When Does Your Business Need a Controller?

The question isn't whether you'll eventually need controller-level oversight. It's when.

A solo bookkeeper works fine when you're small. But as revenue grows, transactions multiply, and stakeholders demand more, the bookkeeper model breaks down. You need someone who doesn't just record transactions—someone who ensures the numbers are right.

The good news: you don't have to guess. There are specific triggers that indicate it's time for a controller. Let's walk through them.

Revenue Triggers

Revenue is the most common trigger because it correlates with transaction volume and operational complexity.

$5M+ Revenue

This is the most common inflection point. At $5M revenue, you typically have:

• Hundreds of monthly transactions
• Multiple vendor and customer relationships
• Enough complexity that errors start to compound
• Stakeholders (lenders, investors, board) who expect professional financials

A bookkeeper can still function at $5M, but they're typically stretched. They may be closing the books, but quality is declining.

$10M+ Revenue

At $10M, controller-level oversight becomes nearly essential. You're now in territory where:

• Financial statement errors can be material
• Internal controls become important (more people, more risk)
• Audit is likely required or approaching
• A bookkeeper alone can't provide the oversight needed

High-Growth Companies

Revenue is a lagging indicator. If you're growing 50%+ annually, you'll hit these thresholds faster than your accounting can adapt. Consider getting controller help earlier—at $3M-$4M—if you're scaling rapidly.

Complexity Triggers

Some businesses hit controller needs earlier because of complexity, regardless of revenue.

Multiple Entities

If you have more than one legal entity (subsidiaries, holding company, etc.), you need:

• Intercompany transaction tracking
• Elimination entries for consolidation
• Understanding of which entity holds what
• Consolidated financial statements

Multi-entity accounting is beyond most bookkeepers' training. Controller expertise is needed.

Inventory

Inventory accounting adds significant complexity:

• Inventory valuation (FIFO, LIFO, weighted average)
• Cost of goods sold calculation
• Physical count reconciliation
• Inventory write-downs and reserves

Getting inventory accounting wrong distorts both your balance sheet and your P&L.

Complex Revenue Recognition

If your business has any of these, you likely need controller expertise:

• Subscription/SaaS: Deferred revenue, contract modifications, multi-element arrangements
• Long-term contracts: Percentage-of-completion, milestone recognition
• Bundled products/services: Allocation across performance obligations
• Variable consideration: Rebates, returns, warranties

Revenue recognition under ASC 606 is complex. Bookkeepers typically aren't trained for it.

International Operations

Operating internationally introduces:

• Multi-currency transactions
• Foreign exchange gains/losses
• Intercompany pricing (transfer pricing)
• Consolidation of foreign subsidiaries

Compliance Triggers

External requirements often force the controller conversation.

Audit Requirement

If you need an audit—because of lender requirements, investor demands, or regulatory obligations—you effectively need a controller. Audits require:

• Audit-ready books and documentation
• Someone to prepare PBC schedules
• Someone to answer auditor questions
• Technical accounting expertise for complex areas

You can attempt an audit without a controller, but it will cost more, take longer, and likely produce findings that require expensive remediation.

PE Ownership

Private equity sponsors require institutional-quality financials:

• Monthly reporting packages by day 10
• Quarterly board presentations
• Covenant compliance calculations
• Audit-ready books

Most PE portfolio companies need controller-level oversight immediately post-acquisition.

Lender Requirements

Bank loans often come with financial reporting requirements:

• Monthly or quarterly financial statements
• Covenant calculations (debt service coverage, current ratio, etc.)
• Borrowing base certificates (for asset-based loans)
• Annual audited financials

Missing lender deadlines or miscalculating covenants creates serious problems. Controllers ensure compliance.

Team Triggers

Sometimes the trigger is your accounting team itself.

Managing Bookkeepers

If you have 2+ bookkeepers or accounting staff, someone needs to:

• Assign and prioritize work
• Review output for quality
• Provide training and development
• Handle questions they can't answer

That's a controller function. Without it, you're managing accountants—which isn't your job.

Overwhelmed Bookkeeper

Warning signs that your bookkeeper needs controller support:

• Close takes longer each month
• More errors requiring correction
• Questions they can't answer
• Working overtime but still behind
• Stress, frustration, or talk of leaving

A controller can take oversight responsibilities off your bookkeeper's plate, letting them focus on what they're good at.

Warning Signs You've Waited Too Long

These symptoms indicate you needed a controller before now:

• Chronic late closes: Regularly closing after day 15
• You don't trust the numbers: Something always feels "off"
• CPA finds material errors: Tax return prep requires significant adjustments
• Failed or qualified audit: Auditors found problems
• Compliance penalties: Late filings, missed deadlines, IRS notices
• You're the reviewer: Spending your time checking bookkeeping work
• Can't answer questions: Board, lenders, or investors ask financial questions you can't answer

Do You Need a Controller? Quick Assessment

Score yourself on these criteria: