How to Hire a Part-Time Controller

An experienced controller can provide considerable benefits for a business, but they often come with a high salary range. If your company needs the financial guidance and support from a controller, but you also need to save money, a part-time controller is your answer. Hiring an outsourced controller or CFO for the first time can be difficult to navigate if you are unsure what to look for in a controller. Keep reading to learn the top tips for hiring a part-time controller.  

 

Understand the role of a controller

It is important to understand exactly what a controller can offer your company. When employed in a full-time role, a controller often leads the accounting or finance departments of a business. Both accounts payable and accounts receivable fall under their jurisdiction. If your company has a CFO, the controller reports directly to them.

 

When searching for a controller, freelance or full-time, there are certain credentials he or she should hold. Narrow your search to controllers with a degree in fields such as accounting, business administration, or finance. They should also hold a certification as a Certified Public Accountant or a Certified Master Accountant. If your company needs an experienced financial advisor, look for professionals with ten or more years of experience. The level of responsibility the controller will have in your organization can help determine how much experience is needed for the role.  

 

How does a controller contribute to the business?

A controller takes on many responsibilities in an organization within the finance and accounting departments. From financial planning and reporting to administrative tasks and financial managements, the responsibilities of a controller will depend on your business needs. Common roles and functions include the following.

 

·       Management responsibilities: If you have not had a controller or CFO in the past, a part-time controller can help establish the policies and procedures of your accounting team. A controller can select accounting software, establish financial benchmarks for the organization, and manage control systems. These management duties can set your team up for success, even when the outsourced controller is not on the clock.

·       Financial reporting: A controller can manage financial statements and reports, including annual updates, reconciliation, budgets, and more. They can provide detailed reports to a board, executives, and investors. Based on reporting, the controller can provide valuable insights into the health and future of your organization.

·       Company transactions: Accounts payable and accounts receivable report to the controller, and payroll falls under their duties as well. If you have not had a controller in the past, your part-time controller can establish and maintain the general ledger for your company as well as a filing system.

·       Compliance needs: If your company is publicly held, you must complete filings with the Securities Exchange Commission (SEC). A controller can file these reports and ensure compliance on behalf of your organization or CFO. During the auditing process, the controller manages documentation.

 

Tips for hiring a freelance controller

If you are looking to save money without sacrificing expertise, hire a freelance or part-time controller. You only pay for services when they are needed instead of committing to a full-time salary. Freelance controllers also tend to have considerable experience across industries and company types, from startups to large organizations.

 

Set clear expectations

The specific role and responsibilities for a part-time controller will depend on the needs of your organization. Small businesses and startups cannot often afford the full-time services of a CFO, so a controller takes on that role. If a CFO is currently on staff, a controller can help manage the direction of the accounting department.

 

Before you search for a controller, determine the needs of your business. If your team consists of experienced accounting staff members, you need a controller who can fit in seamlessly with the existing team. If your team is relatively small or inexperienced, a controller may need to step into a leadership position.

 

Decide on a budget

Outsourced controllers can work on a project or hourly basis. When you are looking for a part-time controller, consider your budget and scope of work. These factors can help you narrow down your search considerably and provide potential candidates with relevant information. If you are hiring a controller for a specific project, an experienced controller can help estimate the hours needed to complete the work. 

 

Look for relevant experience

Limit your search to controllers who have worked with companies within your industry. Industry experience means that they are familiar with the policies and procedures necessary to run your business. They can also offer guidance for your finances based on the current state of the industry.

 

Your controller should also have experience with companies similar to the size and structure of your own. This experience will help them fit seamlessly into your organization and better understand your needs. Financial best practices, benchmarks, and reporting will also be specific to the size of your company, and prior experience ensures the controller is up to speed when they join your team.

 

Align software experience

If your company already has a preferred accounting software in place, you need to hire a controller that is skilled with that software. Hiring based on this criterion can save both time and money when it comes to training someone on your software and getting them up to speed. Freelance controllers can also provide valuable guidance on best practices for software and how to maximize your efforts with the resources you already have.

 

Consider company dynamic

Your freelance controller may not spend every day with your team, but it is important that they work well with your staff. Someone who fits in with your team can save time by avoiding unnecessary friction or miscommunication. When interviewing controllers, it may be beneficial to introduce them to your team or ask your team’s opinion on various candidates.

 

Rely on a contracting service

Professional controller services can provide top-notch controller services that meet the needs of your business. With multiple experienced controllers on staff, we have consultants that already know your industry and work with similar companies. Contact us today to learn how K-38 Consulting can provide you with the part-time controller services your organization needs.

Reducing Operating Costs for Your Startup During COVID-19 Is Essential for Longevity

Cash flow management is already a challenge for startups, but COVID-19 is not making matters better. With unemployment rising and people spending less money on certain goods or services, startups are likely to suffer during this time. However, reducing operating expenses can help a startup stay afloat until operations are back to normal. 

Reducing overall operating costs can certainly impact your bottom line, especially as the impact of COVID-19 is felt. Also, reevaluating the budget and allocating funds to different operations can keep essential parts of your business going. Keep reading to learn more about how to reduce the operating expenses for your startup while staying productive during COVID-19. 

Review your budget with a new lens

When you created your budget for the year, the coronavirus was not likely to be on your mind. And, with updates and changes happening so fast over the last several months, 2020 can feel like one big game of catchup. Now that shelter-in-place ordinances are lifting and people are venturing back out into the world, it is a good time to reevaluate your operating budget.

 Revenue projections are likely in need of an update, and your outlook for 2021 is different now than it was a few months ago. From lower sales numbers to higher churn rates, the priorities of your budget need to be evaluated. However, it is important to avoid simply slashing your budget. Wisely evaluating the numbers may indicate that some areas of your business are actually improving during this time.

 Renegotiate contracts

The impact of COVID-19 is being felt across the country. If your business has shifted, it is likely that others connected to you have done the same. You may be able to renegotiate terms or contracts during this time to give yourself some breathing room. From reducing office costs to eliminating subscriptions, there are some measures you can take to prevent waste.

 Office Space

If your company has shifted to remote work, you are likely paying for empty office space. Your landlord may be willing to negotiate your terms due to the unprecedented circumstances. In some cases, shelter-in-place orders may prohibit you from working in the office altogether. Review your contract to see if there are any provisions for a situation when the office space is not usable.

 Subscriptions

Your startup likely has multiple active subscriptions. Whether you rely on monthly professional services, like IT support, or SaaS licenses to run your business, there might be some room for cuts. Try negotiating with your partners or vendors to reduce subscription costs. You may have licenses that you are no longer using or termination fees that can be renegotiated.

 Deferred Payments

In cases where you cannot reduce operating costs in numbers, ask for deferred payments. Lengthening the payment cycle can improve your cash flow temporarily and get you through a rough patch.

 Eliminate nonessential tools

When you reevaluate your budget, you may find that it is skewed in one area. Go line by line to review the various tools and services used by your business, determine which are essential and which items can be cut. Reviewing financial statements is a great way to visualize where your budget is going, instead of assuming. You may have duplicate tools, tools that are no longer in use, or items that can be replaced with a less expensive alternative.

 Cut Unnecessary Licenses

Reviewing all the tools and services used by your team could also highlight which services have too many licenses. Are all licenses being used, or can some be eliminated? Also, you may be paying for additional functions that you could go without, at least for the time being. Dropping your subscription tier or reducing the number of licenses could help lower operating costs.

 Cut Out Paper

While it may seem small, going paperless can help your bottom line. Businesses spend quite a bit on paper, printers, and ink every year. If your team is working remote, there is even less reason to use paper. When you return to the office, you can continue the habits formed during quarantine to reduce the overall paper usage of your business.

 Stay flexible

Things are likely to continue changing as we learn more about COVID-19 and its overall impact. There may be unlikely opportunities to reduce your operating expenses over time. The unpredictability of COVID-19 combined with the changing nature of startups makes it important to stay on your toes. You may find yourself considering new or innovative ideas that you would not have previously thought of.

 Evaluate More Frequently

Periodically evaluating your budget and outlook can help you stay more agile and flexible. As your startup changes and evolves, your operating costs need to follow. Set up more frequent evaluations to stay on top of your operating costs and adjust as needed.

 Pause large investments or projects

For many startups, cash flow is limited. COVID-19 is putting major purchases and projects on hold until businesses can stabilize. Instead of considering these pauses as losses, pay attention to the money you are saving and the cash you are making available.

 New Equipment

Were you planning to upgrade everyone’s laptops this year or purchase a new phone system? COVID-19 may not be the right time to make major investments like purchasing new equipment. Instead, stick to only buying what is necessary. Look for refurbished or second-hand items when possible to save on operating costs.

 Marketing Initiatives

Unless your marketing initiatives are seeing a positive ROI, it may be time to pause big projects. Instead of rolling out previously scheduled campaigns, reevaluate your marketing calendar to determine what will move the needle for your business. If your customers are pushing off on buying decisions, now might not be the time to invest in sales and marketing.

 Utilize Free Trial Periods

If you absolutely must purchase a new service or equipment, take advantage of free trial periods. Ensure the vendor is the right partner for you by testing their product or service ahead of time. In some cases, vendors will negotiate on the trial period if you are serious about buying.

 Reduce payroll

Finally, reducing payroll can help lower operating costs. Many startups see this as a last resort because it greatly impacts your operational capacity as well as the individual lives of employees. However, in some cases, it is a necessary measure.

 Implement a Hiring Freeze

You can make steps towards reducing operational costs by implementing a hiring freeze. Avoid filling positions unless necessary. Your team may be stretched thin, but you can avoid eliminating current positions this way.

 Contract Out

Instead of hiring for new positions, contract out when possible. For example, you may need financial guidance during COVID-19. You can contract with a freelance CFO to work part-time at a lower cost than hiring an executive-level position. Firms like K-38 Consulting provide services from top-notch financial advisors, and you only pay for services when you need them.