How To Successfully Hire an Outsourced Controller

Back-office accounting functions are extremely important for businesses of all sizes. The financial health of an organization depends on the accuracy and efficiency of these processes. 

The controller is one of the most critical accounting roles, but many companies (especially SMEs) find it difficult to fill in-house controller positions. Local candidates may lack the expertise, demand high salaries, or not even be available.

Hiring an outsourced controller offers access to a high level of expertise at a more manageable cost and can provide a flexible solution for companies in various stages of business growth.

However, hiring for this position also presents its own set of challenges. This article will explore what a controller does, detail some scenarios where you might need one, and then offer a step-by-step guide on how to hire outsourced controllers. 

What Is an Outsourced Controller?

An outsourced controller is a third-party individual or firm that manages a company’s accounting operations. Unlike an in-house controller, an outsourced controller performs their duties off-site and is employed through an agency or as an independent contractor.

The key differences between a controller, an accountant, and a CFO (chief financial officer) lie in the scope and responsibilities of their roles.

Controller

The controller oversees the accounting operations, including designing an organizational structure for achieving financial goals and objectives.

They ensure the accuracy and timeliness of financial reporting and the implementation of appropriate internal controls. These financial professionals may also be involved in budgeting and forecasting. 

The controller usually reports to the CFO and ensures that the accounting department runs smoothly.

Accountant

Outsourced accountants are generally responsible for the day-to-day management of financial records, preparing and reviewing financial statements, ensuring compliance with accounting standards, and handling tax-related matters. Accountants lay the groundwork for the controller by accurately recording financial transactions.

Chief financial officer (CFO)

An outsourced CFO is a senior executive responsible for the company’s financial strategy. This crucial role includes not only overseeing accounting and finance but also forecasting, strategic planning, and financial analysis to support major corporate decisions. 

The CFO often deals with external stakeholders and works closely with the CEO on the financial implications of business activities.

When Should You Hire an Outsourced Controller?

Here are common scenarios when you should consider bringing in an outsourced controller:

During periods of rapid growth

When your business is expanding quickly, the complexity of your financial transactions can escalate. An outsourced controller can bring the expertise needed to manage this increased complexity without the long-term commitment of hiring a full-time controller.

To streamline and upgrade financial processes

Surprisingly, 56% of accountants still rely on legacy systems, with most finance processes being completed manually using error-prone methods like Excel spreadsheets.

If your existing accounting systems are outdated or inefficient, an outsourced controller can help standardize and optimize these critical back-office functions.

In preparation for a major financial event

Events such as mergers and acquisitions or preparations for an initial public offering (IPO) require sophisticated financial oversight and strategic planning, which an outsourced controller can provide.

When internal expertise is lacking

SMEs may not have the internal resources or specialized employees to handle advanced accounting functions. An outsourced controller fills that gap, bringing in knowledge for complex financial management.

For budget flexibility

An outsourced controller can be a cost-effective solution for businesses looking to control overhead costs. A remote controller from Latin America (LatAm), for instance, will have much lower salary expectations than their US-based counterparts.

To strengthen internal controls and compliance

An outsourced controller can re-establish strong internal controls and ensure compliance with financial regulations, especially for businesses that have experienced fraud or are struggling with compliance issues.

A Step-by-Step Guide to Hiring an Outsourced Controller

Hiring an outsourced controller involves several critical steps to ensure you find a professional who meets your business’s specific needs. Here’s how to go about it:

Step 1: Assess your business needs

Clearly define what you need in an outsourced controller. Consider your business size, your industry, the complexity of your financial operations, and any upcoming strategic moves. Identify the skills and experience your ideal candidate should possess.

Step 2: Set a budget

Determine how much you’re willing to spend on financial controller services. Keep in mind that although outsourcing costs are an important factor to consider, investing in an experienced controller can save your company money in the long run through more efficient processes and financial oversight.

Step 3: Research providers

Look for firms or individuals who specialize in outsourced financial services. Check their credentials, reputation in the industry, and reviews or testimonials from previous clients.

Recruitment companies can be effective partners for businesses seeking outsourced accounting professionals. These firms can help you find affordable experts by tapping into a wider global talent pool.

For an added advantage, consider partnering with recruitment providers like Near, which connect you with accounting candidates located in nearshore countries close to your time zone, facilitating better communication and collaboration.

Step 4: Evaluate expertise and compatibility

Interview potential candidates or service providers to assess their financial expertise and how well they would integrate with your existing team. Evaluate their communication skills, understanding of your industry, and ability to adapt to your business culture and practices.

Step 5: Check technology and security measures

Ensure the outsourced controller is adept at using modern accounting software and tools. Given that 95% of ransomware attacks and other malicious cyberattacks are financially motivated, they should also have robust security measures in place to protect your financial data.

Step 6: Discuss terms and expectations

Outline your expectations for reporting, communication, and deadlines. Discuss how the controller handles confidentiality, data protection, and other sensitive issues. Clarify the terms of the contract, including the scope of services, fees, and contract duration.

Step 7: Start with a trial period

Before engaging in a long-term agreement, consider a trial period to evaluate the outsourced controller’s performance and fit with your business. This can help both parties understand the working relationship and make any necessary adjustments.

Step 8: Set up communication channels

Establish clear and consistent channels for regular updates, feedback, and questions. Regular communication will be vital to ensure alignment in terms of business objectives and financial management practices.

Step 9: Review and adjust as necessary

Regularly assess the impact your outsourced controller is having on your business. Make sure to address any issues promptly and adjust your strategy or expectations as your business evolves.

Final Thoughts

When you find the right outsourced controller, you gain not just a reliable service provider but a financial partner who can help steer your business toward greater efficiency and profitability.

If the prospect of hiring an outsourced controller seems daunting or you are unsure where to begin, don’t hesitate to seek help. At Near, we offer a streamlined approach to connect you with qualified accounting professionals from LatAm who can bring a wealth of knowledge and strategic insights to your finance department.

Take the first step toward optimizing your financial operations by booking a free, no-commitment call with one of our expert recruiters to find out how we can help you hire expert accounting talent within 21 days.