Outsourced / Fractional Controller

Service description

A fractional controller is a part-time senior accountant who oversees a business's accounting without a full-time hire. The controller manages the month-end close, reviews the bookkeeper's work, sets up internal controls and delivers accurate financial statements. The role sits above bookkeeping and below a CFO, focusing on accuracy and process rather than strategy.

Common industries

Applies to growing businesses whose books need oversight beyond bookkeeping.

ROI

Reliable monthly financials and tighter controls without a full-time hire; often the bridge a growing company needs before a CFO.

Benefit

Senior accounting leadership part-time — close, controls, and clean financials — a step up from bookkeeping, below a CFO.

Why get it

Once transactions outgrow a bookkeeper's remit, someone must own the close, catch errors and keep controls in place, or the financials lose credibility.

When you benefit

Ongoing, with the controller active around each month-end close and a heavier load at year-end.

What it costs

Typically a monthly retainer.

When you pay

Fractional controllers usually charge a monthly retainer sized to the close's complexity and the hours expected, or bill hourly. Cleanup of prior periods or a system migration is often quoted as a separate project.

Other costs

Accounting software and, if needed, a bookkeeping team or tax preparer, who bill separately.

Risks to know

A controller depends on accurate transaction records and responsive staff. If the business doesn't act on flagged problems, errors persist, and weak controls over approvals and cash leave room for mistakes or fraud that go unnoticed until they're large.

When risks arise

Control gaps stay quiet until an error or loss surfaces, often at year-end, an audit or a lender's review. Close problems show sooner, as delayed or restated monthly financials.

The process

The provider reviews the current books, close steps and controls, then sets a close calendar and fixes recurring issues. Each month it reviews reconciliations and entries, prepares financial statements, and flags questions. The business answers and acts on the open items.

Your commitment

The business gives access to its books, bank accounts and accounting software, and makes sure staff and the bookkeeper supply information on the close schedule. It should agree on the close calendar, approval limits and who acts on the controller's findings.

Documents to gather

• Chart of accounts and general ledger access
• Bank and loan statements and reconciliations
• Current month-end close checklist, if any
• Prior financial statements and tax returns

Helpful reading

• Financial Controller: Key Roles, Duties, and Career Insights — Investopedia
• Understanding Internal Controls: Essentials and Their Importance — Investopedia
• Financial Statements: List of Types and How to Read Them — Investopedia