If you're a Houston business owner searching for "outsourced controller services," you're likely at a crossroads. Your business has grown beyond basic bookkeeping, but hiring a full-time controller at $100,000+ per year doesn't make sense yet.
You're not alone. Thousands of Houston small businesses face this exact challenge—needing sophisticated financial oversight without the overhead of a senior finance hire.
This guide explains exactly what an outsourced controller does, how it differs from bookkeeping, when Houston businesses need one, and what you can expect to pay. By the end, you'll know whether outsourced controller services are right for your business.
What Is an Outsourced Controller?
An outsourced controller is a senior-level accounting professional who oversees financial reporting, cash flow, and internal controls without the cost of a full-time hire.
Think of a controller as the person who ensures your financial data is accurate, meaningful, and actionable. While a bookkeeper records transactions, a controller makes sure those records tell the true story of your business's financial health.
Outsourced (or "fractional") controllers work with multiple clients, giving you access to senior financial expertise at a fraction of the cost of a full-time employee. They typically work remotely with regular meetings to review financials and address strategic questions.
Key Controller Responsibilities
- Overseeing and reviewing bookkeeping work
- Preparing and analyzing monthly financial statements
- Managing cash flow and forecasting
- Creating and monitoring budgets
- Implementing internal controls
- Preparing for audits and financing
- Ensuring tax compliance (including Texas franchise tax)
- Providing strategic financial insights to ownership
Controller vs. Bookkeeper vs. CPA: What's the Difference?
Understanding the difference between these financial roles is critical for Houston business owners. Here's a clear breakdown:
| Role | Primary Function | Typical Tasks | When You Need Them | Typical Cost |
|---|---|---|---|---|
| Bookkeeper | Record financial transactions | Data entry, reconciliation, categorization, A/P, A/R | Day one—every business needs bookkeeping | $300-$1,500/mo |
| Controller | Oversee financial operations | Financial statements, budgets, cash flow, internal controls, oversight | $500K+ revenue, complex operations, growth phase | $1,500-$5,000/mo (outsourced) $80K-$120K/yr (in-house) |
| CPA | Tax compliance & advisory | Tax returns, tax planning, audit representation | Tax season, major transactions, IRS issues | $200-$500/hr or project-based |
| Fractional CFO | Strategic financial leadership | Fundraising, M&A, strategic planning, investor relations | $2M+ revenue, seeking investment, major growth | $3,000-$10,000+/mo |
The Hierarchy
Bookkeeper → Controller → CFO. Each level builds on the previous. You can't skip steps—a CFO without accurate books is useless, and a bookkeeper without oversight may miss critical issues.
When Bookkeeping Isn't Enough
Basic bookkeeping handles the "what happened" of your finances. A controller answers "what does it mean" and "what should we do about it."
Signs you've outgrown bookkeeping alone:
- You're not confident your financial statements are accurate
- Cash flow surprises keep catching you off guard
- You're preparing for a bank loan or investor meeting
- Tax time is stressful because records aren't organized
- You need budgets and forecasts but don't know where to start
- Your bookkeeper has questions only a senior accountant can answer
When Houston Businesses Need an Outsourced Controller
Houston's diverse economy creates unique financial management challenges. Here's when specific Houston industries typically benefit from outsourced controller services:
Construction & Contractors
Job costing, progress billing, retainage tracking, and subcontractor management require controller-level oversight. Houston's booming construction sector means complex multi-project financials.
Oil & Gas Services
Revenue recognition, equipment depreciation, and project accounting in the energy sector demand sophisticated financial controls. Houston's energy corridor companies need controller expertise.
Medical Practices
Insurance reimbursements, patient billing, and healthcare compliance create complex cash flow challenges. Houston Medical Center-area practices benefit from specialized financial oversight.
Multi-Location Retail
Inventory management, location P&Ls, and consolidated reporting across Houston locations require controller-level analysis and oversight.
Professional Services
Growing law firms, consulting practices, and agencies in Houston need project profitability tracking, utilization analysis, and partner distributions managed properly.
Fast-Growing Startups
Houston's growing startup ecosystem needs controller expertise for investor reporting, burn rate management, and fundraising preparation.
Texas-Specific Considerations
Houston businesses face unique compliance requirements that an outsourced controller should understand:
- Texas Franchise Tax – Complex margin tax calculations requiring accurate financial statements
- Sales Tax Compliance – Texas has one of the most complex sales tax structures in the country
- Multi-State Operations – Many Houston businesses operate across state lines, creating nexus issues
- Property Tax – Business personal property reporting and valuation
- No State Income Tax – Impacts entity structure decisions and owner compensation planning
Cost of an Outsourced Controller in Houston
Let's talk numbers. This is where outsourcing makes compelling financial sense for Houston small businesses.
| Option | Annual Cost | Monthly Equivalent | What You Get |
|---|---|---|---|
| Full-Time Controller | $80,000 - $120,000+ salary + 25-30% benefits | $8,300 - $13,000/mo (total cost) | 40 hrs/week, dedicated, in-office |
| Outsourced Controller | $18,000 - $60,000 | $1,500 - $5,000/mo | 10-20 hrs/month typical, senior expertise |
| Part-Time (W-2) | $40,000 - $60,000 | $3,300 - $5,000/mo | 20 hrs/week, limited availability |
What Affects Outsourced Controller Pricing?
- Transaction volume – More transactions = more review time
- Business complexity – Multiple entities, locations, or revenue streams
- Industry requirements – Construction, healthcare, and energy often need more specialized attention
- Current state of books – Cleanup needed? That's extra
- Reporting frequency – Weekly cash flow vs. monthly statements
- Strategic involvement – Basic oversight vs. active planning participation
Why Houston Businesses Choose Local Controller Services
You could hire a national firm or an offshore outsourcing company. Here's why many Houston business owners prefer working with local firms:
Texas Compliance Knowledge
Local controllers understand Texas franchise tax, sales tax nexus, and state-specific requirements that national firms may miss.
In-Person When Needed
For important meetings—bank presentations, year-end planning, audit prep—having a controller who can be there in person matters.
Industry Understanding
Houston's unique mix of energy, healthcare, construction, and professional services requires controllers who understand these markets.
Same Time Zone, Fast Response
When you have an urgent question at 3 PM on a Friday, you need someone who's available—not asleep overseas.
Relationship & Trust
Your controller sees sensitive financial information. Working with someone local builds the trust and accountability that matters.
Local Professional Network
Need a CPA recommendation? Banking introduction? Local controllers have Houston connections that benefit your business.
Is an Outsourced Controller Right for Your Business?
Not every business needs an outsourced controller. Here's how to decide:
You Likely Need a Controller If:
- Revenue exceeds $500K-$1M annually
- You're preparing for bank financing or investors
- Your bookkeeper needs senior oversight
- Cash flow feels unpredictable
- You need accurate monthly financial statements
- Tax time is stressful due to record issues
- You have multiple entities or locations
- You're in a complex industry (construction, healthcare)
You May Not Need One Yet If:
- Revenue is under $300K annually
- Your business model is simple (one service, cash-based)
- A good bookkeeper handles everything well
- You're not seeking financing
- Financial statements aren't critical to operations
- Cash flow is straightforward and predictable
Focus on solid bookkeeping first—you can add controller services as you grow.
Getting Started: From Bookkeeping to Controller-Ready
The path to outsourced controller services often starts with getting your basic bookkeeping in order. Here's the typical progression:
Step 1: Clean, Accurate Bookkeeping
Get transactions recorded, categorized, and reconciled consistently. This is the foundation.
Step 2: Monthly Financial Statements
Generate P&L, Balance Sheet, and Cash Flow statements monthly—reviewed for accuracy.
Step 3: Add Controller Oversight
When you need budgeting, forecasting, cash management, and strategic analysis—add controller services.
Step 4: CFO Services (If Needed)
For fundraising, M&A, or complex strategic decisions—consider fractional CFO services.
How Coyote Bookkeeping Helps Houston Businesses
At Coyote Bookkeeping, we help Houston small businesses build the financial foundation they need to grow. For many clients, that starts with monthly bookkeeping services and scales to include controller-level oversight as their business grows.
Whether you need bookkeeping cleanup to get current, monthly bookkeeping to stay organized, or are ready for controller-level financial oversight, we're here to help.
Frequently Asked Questions
An outsourced controller oversees financial reporting, manages cash flow, ensures internal controls, prepares financial statements, handles budgeting and forecasting, and provides strategic financial insights. They perform senior-level accounting functions without the cost of a full-time hire, typically working remotely with regular check-ins.
Outsourced controller services in Houston typically range from $1,500 to $5,000 per month, depending on complexity and hours needed. This compares favorably to a full-time controller salary of $80,000-$120,000+ per year plus benefits. Most Houston small businesses save 40-60% by outsourcing controller functions.
Yes, for growing businesses with revenue over $500,000 that need more sophisticated financial oversight than basic bookkeeping provides. An outsourced controller is worth it when you need accurate financial statements, cash flow management, budgeting, or are preparing for financing or an audit.
A bookkeeper handles day-to-day transaction recording, categorization, and reconciliation. A controller is a senior role that oversees the bookkeeper, ensures accuracy of financial statements, manages cash flow, creates budgets, implements internal controls, and provides strategic financial analysis. Think of it as bookkeeper = data entry, controller = financial oversight and strategy.
Houston businesses typically need an outsourced controller when: revenue exceeds $500K-$1M, you're preparing for financing or investors, your bookkeeper needs oversight, you need accurate monthly financial statements, cash flow management is becoming complex, or you're dealing with Texas franchise tax and multi-state compliance issues.
Bottom Line
An outsourced controller bridges the gap between basic bookkeeping and full-time financial leadership. For Houston businesses in the $500K to $5M revenue range, it's often the smartest financial decision you can make—senior expertise at a fraction of the cost.
The key is finding a provider who understands Houston's business environment, Texas compliance requirements, and your specific industry. Whether you start with bookkeeping and grow into controller services, or need controller oversight now, the right partner makes all the difference.
Ready to discuss your business's financial needs? Schedule a free consultation to explore whether outsourced controller services—or solid bookkeeping—is the right next step for your Houston business.