What is a Financial Controller and How to Become One

A financial controller plays an important role in the company’s budgeting and forecasting. This article delves deeper into the multifaceted responsibilities of a financial controller, highlighting their essential role in the financial health of an organization.

Ideally, every business needs someone to monitor the organization’s financial flow. In a smaller business, this responsibility often falls directly to the finance manager. Yet the larger the organization, the more complex the financial processes are. In this case, a financial controller is needed to keep the accounting processes accurate and efficient.

Learn more about the duties and qualifications needed to become a financial controller below.

Financial Controller: An Overview

As the name implies, a financial controller is someone who is responsible for overseeing every accounting activity in an organization. This includes monitoring financial reports, assisting in operational budget preparation, and ensuring financial compliance. However, a financial controller’s role is more than just reporting, according to Robert Walters HK. A financial controller also takes part in financial planning and growing commercial business partnerships. It’s one of the most sought-after jobs in Asia.

Usually, a finance controller reports directly to the Chief Financial Officer (CFO). However, depending on the organization’s size, smaller companies often combine the roles of CFO and controller together. There are also cases where financial controllers are the only accountants on the staff, so they also perform day-to-day accounting tasks.

Duties of a Financial Controller

The main responsibility of a financial controller is to make sure every finance-related operation in an organization runs smoothly. Here are some of the common duties of a financial controller:

• Managing and assisting every operation in the accounting department. This includes, but is not limited to approving invoices, compiling financial reporting, and acting as quality control for financial transactions and reporting.
• Managing the cash flow of an organization. This includes forecasting the cash flow needs and alerting the upper management when there are deficiencies.
• Working closely with relevant departments in minimizing financial risks. This includes understanding company weaknesses and identifying operational efficiencies.
• Managing an organization’s financial compliance, ensuring that every report is adhering to the laws.

Skills Needed to be a Financial Controller

If you are interested in becoming a financial controller, there are several necessary skills to possess. For instance, financial controllers must have a proficient grasp of accounting and business principles. Without these, it will be hard for aspiring controllers to understand and manage responsibilities like cost control and budgeting.

Financial controllers must have strong analytical skills to understand financial data and how to make a business decision out of it. Moreover, to explain this complex financial information to the non-finance colleagues, controllers must have good interpersonal and communication skills.

How to be a Controller

The financial controllers’ role is important in safeguarding assets and driving the company’s financial success. If you are interested in working as a financial controller, there are some steps that you might need to follow.

Continue reading to learn about how to be a financial controller, as summarized from Accounting.

Earn a Degree in Accounting

To become a financial controller, earning a bachelor’s degree in accounting or finance is advantageous when pursuing this career. Furthermore, continuing to obtain a master’s in accounting or accounting MBA will help in securing high-level accounting roles. In general, a bachelor’s degree takes 4 years to complete, while a master’s program typically takes about two years.

Earn CPA Licensure

Depending on the company, some may prefer to hire controllers who have industry certifications, and some may not need them. However, having a Certified Public Accountant (CPA) license will offer a wider range of opportunities for you. Depending on the region, accounting students are able to take the CPA exam after acquiring 150 credit requirements.

Obtain Professional Accounting Experience

Aside from licensure, having extensive accounting experience is also a good asset. Working for firms, government agencies, or non-profit organizations will enrich the practical experience as a financial controller in the future. Commonly, you will start out as a staff accountant to a manager, become an assistant controller, and then finally the controller.

Final Thoughts

On the bottom line, there is no doubt that a financial controller is essential for any kind of organization. In a fast-paced and dynamic work environment, controllers are responsible for everything related to a company’s financial reporting process. By ensuring accurate finance reporting and providing strategic insight, controllers have a critical role in safeguarding assets and mitigating company risks.

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