The Controller
What is a controller and when does a restaurant group need one?
A controller will have a CPA’s license or be a person with extensive experience in accounting within a specific industry. They are responsible for ensuring the books remain accurate, well organized and financial statements are correct. A controller will typically oversee an accounting manager, an AP person, payroll and possibly HR. Your controller therefore should have the following characteristics:
College education and CPA license or extensive experience
The ability and interest in keeping the accounting system organized, up to date and accurate
The ability and interest in overseeing the accounting manager, AP person, payroll and possibly HR, as warranted based on the size of the company
The ability and interest in keeping the trains (aka the books) running on time, month in and month out
The ability and interest in creating financial reports the organization needs
So, when do you need this skill in your restaurant organization and how much of it do you need?
A restaurant group typically needs this skillset on the team around 3 locations. It’s at that point that the incoming data stream starts to multiply and the complexity starts to outgrow the bookkeeper. Some of the signs to look for are
Owner is still involved in accounting
Bookkeeper is overwhelmed
Month-end reporting is late
Opening another location
Acquiring another restaurant
Tax CPA or auditor keeps asking for cleaner books
Lender wants better financial statements and information
Owner does not trust the numbers
External audit team is recommending staff improvements
Essentially, things start to get messy. The question then becomes, how much of a controller do I need? This is where it gets fun and where an outsourcing model makes complete sense. Businesses are conditioned to hire people and to only do so in blocks of 40 hours per week with exclusive dedication. That’s a very outmoded, inefficient and expensive way of thinking and often results in hiring people that you can afford, who happen to be available, willing to work for a 3 or 4 location group regardless of whether they are the right fit. At 3 locations, you don’t need a lot of a controller. At 7 locations you need more of a controller, but not necessarily a lot. But, you do need the RIGHT controller in either situation. You need access to one with experience, who can devote the time you need, but only the time you need and who understands those 5 points above.
This is where SweetData comes into the picture. You’ve hit that 3rd location. You’re approaching $10mm in annual sales. You have location employees approaching or exceeding 200. It’s starting to get a little complicated. SweetData brings the expertise in a modular fashion giving you access to the team and the processes and the experience without trying to hire one yourself.
Outsourcing to the right company allows you to plug in a working system directly into your company without the hassle of hiring, training, supervising, compensating, providing insurance for and otherwise just having to deal with AND to do so more cost effectively with higher quality than you could otherwise do.