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What Is A Controller In Finance?
At some point, all businesses face the daunting task of financial management. For some, financial planning, bookkeeping, and reporting come easily. For others, juggling finances can be a stressful challenge.
Financial controllers play a key role in the success of many businesses. If you’ve ever wondered what a financial controller’s responsibilities are and how they might benefit your business, we have the answers you’re looking for. Let’s take a glance at what the financial controller of a company might do in a day’s work and if one is the answer for your small business’s money matters.
what is a financial controller?
A financial controller is a senior-level person responsible for managing a company’s books and records. They often take on the role of a bookkeeper with additional responsibilities, including financial planning, strategizing, and reviewing the reports. Many financial controllers also have other valuable skills, such as project management, analytical expertise, and compliance functions. Their ultimate goal is to ensure that the company is financially sound by providing financial oversight and management.
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What does a financial controller do?
While a financial controller may not have as many duties as a chief financial officer, a financial controller may still provide extensive accounting services for small businesses. Here are four common financial controller responsibilities:
1.Recordkeeping
One of the daily tasks of a financial controller is bookkeeping. Bookkeeping is an essential process of recording transactions that a business takes. If the company controller is also taking on the responsibilities of a bookkeeper, they will ensure that they keep accurate records of receipts and expenditures. These records will come in handy in the future; They will be used during tax season and working with investors.
A financial controller must also have a good eye because they are responsible for seeing any ledger discrepancies. They will review the accounts payable and accounts receivable to ensure that payments are completed on time and all transactions are accounted for. Their primary role is to guarantee that a company’s records are accurate and consistent before reporting their findings to the chief financial officer or CEO.
2. Budgeting
Many controllers are in charge of financial forecasting and budgeting. One critical task of a financial controller is to assess a company’s financial standing and make informed financial decisions for the benefit of the company. In addition, a controller can use financial forecasting to review a company’s financial history to estimate its future performance. This skill is valuable to determine what CEOs and shareholders can anticipate in a company’s future.
After evaluating the company’s financial history, they can use this knowledge to allocate its budget for the upcoming fiscal year. A controller will budget to reach quarterly goals and scale financial growth, all while factoring in new expenses that may appear, such as new employees, software, and equipment.
3. Reporting
One of the consequential jobs of a financial controller is to review and approve financial reports. Financial reports provide critical information regarding the company’s financial state over the past year to the CEO and shareholders. These reports include cash flow statements and balance sheets that will ultimately guide decision-making as the business move forward. When they present these reports to the CEO, the financial controller also has the expertise to make educated recommendations and answer questions that arise.
These responsibilities also include reporting a company’s financial statements to the government. A company controller will file a business’s annual and quarterly taxes accurately and punctually to the International Revenue Service. If your business collects sales tax, they will also report this to the IRS as needed.
4. Managing
The job of a financial controller differs from other financial jobs, such as that of an accountant or bookkeeper, by having a more prominent management role. It is common to find company controllers in larger corporations overseeing the tasks of several other department employees. They may head large financial projects and are often the endmost reviewer of financial statements.
Controllers diligently ensure compliance with the company’s policies and legal regulations. For example, if there are several bookkeepers at the company, they will report their records to the controller. In return, the controller will ensure that employees perform all financial efforts within the company’s policies. They may even train employees to work within these guidelines so the entire team works efficiently.
In addition, they will ensure that all accounting procedures, such as filing taxes, are done according to state and federal laws. Ultimately, financial controllers act as the last set of eyes for documents to be sent to executive-level employees.
What businesses need a financial controller?
A financial controller is an excellent investment into your business regardless of size. They can handle rudimentary accounting matters such as bookkeeping and more significant finance and project management responsibilities. Depending on your company’s size, your financial controller may take on different responsibilities.
Hiring a financial controller is a great way to complete your bookkeeping and accounting if you’re a small business owner. A controller is a wealth of knowledge who can answer your questions and guide you through making challenging financial decisions. They can handle daily payroll processing, recording transactions, and reviewing financial statements. As your business grows, they can assist you with larger tasks, such as delivering financial reports to investors.
Financial controllers also play a critical role in larger businesses. For example, the financial controller of a company will effectively manage the team and provide clear instructions if your company has several professionals within your financial department. They will also cross-check all documents and progress by your financial team to ensure they are high quality and ready to be sent to executives.
Stop juggling your finances! Let a certified controller do everything for you.
Virtual Financial Officer provides small businesses like yours with comprehensive financial reporting services that keep your cash flow management seamless. If you’re sick of number crunching, you can account on us! Don’t hesitate to contact us at support@vfo.co to receive a FREE consultation and get on top of your money matters today.