Fractional controller services · what we do
How Ledger Summit delivers this engagement
Each engagement runs the same Ledger Summit transition model: discover the current workflow, prove value with a controlled pilot, design controls and evidence packs, integrate with your stack, and stand up managed support so the gains compound.
The difference: AI-enabled, not just fractional
Most fractional controllers do the same work an in-house controller would do, just part-time. We do it differently. Tool Box AI handles the production layer — reconciliations, status checks, exception detection, evidence pack assembly — so the controller's hours go to judgment, review, and the conversations that move the business.
Net result: roughly 2x the controller output per dollar versus a traditional fractional engagement, with a real audit trail. The model fits companies in the $5–75M revenue band who need controller-level work — close discipline, control posture, board reporting, audit support — but where a full-time controller hire is premature.
What your fractional controller owns
- Monthly close cadence and sign-off
- Reconciliation review and exception resolution
- Journal entry review and approval
- Variance and flux analysis with commentary
- Management reporting and board pack
- Lender reporting and covenant compliance
- Audit prep and PBC list management
- AP/AR policy, controls, and approval workflows
- Tax-ready books and year-end close
- Hiring/managing junior accounting staff (if applicable)
- Accounting policy decisions (revenue, lease, impairment, going-concern)
- Significant estimate review and external auditor relationship
Engagement types — where fractional fits
| Engagement type | Typical situation | Tier |
|---|
| Steady-state controller | $10–50M company without a full-time controller, needs ongoing leadership | Core |
| Leave coverage | FT controller on parental / medical leave for 3–6 months | Light or Core |
| Hiring runway | FT controller search underway, need coverage 3–9 months | Core |
| Stand-up / first hire | Founder-led $3–15M company, no senior accounting in seat | Light or Core |
| M&A integration | Acquisition closed; opening balances, system integration, post-close cleanup | Lead (project-scoped) |
| IPO readiness | 2–4 quarters before IPO; SOX 404 prep, audit-readiness, public-company posture | Lead |
| Audit remediation | Material findings or going-concern; need rapid stabilization | Lead |
| Restructuring / wind-down | Operating restructuring, division divestiture, or asset sale | Project-scoped |
| Crisis coverage | FT controller departed; need immediate continuity | Lead, transitioning to Core |
Engagement tiers
| Tier | Hours / month | Best for |
|---|
| Light | 20–30 | $5–15M revenue, single entity, established team |
| Core | 40–60 | $15–35M revenue, 2–3 entities, ramping team |
| Lead | 80–100 | $35–75M revenue, multi-entity, hiring/transition |
Fixed monthly fee, no hourly billing. Includes Tool Box AI infrastructure. Pair with managed close-as-a-service if you also want us to run the production layer.
Industry expertise our controllers bring
Our controllers come from specific industry backgrounds. Matching expertise to your business shape matters more than generalist availability.
| Industry | Domain expertise |
|---|
| SaaS / subscription | ASC 606, deferred revenue waterfalls, ARR/MRR analytics, cohort analysis, churn accounting |
| Professional services | Project accounting, time-and-billing, unbilled WIP, services revenue recognition |
| Multi-entity holdco / PE portco | Intercompany matching, FX revaluation, consolidation, debt covenant compliance |
| Light manufacturing / distribution | Inventory cost-flow, WIP, std-cost variance, BOM, COGS automation |
| Ecommerce | Multi-channel reconciliation, sales-tax (Avalara), 3PL accounting, gross-vs-net |
| Healthcare services | Payer-mix tracking, contractual allowance accruals, HIPAA-aware controls |
| GovCon / federal services | Indirect rates, DCAA evidence, ICE submission, FAR Part 31 compliance |
| Real estate / construction | Job cost, WIP, percentage-of-completion, AIA billing, retainage |
What week one looks like
| Day | Deliverable |
|---|
| Day 1 | Kickoff, current-state review, controls inventory, blockers list |
| Day 2–3 | 30/60/90-day plan; close calendar; risk register |
| Day 4–5 | Stakeholder one-on-ones (CEO, CFO if any, AP, AR, FP&A) |
| End of week 1 | Written engagement plan, KPIs, communication cadence agreed |
30/60/90-day plan template
Every engagement has a customized version of this plan delivered in week 1. The pattern repeats; the specifics differ by company.
- Days 1–30: Stabilize. Take ownership of close cycle, identify and resolve top 3 blockers, refresh policy memos that are out of date, run first close on existing process.
- Days 31–60: Standardize. Implement close calendar, deploy reconciliation discipline, build evidence-pack templates, surface and resolve control gaps, refresh management reporting.
- Days 61–90: Optimize. Reduce close cycle time by 30–50%, automate recurring entries, deploy KPI dashboards, prep for upcoming audit/refinance/board cadence, document SOPs.
- Days 91+: Compound. Continuous optimization, special-project support (M&A, audit, refinance, M&A), team development if managing staff.
When fractional works (and when to hire full-time)
We're transparent about this. Fractional makes sense when the work is real but the hours don't yet justify a full-time hire — typically $5–50M revenue or specific transitions (M&A, IPO, leave coverage). Above that, you usually want full-time leadership and we'll help you transition off.
When fractional fits — and when it doesn't
| Strong fit | Not a fit |
|---|
| $5–50M revenue with no FT controller | Above $75M with material complexity (FT hire is right) |
| Specific transition (M&A, leave, IPO prep) | Crisis requires daily on-site presence |
| Founder-led, accounting talent stretched thin | Industry requires daily floor-level engagement (manufacturing supervision) |
| Hiring runway 3–9 months for FT | Hire-from-within plan that just needs mentorship |
| Need controller-level expertise on specific accounting questions | Mostly bookkeeping work — a senior accountant or CAS firm is more cost-effective |
| Audit, refinance, board, or compliance pressure | Pure operational reporting with no compliance angle |
Hiring runway and handoff to full-time
About half our engagements include "hire your full-time controller" as a deliverable. We've helped many companies through that transition; the pattern works because we're documenting everything as we go.
- Months 1–3: Run controller function, stabilize, document everything as we go
- Months 4–6: Active full-time search, screen candidates, optionally interview alongside CEO/CFO
- Month of hire: Onboarding plan, system access, stakeholder introductions, written playbooks
- 30–60 days post-hire: Structured handoff — pair on close, review SOPs, attend reviews together
- Optional retainer: Light advisory for 90 days post-handoff if the new controller wants backup
Frequently asked questions
How fast can a fractional controller start?
Most engagements start within 5 business days of the scoping call. We pre-screen our controllers; you don't go through a 90-day search.
What's the AI part actually doing?
Tool Box AI runs the production layer that traditionally eats 60–70% of a controller's time: reconciliations, status checks, exception detection, evidence pack assembly, recurring JEs, dashboards. The controller reviews and approves; the AI does the prep work.
What if our team doesn't want to use AI tools?
That's fine. We use Tool Box AI on our side; your team interacts with the controller normally. Most teams come around once they see the close speed and audit-ready evidence.
Can the fractional controller manage my AP/AR staff?
Yes, as part of Core or Lead tiers. They'll set policy, review work, run one-on-ones, and step in on hiring. Light tier is more advisory.
How do you handle a transition to full-time?
We document everything as we go and run a structured handoff (typically 30–60 days) when you hire full-time. No lock-in. Many of our clients hire their fractional controller into the role.
How does this compare to a traditional fractional CFO?
A fractional CFO focuses on strategic finance, fundraising, board, and FP&A. A fractional controller focuses on accounting operations, controls, audit-readiness, and the close. Many companies have both — different roles, different deliverables.
Can the fractional controller represent us to auditors?
Yes — they sign management representations, walk auditors through evidence, and respond to audit inquiries. They function as your controller for all audit purposes during the engagement.
What's your fee model?
Fixed monthly fee at each tier. No hourly billing, no surprise invoices. Quoted after a 30-minute scoping call.
What if our company is in distress (going-concern, bankruptcy)?
We handle going-concern assessments, restructuring accounting, and bankruptcy-adjacent work. These engagements are scoped separately because they require deep daily engagement and specialized accounting (e.g. ASC 852 reorganization accounting).
Do you provide tax services?
No — we coordinate with your tax provider for provision, returns, and tax-strategy work. We can recommend providers if you don't have one.
What about CFO services?
We don't typically take fractional CFO engagements — fundraising, M&A advisory, and treasury are different disciplines. We can recommend fractional CFO firms we work well with.
Related Ledger Summit work