Are you having any interest in pursuing a career as a financial controller? Then you should read this to the end. The financial controller is the chief accounting executive of a company. A financial controller’s responsibilities vary greatly and it may solely depend on the size of the establishment. Other factors of its variability depend on the difficulty of accounting and financial actions and the number of employees in the accounting department. The controller’s major role is to provide financial management and is helpful in making accounting plans. A financial controller’s role, particularly in smaller firms, comprises broad idealistic responsibilities as well as direct management of financial affairs.
Roles of a financial controller
Controllers can either partnership with or directly under an establishment’s chief financial officer, helping in giving vital financial information with an eye on future activities. While the normal duties of an accountant are to present historical information constantly, the duties of a controller are to expect and mark out coming issues. In theory, a financial controller helps to structure cost regulation and rationalise capital decisions by blending the firm’s present strength with the market actuality. The main idea is to appreciate financial goals and make them attainable.
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Primary functions of a financial controller
All financial controller performs two main functions, although sit is normal for companies to require more than two functions or even less than. The financial controller is in charge of managing the finalizing of internal audits while focusing on potential errors and frauds. The second most important function of a financial controller is to execute improved strategies of the finance department’s activities. The controller takes control of financial accounts, be it annual, monthly and quarterly accounts. They should oversee payables, receivables and at some point perform interdepartmental communication. Other roles performed by the controller may include.
Accounting Oversight
A controller is in charge of making sure that all accounting distributions are properly made and accounted for. In smaller firms, the financial controller also performs cash managing roles and oversees accounts payable, receivable, disbursing of cash, payroll and bank settlement functions. It is imperative that every company should have a separation of responsibilities with respect to accounting jobs to assure accurate checks and balances in the system. For example, if a financial controller is in charge for organising cash distributions, he/she shouldn’t be a signatory on the account; the owner, the CEO or CFO should be responsible for signing the checks.
Internal Controls
A controller is also in control for starting and implementing internal controls over the establishment’s accounting and financial actions. This includes studying and approving all statements. In smaller firms, the controller will frequently take charge of collections on invoices, particularly the ones that overdue for over a month. A controller is also accountable for organising and keeping company records and making them available for examination.
Financial Planning and Reporting
Financial controllers in small firms are in charge of all banking and finance actions. These may include reviewing and studying all financial contracts. They also negotiate several lines of credit agreements. The financial controller is also liable for providing precise and accurate financial data to the executives for long-term financial planning. In firms that cannot afford the services of a chief executive officer, the financial controller will have to step in and fulfil these responsibilities as well. The controller must also be able to provide quick and important decisions, provide important financial information and work with the executives to organise all financial decisions within the business. The financial controller performs reporting duties like preparing financial statements, draw up balance sheets, give cash flow reports, create budgets.
Financial Analysis
Apart from the role of a financial reporter, the financial controller will have to carry out financial analysis and offer professional opinions and advice. This implies that a financial controller must be skilled in spreadsheet design even though it’s a lot complex, it shouldn’t be a problem for a controller. Unlike the chief financial officer that is responsible for concluding financial policies, the financial controller is responsible for assisting in assessing risks, analysing the efficiency and also carry out the policy decision made by the executives.
Skills a financial controller should have
Financial controllers consider themselves to be analytical, reliable an also capable at mediation. According to the global chartered controller institute, which presented a study on the skills set of a financial controller, gave the main skills expected of a financial controller and these includes.
Qualifications
This is an analytical role that would require a firm grasp of accounting and finance knowledge. Successful controllers refined their technical skills throughout years of comprehensive accounting and auditing work. A huge part of any financial controller’s roles is to present the company’s budget with actual outcomes to the company’s executives and also explain the features and the processes work. The controller’s job also needs a level of leadership skill because they are considered as part of the company’s leadership team. They need to develop some degree of skills in organising, mentorship, and gaining respect from your team. As a student who is interested in this career path, you should consider a course in finance and accounting, business leaders as well as behavioural studies. Most vacancies for the position requires a master degree in business administration.
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Assistant Controller
It is common for an established controller to start off as an assistant, in fact, it is advisable to get a level of mentorship before taking up the position. Most assistant controllers originate from auditing backgrounds, and most of them already have their CPA certifications. An assistant controller who is interested in a career development should add a graduate degree in business administration to his or her resume. Some firms prefer experience and success rate when looking for a financial controller. Apart from accounting knowledge, most assistant controllers need to have skills and knowledge of financial software. In addition to this, the best way to get hired in the position of an assistant financial controller is to understand the company and study the industry carefully.
Salary
The salary for a financial controller is based on years of experience. A new financial controller will earn less than a financial manager with more than 5 years on his belt. A financial controller with less than five years of experience will earn about $66,000 including other compensations and benefits like health and over time. A financial controller with midlevel experience that’s about 5 to 10 years of experience will earn about $79,000 per annual including benefits while for a high-level financial official that has working experience of more than 20 years will expect an annual average salary of about $85,000.
Career path
Nobody starts as a controller straight out of college, and it can take years of devoted work to earn the title of a controller. The standard path involves four years of undergraduate school which is normal, particularly a course in finance or accounting, followed by an MBA, as well as years of working experience. You can start as a government auditor and if possible a senior-level accounting job. In all, the road to controllership is long and hard and it takes up to 15years to unlock controller status.
Job outlook
Financial Control is a nice and actually rewarding career path for auditors and accounting students. Controllers examine and develop financial data, different from the average accountants by their modern and innovative approach. Well, accountants only analyse historical information. A financial controller’s job is exceptional, but there are general skills and qualifications that an aspiring financial controller must possess in their arsenal which has already been discussed earlier.
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