Fractional Controller vs. Bookkeeper: What’s the Difference, and Why It Matters for Your Manufacturing Business
- Craig Berberich
- Apr 8
- 2 min read
As a small manufacturing business owner, your focus is on; production, quality control, and keeping operations running smoothly. As your company grows, so does the complexity of your accounting & finances. That’s when many business owners start wondering:
Do I need more than just a bookkeeper? Am I getting all the information I need to grow?
You’ve probably heard the term fractional controller—but what does it mean, and how is it different from a bookkeeper?
Let’s break it down in plain terms, so you can make the best financial decision for your shop.
What Does a Bookkeeper Do?
A bookkeeper is like your financial housekeeper. They’re responsible for keeping your books organized and up to date.
For most small manufacturers, a bookkeeper handles:
Recording daily transactions
Managing accounts payable and receivable
Reconciling bank and credit card statements
Generating basic financial reports (like profit & loss and balance sheets)
Often time processing payroll
Bookkeepers are essential to making sure everything is tracked correctly. But here’s the catch:
Bookkeepers record what happened. They don’t typically analyze what it means.
That’s where a controller come in. As your business needs the expertise of a controller, but can't afford the full-time cost (~$175k). Utilizing a fractional Controller is a blend of gaining the expertise, as a discounted cost.
What Does a Fractional Controller Do?
A fractional controller is a step up from a bookkeeper. Think of them as your part-time CFO-lite: someone who brings strategic financial oversight without the full-time cost.
Here’s what a fractional controller can do for your business:
Analyze financial statements to spot trends or red flags
Create budgets and rolling forecasts
Implement cost controls to improve margins
Optimize inventory accounting and job costing
Prepare reports to support key decisions (hiring, pricing, equipment, expansion)
Work directly with your tax professional
For manufacturing businesses, this means you get insights into questions like:
Why are raw material costs increasing—and how do we manage it?
Which jobs or customers are actually profitable?
Can we afford to bring on a second shift next quarter?
When Should You Consider a Fractional Controller?
If you're a small shop just starting out, a bookkeeper might be (and like is) enough. But if you’re dealing with:
Multiple jobs or vendors
Complex cost structures
Growth challenges
Cash flow concerns
...then it’s probably time to start a conversation about bringing in a fractional controller.
Key signs you’re ready:
You’re growing fast and need financial clarity to scale
You’re unsure where your cash is going
You want to improve profitability but don’t know how
Your books are clean, but you’re not getting strategic insights
You need stronger reporting to share with lenders or partners
Bottom Line:
A bookkeeper keeps your financial engine running. A fractional controller helps you steer the vehicle.
For small manufacturing businesses, having both can give you:
✅ Clean, reliable records
✅ Clear financial insights
✅ Smarter, faster decisions
Let’s Talk!!
If you’re ready to shift from reactive bookkeeping to proactive financial leadership, a fractional controller might be the next best hire you never thought of. Reach out for a free consultation to learn where you're at!