What is the role of controller in a company?

Position Description

The controller position is accountable for the accounting operations of the company. This includes the production of periodic financial reports, maintenance of an adequate system of accounting records, and a comprehensive set of controls and budgets designed to mitigate risk. The controller is also responsible for enhancing the accuracy of the company's reported financial results, and ensuring that reported results comply with generally accepted accounting principles or international financial reporting standards.

The scope of the controller position is much larger in a small business, where the position is also responsible for cash management and risk management. In a larger company, these added responsibilities are shifted to the treasurer and chief financial officer, respectively.

A variation on the controller title is the comptroller, which generally implies a more senior position, and which is more commonly found in government and nonprofit entities.

Principal Controller Accountabilities

Management

1. Maintains and enforces a documented system of accounting policies and procedures

2. Manage outsourced functions

3. Oversee the operations of the accounting department, including the design of an organizational structure adequate for achieving the department's goals and objectives

4. Oversee the accounting operations of subsidiary corporations, especially their control systems, transaction-processing operations, and policies and procedures

Transactions

1. Ensure that accounts payable are paid in a timely manner

2. Ensure that all reasonable discounts are taken on accounts payable

3. Ensure that accounts receivable are collected promptly

4. Process payroll in a timely manner

5. Ensure that periodic bank reconciliations are completed

6. Ensure that required debt payments are made on a timely basis

7. Maintain the chart of accounts

8. Maintain an orderly accounting filing system

9. Maintain a system of controls over accounting transactions

Reporting

1. Issue timely and complete financial statements

2. Coordinate the preparation of the corporate annual report

3. Recommend benchmarks against which to measure the performance of company operations

4. Calculate and issue financial and operating metrics

5. Manage the production of the annual budget and forecasts

6. Calculate variances from the budget and report significant issues to management

7. Provide for a system of management cost reports

8. Provide financial analyses as needed, in particular for capital investments, pricing decisions, and contract negotiations

Compliance

1. Coordinate the provision of information to external auditors for the annual audit

2. Monitor debt levels and compliance with debt covenants

3. Comply with local, state, and federal government reporting requirements and tax filings

Additional Controller Accountabilities

1. If the company is publicly held, then add a requirement to be responsible for the filing of quarterly and annual reports with the Securities and Exchange Commission

2. If the company is a small one, then the controller likely assumes the responsibilities of the chief financial officer

Desired Controller Qualifications

The controller candidate should have a Bachelor's degree in accounting or business administration, or equivalent business experience and 10+ years of progressively responsible experience for a major company or division of a large corporation.  Preference will be given to candidates with the Certified Public Accountant or Certified Management Accountant designations.

Controller Working Conditions

Primarily in an office environment. Will be expected to travel as needed to company subsidiaries, as well as to potential acquirees to conduct due diligence. Periodic weekend or evening work is expected.

Controller Supervision

The controller supervises all accounting staff. In a larger organization, this means that the controller needs very strong management skills. As a manager, the controller will rarely be directly engaged in any accounting activities; instead he or she will oversee and review the work of others.

Controller Leadership, Accounting & Bookkeeping

Financial controller leadership can add significant value for a business by implementing and optimizing processes and providing recommendations to executives.

Financial jargon can make simple concepts difficult to navigate. In this “Does My Business Need…” series, we define common job titles to help you determine what financial service is best for your business. In this post, we’ll explore what a financial controller is, what value they can add for a business, and how a business can hire a highly skilled controller.

What is a financial controller? What does a controller do? 

Primarily, a financial controller is an executive who oversees the accounting functions of a business, ensuring that a company’s ledgers are accurate and adhere to financial regulations. Also known as a comptroller or accounting controller, they create and supervise the processes for recording a company’s finances. They also confirm that data is submitted correctly and on time. Financial controller services include:

• Accounting team management: Supervising the finance team and managing operations to ensure accurate and timely reporting 
• Inventory accounting: Monitoring, valuing and tracking inventory assets
• Revenue recognition: Creating and applying controls for monthly financial reporting to ensure compliance
• Establish formal financial procedures:  Spearheading development, implementation and optimization of processes such as data collection, budgeting and month-end close
• Month-end close: Enabling accurate reporting and analysis, and providing insights on the company’s financial position.

That said, a financial controller does not deal solely with the accounting team. A controller also serves as the liaison between a company’s finance team and senior management, as they regularly use complex financial data to offer strategic insights to internal stakeholders. Controllers are skilled communicators who can link company finances to overall business objectives and goals.

In many ways, a financial controller can have duties on par with that of a Chief Financial Officer (CFO). In small- to medium-sized businesses (SMBs) in particular, the controller and the CFO are often the same person. Some of the CFO-level roles a financial controller might take on include:

• Business budgeting and forecasting: Predicting a company’s future financial position based on trends in past financial data
• Software rollouts: Implementing procedures and ensuring accurate data migration for accounting functions using internal and external software
• Risk evaluation: Identifying and analyzing potential events that may negatively impact the financial position of a company
• Due diligence in mergers and acquisitions: Reviewing and investigating a potential deal or investment opportunity for the business

Simply put, the financial controller is a company leader who will implement the right accounting processes to ensure accurate books, optimize the effectiveness of a company’s accounting team, and provide financial analysis and recommendations to executives. 

Skills and expertise to look for

A good financial controller anticipates the information needs of management and provides timely financial data, analysis and recommendations. They absolutely must know the ins and outs of accounting best practices while maintaining technical acumen and strong communication skills. Let’s break these down further: 

• Expertise in accounting processes: A financial controller often has 10+ years of experience in an accounting/auditing firm in addition to an MBA or master’s degree in accounting. A controller is also usually a Certified Public Accountant (CPA) or Certified Management Accountant (CMA), meaning they have specific knowledge in financial planning and analysis, auditing and general accounting functions. 
• Technical skills: Artificial intelligence and machine learning models have made it possible to advance an accounting team’s functions beyond those offered by a simple Excel workbook. While controllers do not need to have in-depth knowledge of these complex programs, they do need to understand how to use them to maximize an accounting team’s efficiency.
• Leadership skills: A financial controller needs to motivate their accounting team and communicate with stakeholders at the most senior level of a business. They must know the accounting team’s functions and ledgers by heart and be able to succinctly translate this large amount of data into strategic insights to support the overall business.

When sourcing a full-time or part-time controller, be sure to look beyond someone with only technical accounting knowledge. You should also be searching for someone with the leadership mindset to improve your company’s financial functions. Some questions to ask a potential controller candidate include: 

1. What are some procedural improvements you’ve made to the accounting team in your previous roles?
2. How have you increased revenues/lowered expenses for previous companies you worked for?
3. How do you like to communicate financial results to key stakeholders?
4. What approach would you take to leading and motivating a team?

At Paro, we provide businesses with highly vetted financial controllers who are best suited to tackle your specific challenges and opportunities. Our experts average 15 years of experience, and many have worked for the Big Four, so you can have confidence you will only be matched with financial controllers who have the expertise and leadership you need for your business. 

When to hire a controller for your business

Many SMBs initially choose to save money by maintaining a hands-on approach to managing their own finances. However, as the business grows and accounting needs become more complex, it often becomes necessary to hire a financial controller to manage the ledgers and ensure full compliance. If your business is experiencing any of the following, it’s time to consider hiring a controller:

• The business is growing rapidly, and leadership is uncertain of the financial effect of certain business decisions like buying a new facility, exploring a new revenue stream, etc.
• The business is lacking accurate and timely information on the financial condition of the company, often struggling to meet month close deadlines
• The company’s accounting team is quickly growing but lacks oversight/management
• Leadership should be focusing on business development but is instead spending its time on basic accounting
• Leadership needs assurance that they are in full compliance with state, local and federal tax regulations
• The business has large amounts of inventory and receivables that need to be managed with both an accounts payable and accounts receivable manager, respectively

These are just a few examples of situations in which a business could benefit from the leadership of a financial controller. The controller’s role can differ based on the needs of each company. When you outsource with Paro, you can define the role to your company expectations and gain a leader who will provide the financial expertise needed to help your business grow. Outsourcing with Paro can also save money on recruiting, overhead and other costs.

Where to find an expert outsourced controller

At Paro, we leverage our proprietary AI technology to build flexible, focused teams of remote experts that help companies solve problems and drive growth. Our laser focus on finance allows us to quickly identify experts across the U.S. with the right mix of skills, credentials, and experience to achieve each company’s specific  goals. Request a consultation and get one step closer to gaining the financial controller leadership you need.

Check out the other articles in our “Does My Business Need…” series:

• Does my business need a bookkeeper?
• Does my business need an accountant?
• Does my business need a financial analyst?

What is the role of the controller in a business organization?

What is a controller job position?

Is a controller higher than a manager?

Which is a good role description of the controller?