Should you hire a Controller or a Bookkeeper?
When managing your company's finances, several roles come into play. Two of the most important roles are the bookkeeper and the controller. But do you need both or can you get by with just one? In this blog, we'll explore the differences between a bookkeeper and a controller and help you determine which role(s) you need for your business.
What is a Bookkeeper?
A bookkeeper is responsible for maintaining accurate and up-to-date financial records for a business. They record transactions, reconcile accounts, and generate financial statements. In addition, bookkeepers typically handle day-to-day financial tasks such as invoicing, accounts payable, and accounts receivable. They may also manage payroll and prepare sales tax filings.
Outsourced Bookkeeper
Hiring an outsourced bookkeeper can be a cost-effective solution for small businesses. Outsourced bookkeeping services allow you to focus on running your business while the bookkeeper handles finances. As a result, you don't have to worry about managing an employee or paying for benefits. Additionally, outsourced bookkeepers are often highly skilled and experienced, so you can trust that your financial records are in good hands.
What is a Controller?
A controller is responsible for overseeing the entire accounting function of a business. They manage the day-to-day financial operations, develop and implement financial policies and procedures, and ensure that the financial statements accurately reflect the company's financial position. Controllers also analyze financial data and provide insights to help drive business decisions.
Outsourced Controller
Outsourcing the controller function can be a good option for businesses needing robust reporting without the resources to hire at top dollar. Outsourced controllers can provide some of the expertise and strategic guidance of an experienced CFO without the high cost of hiring an in-house executive. In addition, outsourced controllers can help you develop financial policies and procedures, manage cash flow, and provide financial analysis to help you make informed decisions.
Bookkeeper vs. Controller: What's the Difference?
The primary difference between a bookkeeper and a controller is the level of responsibility and expertise. While a bookkeeper is responsible for maintaining accurate financial records, a controller manages the entire accounting function and provides strategic guidance. In some cases, a bookkeeper may report to a controller.
Here are some key differences between a bookkeeper and a controller:
Bookkeeper:
Maintains financial records
Processes invoices and payments
Handles accounts payable and accounts receivable
Prepares financial statements
Manages payroll
Prepares sales tax filings
Controller:
Oversees the entire accounting function
Develops financial policies and procedures
Manages cash flow
Provides financial analysis and insights
Ensures compliance with accounting standards and regulations
Provides strategic guidance to the business
Do You Need a Bookkeeper AND a Controller?
The answer to this question depends on the size and complexity of your business. If you're a small business with basic accounting needs, you may be able to get by with just a bookkeeper. Simple financial statements may be helpful and would help year-end tax returns. However, if your business is growing and becoming more complex, you may need the expertise and guidance of a controller.
If you're not ready to hire a full-time controller, you may want to consider outsourcing the function. Outsourced controllers can provide the expertise and guidance you need without the high cost of hiring an in-house executive.
Ultimately, hiring a bookkeeper, controller, or both comes down to your business needs and budget. A good accounting firm can help you assess your needs and develop a customized solution that meets your goals.
In conclusion, the roles of bookkeeper and controller are both critical to the financial health of a business. While a bookkeeper is responsible for maintaining accurate financial records, a controller provides strategic guidance and oversees the entire accounting function. Depending on the size and complexity of your business, you may need one or both roles. For example, if you're a small business with basic accounting needs, outsourcing an experienced bookkeeper can help you keep track of your finances and maintain accurate records. However, as your business grows, you may need the guidance of a controller to develop financial policies and procedures, manage cash flow, and provide financial analysis to help you make informed decisions.
