Good news…your company is growing. Is it time for a controller? Hiring a controller is an important step that can prepare your business for growth. Be sure to read the tips in this article from entrepreneur.com to learn 4 ways a good controller looks after the company’s money and facilitates growth. If you need someone like this in your organization but can’t afford one on a full-time basis, consider hiring a part-time controller – and reach out to Controller onDemand to see if we can be of assistance.
It’s time to hire a bookkeeper. Or does the company really need a controller? Your business is growing and tracking finances takes time and expertise. Many Controller onDemand clients ask me the difference between a Bookkeeper and a Controller. Understanding the difference is important for managing your growth and profitability or it could be costing you money.
Here are 5 key points to help you recognize what you need:
- Tasks – Bookkeeper just does the data entry. Controllers do much more. Controllers manage your accounting and finances. Controllers manage the cash flow, create budgets, work with your bank for financing and much more. Controllers are able to give you a higher level of services and support much more than your average bookkeeper.
- Education – A Controller has at least an Accounting degree, if not more education. Most bookkeepers do not have an Accounting degree. Why does this make a difference? Having an Accounting degree you have been educated on the back end of the bookkeeping. Software products such as QuickBooks do most of the work these days, but you need to know when something on your Balance Sheet, Profit and Loss or Cash Flow statement looks wrong and how to fix it. Without being properly educated on what everything should look like it’s hard to know when something is wrong
- Financials – Bookkeepers don’t do financials. Although some can run financials, most cannot review or analyze them. If you’re looking to review monthly financials with a knowledge professional, a Controller would be a better fit.
- Growth – Bookkeeper cannot help your business grow. Controllers on the other hand can make recommendations on tracking revenue or expenses differently to help you facilitate growth in the right areas. Not only can a Controller help your company grow, they can prepare you for future endeavors.
- Acquisitions – Bookkeeper’s skills are also limited here. A Controller can help your business prepare for an acquisition or merger of your companies financials.
Bottom line, the skill and capabilities of a Controller over a Bookkeeper are tremendously higher. Make sure you hire the right experienced professional for your company’s specific needs.
Could your company benefit from the 4-week challenge? Often as business owners we forget to work on our own companies. Take a look at this article from forbes.com to find simple daily steps and ideas for improving your business. Give it a try. Spend a little time each week to focus on the four key categories shown below that can grow your business – and even take it to the next level.
- Productivity and processes
- Marketing and sales
- Growth strategy
“The more you know, the more you can grow.” Starting your business is just the beginning! Setting up your business to scale can prepare you for growth opportunities. Understanding customer data and potential client needs is one of the key steps for scaling your business. Learn more in this article from Inc.com to discover all 7 tips that play a role in growing your business quickly—and the easier it will be to scale.
Is your accountant acting as a thought partner to fuel growth in your business? They should be if you have the right one. Great accountants can provide insights that deliver value-added benefits, analyze company data and provide strategic advice to help support business owners in important decision-making efforts. This article from entrepreneur.com discusses why having the right accountant is more than just for preparing taxes.
“How can you grow if you don’t know?” Know your numbers that is……
Here are the top 6 things from an accounting perspective to focus on if you want to grow your business. Click on a topic for a more in-depth explanation of each:
- Monthly financial reports – Know your financial story. Analyze and review financial reports every month so you know how your business is operating.
- Increase your cash flow – Can you ask for deposits? Change your terms to Net 15? Why not?
- Sales plan – In order to grow, you need to establish a sales plan and have achievable goals for the future.
- Know your nut– How much money do you need to keep a positive cash flow?
- Equity-build plan – If you want to grow your business, you need to first build equity to support that growth for hiring additional employees or purchasing more equipment or both.
- Have the right banking partner – It’s crucial to find the right banking partner to facilitate your company’s growth.
Growing your business takes planning, discipline, execution and follow-through. Controller onDemand wants to help you grow your business, in the right direction!