Offering Outsourced Controller Services

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Client Advisory and Accounting Services (CAS) have been hot topics in our profession for years, but one area needs to get more attention: fractional or outsourced controllership. Outsourced controller services offer immense potential for accounting and CPA firms, particularly when targeting small—to mid-sized businesses.

The Real Value of Fractional Controllership

Small business owners often wear many hats, juggling everything from sales to HR and, yes, even accounting. Usually, they have an in-house or outsourced bookkeeper handling the day-to-day financial tasks. However, these business owners rarely have the time or expertise to manage their bookkeepers effectively. They might sense that the numbers aren't quite right, but they don't know how to fix it. That's where fractional controllership comes in.

By offering fractional controllership, you provide a layer of oversight that ensures the bookkeeper's work is accurate and timely. But more importantly, you take the burden of managing the bookkeeper off the owner's shoulders. This service allows them to focus on what they do best—growing their business—while you ensure that the financials are in good shape.

📢 Exciting news! I launched the How to Start Offering Advisory Your Services Accounting course.

Why Accountability Matters More Than Ever

One challenge small business owners face is holding their bookkeepers accountable. It's not that they don't trust their bookkeeper, but even the best employees can make mistakes without the proper oversight. These errors, if not caught early, can lead to more significant financial issues down the road.

When you offer fractional controllership, you're not just checking the numbers; you're acting as a coach and mentor to the bookkeeper. You're there to catch mistakes, correct them, and ensure they don't happen again. This accountability is invaluable because it helps maintain the integrity of the business's financial data, which is crucial for making informed decisions.

Getting Started: It's Easier Than You Think

The first step for firms considering adding this service to their portfolio is to map out what you're comfortable offering clients. You might be surprised that you're already providing some variation of these services. The key is to define and actively market them as a cohesive fractional controller package.

Begin by defining the services you're comfortable offering. Here are a few examples:

• Accounting Process Assessments: Identify inefficiencies and suggest improvements.

• Bank and Credit Card Reconciliations: Ensure everything is in order and add a layer of segregation of duties.

• Bookkeeper Coaching: Help the bookkeeper improve their skills and reduce errors.

• Budget Preparation: Assist clients in setting and managing realistic financial goals.

• Payroll Review: Spot discrepancies and correct them before they become problems.

• Trend Analysis: Review KPIs to determine why they are off track and account balance changes over certain $ and % thresholds.

• Vendor Review: Ensure no duplicate payments exist, discounts have been properly taken, consistent coding, and W-9s have been obtained.

These are services that most small businesses need but only sometimes get unless they have a full-time controller, which many can't afford. By offering these services fractionally, you make them accessible and affordable for your clients.

How to Pitch It to Clients

When you approach clients with this service, focus on the benefits of having someone manage and hold their bookkeeper accountable rather than the owner themselves. Freeing up an owner's time to focus on sales is a significant value-add to the company.

It's also crucial to explain why oversight is essential. Real-life stories can be powerful tools to convey the value of this service. For instance, consider sharing (anonymously) about cases where a lack of oversight led to significant financial losses due to employee fraud or lack of quality financial data.

Leveraging Your Team: A Win-Win for Everyone

One of the most appealing aspects of fractional controllership is that it doesn't require an experienced staff to handle every detail. Less skilled staff, like senior accountants, can do much of the work. They already understand the fundamental concepts—ensuring timely and accurate bookkeeping, holding the bookkeeper accountable, and acting as a coach.

This approach frees up your more experienced team members for higher-level work and provides valuable development opportunities for your younger staff. They get to step up, take ownership, and grow their skills while delivering real value to your clients.

The Bottom Line: Start Now, Perfect Later

If there's one thing to remember, you don't need to have everything figured out before offering fractional controllership. The most crucial step is to begin. Start with a client you know well, be transparent about the new service, and refine your approach. The sooner you start, the sooner you can provide this valuable service to your clients.

Fractional controllership is a scalable, sustainable service that benefits small business owners. By helping them manage and hold their bookkeeper accountable, you're giving them the peace of mind that their financials are in good hands. And that's a benefit they'll be more than willing to pay for.

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Thanks for reading, Luke Templin!

P.S. There are two ways I can help you grow your CAS offerings when you are ready:

1. Automate your CAS offering with daily financial digest on autopilot

2. Join my How to Start Offering Advisory Services Cohort. The next one starts in January.

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