Financial Services Controller Oversight

Outsourced controllers are bigger picture people. Bookkeepers manage all the daily data entries, making sure everything is correctly added and all books and ledgers balance. Controllers review bookkeepers’ work and use the data to complete complex reconciliations and ensure month-end close processes are error-free.

Financial services firms have unique needs and unique regulations with which they must comply. Your outsourced controller is responsible for ensuring that your firm complies completely with all industry regulations. Along this line, they are also responsible for managing intricate multi-entity structures, so your business is fully supported during periods of growth and diversification.

One of their most important roles is quality control management. And an essential role it is too. They are essentially the bridge between daily bookkeeping tasks and executive-level strategizing and decision-making. It’s their job to ensure that the data that flows across the bridge is accurate and compliant, so leaders can rest assured that they’re working with good quality information.

Automation is key to managing multi-entity structures and intercompany transactions. Specifically, we design financial systems that enable automated consolidation and intercompany allocations. This ensures that your books and accounts are updated in real-time, which enhances accuracy and facilitates informed decisions.

What’s more, automation creates clean structures where intercompany balances and eliminations are tracked consistently each period. We also standardize charts across entities, which is essential when it comes to aligning data across funds and subsidiaries.

To achieve this, you need an ERP that easily manages multi-entity interactions, for example, loan accounts into company transfers. Your ERP should also provide real-time data on each entity’s performance and how they interact with one another. Sage Intacct is a good example of an ERP that handles multiple entities.

Alignment is important because data can then flow easily between groups, ensuring consistency that doesn’t threaten the accuracy of group reporting for quarterly meetings.

Yes, we can. The systems we design and implement use dynamic models to simplify complex processes. Part of this includes allocating data by revenue, headcount, or metrics. One of the primary benefits is establishing clear rules and an audit history that prevents disputes that typically result when clunky, error-prone spreadsheets are used.

Another benefit is that automated systems and processes can be set to provide clear and accessible evidence of drivers and periods, which results in smoother audits.

These benefits apply to your partners and stakeholders. Before they can be admitted to the circle, however, you must ensure that they fully understand your systems, including budget management. They must understand the deliverables; expectations regarding what will and won’t be delivered.

We aim to ensure your finance team can easily manage these allocations in-system. This means that your time can drill down into service line profitability and pricing without manual workarounds or over-reliance on your outsourced controller.

One of the more convenient services you’ll get from your outsourced controller is complete compliance with industry regulations and obligations. This requires controllers to oversee daily processes, so they can make sure all documentation is current and meets specific requirements for financial operations.

This includes tying subledgers to the general ledger with a clearly mapped route. Controllers must ensure that relevant evidence is tied to the task in question. This provides context for anyone looking at the books.

The upshot is that your records are always accurate, completely on time, and audit-ready, regardless of the time of year. You’ll also enjoy GAAP-compliant financial statements and build schedules to specifically meet auditors’ requirements.

Here’s a real-world example that includes Sage Intacct and CFOs.

Sage Intacct issues four releases per year. Any regulatory changes are automatically included in each release. This proactive compliance management ensures CFOs always have access to updated systems and data that are audit-ready.

We develop a system that enables you to integrate third-party platforms with your ERP and reporting tools. The result is a single source of original data shared among all relevant people and departments. When everyone is on the same page, accuracy is enhanced and disputes are less likely.

You could look at it another way. Asset management tools are synced to your ERP to ensure relevant data flows directly into your financials. Direct flow eliminates human input, which increases accuracy and efficiency.

It’s important to identify the hidden costs of disconnected ERP and finance systems. You can then compare hidden costs with the actual cost (savings) of properly integrated ERP and finance systems.

Efficiency is further enhanced by linking processing and lending systems, which reduces the number of reconciliations required. The result is an accurate, unified data layer that supports diligence and regulatory reviews. This ensures finance and operations use the same figures for informed decision-making.