The information for what is a financial controller? The role & keys to effectiveness in a company’s success
To start a successful business venture, a great deal of work has to be coordinated. Due to the immense amount of finance involved in running a business, a perfect employee has to be in charge of the cash flow in the company. This person should possess complete knowledge of finance and its sources. In short, he should have a good idea about accounting. This particular person or employee is the designated lead accountant off the company also known as the “financial controller”. They supervise the company’s cash flow that comes in and out of the business. What is a financial controller? The answer may be simply that he is the main accountant of the company but the job is of extreme responsibility. The ledger of the company should be the mirror of the company’s cash dealings and the financial controller is the key person to keep the ledger accurate.
So the question of what is financial controller? The role & keys to effectiveness can be better explained by going through the following steps:
The financial controller’s job description
As said earlier the financial controller is the main key to key to keeping the ledger accurate, his job is
- to manage all the finance and accounting operations of the business
- to coordinate and direct the company’s budget
- estimate the future financial outcomes of the business
- report any variances
- Prepare and publish financial statements of the company.
These are the main subjects that a financial controller or comptroller has to supervise. But it doesn’t end here; there are several other duties of the lead accountant:
The other responsibilities of a financial controller
- Manage all accounting activities like billing, cost accounting, inventory accounting, and revenue recognition
- The regulatory report has to be coordinated and prepared
- Technical accounting issues have to be researched
- The closure of the month-end and year-end has to be supported
- Financial transactions and financial reporting quality has to be ensured
- Management of tax filings, in compliance with the local, state, and federal government laws. Other than all of these what is financial controller? The role & keys to effectiveness are further explained below:
Controlling vs. accounting
- The job of an accountant is not of the glamorous kind; he just keeps and analyzes the financial records. Most of the financial controllers have started their careers as accountants. The accountant’s job is highly paid but of low stress and has the opportunity to move up in levels
- The financial controller’s job goes beyond that of an accountant. The comptroller supervises the accounting operations of the business and manages the staff of the company, and has a lot of other key responsibilities. Because their job is more than that of an accountant their salaries are also way higher up.
- The educational qualification of a controller is the same as an accountant but usually, the financial controller has advanced degrees like an MBA and years of experience in the financial sector.
In short, the financial controller is the chief accounting officer of a company and is one of the important members of the executive staff and has a very important role in organizing and controlling the companies accounting staff. What is financial controller? The role & keys to effectiveness can be studied in detail by the following points:
The qualities of a good financial controller
A company needs an expert who can deal with the growth of upcoming business. He needs to have complete control over all the financial dealings of the company and also has the right knowledge about the tax laws. In other words, a financial controller is the most important employee of a growing business. When a company hires a comptroller they look for certain qualities in him/her. Because the person has to take up the critical job of all the financial matters of the company and manage all the accounting personnel. Below are the qualities that a company looks for in a financial controller;
- The person has to have a perfect understanding of numbers and has to possess the knowledge of all that happens in an accounting department that includes cash received, cash paid, the payroll of the staff, and other employees.
- The financial controller has to perfectly do the above job and should also possess the quality of answering tough questions and manages others in the financial department.
- The company should be able to depend on the financial controller for making tough decisions regarding business finance.
Other than the above qualities, the question of what is financial controller? The role & keys to effectiveness are answered with the other qualities of a financial controller:
The other qualities that can make a financial controller stand out
- The comptroller needs to have a keen eye for details and should possess the ability to explain to them when asked. He/she should be very organized because the financial controller has to deal with several accounting details that are tracked on complicated spreadsheets, and if organizing is not in the candidate’s quality, then he cannot become a successful financial controller.
- He should be able to relay difficult information to the top management easily and understandably. The financial controller needs to be able to analyze the financial market and be able to give his expert opinion on financial topics to top management.
- With a high-stress job, the financial controller should have a pleasing personality and should be able to get along with his coworkers. Apart from being focused on the technical skills of finance, he should also possess the qualities of negotiating with his coworkers and solve conflicts.
In short hiring, a financial controller is a big step because he is the person in charge of the company’s entire financial dealings. What is financial controller? The role & keys to effectiveness can be studied deeper by looking into the following details:
The role, responsibility, and goal of a financial controller
The company’s lead accountant has to go through the company’s financial procedures as well as manage the accounting staff. The comptroller plays a critical role in the upliftment of the company. He has to be the bookkeeper of the company and has additional responsibilities of:
- Management of information technologies
- He has to deal with the insurance of the company
- Sales tax has to be dealt with
- Federal income tax reporting
- CPA audits outside the company
All these have to be dealt with by a financial controller. The responsibilities of a financial controller also include:
- The oversight of the general accounting business in the company
- Creating policies and spend controls internally
- Coordination of external tax accountants
- Banking procedures like creating bank accounts
- Keeping an eye on and ensuring payments are received from the customers and debtors
In some cases what is financial controller? The role & keys to effectiveness can vary according to the size of the business. In other words, in a smaller business, the financial controller can be the chief financial officer or CFO and the financial head of the company. They have to create financial reports, create budgets, and plan the company spending. So in short the role of a financial controller varies according to the size of the business.
Features of an effective controller
A person who knows the technical details of financing cannot always be a successful finance controller; he needs to possess certain qualities to be successful.
- He should be able to automate the entire process
Even with the computers in the picture lots of financial data had to be done manually, and in case of error, these have to be re-entered again. A good financial controller needs to know the technical know-how of the entire process and should be able to handle it with the computer alone without a human touch. And with the help of the system, the process can be error-free.
- He should be a good communicator
The biggest quality in a financial controller is clear communication. He should have the flair of perfect communication with others and should be able to negotiate having the capacity to solve the conflicts. The finance team depends heavily on other teams like sales, marketing, and purchasing. The financial controller has to communicate through all these channels and be able to put forward his policies for the entire team to follow
With all this insight let’s see if we have the answer for what is financial controller? The role & keys to effectiveness, we are almost there but certain other aspects need to be looked into:
- The financial controller has to be a skillful leader
Leadership trait is another important aspect of a financial controller. He has to be a good leader and needs the voice to control and manage his accounting staff and guide them with ease.
- He should fair
As the financial controller is the sole keeper of finance data it doesn’t mean that he should not hear what others say. He should give importance to other staff members’ opinions. He should give equal importance to all his team members and a certain amount of praise goes a long way.
Now let’s get to the point of what is financial controller? The role & keys to effectiveness
With all the above information, we have a clear picture of what a financial controller has to be. Now let’s see what he should not be:
- A financial controller should not be meek and mild
The job of a financial controller is of a huge responsibility. The entire company’s financial dealings go through him and the top management depends on him for the financial updates. So he needs to be strong and should be able to send his message through.
- He cannot be unorganized
A financial controller needs to be organized to a crazy level. Because all he deals with is on the most complicated spreadsheets and if these are not organized properly all the data can become very confusing
The answer to what is financial controller? The role & keys to effectiveness are almost given in the entire article. Now let’s get to the conclusion:
The whole article shows you how the financial controller should work. Because of the immense pressure he has to deal with, he has to be a person who can handle pressure and still be patient and remain pleasant with the other coworkers. He should have the ability to talk of serious matters of finance and should be able to put his idea across the members in an easily understandable manner. What is financial controller? The role & keys to effectiveness areperfectly answered in the entire article.
Hiring a financial controller has to go through tough questions and the company should have complete faith in the candidate before hiring him because even a slight falter on the Financial controller’s side can have immense damage to the company and the business can go through heavy losses.
So hiring a finance controller has to be taken very seriously and only the perfect candidate with the right amount of experience should be hired.
A finance controller’s job is very much above the job of an accountant and he has to handle the company’s entire financial condition also has to give timely advice about some important aspects of finance by having a good insight into the market.
A finance controller’s career is lucrative with a very high salary and if the candidate has the ability of handling pressure it is one of the most satisfying jobs in the industry. To get the perfect job the candidate has to get above a degree, like an MBA, etc. and should have a piece of great knowledge about the financial sector. He should be able to handle all the tough questions that will come his way from his superiors and he should be able to answer them clearly and precisely.
Hope the question what is financial controller? The role & keys to effectiveness have been answered thoroughly.