5 Hidden Costs of Not Having a Financial Controller

Many SMEs, and even some larger businesses, still operate without a dedicated financial controller, often to save on salary costs.

In fact, over a quarter (27%) of UK business owners handle all their accounting alone, with no professional support. However, not having a financial controller (whether in-house or outsourced) can lead to hidden costs that far outweigh the apparent savings.

Below are five key areas where lacking this financial oversight can hurt your business:

1) Cash Squeezed at the Worst Moment

Cash is strategy. Yet by June 2025, 16% of UK trading businesses reported having no cash reserves, according to the Office for National Statistics’ Business Insights and Conditions Survey. That was the highest level recorded since the survey began in 2020.

Without a financial controller to forecast cash needs and optimise working capital, companies are left exposed, unable to invest, negotiate, or absorb shocks when they need to most.

2) Late Payments Silently Tax Your Business

Chasing overdue invoices drains time and liquidity. In 2025, 62% of UK small businesses said they were owed money from unpaid invoices, averaging £21.4k each, while policymakers estimate late payments shave almost £11 billion off the economy annually, with more than one quarter of UK businesses affected by late payments each year.

A controller tightens credit control, sets terms by risk, and escalates sooner, reducing borrowing costs and write-offs.

3) Compliance Penalties (and Interest) That Compound

Staying compliant with financial regulations and filing requirements is a daunting task without a controller’s oversight. Missing deadlines or making reporting mistakes can rack up heavy fines and legal consequences.

Falling behind on VAT or other obligations is pricier in 2025. From 1 April 2025, HMRC increased its late-payment penalty rates under the reformed regime (e.g. to 3% at day 15 and 30, and an annualised 10% from day 31), on top of interest. These costs mount fast when filings slip.

4) Fraud and Error When Controls Are Thin

Lack of financial oversight can open the door to fraud and costly errors. A financial controller implements internal controls, segregates duties, and reviews transactions, all crucial for catching mistakes or suspicious activity.

UK Finance’s 2025 Annual Fraud Report shows criminals stole £1.17 billion in 2024, with 70% of authorised push-payment cases starting online. This is a risk that bleeds into AP, payroll, and supplier changes when oversight is light.

5) Leadership Time Drain and Lost Focus

In the absence of a financial controller, the burden of bookkeeping, budgeting, and financial firefighting often falls on owners or senior managers, taking them away from core business activities. This hidden opportunity cost is significant.

A recent 2025 survey found that business owners spend about 7.3 hours per week on administrative and operational finance tasks, costing the average business nearly £19,000 per year in lost productivity.

Why a Financial Controller Pays for Itself

The salary you “save” can easily reappear as higher borrowing costs, penalties, fraud leakage and management distraction, precisely where a capable financial controller earns their keep.

If a full-time hire feels heavy, a remote financial controller can give you the same controls, forecasting and board-ready reporting, scaled to your size.

Contact Sanay today to see how we can help, so 2025’s risks don’t become 2026’s write-offs.