routine bookkeeping tasks and the big financial picture. These experts fill that “gap” that can often get left wide open. Financial strategies should be closely aligned with the long-term goals of the business.

Common Financial Issues Businesses Face

No matter how big or small the business is, there is a point at some time when you’ll have financial challenges. Any of the issues below can quickly turn a business upside down unless they are managed effectively. Better yet, staying proactive can ensure these problems don’t occur unexpectedly.

1. Cash Flow Issues

Your business can be profitable and still have trouble managing cash flow. What can cause you to be short on capital? Some examples include late payments or fluctuations in sales.

2. Budget Overruns

Expenses can balloon over what you originally planned without strict oversight. This is especially common in growing businesses that don’t yet have strong financial systems in place.

3. Inaccurate Reporting

When financial data isn’t tracked correctly, it can lead to poor decision-making. Misreporting even small figures can distort how leadership views performance.

4. Compliance And Tax Issues

Understanding how regulations change and the responsibility for taxes is an ever-changing dynamic. Mistakes can lead to costly penalties further down the road.

5.  Lack of Strategic Insight

Sometimes businesses focus on short-term needs without having a clear view of the bigger picture. This can make it hard to plan for sustainable growth.

Staying proactive and having a reliable controller in financial challenges means all the difference because they can identify potential problems before they escalate and provide the data needed to make informed decisions. Their oversight ensures financial stability and supports long-term strategic success.

How Can A Controller Navigate These Financial Challenges?

A controller plays a vital role in determining where money is coming in and out. They take action to stabilize and strengthen the business. Here’s how they do it.

• Strengthening cash flow management-A controller optimizes cash flow by implementing robust forecasting, managing accounts receivable and payable, and identifying strategies to improve liquidity.
• Improving financial visibility– With a controller’s oversight, financial reports become more accurate, timely, and insightful. This information becomes imperative to help business leaders understand exactly where the company stands and where adjustments are needed.
• Streamlining budgets and forecasts- A controller helps create realistic budgets and forward-looking statements that reflect the company’s actual performance. This makes it easier to anticipate challenges before they become major problems.
• Supporting strategic decisions- Controllers are more than just financial managers. They act as advisors to help leadership interpret financial data and develop strategies to improve profitability and efficiency.
• Reducing risk- Controllers help businesses from critical errors that impact the bottom line and implement internal controls that safeguard assets and ensure compliance with financial regulations.

In other words, a controller in financial challenges provides a safety net and a roadmap. Their goal isn’t just to fix what’s broken. It’s to set up systems that prevent future issues.

In-House vs. Outsourced Controller Services

Not every business has the same needs or budget for financial management. It’s important to understand the difference between hiring an in-house controller and outsourcing controller services.

In-House Controller Services

In-house controllers work directly within your organization. As a fully embedded person in your company, they have daily access to internal data and can respond quickly to financial changes. One of the drawbacks of this method is the expense. They can cost a lot of money for small and mid-sized businesses.

Outsourced Controller Services

Outsourcing controller services could be an excellent strategic move to reduce costs while having the same impact as in-house services. With services from a trusted firm like HintonBurdick, you gain access to experienced financial professionals without the overhead of a full-time hire. These services typically include financial reporting, cash flow management, and strategic advisory support. They are also customized to your company’s size and industry.

Partnering with HintonBurdick for Expert Guidance

Whether your business is growing fast or facing uncertain times, having a reliable controller in financial challenges can make all the difference. At HintonBurdick, our team of financial experts is here to help you overcome challenges and set a solid foundation for the future. Contact us today to get started.