Managed Accounting Services: A Structured Approach
Controller services focus on the operational aspects of a company's finance function, including accounting processes, compliance, and financial reporting. While similar to CFO services, which typically involve higher-level strategic planning and financial forecasting, controller services are more tactical and day-to-day. Below is an outline of the structured our team utilizes to effectively provide these services to a small to medium-sized business (SMB):
Initial Setup and Onboarding
1. Discovery and Needs Assessment
Objective: Understand the client's business model, industry specifics, financial systems, and current financial health.
Actions: Review existing financial processes, accounting software, and historical financial statements.
2. Service Scope Definition
Objective: Clearly define the scope of controller services tailored to the client's needs, including specific tasks, responsibilities, and reporting requirements.
Actions: Draft a service agreement outlining the scope of services, such as accounting system management, compliance, payroll oversight, and financial reporting.
3. Implementation Plan
Objective: Establish the workflow, communication channels, and software tools.
Actions: Set up or integrate financial management and accounting software, define the reporting calendar, and establish secure data exchange protocols.
Ongoing Operations
4. Daily and Monthly Accounting Tasks
Objective: Ensure accurate and timely execution of all accounting operations.
Actions: Manage accounts payable and receivable, process payroll, reconcile bank statements, and maintain the general ledger.
5. Compliance and Controls
Objective: Maintain regulatory compliance and implement internal controls.
Actions: Oversee tax filings, ensure compliance with financial regulations, and maintain robust internal controls to mitigate financial risks.
6. Financial Reporting
Objective: Provide regular, accurate financial reports to stakeholders.
Actions: Prepare monthly financial statements, including balance sheets, income statements, and cash flow statements.
Recurring Meetings and Communication
7. Monthly Financial Review Meetings
Objective: Review financial performance, discuss issues, and plan for the upcoming period.
Actions: Present financial reports, analyze budget vs. actuals, and review any compliance or operational issues.
# 8. Quarterly Strategy Meetings
Objective: Although primarily operational, a controller might participate in strategic discussions to provide financial insights.
Actions: Support strategic planning with financial data analysis, discuss capital expenditures, and assess financial health.
Reporting and Documentation
9. Monthly Financial Package
Objective: Deliver a comprehensive view of the company's financial status.
Actions: Include detailed reports on financial performance, key financial ratios, and commentary on variances from the budget.
10. Annual Financial Statements
Objective: Provide year-end financial statements for tax preparation and strategic planning.
Actions: Compile and review annual financial statements, including notes and supplementary information as needed.
Continuous Improvement
11. Systems and Process Evaluation
Objective: Regularly assess and improve financial systems and processes.
Actions: Solicit feedback from the client on the service delivery, evaluate the effectiveness of financial systems, and make adjustments to processes and tools to improve efficiency and accuracy.
12. Professional Development and Training
Objective: Ensure the accounting team remains up-to-date on industry best practices and regulatory changes.
Actions: Participate in continuing education, software training, and professional development relevant to the industries served.
Conclusion
This structured process enables our team to provide comprehensive controller services that cover the operational financial needs of SMBs. By maintaining a regular schedule of accounting tasks, compliance monitoring, financial reporting, and meetings, we can ensure that the client's financial operations are managed efficiently and effectively. This approach not only supports the day-to-day financial management of the business but also lays a foundation for strategic financial decision-making, contributing to the overall success and growth of the SMB.
