Financial expertise is essential when managing the daily challenges of running a business in today’s competitive marketplace. A part-time controller may be exactly what your company needs to control its finances and stand out. However, what exactly does a part-time driver do? Essentially, a controller manages the current state of a company’s finances and is responsible for day-to-day financial operations.
Typically, a controller will report directly to the company’s chief financial officer, but for smaller companies, the roles of chief financial officer and controller may be combined into one, in which case the controller will report to the chief executive officer. The controller role plays an important role in your company’s finances, from overseeing the accounting and finance department to reporting and compliance coordinator. Below is a more detailed explanation of what a controller is responsible for handling in a company.
processes
The controller decides the procedures and processes that the accounting team will use. It is important for the controller to choose the policies and procedures that best suit the company, as they will determine how the finance departments operate. This can include everything from the type of accounting software used to benchmarking and reporting.
Financial reports
When it comes to financial reporting, the controller is largely in charge of producing these documents. Reports are created by the controller with the help of accounting and finance staff, but it is the controller’s responsibility to ensure that these reports are timely and follow generally accepted accounting principles. These reports must also accurately reflect the most current financial status of the organization.
financial decisions
The controller also has a great deal of influence on the financial decisions of the company, as the position has in-depth knowledge of the financial state of the organization. When the leadership team discusses possible changes to the company, such as adding a new product or changing services, the controller determines the financial risk involved in the decision and determines whether the organization can financially support the change in the future.
budgets
Much of the information for decision making is based on the company’s budget, which the controller is also responsible for creating. Depending on the needs of the business, a controller will create a budget for the year or by quarter. After the budget year or quarter passes, the controller produces a budget-to-actual report that shows an analysis of how much actual money was spent during the period and how much was budgeted. The company can make adjustments to the budget in the future once it knows these numbers.
Payments
The controller is responsible for ensuring that all payments are made on time. The position supervises accounts payable and accounts receivable staff to ensure that vendors receive payments as scheduled and also to ensure that clients pay for their services. Timely payments are essential for a business that operates smoothly.
This is true not only when it comes to customers and vendors, but also when paying employees. In addition to customer and vendor payments, the controller must also ensure that payroll is accurate. The controller does this by monitoring tax deductions and insurance payments to ensure the correct amounts are withheld so paychecks are accurate. Without accurate paychecks, employee satisfaction can decline, which is another reason why the controller role is so vital to an organization.
Compliance
Finance departments face a great deal of scrutiny, especially after the Enron and WorldCom financial scandals followed by the 2008 financial crisis. Companies now must endure a host of regulations that dictate how they manage their finances and how they report financial information. to the audience.
A controller takes on the task of ensuring that a business complies with all applicable financial rules and regulations. This means interacting with shareholders and providing accurate information to build and maintain customer and shareholder trust. It also involves helping to prepare documents for the audit officer during a routine audit. When a controller prepares the documents and assists the auditor, the process works much better. Subsequently, the controller will handle any changes that the auditor requires for compliance.
Taxes
In addition to handling audits, the controller also files company taxes. If the business decides to hire a third party to handle the taxes, the controller remains responsible for providing the records and reports that will be needed to accurately file the tax documents.
Ultimately, a controller oversees the financial stability of a company. The controller can perform this task effectively because the position requires years of experience. Working through the ranks from a basic accounting or auditing position, the Controller is keenly aware of the decisions required to effectively manage the financial departments of any company.
If you think your company could benefit from the experience mentioned above, consider hiring a part-time controller. A part-time controller is ideal for your business because you’ll get the financial consulting your business needs without the cost of hiring a full-time employee. You’ll have more time to focus on serving your clients, building new customer relationships, and digging deeper into core business issues when you have someone you can trust to manage finances.
