Controller Finances: Responsibilities, Talent Pool, Abilities, Prospects, and Professional Growth

A financial controller, within a firm, is the go-to person for all accounting-related duties, including the high-level, managerial, and financial aspects. Here's a lowdown on what a controller does:

Who is a Controller?

A controller is essentially the Financial Lifeguard of a company, maintaining overall health of the finances by taking charge of financial reporting processes. Their responsibilities range from overseeing internal control implementation to aiding in budget preparation and financial statement compilations.

Controller's Key Roles

Steward: A controller is the Financial Steward, ensuring that the company's money is secure and safely invested. They monitor and implement internal controls to manage risk, collaborate with external auditors for financial reporting compliance, and oversee daily financial operations.
Operator: In their role as Financial Operator, controllers ensure smooth functioning of the financial machinery. They oversee vendor set-up, invoice processing, purchasing, and accounting software record-keeping, among other tasks.
Strategist: A controller is also the Financial Strategist, guiding the company towards financial growth by providing insights during critical decision-making moments, such as during accounting software implementation programs.
Catalyst: A controller sets processes in motion and ensures they're executed as planned. This could involve meeting external reporting deadlines or implementing changes demanded by regulatory agencies.

Controller's Duties

Although the responsibilities of a controller can vary across companies, they generally perform some of the following tasks:

Manage Cash Flow: Forecast cash flow needs, plan for foreign currency needs, and alert upper management about any cash flow deficiencies.
Act as Audit Liaison: Work with external audit staff, respond to audit findings, implement reporting changes, and communicate the outcomes of audits to upper management or the board of directors.
Monitor Internal Controls: Gather feedback from audit personnel, work with managers on designing proper control functions, and assess the effectiveness of the internal control.
Approve Invoices: Have a higher dollar approval threshold to oversee large purchases as a control mechanism.
Assist in Budget Preparation: Feed individuals across the company data and information on historical spending to support budget planning.
Minimize Financial Risk: Understand company weaknesses, engage employees in training, and communicate areas requiring improvement to better safeguard assets.
Ensure Financial Compliance: Understand external reporting requirements, ensure proper resources are on hand to meet those requirements, and deliver accurate, compliant financial statements to external parties.
Compile Financial Reports: Prepare financial statements using the latest reporting practices, supervising staff involved in the process, and sometimes certifying the accuracy of the prepared statements.
Identify Cost Savings: Locate operational efficiencies, suggested staff utilization strategies, and identify redundant reporting functions or unnecessary resources within the finance department.
Mentor Financial Staff: Lead direct reports in higher-level discussions, guiding their professional growth.

In summary, a financial controller plays a crucial role in ensuring the financial stability and success of a company. their expertise, management skills, and vigilance contribute significantly to navigating financial complexities, managing risk, and steering the organization towards its financial goals.The Institute of Management Accountants and Deloitte Development LLC have outlined the four primary roles a controller plays, namely Steward, Operator, Strategist, and Catalyst. A controller's duties range from managing cash flow, assisting in budget preparation, monitoring internal controls, and ensuring financial compliance, among others. Understanding these roles and duties will help individuals and organizations appreciate the significance of financial controllers in the corporate world.

A financial controller can also be involved in the burgeoning world of decentralized finance (Defi), as the Financial Steward responsible for securing and managing digital assets, such as tokens and cryptocurrencies. Additionally, a financial controller's strategic role in an organization can extend to supporting education and self-development, or career development, by providing knowledge and insights on asset management best practices. Lastly, in the realm of business, a financial controller may identify and implement cost-saving measures, such as operational efficiencies or redundant reporting functions, thereby contributing to the financial success of the company.