If you run a business, you probably think your accountant has all the knowledge and experience you need to competently manage the numbers.
That might have been true in your early days. But as a business grows in size and complexity, the financial landscape evolves, and what once worked well might now be holding you back.
While accountants play a useful role in ensuring accuracy and compliance, they’re not always equipped to give the level of insight and control your business requires. That’s where a financial controller can provide vital support.
We often meet business owners and leadership teams who don’t yet need a full-time financial controller but are already facing the kinds of challenges that one could solve. The good news is, when the need arises, there is rarely a need to jump straight into a full-time hire. A controller who is working ad hoc or part-time can provide enormous value and flexibly.
Accountants vs. financial controllers: what’s the difference?
Accountants:
- Assist with compliance and keeping on top of tax affairs
- Can prepare annual financial statements and statutory accounts
- Help generate tax returns
- Are available for ad hoc advice
Financial controllers:
- Are in charge of managing day-to-day finance and accounting functions
- Focus on historical data and reporting
- Generate financial reports and management accounts
- Can help streamline reporting and manage wider finance teams
In short, accountants are helpful for technical accounting, while controllers ensure the finance function is operationally sound and that the numbers reported are accurate and timely.
If your business is starting to outgrow your financial knowledge or capacity, or you simply feel uncertain about your financial data, you might be crossing into controller territory.
4 signs it’s time to bring in a financial controller
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Your finances are getting more complex
As your business grows, so do the number of transactions, revenue streams, and reporting requirements. Whether you’ve added new product lines, expanded into new markets, or taken on more staff, complexity multiplies.
A financial controller will bring structure to your outfit. They will tighten internal processes and help your finance function run much more efficiently at scale.
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You’re constantly coming across cash flow surprises
One of the biggest pain points for growing businesses is cash flow. You may be profitable on paper but still struggling to pay bills on time.
A controller will put robust cash flow forecasting in place (though perhaps not at the same strategic level as a finance director). They can help identify upcoming pinch points, improve working capital management, and ensure your team isn’t constantly fire-fighting – something which will drain your resources and your finances if left unaddressed.
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You’re preparing for investment or a big strategic move
Whether it’s securing funding, acquiring another business, or preparing for a sale, these moments require a deeper level of financial control and presentation. You need numbers you can trust and the ability to answer tough questions from banks, investors, or buyers.
A financial controller will ensure your financials are investor-ready.
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Your finance team needs direction
Often, smaller businesses have capable bookkeepers or management accountants who are working hard but not necessarily to their strengths. Without strong oversight, deadlines slip, processes stay manual and long-winded, and reporting lacks depth.
A controller will act as the designated leader of your finance function. They can introduce better systems and provide the training and coaching needed to improve the team’s overall capability. For many SMEs, they really can act as the glue that holds the finance department together.
Why hire a controller on an ad hoc or fractional basis?
Hiring a full-time financial controller might feel like a big leap, especially if your business isn’t ready for another senior salary. Thankfully, financial controllers can deliver real impact on a part-time, project-based, or fractional basis, depending on your requirements.
You’ll get:
Flexible engagement without long-term commitment
You might only need controller support a few days a month or during specific projects like budgeting season, financial year-end, or a system implementation. This allows you to pick their brains without the full-time cost.
Access to high level expertise immediately
Unlike hiring a junior staff member and waiting for them to grow into the role, a fractional financial controller will step in ready to make an impact from day one. They’ve often seen similar challenges before and know how to fix them right away.
Support when it matters most
Controllers are incredibly useful during periods of change, be it rapid growth, restructuring, or leadership transitions. A part-time controller gives you stability and insight exactly when you need it – when you’re perhaps doubting your decisions or looking for input from an independent source.
A stepping stone to a permanent role
Often, businesses start with a fractional controller, then bring someone on in a permanent capacity when the time is right. This approach allows you to test the waters and shape the role before committing to a more expensive hire.
What else can a financial controller bring to the table?
A financial controller can typically deliver higher-level outputs and improvements to the way your finance department is run, including:
- Monthly reporting that’s timely, consistent, and decision-ready
- Rolling cash flow forecasts
- Preparing operational dashboards for tracking margins, costs, and KPIs
- Process automation and month-end close optimisation
- Internal controls to protect against error and fraud
- Financial leadership and mentoring for more junior team members
So, when you hire a financial controller, you’re not replacing your accountant and their important knowledge and experience. You’re adding a layer of control and insight on top of what they do.
When you don’t need a controller
Not every business is ready for controller-level support. If you’re very early-stage, have a single product, a simple cost structure, and minimal external reporting needs, an accountant or bookkeeper may be enough for now.
As soon as questions like “Can we afford this hire?”, “Are we profitable by product?”, or “What’s our burn rate this quarter?” start to matter, it’s time to think about bringing in specialist financial expertise.
At the other end of the spectrum, if you are searching for someone to take on even more financial responsibilities within your business, you may benefit more from hiring a finance director, who can focus on the bigger picture and support strategic decision making at board and executive level.
Hiring for either role doesn’t need to mean a full-time commitment. For many growing businesses, the smartest move is bringing in a financial controller or a finance director on an ad hoc or fractional basis, adding the insight and structure you need, exactly when you need it.
If your business is scaling, becoming more complex, or facing new strategic challenges, additional support could be the next step in building a more robust and forward-looking finance function that will serve you well for years to come.
As fractional finance directors, the team here at Dartcell have helped businesses unlock significant value through tailored support. Contact us now to find out if this is the right move for your business and to learn more about our services.