Frequently Asked Questions

What is a Controller?

The word controller is derived from an Old English word that literally means “someone who examines financial documents.”

So, what does a Controller actually do?

The Controller helps manage a company’s finances by monitoring its financial data after it is recorded by other personnel. The Controller uses his training and business experience to look for reporting errors, to analyze data for good and bad trends, and to make sure a company’s financial data is properly organized and presented in financial statements.

Why is that important?

Many people make the mistake of evaluating the health of their business by simply looking at the latest sales data and cash balance. While those things are important, they only tell what is happening right now. By analyzing financial data, a Controller can predict whether the current status will continue, improve or get worse. By identifying potential challenges ahead, the Controller can help the business owner prepare for potential trouble, or maximize new opportunities.

Can’t my existing Bookkeeping or Accounting staff handle these issues?

Generally, there are two things that prevent the regular staff from doing these things. One is a lack of formal training. A Controller who is a CPA has a university degree in Accounting, must pass a rigorous standard national exam, and must complete certain experience requirements. The other impediment is lack of diversified experience in actually handling a variety of financial issues in today’s complex legal and regulatory climate. Also, as a practical matter, people who are heavily involved in the daily activities of recording and maintaining financial records simply do not have the time to perform more complex evaluations.

If it’s that important, shouldn’t I just hire a full time Controller as a permanent member of my staff?

Ideally, as it grows and prospers, every business will reach a point when it will need a full time Controller. As a practical matter, small businesses that are still trying to reach optimum size, simply cannot allocate the resources necessary to hire an experienced CPA to serve as a full time Controller. People with the proper credentials and experience are in high demand, and can command a significant salary.

Is there a way to handle this dilemma?

Yes. By hiring a part-time Controller (such as ProfitBuilders), a business can enjoy the benefits of an experienced financial executive, while only paying for the amount of time that is ideal for its particular size and circumstances.

Will ProfitBuilders prepare my income tax returns?

No. Income tax laws are in a constant state of flux. To be proficient at tax preparation requires hours of study and research into all the latest laws, rules, and regulations. Tax preparation should be left to professionals who specialize in that field, preferably a CPA.

Can ProfitBuilders perform an audit or put together a compiled or reviewed financial statement?

No. In order to perform audits or prepare compiled or reviewed statements, a CPA must be independent of the client company. ProfitBuilders is not independent, since we are working with you to make your company better.

If ProfitBuilders doesn’t perform audits or prepare taxes, why do I need another CPA?

ProfitBuilders works with you and your staff to identify and facilitate improvements and growth in your company that outside CPA’s cannot do. We will work with your tax preparer or auditor to insure that they have everything they need to perform their jobs, and in good form. This allows them to achieve maximum efficiency in performing their work, without taxing you or your staff.

Is ProfitBuilders a consulting firm?

Consultants perform evaluations of your business (sometimes without much background information), make recommendations, and leave you on your own to implement suggested changes. ProfitBuilders works with you on a continuing basis, constantly identifying changing situations and helping you to adapt to them. We won’t give you a report, and then leave you on your own.

Will ProfitBuilders keep my books?

No. ProfitBuilders will work with your internal bookkeeping or clerical personnel to assure that accounting records are being kept accurately. We will oversee their activities, making corrections where necessary. We will also make sure that you have accurate and meaningful financial statements, with analysis as needed.

Can’t I get financial statements from my accounting software?

Yes, but they may not be completely accurate. A trained CPA is able to take into account factors such as unrecorded liabilities, unbilled revenue, and prepaid expenses. Unless your financial statements reflect these items, they may not give an accurate portrayal of your business condition and activities.

How do I know if ProfitBuilders is right for my business?

We work with small to medium, privately owned businesses in all fields. We have an extensive background with contractors and non-profit organizations, but we also work with people in the service fields, restaurants, retail, and virtually any kind of growing business. We start out with a no-cost, no-obligation interview process that gives you and us an opportunity to thoroughly get to know each other before any commitments are made.

How will you work with my business?

Every business is unique, and so are our services. Elsewhere (see link) you will find a listing of some of the more common things that we do. Not all of these services are right for every business. There may be other things, not listed, that you need. We tailor our services to do what’s best for you.

How much does it cost to use ProfitBuilders?

The actual costs vary, depending on how much or how little assistance you need. We charge an hourly rate, limited to the actual hours worked for your company. Generally, costs average $500 to $2,500 per month, depending on the size of the business and our level of involvement. Even at the higher end, our service fees are about 1/3 the cost (or less) of a full-time, highly qualified controller or CFO.

Do we have to sign a contract for a specific length of time?

No. Most of our clients become very satisfied with our services, and tend to use us on a continuing basis. We have client relationships that have lasted for over ten years, and are continuing today.

I want to make sure my business stays confidential. Is that a problem?

Absolutely not. Not only do we pledge to treat our inside knowledge of your business with complete confidentiality, we also will not work with a competitor while working with you. We will only reveal particular information about your business to those you direct us to deal with (such as bankers, brokers, insurance carriers).