As businesses grow, they eventually reach a point where they need more than just a bookkeeper or basic accounting services.
They need help with more complex scenarios, whether it’s adding new products or services, expanding into a new market, experiencing significant growth, or raising funds.
That’s where fractional CFOs and controllers can step in to help with strategic growth. But how do you know whether it’s time to hire one?
Let’s explore what these professionals do and whether they’re a good fit for your organization.
What is a CFO? What is a Controller?
CFOs and controllers help businesses grow and scale. They go beyond simple bookkeeping and accounting tasks to develop strategies and plans to achieve the organization’s goals.
While similar in nature, CFOs and controllers take on different roles.
Controllers handle technical accounting. They process bills and handle sales as they come in. They may also:
- Create basic budgets
- Tackle cash flow planning
- Oversee A/R and A/P and inventory
- Handle prepaid expenses, accruals, loans, depreciation, and more
Controllers are more equipped to help with day-to-day solutions. Bookkeepers can help you understand who owes you money and who you owe money to, but a controller can give deeper insights into where your money is going and how it’s impacting your cash flow.
Think of a controller as a tactical partner who helps with forecasting, planning, and what-if scenarios.
CFOs provide a higher level of planning and analysis, which your business will benefit from as it continues to grow.
What is an Outsourced CFO or Controller?
Many businesses hesitate to bring a CFO or controller into the organization because they may not be ready for such a commitment or the expense of hiring in-house.
Outsourced, or fractional, controllers and CFOs solve this problem. These professionals work on a part-time basis and are not considered employees.
They can step in to help:
- Analyze the financial aspects of the business on a deeper level
- Provide insights to inform the decision-making process
- Manage cash flow
- Develop policies and procedures, including hiring plans
- Implement new technology
- Track key performance indicators (KPIs)
Fractional CFOs, in particular, can work on a project-by-project basis to assist with:
- Raising capital
- Mergers and acquisitions
- Performing external audits
- Growing the company strategically
- Cash flow or operational issues
Although fractional controllers and CFOs work on a part-time basis, they still become a critical component of your team and may even work with your business over the long term.
When Do You Need an Outsourced Controller?
If your business is growing or you need more insightful analysis of your finances, it may be time to bring in a controller.
For example, if you run a retail business with inventory, a controller can help you track and manage it – something a bookkeeper can’t do.
If you’re selling off your inventory, your cash flow may look great on paper, but you aren’t reinvesting it. A controller can help you better manage your cash and put it to work for you.
A basic bookkeeper usually cannot help with:
- Investments
- Loans
- Job costing (should you bill in advance or at the end?)
Controllers can give you guidance and insights in these areas to help you grow strategically.
Hiring a full-time controller can be expensive, but an outsourced professional can be a great option when you need more in-depth insights but aren’t in a position to hire full-time yet.
Outsourced controllers offer the services you need without the commitment of a full-time employee. But, you might find that a fractional CFO is a better fit than a controller.
When Do You Need a Fractional CFO?
Most growing businesses can benefit from working with a fractional CFO. Not only can they help with planning and implementing policies, but they can also keep the team focused and accountable.
If you’re still on the fence about working with an outsourced CFO, here are some signs that it may be time to take the dive:
- You need deeper financial insights to make important decisions about critical business components, like investing in growth or hiring new staff.
- You need help with planning. A fractional CFO can help you create plans to reach your goals.
- You need perspective. It’s hard to see the big picture when you’re deep in the weeds of running your business. An outsourced CFO can help you see things from a different angle and avoid obstacles that may stand in the way of reaching your goals.
When Deciding Whether to Hire an Outsourced CFO or Controller, Think Growth
Outsourced CFOs and controllers leverage their experience and expertise to help organizations grow and achieve their goals. In fact, according to a survey from the Controllers Council, 53% of controllers and CFOs expect their organizations to achieve a better financial performance in 2025 compared to 2024.
So, when deciding whether you should work with a fractional controller or CFO, keep growth in mind. If your plan is to grow more than 5%, then now is the time to bring in a controller. But if you want major growth or long-term planning, a CFO would be the right choice.
A fractional CFO or controller can:
- Help you overcome roadblocks and challenges.
- Provide an outside perspective based on experience to help you set realistic goals.
- Encourage you to take advantage of opportunities you may not have otherwise considered.
Through our outsourced CFO services, we helped one client go from $100,000 per year in revenue to $10 million.
Revenue growth isn’t the only thing we can help clients achieve. We have also helped clients optimize their pricing. For example, we worked with a contractor to tweak their pricing on bids to boost profits while also allowing them to do more volume.
The Takeaway
Outsourced controllers can give you more tactical information, while a fractional CFO can deliver strategic guidance and higher-level planning and analysis. Both can provide all of the same services as an in-house CFO or controller, but at a fraction of the cost.
To learn more about outsourced CFO or controller services or to schedule an appointment, click here.