How Do I Become a Controller?

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The company’s budget is the lifeblood of daily operations. This is why it is essential that these assets are controlled properly. The controller oversees the day-to-day access of corporate funds and approves expenditures within the company’s limitations, as well as other related functions. The Controller, which acts as the lead accounting executive in a company, exercises an important fiduciary responsibility, and is a position every company has to fill up.

Educational Requirements for a Controller

A candidate for a controller job must have a Bachelor’s Degree in Accounting or in Business Administration. However, significant work experience in the field can make up for the lack of educational background. Certified Public Accountants or Certified Management Accountants can easily apply for this position, but the core qualities a controller must have are conservatism and prudence, since over and under budgeting of resources will both have negative effects in the company’s overall performance. A controller must maintain good attention to details, logical decision-making skills and instincts on how to balance between asset turnovers, credit payments and profitability.

What Do Controllers do?

Controllers work on both ends of cash transactions, which will ensure that their finance function is organized and effective. As for profitability, controllers work closely with employees in the marketing function, not to mention in setting price and planning products. They may also have to take up additional roles such as market research, product development, business forecasting and corporate strategy.

On the opposite end, controllers are also in charge of cash and risk management. They are responsible for ensuring that all accounting allocations are appropriately made and documented. The preparation of budgets and statement of cash flows will make sure necessary departments are properly funded in order to aid in achieving the department’s goals and objectives.

Controllers must maintain an adequate system of accounting records, enhance accuracy of the company’s reported financial results, and have a comprehensive set of internal controls designated to mitigate risk. Controllers will also have to calculate variances from the budget and report significant issues to management.

Aside from normal operations, controllers maintain financial ledgers, which mean they make sure that all accounts receivables invoices are collected promptly and accounts payables bills are paid on time, including taking the reasonable discounts. Controllers will also oversee the computation of the payroll process, the maintenance for the chart of accounts and the completion of the periodic bank reconciliation.

Controllers may have to provide in depth financial analyses and provide expert financial perspectives and opinions as needed, in particular for capital investments and contract negotiations. All these are coordinated to external auditors for the annual audit. Of course, reports have to comply with either generally accepted accounting principles or International Financial Reporting Standards.

The scope of the controller position is larger and much riskier in smaller businesses; they will handle various roles while dealing with transactions, which are mostly cash-basis. In larger companies, the controller will only have to supervise accountants and other professionals under his or her command.

Although additional roles may be a bit of a hassle, the controller will provide financial leadership and serve as the front liner in forming accounting strategies for the company. If you like counting and working with cash revenues and financial planning, this is the job for you.