Why Every Business Should Keep an Interim Controller on Speed Dial?
Jonna owns an e-commerce store that makes six figures in profits. We have known Jonna since he started his business in his bedroom. He managed to break all the barriers and become a successful entrepreneur.
We know Jonna because he approached us when he was struggling and under constant stress. As his business grew, he didn’t know how to manage all the financial processes. He didn’t even notice some of the invoices, and they went unpaid.
He learned the term interim controller (we later thought he was kidding, but he did learn it) and approached us for our services.
Before you go into a situation like Jonna’s, we think you should keep an interim controller on speed dial, and this is exactly what we’ll talk about today.
What is an Interim Controller?
An interim controller is a temporary accountant who manages accounting and finance activities. These include budget preparation, overseeing financial reports, and collecting financial data.
However, you don’t hire an interim controller for a long time. You hire them for a specific project, to cover for an absent employee, or during growth (which was Jonna’s case).
They act as short-term financial managers, managing your business’s financial operations and providing strategic insights to grow your business. As we talked about Jonna’s case, he was transitioning towards growth, and he found interim controller services quite helpful.
Interim Controller vs. Fractional Controller
While writing about this topic, many people think that financial and interim controllers are the same. Although both provide temporary financial management, they are different.
A fractional controller works part-time and manages multiple businesses simultaneously. They are helpful when a company doesn’t need or has a budget to hire a full-time controller.
Basically, an interim controller is temporary but full-time, while a fractional controller is long-term but part-time. We have covered the role of a fractional controller in detail here.
The good thing is you don’t need to go to the bottom of the Pacific to find a service provider that can offer both. Tangent Consulting offers interim and fractional services, providing flexible options.
All these terms may have made your head spin. So, let’s try something fun, like looking at an interim controller example.
Say you are running a Chocolate shop, and your current accountant leaves for Europe (to learn about chocolate accounting). You didn’t panic as you had an interim controller service provider on your speed dial. You call them up, and within a few days, they simplify all the financial processes, improve cash flow, and prepare financial statements. When your original accountant came, you didn’t even remember he existed😊
When Should You Hire an Interim Controller?
Doesn’t it make sense to hire an expert when you need them the most? That’s the short answer. Let’s explain it in a longer answer.
When Your Business is Growing
According to the Deloitte CFO survey, 43% of CFOs think growth is one of the three priorities for 2024 (hopefully, they have achieved them). However, when a small business grows, they face multiple challenges.
Jonna is a great entrepreneur now, but when his company started growing, he didn’t have any idea how to manage everything. This sort of situation happens with many businesses. As their business scales, managing increased finances can become stressful, especially when you don’t already have an accountant.
So, an interim controller helps keep finances in order. They keep your financial records accurate and timely, review your financial statements, and devise a strategy to increase cash reserves and profit margins.
When Employee is on Leave
As we mentioned in a chocolate shop example, if your financial controller or an accountant is on leave, it’s best to hire an interim controller to ensure that all financial operations continue without interruption.
When You’re Hiring a CFO
If hiring a new CFO, you can bring in interim controllers until you hire them. Many businesses switch CFO services, but finding a reliable CFO service provider takes time, and between that time, you can’t let your financial processes go astray. It’s better to contact a service provider to fill the gap period.
When Dealing with Complexities
Running accounting software can feel like a nightmare if you know nothing about it. Accounting software is just one aspect of the business complexities you need to deal with. Think of preparing an audit. So, you can roll the dial and hire an interim controller whenever such a situation arises.
When You Face Uncertainty
During a survey of US small businesses by Statista, 25% of respondents said inflation is their biggest problem. Rising inflation, interest rates, and overall economic uncertainty can put a strain on your resources. During these times, hiring someone with expertise is important so you can have certainty when the business environment seems fragile.
Talking about certainties, Tangent Consulting services don’t just plug the gaps. We make sure your finances are in order, and you aren’t caught up in all the boring paperwork. We don’t just provide one particular service; we become your finance department, handling everything from tax preparation to other CFO services.
Final Thoughts
Having an interim controller on speed dial is like having a safety net. When you are experiencing rapid growth, filling a gap, encountering complexities, or experiencing uncertain times, an interim controller can save the day.
And whatever financial challenge comes your way, Tangent Consulting is just a call away.
FAQs
What are interim CFO services?
Interim CFO services fill the gap temporarily when a business is looking to hire a new CFO or during mergers and acquisitions.
What are the different types of controllers in accounting?
There are different types of controllers in accounting. These include:
- Fractional Controller
- Financial Controller
- Corporate Controller
- Divisional Controller
- Plant Controller
- Project Controller
- Regional Controller
Each controller plays a different role in managing financial aspects.
Is the controller the same as the CFO?
In organizational hierarchy, a CFO reports to the CEO, while a controller reports to the CFO.
