What is a 'Controller'
A controller is an individual who has responsibility for high-level accounting], managerial accounting and finance activities. A controller typically reports to a firm's chief financial officer (CFO), although these two positions may be combined in smaller businesses. The duties of a controller include assisting with the preparation of the operating budgets, overseeing financial reporting and performing essential duties relating to payroll.
BREAKING DOWN 'Controller'Controller functions vary across companies due to the size and complexity of the business and the industry. A variation of the controller position is called a comptroller. A comptroller is typically a more senior position that is more commonly found in government or nonprofit organizations. Smaller companies demand more versatility of the controller, while larger companies are able to disperse the following job responsibilities across other employees, including the Chief Financial Officer and Treasurer.
Controller’s Duties: Budgeting
The controller prepares budgets and outlines important budgeting schedules throughout an organization. This includes the collection, analysis and consolidation of financial data. Although the controller doesn’t always maintain the annual budget, the controller position monitors variances, summarizes trends and investigates budget deficiencies. The controller reports material budgeting variances or expenditure variances to management.
Financial Reporting and Auditing
The controller is often the individual responsible to monitor the financial condition of a business. The controller works with external auditors to ensure proper reporting standards are being utilized. In addition, the controller establishes, monitors and enforces internal control over financial reporting. Controllers of publicly traded companies are often delegated the task of public financial filings.
Controller’s Duties: Regulators and Taxing Authorities
The controller of a business monitors future legislation that impacts taxation and operations. This duty includes monitoring for future risk and ensuring proper permits, licenses or operating requirements are met. Along with filing financial reports, the controller may be assigned tax preparation duties, including filings for state taxes, federal taxes or industry taxes.
Controller’s Duties: Development
The controller of an organization may partake in the recruiting, selection and training of staff. The position requires appraising job results, leading employees and performing disciplining actions as necessary. The financial controller often maintains educational levels by pursuing continuing professional education through seminars, webinars or training opportunities.
Required Education and Experience
When recruiting for a controller position, companies often require candidates to possess at least 10 years of direct accounting or finance experience. A bachelor’s degree in accounting, finance or business administration is often required, while holding a master’s degree is not required but preferred. Professional certificates, including the Certified Public Accountant license, may not be required but are typically preferred.