What is a Fractional Controller and Should You Consider It?

Introduction - What is a Fractional Controller

Construction and engineering SMEs often juggle rapid growth with complex projects, making financial oversight both critical and challenging.

Owners frequently assume that sophisticated finance roles are only for large corporations, leaving them without the strategic insight they need.

This blog explains what a fractional controller (FC) is, why it matters for small but growing firms, and how to evaluate whether your business should hire one. We’ll use simple language, but draw on expert insights to empower business owners and site managers.

Why Understanding the Role Matters

Most SMEs rely on bookkeepers or accountants for basic compliance but miss out on the deeper insight that comes from a controller.

A fractional controller is essentially a part‑time or outsourced financial controller who provides advanced accounting supervision without the cost of a full‑time hire.

They can support construction and engineering teams by implementing robust accounting processes, ensuring compliance with tax laws, and translating numbers into practical decisions.

What Does a Fractional Controller Do in the Finance Team?

• Financial reporting and compliance: An FC oversees the month‑end close, produces timely financial statements and ensures they comply with UK GAAP, CIS and HMRC requirements.

• Budgeting and cash‑flow management: They develop budgets aligned with project timelines, monitor cash inflows/outflows, and ensure payables and receivables are managed effectively.

• Internal controls: FCs design segregation of duties, approval processes and reviews to protect company assets and prevent fraud.

• Collaboration with the leadership: While controllers focus on day‑to‑day accounting, they also contribute to forecasting and strategy, working alongside fractional FDs or CFOs when needed.

  
  

Best Fit for Fractional Controllers

Fractional controllers are ideal for businesses that have outgrown basic bookkeeping but are not yet ready for a full‑time FD.

Think of construction firms turning over £500k–£5m, where multiple projects complicate cash‑flow and reporting. An FC brings structured processes to chaotic systems, freeing owners to focus on winning bids and delivering projects.

Are They Capable of Leading the Finance Team?

Yes. Experienced FCs usually have at least 5–10 years of accounting leadership and hold professional qualifications (ACA/ACCA).

They supervise the finance team, review work, and communicate with auditors and bankers. While they may not shape long‑term strategy like a CFO, they lead day‑to‑day operations and help implement financial initiatives.

What to Look for in a Great Fractional Controller

• Relevant industry experience: Look for someone who understands CIS, project costing and construction‑specific tax rules.

• Communication skills: A great FC explains numbers to site managers in plain English and collaborates with FDs and CEOs.

• Technological proficiency: They should be comfortable with job‑costing software, cloud accounting, and automation tools.

• Availability and flexibility: Ensure your FC can scale with your projects, perhaps one day a week initially, increasing as you grow.

  
  

Impact on SMEs

When properly leveraged, an FC offers cost‑effective expertise. By strengthening internal controls and improving reporting accuracy, they help businesses win contracts, secure finance and avoid compliance penalties. This is particularly valuable in construction, where retention, CIS deductions and slow‑paying clients can strain cash flow.

Need to Review

Before hiring an FC, review your existing processes:

1. Current financial reporting: Are your monthly accounts late or inaccurate?

2. Cash‑flow visibility: Do you struggle to forecast cash needs beyond the next month?

3. Internal controls: Does one person handle invoices, payments and reconciliations, increasing fraud risk?

4. Leadership bandwidth: Are you or your office manager juggling bookkeeping with project management?

   
   

If two or more of these apply, a fractional controller is likely to save you more than they cost.

Strategy – Practical Steps

1. Assess your needs: Conduct a quick financial process review (JFA’s Management Accounts Review Checklist can help) to identify gaps.

2. Define the scope: Decide whether the FC will manage month‑end close, budgeting, cash‑flow forecasting or all three.

3. Use tools: JFA’s Break‑Even Calculator and Job Profitability Tracker (free on the resources page) help you understand project margins and support your controller’s work.

4. Set KPIs: Monitor days to close, variance explanations, and cash‑flow forecasts to evaluate the FC’s impact.

5. Review quarterly: As your business scales, decide whether a fractional FD is needed for more strategic guidance.

   
   

Key Takeaways

• A fractional controller offers mid‑level financial oversight without the cost of a full‑time hire.

• They handle reporting, budgeting, compliance and internal controls, freeing owners to focus on projects.

• Suitable for SMEs with turnover roughly £500k–£5m, especially if basic bookkeeping is no longer enough.

• Look for industry experience, communication skills and tech proficiency when hiring

  
  

If your numbers are unreliable or cash‑flow headaches keep you up at night, it may be time to bring in a fractional controller. JFA’s team specialises in construction and engineering finance and can guide you through the process. Check out our blog on CRM and accounting systems to see how integrated software complements strong financial leadership.

Wrapping up today's insights, tomorrow we simplify another accounting challenge.