Understanding the Role of Your Company's Finance Controller

When it comes to managing the financial aspect of running an organization, most companies often look to fill the position of Chief Financial Officer (CFO). However, while a CFO is indeed tasked to look at the company’s operations, decisions and improvements/changes from a financial perspective, their role is on a more macro-perspective level. 
 
The nitty gritty of your finances often falls into the hands of your company’s financial controller. Unlike a CFO who focuses on the bigger picture, a financial controller is directly responsible for all your financial reporting, record keeping, management of information technology, and accounting tasks and efforts. 

 
Because of the weight of their responsibilities, there is often a certain level of prestige that comes with being a financial controller. Indeed, this role asserts a professional’s knowledge and expertise in different facets of accounting and financial management, on top of taxation laws and compliance requirements.  

But if you think these things alone cover the duties and responsibilities of a financial controller, think again. The fact is, there is more to taking on this lead financial officer position than meets the eye.  

Read on and discover more about what being a financial controller is all about: 

The Duties of a Finance Controller 

Accounting 

A financial controller is responsible for allocating business capital and making sure that all the upcoming bills and payables are settled on time. Aside from basic cash management functions, these professionals are also expected to take charge of payroll functions. 

The bigger a company is, the more complex its payroll requirements are, so the greater the responsibility of the controller will become. And to top it off, a controller is also assigned to ensure the upkeep of bank reconciliation initiatives. 

Read: The Roles of a Management Accountant and How they Support CFOs 

Financial Planning and Reporting 

A controller handles both short-term and long-term financial strategies for the company. This includes thorough negotiation when it comes to vendor agreements as well as other forms of financial agreements with various credit facilities. Moreover, it is also the task of the financial controller to see to it that the terms in insurance policies work best for the advantage of the company. 

Internal Controls 

Businesses nowadays have internal financial controls— the effective execution of these controls is also part of the responsibilities of the financial controller. These financial controls involve organizing financial documents, approving invoices for final payment and even reviewing other forms of financial reports.  

Depending on the size of the accounting team in your company, the financial controller may also be assigned to tasks that involve collaborations with tax accountants and other specialized financial agents. 

Financial Analysis

Finally, the most important responsibility of the financial controller is to make sure that an in-depth financial analysis is made on behalf of the company. The results of the analyses will help ensure that the company will be able to make sound financial decisions in the long run. 

Since a financial controller is an indispensable part of your accounting team, the process involved in looking for one should be taken very seriously. Otherwise, this may lead to a complex set of accounting and financial management problems for your business. 

Bottomline

Throughout all of this, it is important to remember that while your financial controller is mainly responsible for your financial operations and management efforts, it is only through thorough collaboration with your company’s CFO and the rest of your finance and accounting support that they are able to do their job well.  
 
In the end, seamless financial operations and management can only be achieved through effective communication and collaboration between the accounting team, financial controller, CFO and management and should always be aligned with the company’s strategic objectives.  

Read Next: CFO Outsourcing vs CFO Support Outsourcing: Main Differences 
 
 

Need Finance and Accounting Support for your CFO? 

We have a wide expertise in helping CFOs across various industries and broad experience in using top-of-the-line software to expand the bandwidth of your accounting department. Contact us today and we'll help you find the right solution for your needs.   

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This post was first published on 02 March 2015 and edited 20 December 2024. Edited by: Aly Tagamolila