Outsourced Controller Services for Manufacturers

What does a controller do for a manufacturer?

A controller makes sure the numbers are right, on time, every month. In a manufacturing business that job is harder than in most, because the balance sheet carries inventory, work in process and fixed assets that a generic bookkeeping process doesn't handle well.

Our controller work typically covers:

• Month-end close — a documented close calendar with owners, reconciliations and review, so your books close on the same schedule every month and stop getting revised afterwards.
• Inventory and WIP — raw materials, work in process and finished goods valued consistently and reconciled to the general ledger, with cost of goods sold recognized when it actually should be.
• Job and product costing — labor, overhead and material pushed down to the job, product or location level so margins mean something.
• Accruals, prepaid and fixed assets — the entries that turn cash-basis bookkeeping into accrual financial statements.
• Controls — approval workflows, segregation of duties and audit trails sized for a company your size.
• Reporting — monthly financial statements and a management package your leadership team can actually read.
• Audit, lender and tax-preparer support — clean schedules and support for your CPA, bank and auditors.

Do I need a controller or a CFO?

Often both, at different intensities. A controller owns the accuracy and timeliness of the accounting. A CFO owns what the company does about those numbers — pricing, cash strategy, capital, investment decisions and lender relationships. Many manufacturers hire a CFO when what they really need is a reliable close, or hire a bookkeeper when what they really need is a controller.

A common structure that works well for owner-led manufacturers is an in-house bookkeeper handling daily transactions, with outsourced controller and fractional CFO capacity above it. That's the structure we run with Gleco Plating, where the company's long-time bookkeeper continues to own the day-to-day while we handle the close and the CFO function.

See also: Outsourced controller vs. in-house controller.

Signs you've outgrown bookkeeping-only support

• Your books close on a different day every month — or months later.
• Inventory on the balance sheet doesn't match what's on the floor, and the adjustment lands in one painful month.
• Gross margin swings from month to month and nobody can explain why.
• You run QuickBooks alongside a separate shop-floor or job-tracking system, and someone has to reconcile the two by hand.
• Your bank, an investor or a customer has asked for reviewed or audited financials.
• You have more than one location, entity or business line reported as one set of numbers.

How we work

1. Assess. We review your chart of accounts, close process, inventory method and systems, and identify what's producing unreliable numbers.
2. Rebuild the close. We document the close, set the calendar, build the reconciliations and fix the inventory and COGS treatment.
3. Run it every month. We own or review the close, deliver financial statements and a management package, and meet with you to walk through them.
4. Scale up when needed. When you need forecasting, pricing or capital decisions, our fractional CFO service sits on the same foundation.

Results from controller-level work

• MPS Acoustics moved off QuickBooks, fixed when cost of goods was recognized, put freight into product cost and got consistent monthly reporting.
• NUU Mobile got a designed month-end close and controls that carried it through to audited financials during a period when revenue grew from roughly $20M to over $60M.

Frequently asked questions

What is an outsourced controller?

An outsourced controller is an experienced accounting professional who runs or oversees your month-end close, reconciliations, inventory accounting and financial reporting on a part-time basis, without you hiring a full-time controller.

How is a controller different from a bookkeeper?

A bookkeeper records transactions. A controller makes sure the complete set of books is accurate: reconciliations, accruals, inventory and WIP valuation, cost accounting, controls and financial statements. Most manufacturers need both, and the controller reviews the bookkeeper's work.

Can you work with our existing bookkeeper or accounting staff?

Yes, and it's often the best structure. Your team keeps the day-to-day work; we design the close, own the review and fill the controller and CFO layer above it.

Which accounting systems do you work with?

We work with the systems manufacturers commonly use, including QuickBooks and Zoho, and we help companies select and implement an ERP when they've outgrown their current setup. We've moved clients both up from QuickBooks and down from an oversized SAP implementation — the right system is the smallest one that answers your questions reliably.

How much does an outsourced controller cost?

Our plans for revenue-generating manufacturers start at $1,500 per month and are scoped to your transaction volume, number of entities and locations, and reporting needs. See pricing or book a call for a quote.

Do you prepare tax returns?

No. Accounovation is not a CPA firm and does not prepare tax returns. We deliver clean, well-supported books and schedules to your tax preparer and work alongside them.