Outsourced controller rates
A controller is very similar to an accountant. But in most cases, they have more responsibilities. Imagine a laser-focused bookkeeper in charge of building reports, monitoring purchasing decisions, collecting rent, paying bills, and so on.
If you do a quick Google search, you will see the average income of an accountant controller is around $75,000 a year. But the median income is actually somewhere around $200,000 to $250,000. This is because they are basically running a whole accounting and financing department. So when we’re talking about outsourcing those services, that’s where these rate comparisons are drawn from.
What investing in a controller includes
The typical reason to outsource a controller is because you are not ready to pay someone a six-figure salary or even $75,000, but you do need someone running your accounting and the finance side of the business. This includes paying bills, bookkeeping, accounts receivable, and advising on big financial strategies. If you need to get things done, you need a controller. You’re not going to be paying out six-figures, but bookkeeping costs alone could be $500 to $2,000 a month.
Our controller services usually come in at $2,000 a month, which is a standard rate across the board of organizations who offer these services. Then when we figure out what sort of value of service you are looking for, which basically refers to the level of Lionshare’s involvement in your business.
Our process and the invesment
The way our outsourced controller services works is first we educate, then we build a bookkeeping system, and finally we do the outsourced controller work.
Within outsourcing, there is bookkeeping at a $500 per month minimum, bill pay assistance which also runs around $500, and invoicing assistance at $500. If you’re wondering when and how those prices vary, it just depends on what level of service you need.
If you want controller services and more ownership of the process, that’s where advice and future planning comes into play. That’s also when we can start to look into leveraging financial success for a small percentage of growth. Growth percentage in turn is how you would incentivize $24,000 a year for someone who usually makes $100,000 or more a year. The outsourced controller would receive the flat monthly rate plus a small percentage of your organizations assets.
There’s a lot of work that goes into outsourced controlling. To some people it can sound a lot like CFO work. But it’s really more on the active side of business. The controller sets up accounting and finance so all the CFO or business owner would have to do is step in and review what is happening and make decisions accordingly.