What Is A Financial Controller & Why Use Their Services

Financial controllership exists to bridge the gap between traditional accounting and financial strategies and management. Explaining the actual term is often difficult precisely because of its span. People working in this industry look not only at the big picture, but also into the smallest details, and keep an eye on everything related to accounting and financing, aiming at improving the functioning of a business or keeping it on an acceptable level. Find out more about their roles.

If the term is fairly new to you, but you’re trying to determine if you need the help of these pros, there are two important things you want to know. First, what is a financial controller? And then, why should you use their services at all? Those are the questions that we’ll answer for you below, hoping to make things much clearer.

What Is A Financial Controller?

A financial controller is basically an individual that is responsible for all things accounting related, which includes numerous activities, including managerial accounting, high-level accounting, as well as finance activities in a specific company. Their duties are vast, and apart from overseeing all accounting activities and ensuring that the ledgers accurately reflect the money coming in and out of the company, they also impact budgeting, forecasting, and decision making. So, apart from being the lead accountant, so to speak, the responsibilities of this professional spread across other departments in a company.

Those other responsibilities can include sales tax reporting, federal income tax reporting, management of information technologies, insurance, outside CPA audits and human resources. In essence, these professionals are responsible for the regulatory and financial compliance of your company. They have day-to-day responsibilities related to management, transactions, reporting and compliance, while also being focused on the big picture and participating in the budgeting and decision making processes.

In some instances, but not always, this role also consists of project management. And, although the controller can also be the Chief Financial Officer (CFO) in smaller teams, that’s not always the case, and the roles and responsibilities of these two professionals, as explained at https://signatureanalytics.com/controller-vs-cfo-3-key-differences/ often differ very much. The actual scope of their work will differ from one company to another, but there are some key responsibilities that will always be required from these professionals, such as:

• General accounting oversight
• External tax accountants coordination
• Bank accounts set up
• Ensuring on-time payroll
• Monitoring debts
• Helping with cash flow management
• Creating internal policies and spend controls
• Preparing the annual budget and annual report
• Suggesting methods of improving the company’s performance etc.

Why Get Their Services?

The goal of a financial controller is to ensure accuracy and increase productivity, among other things, and if you’re not sure how you can precisely benefit from their services, we’re now here to find that out. There are numerous reasons why your business can benefit from these services, and I’ll now mention some of them, in an effort to help you figure out if you really need them or not. Here goes.

• Reduce Risk Of Fraud

Fraud has a seriously negative impact on all businesses, leading to great financial losses. The business owners are ultimately responsible for management and the avoidance of such risks, but financial controllers can be of great help there. They mitigate the risks by segregating duties, in which reporting and auditing become the responsibility of the controller instead of those same people who have spending powers and authorizations.

• Ensure Regulatory Compliance

It’s not a secret that tax and general financial regulations can be quite overwhelming, but nevertheless, we all have to follow them. Ensuring regulatory compliance is one of the central roles of the financial controller. They will keep both the state and the federal rules and regulations in mind, aiming at keeping your business compliant with all of them. They are responsible for preparing tax filings, meeting bank reporting requirements and much more. Noncompliance leads to penalties that can take a huge financial toll on your business.

• Interpret The Numbers Clearly

Simply looking at the monthly figures without going into the details doesn’t lead to accurate and precise bookkeeping, and that should be every company’s goal. If your firm is financially still, you could find some opportunities for improvements, and a financial controller does precisely that. If you don’t interpret the numbers clearly and look for those improvements, you could face larger issues in the future, and these pros will help you avoid that.

• Ensure Financial Growth

These experts can advise you not only on how to protect your business, but also on how to identify opportunities for financial growth. They will look at today’s numbers, trends and statistical analyses and aim at making predictions for the future. Predictions that will lead to further growth, possibly even in those areas that you might have previously neglected.