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    • The modern guide to finance management

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    Guides
    Guide to finance management
    Financial controller

    Financial controller: meaning and responsibilities

    Ever wonder who really keeps a company’s finances in check? It’s easy to think the Chief Financial Officer (CFO) does it all, but there’s another key player you should know: the financial controller. 
    While the CFO might set the big-picture financial strategy, the financial controller makes sure the day-to-day numbers add up, and everything runs smoothly behind the scenes.
    This article will walk you through everything you need to know about financial controllership and their associated duties. Whether you’re new to finance, managing a team, or just curious—we’ll give you a clear look at why the financial controller is the hero of your company’s financial health. 

    What is a financial controller?

    A financial controller, or a comptroller, is a senior-level role within a company's accounting function. They ensure the accuracy of the financial information that goes into the company's financial statements and its compliance with relevant accounting standards and legislation.
    Financial controllers typically begin their careers in public accounting as Certified Public Accountants (CPAs). Most have at least one or more professional certifications (such as the CPA or CMA) or an MBA and a few years of experience in a corporate setting.
    Financial Controllers can also make valuable contributions to other functions of your company like corporate governance and strategic planning.
    However, FC’s are generally not involved in making journal entries for day-to-day bookkeeping. Journal entries may be assigned to a junior accountant with at least a bachelor's degree. This leaves us with the question: what exactly does a financial controller do?
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    What does a financial controller do?

    A financial controller’s job is all about making sure the company’s finances are in order, accurate, and compliant with laws and regulations. They are the chief accounting officer, which is an executive-level position. Here's a summary of what you can expect to find in a controller role or financial controller job description:
    • Supervise and control the company's accounting processes and operations, including: invoicing, cost accounting, inventory records and more.
    • Preparation, consolidation and publishing of month-end financial statements (cash flow, income statement and balance sheet.)
    • Confirming the accuracy of transactions and their adherence to relevant accounting standards such as GAAP or IFRS.
    • Ensuring compliance with corporate and tax laws for the relevant jurisdiction.
    • Overseeing and directing financial planning and budgeting for upcoming accounting periods and preparation of performance reports with relevant performance metrics such as variances for the previous accounting period.
    • Documenting and contributing towards developing the company's internal control policies.
    • Monitoring and making recommendations for the company's accounting system.
    • Monitoring cash flow and age of accounts receivable and accounts payable.
    • Liaising with the company's external auditors through the auditing process.
    • Providing insights to the finance team and working with other leaders to formulate the company's financial strategy.
    • Facilitate decision-making by providing relevant information to the CFO and providing assistance for presenting the financial reports to internal and external stakeholders.
    • Tracking and managing corporate travel expenses, ensuring compliance with company travel policies, and optimising travel costs through effective budget management.
    The controller's role is one of the most critical roles in an organisation. They must have strong leadership qualities, stellar communication skills and an excellent eye for detail so the CFO can focus on the more strategic aspects of financial management.
    Even though similar in connotation, the roles of a financial controller and a CFO are quite different. Let's talk about how.

    Controller vs. CFO: What’s the difference?

    Strategic CFO rightly points out the difference between a financial controller and a Chief Financial Officer.
    "The difference between a controller vs. CFO is primarily one of perspective. A controller focuses on compliance and historical record-keeping or, in other words, tactics; while a CFO focuses on planning and future performance (i.e.: strategy).
    Although controllers typically come from an accounting background, the same cannot be said for CFOs. Because of the automation of the accounting process more and more, CFO’s are coming from a financial or banking background."
    Here’s a quick look at the differences between a financial controller and a CFO: 
    Financial controller
    Chief financial officer (CFO)
    Primary focus
    Day-to-day financial management and reporting
    Strategic financial planning and overall strategy
    Key responsibilities
    Overseeing accounting, financial reporting and compliance
    Managing a company’s financial risks, capital structure and long-term strategy
    Role in decision-making
    Provides detailed financial data and analysis
    Drives financial strategy and major business decisions
    Team leadership
    Manages the accounting team
    Oversees the entire finance department, including the controller
    Objective
    Ensure accuracy and integrity of financial records
    Align financial strategy with company goals

    How to excel as a financial controller?

    Now you now know how a controller is different from a CFO and what a controller's role includes. However, just knowing the responsibilities of a controller doesn't get your business anywhere unless you learn how they can excel in their work.
    Let's talk about a few essentials for succeeding as a controller.

    Practice accounting experience

    Given that a controller will need to manage the entire accounting function of the company, they'll ideally need ten or more years of experience in a senior accounting role to succeed. These specific experience requirements, though, may be subject to the organisation's size.
    The controller doesn't maintain the books or crunch numbers, but they'll certainly need to know everything from basic journal entries to the consolidation of financial statements. They’ll need to talk the talk, even if they’re not necessarily walking the walk.

    Provide insightful financial reporting

    Financial reporting is at the centre of a controller's job. Financial information is important for companies to be able to assess how their strategies performed in the past and what their future financial strategies should look like.
    This means a controller's responsibility isn't limited to just accurate financial reporting. What's also important is for the financial information to provide valuable insights that can facilitate decision-making related to business administration and financial strategy.
    A few best practices that controllers should consider while reporting financial data:
    • Delivering financial data electronically
    • Keeping the report brief and relevant
    • Incorporating qualitative KPIs in financial reports
    • Adding interpretation or comments based on experience and insight where it can provide value

    Automate and optimise processes

    Since the controller's job is to... well, control, they also need to control the resources utilised by the accounting function. This requires streamlining accounting processes and contributing to the company's overall efficiency.
    Accounting automation brings efficiency and allows them to spend time on other tasks that can't be automated. Think about it: manually inputting financial data isn’t just tedious; it’s also a recipe for human error. And, when you’re entering the same data in multiple places, it eats up even more time. Automation cuts out this hassle, ensuring data is accurate and processes are lightning-fast.
    The most common tool at a company's disposal is an Enterprise Resource Planning (ERP) program. However, several other tools can feature in a controller's automation toolkit such as an invoicing program, payroll system and managed travel programs.

    The future of controllership

    ​​Traditionally, financial controllers have focused on managing risk, preserving assets, and ensuring the efficiency of accounting operations.  However, the future for financial controllers may be more inclusive.. Controllers can valuably contribute to a company's strategic planning. They’re the ones with the most granular data on the company's transactions and can lead the way with their ear to the ground. And TravelPerk can complement your finance team’s efforts. 
    With TravelPerk, you can easily manage corporate travel bookings, including flights, hotels, and car rentals—all from a single platform. Plus, integrations with expense management tools empower your finance team to maintain full visibility over travel costs, while optimising budgets and ensuring adherence to company policies.
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