Outsourced Controller Services - Outsourced Financial Controller
A successful business can be stable with the flawless formation of any organization. The controller services are one of the vertices of managerial functions and it detects errors in the operations performed. Achieving the stated goals and desired results are easy if there are several controls to overlook everyday operations. Here the controlling functions refer to setting up the standards, performance measuring, implementing actions, and more.
Our Outsourced Controller Services Process is broadly divided into the following systematic steps:
1. Setting Performance Standards:
- We at CapActix are habituated to set some standards that result in good outcomes. So we prefer setting up the right standards. The standards can be expressed in quantity as well as qualitative terms.
Illustrations of Quantitative Standards we suggest:
- Revenue target
- Production and Sales Target
- Cost Target
- Timely Completion Target
- Inventory Turnover Target
- And much more….
Illustrations of Qualitative Standards we suggest:
- Motivational Level of Employees
- Labor relations
- Product Quality
- Goodwill Valuation
We prefer gauging with the quantitative standards to make comparison easy with the actual standards. Though whenever the qualitative standard is needed, we define the standards to an extent that can be easily digestible.
2. Measurement of Actual Performance:
Measurements techniques are many such as sample checking, work reports, and observation. CapActix prefers to measure the performance on the same basis of standards.
Following are some of the ways we measure performance:
- Superior’s report on the employee’s performance.
- Various ratios such as gross profit, return on investment, debtor turnover, current ratio etc. are calculated at the periodical interval to measure performance.
- Progress in areas like sales and marketing can be measured by a number of units sold, an increase in market share, etc.
- Using sample checking some can be randomly checked for quality assurance.
3. Comparing Actual Performance with Standards:
Here the actual performance comes into the play. Under this step, comparing the actual performance and pre-defined standards decides the derivations such as the performance of the production department in units can be measured by the standard production ratio for the week.
4. Analyzing Deviations:
Some deviations are inherent in all the activities. However, the deviation in the critical business processes needs to be corrected on a prompt basis as compared to deviation in other processes. Herein, with our vast experience and knowledge, we use methods such as “Critical point control” and “Management by exception”:
A. Critical Point Control:
The organizations are having multiple activities and cross-checking of tasks generally, in which; the checking of every single activity is not affordable sometimes. So the technique has some decided critical points wherein key result areas termed as the critical points. These points are important to any organization’s growth. For an instance, a manufacturing organization takes an increment in labor cost as well as increments in office expenses than the prior would cost more.
B. Management by Exception:
Management by exception or control services by exception is a known principle of management. Based on this, we consider deviations crossing the prescribed limit. Thus, if plans provide for a 3% increment in labor cost, increment beyond 3% alone must be informed to the management. We follow the identifications of derivations and analyze possible causes which could be structural bottlenecks, insufficient resources, environmental issues beyond control, unjustifiable standards, defective processes etc.
5. Taking Corrective Action:
Here the suggestions for corrective actions can be made. When deviations exceed defined acceptable limits, CapActix promptly brings it to the notice of the management for taking corrective measures in the important areas.
Hence, considering CapActix for outsourced controller services of the organization can be right and clever decision.