How Financial Controllers Can Help Drive Transformation in Your SME

As the backbone of the UK economy, small and medium-sized enterprises (SMEs) employ around 16.6 million people and contribute roughly £2.8 trillion in turnover (about 52% of private-sector turnover).

Yet despite their scale, many SMEs continue to face financial uncertainty. In late 2024, surveys revealed record-low business confidence, with only half of small firms expecting stable or rising revenues. In response, many small businesses are turning to the structure and financial clarity a controller brings.
For example, a financial controller typically:

• Oversees timely, accurate financial reporting (monthly management accounts, key performance indicators etc,).
• Develops budgets and forecasts to guide growth and measure performance.
• Monitors cash flow and working capital to prevent funding gaps.
• Implements internal controls, cost-saving measures and process efficiencies.
• Advises on compliance, tax and financial risk to keep the business on track.

Let’s explore how controllers deliver value across the most critical areas of an SME’s financial operations.

Improving Financial Reporting and Real-Time Insight

Accurate, timely reporting is one of the most immediate ways a controller adds value. Financial insight is only useful when it’s timely and relevant, and that’s where a controller excels.

Using cloud-based tools and automation, they also provide real-time financial insights. SMEs with professional finance support are seeing tangible gains, one UK study found those working with accountants or bookkeepers achieved, on average, 11.5% higher revenue.

The same research found that around 70% of business leaders said expert financial guidance improved reporting and helped secure loans or government support.

Building Financial Discipline in Your SME

On top of reporting and insights, controllers also enforce discipline through schedules and clear approval procedures to reduce fraud and error.

Insight is only half the battle. Controllers also enforce operational discipline, ensuring decisions are based on current, accurate data.

Over time, this leads to more informed strategic choices: businesses with structured reporting and advice are better at hitting targets and obtaining funding.

Strategic Growth Planning and Forecasting for SMEs

Importantly, controllers help set realistic growth expectations. Data from the British Business Bank (Q4 2024) shows only about 38% of SMEs expected growth in the coming year. In a cautious climate, detailed financial planning is essential.

The domestic economy remains the primary barrier to growth, cited by 65.3% of small businesses, according to the latest Small Business Index (SBI) for Q4 2024 from the Federation of Small Businesses (FSB). However, concerns over the tax burden have surged, with 43.1% of firms identifying it as a key challenge.

A controller-driven plan helps an SME grow steadily rather than overreach, supporting sustainable expansion. This makes the controller’s role even more essential.

Why Controllers Are Key During Periods of Low Business Confidence

Critically, controllers work closely with directors to build realistic budgets and forecasts, often running “what-if” scenarios (for example, modelling how a price change or new investment will affect profits).

Controllers help align budgets with business objectives and then monitor performance – if sales or margins fall short, the controller flags this early so managers can adjust strategy (for example, cutting costs or boosting marketing). Over time, this structured approach can improve an SME’s growth outcomes.

Tackling Cash Flow Challenges

Of course, even the best plans falter without cash in the bank. Efficient cash flow management and streamlined operations are where controllers make a tangible impact. Many UK SMEs have limited cash reserves. One survey found the typical small business (30%) has only about 6 months of cash runway, while just 6% have a full year, making cash shortages a real risk.

The same survey found that about half of businesses report overdue payments from customers, and roughly one in five has no emergency cash buffer at all. A financial controller tackles these risks by tightening credit control (chasing invoices promptly) and optimising working capital.

Nearly half (49.9%) of SMEs expect falling business volumes in 2025. A controller can respond by tightening budgets proactively, acting as an early warning system for change.

They prepare rolling cash flow forecasts to highlight any shortfalls well in advance, giving managers time to arrange bridging finance or cut discretionary spending. This vigilance can turn cash shortages into surpluses, giving the SME more stability.

Boosting Operational Efficiency

Controllers also look for operational efficiencies. They may automate billing and integrate sales and accounting systems to speed up cash collection. They also scrutinise expenses and review inventory to avoid tying up cash in excess stock.

In tighter markets, a controller might negotiate better terms with suppliers or arrange invoice financing proactively. These measures not only prevent cash crunches but also improve profitability.
The result is a leaner, more resilient operation.

Navigating Economic Uncertainty: Inflation, Policy and Risk

In addition to internal processes, controllers also help SMEs prepare for forces beyond their control. They incorporate official forecasts and market trends into their planning.

For example, UK forecasters predict about 1.0% GDP growth in 2025, with inflation rising to around 3–4% over the coming months before easing back toward target. A financial controller will stress-test the budget against such scenarios: what if energy or commodity prices spike, or demand falls? This foresight lets the business build contingencies (such as securing extra credit lines or delaying non-essential spending) and avoid last-minute panic.

Finally, controllers also track policy changes and market conditions that could affect the SME – for example, shifts in tax regulations, interest rates or currency fluctuations. By adjusting forecasts and advising management accordingly, they ensure the SME isn’t caught off-guard. In this way, they help future-proof the business, giving it resilience when economic conditions change.

Why Now Is the Right Time to Hire a Financial Controller

At Sanay, we act as a strategic partner to your leadership team, helping guide reporting, planning, cash flow, and response to change.

If you're planning to scale, survive uncertainty, or simply run tighter operations, bringing in a financial controller, whether in-house or external, could be the smartest move your business makes in 2025.

Get in touch to find out how we can support your goals.