Controlling Without Overhead: A Pragmatic System for SMEs (30–200 Employees)
Key Takeaways
- Controlling in SMEs must be simple enough to actually be used.
- Budget, forecast, and actual-vs-plan comparison form the minimum system.
- Cost centres create transparency – but only if they're sensibly structured.
- The CFO builds the system; the organisation must live it.
Controlling doesn't have a great reputation in many SMEs. It's associated with bureaucracy, spreadsheet monsters, and reporting nobody reads. And indeed: when controlling becomes an end in itself, it delivers little.
But without any form of controlling, an SME navigates blind. The art lies in creating a system that's lean enough to be lived – and precise enough to enable genuine steering.
What Controlling Must Deliver in an SME
Controlling has three core tasks in an SME:
- Create transparency: Where do we earn money, where do we lose?
- Identify variances: Are we on track? If not, why?
- Support decisions: Which investment pays off? Which customer do we want? Where do we optimise?
Anything beyond is nice-to-have – and should only be introduced once the base system is established and functioning.
The Minimum System: Budget, Forecast, Actual-vs-Plan
Budget
An annual budget broken down by month. Not as micro-planning but as a reference frame: where do we want to go? The budget is created once a year (October/November for the following year) and then not changed – it remains the benchmark.
Forecast
The rolling forecast updates the expectation: where do we actually stand? A good forecast is adjusted monthly or quarterly and looks at least 6 months ahead. It doesn't replace the budget – it supplements it with reality.
Actual-vs-Plan Comparison
Monthly: where do we deviate from budget? Why? What do we do? The actual-vs-plan comparison is the central steering instrument. Without it, the budget is useless.
Cost Centres: As Much as Necessary, As Little as Possible
Cost centres create transparency about where costs arise. But too many create complexity without added value.
Rule of thumb for SMEs:
- 5–15 cost centres suffice for most companies
- Orientation along organisational structure (departments, business units)
- Optional: projects as separate cost objects
- Each cost centre needs a responsible person
Mini-example: a services SME in Udligenswil with 60 employees works with 8 cost centres: MD/Admin, Sales, Production, IT, HR, Marketing, Projects (as a collective cost centre), and Overhead. That's enough to understand profitability by area.
Tools and Technology
Controlling tools for SMEs must be pragmatic:
- Level 1 (entry): Excel/Google Sheets with clear structure. Works for companies up to ~50 employees or CHF 10m revenue.
- Level 2 (growth): ERP-integrated controlling (Abacus, Bexio Pro, etc.) or BI tools like Power BI for automated reporting.
- Level 3 (professionalisation): Dedicated planning tools (e.g. LucaNet, Jedox) for more complex forecasts and consolidation.
Important: the tool is secondary. What matters is the methodology and the discipline to use it consistently.
The Biggest Controlling Pitfalls in SMEs
- Perfectionism: The system becomes so complex it's never finished or nobody understands it.
- No consequences: Variances are noted but nothing happens.
- One-off exercise: Budget is created, then never looked at again.
- Controlling without accountability: Numbers are delivered but nobody feels responsible.
- Ignoring data quality: Garbage in, garbage out – if bookkeeping isn't right, the best controlling is worthless.
The CFO's Role in Controlling
The CFO builds the controlling system and ensures it functions. This includes:
- Defining KPIs and report structure
- Building the budget and forecast process
- Commenting and contextualising variances
- Coaching cost centre managers
- Evolving the system as complexity grows
At SOKURA, we regularly see: the biggest lever is not the tool but the person who brings the system to life.
Quick Check
- Do you have an annual budget broken down by month?
- Is an actual-vs-plan comparison produced and discussed monthly?
- Is there a rolling forecast?
- Are your cost centres sensibly structured with assigned owners?
- Are concrete measures derived from variances?
- Is the data quality from bookkeeping reliable and timely?
Frequently Asked Questions
From when does an SME need a controlling system?
How long does it take to build a controlling system?
Do I need to buy an expensive tool?
Who runs controlling in an SME?
How many cost centres does an SME need?
What's the difference between budget and forecast?
Next Step
Want to build a pragmatic controlling system or improve your existing one? We help you – from conception through to implementation.