Financial Controller Roles, Duties, Skillset, Career Path-By WILL KENTON-Updated June 11, 2024-Reviewed by JEFREDA R.

BROWN-Fact checked by HANS DANIEL JASPERSON

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What Is a Controller?
A controller is an individual who has responsibility for all accounting-related activities, including high-level accounting, managerial
accounting, and finance activities, within a company . The duties of a controller include assisting with the preparation of the
operating budgets, overseeing financial reporting and performing essential duties relating to payroll.

Across all of the duties, a controller often works most with 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 may report material budgeting variances or expenditure variances to upper
management.

KEY TAKEAWAYS
 A controller acts as an overseer of a company's financial health by taking ownership of the financial reporting process.
 A controller oversees internal control implementation, assists with budget preparation, ensures reporting compliance,
and manages the transaction reporting process.
 Controllers often have at least a decade of relevant work experience and a degree, though many companies now seek
candidates with a CPA license.
 Controllers vary from CFOs and VPs of Finance, as controllers are usually more involved in the daily transactional aspects
of overseeing a company's performance.
 According to Glassdoor, controllers made an average of $156,000 per year at the end of 2021.1

Understanding Financial Controllers

Controller functions vary across companies owing to the size and complexity of the business and the industry. 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.
Financial controllers are often the head financial position in charge of overseeing that historical, actual financial transactions are
being reported properly. This may range across all finances departments including accounts payable, purchasing, vendor
management, treasury, financial reporting, and financial planning.
The controller of an organization may partake in the recruiting, selection and training of staff as the controller often has a variety
of finance or accounting managers reporting directly to them. The position requires appraising job results, leading employees and
performing disciplinary actions as necessary.

Roles of Financial Controllers

A joint publication by the Institute of Management Accountants and Deloitte Development LLC outlined the four primary roles a
controller takes.2 These four roles include:
1. Steward. Controllers are financial stewards by managing risk and preserving assets. This includes ensuring that internal
controls have been implemented and that internal processes are being followed. The controller often plays a part in
external audit functions by collaborating with external auditors to ensure financial reporting compliance.
2. Operator. Controllers are financial operators by overseeing the day-to-day financial operations from a very high level.
This includes ensuring vendor set-up, invoice processing, payment remittance, accounting software record-keeping, and
purchasing functions are all performing as expected.
3. Strategist. Controllers are financial strategists by guiding the appropriate direction of the company. For example, a
controller is often involved in accounting software implementation programs if the must be financial reporting feedback
on the modules needed, customizations requested, or shortfalls of what is being offered.
4. Catalyst. Controllers are financial catalysts by putting in place processes, then ensuring the new plans are being
executed. This includes ensuring that external reporting or filing deadlines are met and that specific changes imposed by
external regulatory agencies have been followed. For example, this may related to tax statement distributions or audited
external financial statements.
In terms of job opportunities, the Bureau of Labor Statistics (BLS) projects a 10-year growth outlook from 2021-2031 for financial
managers (controllers) of 17%, which is "much faster than average."3
Duties of Financial Controllers
The role of the controller will be different across every company. For many, the controller will take on at least some of the
following tasks:
 Manage cash flow. This includes forecasting cash flow needs, planning for foreign currency needs in advance, and
alerting upper management for cash flow deficiencies.
  Act as audit liaison. This includes meeting with external audit staff, being receptive to audit findings, implementing
reporting changes, and communicating to upper management or the board of directors the outcomes of the audit.
 Monitor internal controls. This includes gathering feedback from audit personnel, working with managers on designing
proper control functions, and gathering data on the effectiveness of the internal control.
 Approve invoices. This includes having a higher dollar approval threshold to act as a control for large purchases.
 Assist in budget preparation. This includes feeding individuals around the company data and information on historical
spending across a variety of general ledger coding.
 Minimize financial risk. This includes being aware of current processes, understanding company weaknesses, engaging
employees with training, and openly communicating areas of opportunity to better safeguard assets.
 Ensure financial compliance. This includes understanding external reporting requirements, ensuring proper resources
are on hand to meet those requirements and overseeing the final product being delivered to external parties.
 Compile financial reporting. This includes being aware of recent changes to financial reporting practices, overseeing a
staff that directly contributes to the financial statement preparation process, and sometimes certifying that the financial
statements have been accurately prepared to the best of their knowledge.
 Identify cost savings. This includes understanding where operational efficiencies lie, how staff can be best utilized, what
reporting functions are being duplicated, and what resources the finance department really needs.
 Mentor financial staff. This includes being a leader to the controller's direct reports by involving them in higher-level
discussions.
According to Glassdoor, a controller makes a median of roughly $156,000 per year. This includes $111,000 per year of base pay
and almost $45,000 in additional forms of compensation.1
Skillset of Financial Controllers
To become a financial controller, finance professionals must often have achieved proficiency in three aspects of their career:
education, experience, and licensure.
Regarding education, becoming a financial controller almost always requires at least a bachelor's degree in accounting, finance,
business administration, or a similar field. In most situations, a master's degree is preferred, with many companies now making a
master's degree a requirement.
Though there is no industry-wide requirement on the amount of work experience a controller must have, most financial
professionals must obtain at least five to ten years of professional experience to be considered for a controller role. Again, a
controller at a smaller company may have much smaller requirements than a large public corporation that will seek 20+ years of
experience in a related, relevant industry. Companies may require that a controller candidate have public accounting experience.
Last, it is not an industry requirement to obtain a Certified Public Accountant (CPA), Certified Management
Accountant (CMA), Chartered Financial Analyst (CFA), or any other type of licensure. For many, these licensures will help and may
be a preferred requirement for the role. For larger public companies, controllers will often be required to have at least a CPA
license.
Career Path of Controllers
As every company will require different qualifications, there is no single career path to becoming a controller. However, many
controllers get their start by working in the accounting field, often in public accounting. For finance professionals most serious
about achieving controller roles, they must often seek out Big Four positions and earn escalating responsibilities over several
years.
After moving to the corporate or private sector, a controller may continue to develop skills as an accountant booking transactions
or manager overseeing the operations of a specific finance department. This includes developing gaps related to receivables
reporting, payroll, quarterly financial reporting, or internal controls.
Last, controllers often transition into the role of assistant controller before making the jump to a full controller role. An assistant
controller is simply a more junior position that may perform many of the same tasks as a controller. However, the junior controller
may not take full ownership of responsibility for outcomes as this may transition to a controller. Also, a company may employ a
junior status to candidates that must first demonstrate proficiency in the role before getting promoted.
Accounting vs. Controlling
A controller is engrained in a company's financial accounting process. However, the controller may not do direct accounting
themselves, and there is a difference between accounting and controlling. In financial management, controlling is the act of
ensuring data is recorded accurately and on time. This is a broader function of accounting, as the controlling function may go
behind recording transactions.
For example, a controller may oversee the accounts payable department responsible for 1099 reporting. Though this process is
unrelated to internal accounting transactions, the controller may be a stakeholder in the process and give feedback on process
improvement implementations. Whereas an accounts payable clerk is responsible for the accounting of liabilities tied to invoices,
a controller may be more concerned with the overall accurate and timeliness in which invoices are being processes and payments
remit.
For larger companies, controllers report up to a CFO or other executive. The controller is usually not part of the executive leadership
team.
Controller vs. Other Financial Roles
Depending on the size and organizational layout of a company, the controller may hold more than one title or be responsible for
multiple aspects of finance. In general, especially for larger companies, there are differences between controllers and other high-
ranking financial positions.
Controller vs. Chief Financial Officer (CFO)
Although both the controller and CFO of a company are leaders in finance, they are often two separate positions responsible for
different tasks. A controller is more likely to be entangled in general ledgers, trial balances, and financial reports being delivered
to more senior management. Meanwhile, a CFO utilizes these reports to focus on more broad, big-picture company positioning.
In general, CFOs often take a greater presence in external-facing tasks including mergers, acquisitions, or involvement with
investors. Meanwhile, financial controllers own more of the internal reporting process including implementing internal controls,
managing the month-end close schedule, and ensuring financial accuracy.
Controller vs. Vice President of Finance
In many situations, a company's vice president of finance mimics the traditional role of CFO. A vice president is often tasked with
the highest-level of financial and accounting oversight, while a controller's role is more limited to the financial preparation and
management of the financial reporting process. For companies with both a controller and vice president of finance, the controller
would most likely report directly to the vice president.
Controller vs. FP&A Director
Financial controllers are in charge of the past; they review historical transactions and ensure reporting is done correctly. These
reports may then be delivered to a financial planning and analysis (FP&A) leader. This FP&A director relies on their team to build
budgets, forecasts, and long-term plans based on the future of the company.
A controller's role is heavily (if not exclusively) rooted in dealing with actual transactions. Overseeing both revenue and expense
reporting, a controller often does not deal in theory. Meanwhile, an FP&A director leverages historical data to devise future plans
that may or may not materialize. These plans may rotate on a quarterly basis if the company decides to reforecast any
projections.
Controller vs. Comptroller
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. A controller and comptroller simply have similar roles in different
industries.
Who Reports to the Controller?
A controller often oversees the department leads within finance for each respective department tied to financial reporting. This
may include the accounts payable lead, procurement lead, purchasing lead, financial reporting manager, or payroll manager.
Is a Controller the Same As CFO or VP of Finance?
A controller is not the same as a CFO or VP of Finance. A CFO or VP of Finance are often higher-level positions that are on the
executive team. Meanwhile, a controller is usually a lower-level position that is less involved in strategic planning or external
affairs and mostly involved in internal reporting.
What Qualifications Does a Controller Need?
A controller must often have around at least 10 years of professional experience, though larger public companies will often require
more. Though an accounting or finance license is not always required, a controller may need to carry a CPA license. A controller
usually needs to have at least some sort of higher education as well.
Why Is a Controller Important?
A controller is important to finance as they control the risk and reporting aspect of the company. A controller is the point person
for making sure the financial reporting is done correctly. They are also the person to understand why inaccuracies may exist, what
changes must be put in place, and how those changes will impact future reports.
The Bottom Line
A financial controller is a higher-level finance position that takes the responsibility over the financial reporting process. Not quite
an executive-level position at most companies, a controller oversees many of the processes that come together to deliver
financial statements. A controller also works with the external audit team, assists internal managers will budget preparation, and
identifies areas of opportunity to mitigate risk and employ cost savings.
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How do you operationalise your business model to deliver success?

Mike Fletcher CA(SA), ACA

Senior Finance Leader / Financial Transformation Expert driving sustainable growth in service-related sectors
March 13, 2017
What do you need to do in order to make your chosen Business Model a reality, successfully protecting and growing your business?
Expressed differently, what are some of the things a financial investor would have to focus on to generate operational
improvements in an underperforming portfolio company to turn it around?
You would need to build out an Operating Model for your business. This Operating Model would incorporate the business
processes, people, technology, policies and operating procedure manuals required to deliver the Business Model. This is the point
when you would structure and organise your business in a way that would best deliver its Customer Value Proposition. The
Operating Model would define the “how” of the activities which your business would need to perform. It would form the link
between your business’ Vision Statement and the activities performed by your employees. It follows that any activities currently
undertaken which do not contribute to delivering the Vision, should therefore be discontinued.
In order to design the Operating Model, you would need to decide which element of your Business Model would be emphasised. In
other words, when reflecting on the Business Model Canvas, which of these elements would be emphasised: customer focus,
product innovation or operational excellence? This decision would be informed by your business’ Vision and Mission Statements,
Strategies, Values and Corporate Culture.
The “how” includes the Business Processes for your business. As a Business Process implies activity, the description convention is
<<Verb>> <<Noun>> e.g. Manage Credit. The Business Processes would cover workflow (i.e. the flow of activities to deliver the
product or service to your customers), the decision-making activities and reporting (i.e. financial reporting, management
information). Business Processes could be described at different levels: the highest level would represent the Business Capabilities
(covered in the previous post), while the lowest level details the specific tasks to be performed by each employee, using template
documents and / or software applications as applicable. The mapping of Business Processes would assist in the drafting of
procedure manuals and induction packs, and would also lay the foundation for process improvement initiatives, promoting the
drive for continuous improvement to address pain points, increase efficiency and grow the business’ profitability.
Organisational Structures cluster together employees performing similar tasks, split between primary and secondary Value Chains
(this was explained by the video in the previous post). They also would permit the co-ordinated separation of activities between
employees to mitigate risk of fraud or collusion, and define the processes of governance and decision-making, ranging from
strategic to operational. Organisational Structures could be flat, hierarchical or matrix, and are depicted in organisational charts,
which graphically represent relationships between employees (e.g. manager-direct report) and between clusters or departments
within your business.
Job Descriptions would detail which employee is responsible for performing the respective activities, and which employee is
accountable for the performance of these activities. They would set out the skills, competencies, knowledge and expertise required
by each employee to fulfil the requirements of their respective roles. They also would set out the standards which are then used
during the performance management reviews.
Policies and operating procedure manuals would assist employees in performing their activities, and would assist in more easily
integrating new employees.
The clarity for employees knowing who performs what activities would eliminate duplication of effort and reduce waste, thereby
enhancing the effectiveness of your business achieving its Vision and Strategic Objectives.