The financial controller, also known as the comptroller is the accounting executive that leads a company. The duties this individual carries out are dependent on the size of your business, the number of people employed in the department, financial operations, and the complexity of accounting operations. This person is instrumental in forming accounting strategies and providing financial leadership. The role of the person providing controller services includes hands-on management and broad visionary responsibilities.
The financial controller is the financial leader in your firm. This person will make sure that the money that is in your business is safe and secure by ensuring that he puts in place the right accounting procedures, pays tax on time and does audits. They will also carry out banking activities for your business. He will analyze your business books, identify inefficiencies, help to assess risks, make informed decisions, and provide strategic business advice.
The person providing financial controller services has the responsibility of making sure that all financial processes are documented and made appropriately. The controller may also oversee payable accounts, perform cash management functions, bank reconciliation and payroll functions, cash disbursements, and accounts receivables in small businesses.
When it comes to the accounting duties, every company needs to maintain duties separation to make sure that there are checks and balances in the system. For example, if the comptroller has the responsibility of preparing cash disbursements, he does not have to be a signatory to the account, chief financial officer, the owner, or the chief executive of the business.
Financial planning, analysis, and reporting
Comptrollers in small companies bear the responsibility of finance and banking. It includes setting vendor agreements and negotiating credit lines, reviewing financial contracts, insurance policies, and financing agreements. He is also responsible for providing comprehensive and accurate financial info to the executive management for making long-term financial strategies. If a company does not have a CFO to provide long-term financial planning leadership, the comptroller will have to come in to fulfill this responsibility.
He has to provide critical financial data and work with the management team to coordinate financial planning functions with the operations of the business. Duties of financial reporting include preparation of statements, cash flow reports, balance sheets, budgets, financial projections, and budget-to-actuals.
In addition to reporting, the individual providing controller services need to have deep skills in financial analysis and providing the right financial opinions and perspectives. This individual needs to have proficiency in the design of balance sheets that are complex. While the responsibility of the CFO is finalizing the financial policy, the analysis skills of the comptroller are essential for assessing risks, analyzing efficiency, and informing policy decisions made by the management.
The individual responsible for financial controller services establishes and executes internal controls over the financial and accounting procedures of the company. They include review and approval of invoices to be paid and review receivable accounts from aging reports. He can also handle invoice collections, especially the ones that are long overdue. The controller will coordinate with tax accountants and auditors for income tax preparation and prepare internal audits. The procedures include keeping the records ready and organized for examination.
When you realize the role of a comptroller, and why you need to involve one in your business, the idea will be less overwhelming. It is important when another individual makes you get the controller because you will not succeed to do everything as the entrepreneur of the business. You may be having a clerk or book keeper, but you need an individual that understands accounting to ensure that you know what is happening in the business. An individual that provides controller services is a strong leader and can give all the required answers.