What Is a Controller?

A financial controller is responsible for all of a company's accounting-related activities, including oversight of its operating budget, financial reporting systems, and payroll.

The duties of a controller include assisting with the preparation of the company's operating budget, overseeing the preparation of its financial reports, and managing its payroll system.

The controller's work is focused on the collection, analysis, and consolidation of financial data. Although the controller doesn't directly manage the budget, the job includes monitoring any variances, summarizing spending trends, and investigating budget deficiencies.

Understanding Financial Controllers

Controller functions vary widely depending on t🐽he size and complexity of the business and the industry.

Smaller companies demand more versatility of the controller, while larger companies might disperse job responsibilities among the contဣroller, the chief financial officer, and the t💙reasurer.

Financial controllers are usually responsible for ensuring that financial transactions are reported accurately. This may range across all finance departments including accounts payable, purchasing, vendor management, treasury, financial reporting, and financial plan꧑ning.

The controller of an organization may have sever🐭al accounting managers as direct reports and may be involved in recruiting, selecting, and training the people that hold those positions.

Roles of Financial Controllers

A joint publication by the Institute of Management Accountants and Deloitte Development LLC outlined the four primary roles a controller takes on. These four roles include:

1. Steward. Controllers manage risk and preserve assets. This includes ensuring that 澳洲幸运5开奖号码历史查询:internal controls have been implemented and that internal processes are being followed. The controller often has to collaborate with external auditors to ensure financial reporting compliance.
2. Operator. Controllers oversee the day-to-day financial operations from a high level. This includes ensuring the performance of processes for vendor set-up, invoice processing, payroll, record-keeping, and purchasing functions.
3. Strategist. Controllers have a role in the direction of the company. For example, the controller would provide feedback on 澳洲幸运5开奖号码历史查询:accounting software implementation plans.
4. Catalyst. Controllers ensure that financial processes are executed properly. They make sure that external reporting or filing deadlines are met and that changes imposed by external regulatory agencies are made. This may be related to tax statement distributions or audited external financial statements.

Duties of Financial Controllers

The role of the controllerꩲ is di🐻fferent in every company. For many, the controller will take on at least some of the following tasks:

• Manage cash flow. This includes forecasting cash flow needs, planning for foreign currency needs in advance, and alerting upper management for cash flow deficiencies.
• Act as audit liaison. Meeting with external audit staff, being receptive to audit findings, implementing reporting changes, and communicating to upper management or the board of directors the outcomes of the audit.
• Monitor internal controls. Gathering feedback from audit personnel, working with managers on designing proper control processes, and gathering data on the effectiveness of the internal control.
• Approve invoices. Acting as a control for large purchases.
• Assist in budget preparation. Distributing internal data and information on historical spending.
• Minimize financial risk. Monitoring current processes, understanding company weaknesses, engaging employees with training, and openly communicating areas of opportunity to better safeguard assets.
• Ensure financial compliance. Understanding external reporting requirements, ensuring proper resources are on hand to meet those requirements, and overseeing the final product being delivered to external parties.
• Compile financial reporting. Keeping updated on recent changes to financial reporting practices, overseeing a staff that directly contributes to the financial statement preparation process, and sometimes certifying that the financial statements have been accurately prepared.
• Identify cost savings. Understanding where operational efficiencies lie, how staff can be best utilized, what reporting functions are being duplicated, and what resources the finance department really needs.
• Mentor financial staff. Involving director reports in higher-level discussions.
  

Skillset of Financial Controllers

To become a financial controller, fina🦄nce professionals must often have achieved proficiency in three aspects of their career: education, experience, and licensure.

Becoming a financial controller almost always requires at least a bachelor's degree in accounting, finance, business administration, or a similar field. A master's degree is preferred or required.

Most financial professionals must obtain at least five to ten years of professional experience to be considered for a controller role. A large public corporation will seek 20+ years of experience in a related industry. Some companies require that a controller candidate have public accounting experience.

There is no industry-wide requirement that a controller be licensed as a certified public accountant (CPA), 澳洲幸运5开奖号码历史查询:certified management accountant (CMA), or 澳洲幸运5开奖号码历史查询:chartered financial analyst (CFA) but some companies may prefer or require at least a CཧPA license.

Career Path of Controllers

Many controllers get their start in the accounting field, often in 澳洲幸运5开奖号码历史查询:public accounting. Those most serious about achieving controller roles should go for Big Four positions and earn escalating responsibi༺lities oꦉver several years.

After moving to the corporate sector, a controller may continue to develop skills as an accountant booking transactions or ♑a manager overseeing the operations of a specific finance department. This includes developing gaps related to receivables reporting, payroll, quarterly financial reporting, or internal controls.

Controllers often transition into the role of assistant controller before making the jump to a full controller role🍬. An assistant controller is simply a more junior position that may perform many of the same tasks as a controller.

Accounting vs. Controlling

A controller is engrained in a company's financial accounting process. However, the controller may not directly perform accounting tasks, and there is a difference between accounting and controlling.

In financial management, controlling is the act of ensuring data is recorded accurately and on time. This is a broader fu﷽nction of accounting, as the controlling function may go behind recording transactions.

For example, a controller may oversee the accounts payable department responsible for 澳洲幸运5开奖号码历史查询:1099 reporting. Though this process is unrelated to internal accou🦩nting transactions, the controller may be a stakehoꦛlder in the process and give feedback on process improvement implementations.

An accounts payable clerk is responsible for the accounting of liabilities tied to invoices, whereas ⛎a controller may be more concerned with the overall accuracy and timeliness in which invoices are being processed and payments remitted.

Controller vs. Other Financial Roles

De♔pending on the size and organizational layout of a company, the controller may hol🐈d more than one title or be responsible for multiple aspects of finance. In general, especially for larger companies, there are differences between controllers and other high-ranking financial positions.

Controller vs. Chief Financial Officer (CFO)

Although both the controller and CFO of a company are leaders in finance, they are often two separate position🌄s responsible for different tasks. A controller is more likely to be entangled in general ledgers, trial balances, and financial reports being delivered to more senior management. Meanwhile, a CFO utilizes🐈 these reports to focus on more broad, big-picture company positioning.

In general, CFOs often take a greater presence in external-facing tasks🔜 including mergers, acquisition⛄s, or involvement with investors. Meanwhile, financial controllers own more of the internal reporting process including implementing internal controls, managing the month-end close schedule, and ensuring financial accuracy.

Controller vs. Vice President of Finance

In many situations, a company's vice president of finance mimics the traditional role of CFO. A vice president is often tasked with the highest level of financial and accounting oversight, while a controller's role is limited to the financial preparation and management of the financial reporting process.

In companies with both a controller and vice president of finance, the controller would most likely report directly t🧜💎o the vice president.

Controller vs. FP&A Director

ꦕ Financial controllers are in charge of the🦋 past. They review historical transactions and ensure reporting is done correctly.

These reports may then be delivered to a financial planning and analysis (FP&A) leader. This FP&A director relies on their team to build budgets, 澳洲幸运5开奖号码历史查询:forecasts, and long-🍨term plans based on the future of the company.

A controller's role is heavily (if not exclusively) rooted in dealing with actual transactions. Overseeing both revenue and expense reporting, a controller often does not deal in theory.

Meanwhile, an FP&A director leverages historical data to devise plans that may or may not materialize. These plans may rotate quarterly if the company decides to revise any projections.

Controller vs. Comptroller

A variation of the controller position is called a comptroller. A comptroller is typically a more senior position💫 that is more commonly found in government or nonprofit organizations. A controller and comptroller have similar roles in different industries.

The Bottom Line

A financial controller is a higher-level finance officer who is responsible for the fi✨nancial reporting process. Not quite an executive-level position at most companies, a controller oversees many of t🎐he processes that come together to deliver financial statements.

A controller also works with the external audit team, assists internal managers will budget preparation, and identifies areas of opportunity to mitigat⛎e𓆏 risk and employ cost savings.