Comprehensive Guide to Outsourced Controller Services for US Businesses

Outsourced controller services have become increasingly popular among US businesses in recent years. They allow companies to hand over their financial management tasks to a third-party provider, freeing up valuable time and resources for other business operations. 

The importance of finding the right outsourced controller service cannot be underestimated. With the help of an experienced and reliable provider, you can streamline your accounting processes, ensure compliance with regulations, and make informed financial decisions. 

In this guide, we will explain everything you need to know about outsourced controller services for US businesses. From understanding what these services entail to helping you hire an outsourced controller, it provides the necessary information to make an informed decision for your business.

What Are Outsourced Controller Services?

Outsourced financial controller services are financial management services provided by a third-party provider. 

These services range from basic bookkeeping and accounting tasks to more complex financial analysis and reporting. Some common outsourced controller services include:

• Bookkeeping: Recording daily transactions such as sales, purchases, and payroll.
• Financial statements preparation: Creating income statements, balance sheets, and cash flow statements.
• Budgeting and forecasting: Developing budgets and forecasts for future financial planning.
• Tax compliance: Ensuring businesses comply with tax laws and regulations.
• Auditing assistance: Preparing documents and financial reports for external audits.
• Financial analysis: Analyzing financial data to identify patterns, trends, and areas of improvement.

Why Are Outsourced Controller Services Essential for Businesses?

Outsourced controller services offer numerous benefits for businesses, including:

A strategic move for growth

By outsourcing financial management tasks, you can focus on your core competencies. This gives you more time and resources to dedicate to expansion and business growth.

Expertise and guidance

Outsourced controller service providers are experienced financial professionals with expertise in financial management. They can offer valuable guidance and actionable insights to help you make informed decisions, especially during times of uncertainty.

Cost savings

Hiring an outsourced controller service can be a cost-effective solution for businesses, especially small and medium-sized enterprises. Rather than hiring a full-time controller in-house, you can save on overhead costs by outsourcing this function.

Access to a team of professionals

Outsourced controller service providers often have teams of qualified professionals with diverse skills and advanced expertise. This means you can benefit from a wide range of financial services, including bookkeeping, tax preparation, and financial analysis.

Flexibility and scalability

Sudden changes in your business’s financial needs, such as an increase in transactions or expansion into new markets, can be easily accommodated by outsourced controller services. This offers you the flexibility and scalability you need to adapt to changing circumstances.

How To Hire an Outsourced Controller

When considering hiring an outsourced controller service, it is essential to conduct thorough research and due diligence. Here are some steps to guide you in the process:

1. Determine your business needs

Identify the specific financial management tasks you need help with, such as bookkeeping, budgeting, or financial reporting. This will help you narrow your search and find a provider that offers services tailored to your business requirements.

2. Research and compare outsourcing providers

Start by researching different outsourcing providers and comparing their services, pricing, and reputation. It is also crucial to look into their experience and expertise in working with businesses similar to yours.

3. Conduct interviews and evaluations

Once you have narrowed down your options, conduct interviews to get a better understanding of the provider’s services and their approach to financial management. Ask for references and speak to their current or previous clients to get an idea of their reliability and professionalism.

4. Review the service-level agreement and make an offer

Before finalizing the deal, review the service-level agreement (SLA) carefully. The SLA outlines the services provided, fees, and expectations from both parties. If everything looks good, make an offer to your chosen provider.

How Much Do Outsourced Controller Services Cost?

The cost of outsourced controller services can vary depending on several factors, including the size and complexity of your business, the level of expertise and experience of the provider, and any additional services included in the package. 

Compared with hiring an in-house controller in the US, outsourcing this role often proves to be more cost effective. In addition to salary expenses, businesses also save on benefits and overhead costs associated with a full-time employee. 

Furthermore, outsourcing controller services allows you to pay only for the specific services you need rather than a fixed salary for an in-house controller who may not be fully utilized.

All that being said, let’s get down to numbers. In Latin America (LatAm), for example, an outsourced controller has an average salary of around $42,000. The US salary for a controller is around $130,000, an $88,000 difference in cost. 

Top 10 Countries Where You Can Outsource Controller Services

Leveraging outsourced controller services from countries with a strong and competitive accounting industry can bring significant benefits to US businesses. In no particular order, here are the top 10 countries where you can outsource controller services:

1. India

India is a popular destination for outsourced controller services due to its large pool of skilled, English-speaking professionals. With advanced technological capabilities, Indian providers offer cost-efficient solutions without compromising on quality.

However, you should be aware of potential cultural and time zone differences when working with Indian providers. Communication and coordination may require extra effort to ensure smooth collaboration.

2. The Philippines

The Philippines is another popular destination for outsourced controller services, thanks to its highly educated workforce and competitive labor costs. With a strong understanding of US accounting standards, Filipino providers offer efficient and cost-effective solutions that cater to the specific needs of US businesses. 

Consider potential language barriers and cultural differences when working with Filipino providers. Clear communication and expectations can help mitigate any challenges.

3. Mexico

Mexico is a close geographic and cultural neighbor to the US, making it an attractive option for businesses looking to outsource their controller services. With a large pool of educated and skilled professionals, Mexican providers offer high-quality services at competitive prices. 

Additionally, working with a Mexican provider can provide cultural familiarity and ease of communication for US businesses. 

4. Brazil

Brazil has a growing accounting industry and is known for its strong regulatory framework. This makes it an ideal choice for businesses looking to outsource controller services while ensuring regulatory compliance. Brazilian providers also offer competitive pricing and high-quality services.

However, consider the language barrier and ensure that your provider has a good understanding of English to facilitate effective communication. Usually, a provider with a presence in the US is a good option in this case.

5. Colombia

Colombia has a well-developed accounting sector and providers known for their high-quality services. Given its large pool of experienced professionals, businesses can find reliable and skilled providers in Colombia.

Additionally, working with a Colombian provider can provide cost savings, as its cost of living is lower than that of the US. 

6. Poland

Poland has a highly educated workforce and a strong accounting services industry. Businesses can benefit from the country’s competitive rates, high-quality services, and advanced technology.

Polish providers may have a limited understanding of US-specific tax laws and regulations, so it is important to find a partner with experience working with US businesses.

7. Argentina

Argentina has a well-established accounting industry, with many providers offering outsourced controller services to US businesses. The country’s skilled workforce and strong English proficiency make it a popular choice for outsourcing financial management tasks. 

Ensure that the provider has extensive experience working with US businesses and is familiar with US accounting standards.

8. China

China has a large pool of experienced and skilled accounting professionals, making it an attractive destination for outsourced controller services. The country also offers competitive pricing and advanced technology. 

However, businesses should consider potential language barriers when working with a provider in China. Finding a provider with strong English proficiency and experience working with US businesses is vital.

9. Malaysia

Malaysia is another popular destination for outsourced controller services, thanks to its skilled workforce and cost-effective solutions. The country also has a stable economy and strong government support for the outsourcing industry. 

However, you should consider potential cultural differences when working with a provider in Malaysia. Finding a partner that can bridge these cultural gaps and understand the US business environment is critical.

10. Vietnam

Vietnam has a rapidly growing outsourcing industry, particularly in the field of accounting and finance. The country offers competitive rates and a large pool of young professionals with strong technical skills. 

Final Thoughts

Outsourced controller services can bring numerous benefits to US businesses of all sizes. From cost savings to improved expertise and flexibility, this service has proven to be a valuable tool for companies looking to streamline their financial management processes. 

When considering hiring an outsourced controller service, it is important to thoroughly research and compare providers. Look for experience, expertise, and industry knowledge that aligns with your business’s specific needs. 

At Near, we specialize in recruiting top talent from LatAm for various industries, including finance and accounting. Our team of experts can help you find the perfect match for your business’s outsourced controller needs. 

Book a free consultation call to learn more about how you can partner with Near to start outsourcing your controller services within 21 days.

Frequently Asked Questions

What are the three main roles of a controller?

A financial controller is responsible for managing and overseeing a company’s financial operations, including:

• Maintaining accurate financial records
• Preparing financial statements
• Ensuring compliance with regulations

Additionally, they play a key role in budgeting and forecasting to help businesses make informed decisions.

Who does a controller report to? 

Typically, a chief financial officer (CFO) is higher than a controller in the corporate hierarchy. The CFO oversees all financial operations and strategic planning for the company, while the controller focuses on day-to-day accounting tasks.

Is controller a VP-level position?

No, a controller is not typically considered to be at the VP level. A controller is responsible for managing and overseeing a firm’s financial operations, while a VP (vice president) holds a higher leadership position within an organization.