In today’s competitive environment, managing finances is the only thing you will do to achieve long-term success. Several businesses depend upon financial health for growth and expansion.

A financial controller is one role that bridges strategic business financial planning and day-to-day business financial operations. The article will discuss what a financial controller is, what they do, and when your business might need one.

Who Is a Financial Controller?

A financial controller looks at the financial activities of a company. Financial accuracy, compliance, and efficiency in business activities would be impossible without them.

While most accountants work by bookkeeping or dealing with tax, financial controllers have a wider view of their work. They are responsible for all the finances, ensuring the financial data is correct, and using the company’s strategy.

Main Responsibilities of a Financial Controller

Following are the main responsibilities of a Financial Controller

1.   Financial Planning and Analysis

Financial forecasting and budgeting are the prime activities performed by a financial controller. By analyzing the company’s performance and data points, forecasting for the future can be greatly enhanced, enabling much better resource planning and allocation.

2.   Ensuring the Organisation’s Financial Reporting.

Controllers ensure that financial reports (income statements, balance sheets, cash flow statements) are made and accurate on time. They also ensure that the financial accounting standards of the region and the world are implemented.

3.   Maintaining Internal Controls

They help design and implement the robust internal controls of financial controllers to protect the company from fraud and financial errors. By doing this, financial data can be accurate, and the operation adheres to policies. Moreover, they also work as an internal auditor in the company, keeping a check and balance and keeping all the records straight for the company.

4.   Tax Compliance Regulatory Compliance:

Whatever the type of business, every organization has to conform to the rules of tax compliance and financial reporting. A financial controller helps the organization comply with all legal requirements and minimizes the after-tax liability.

5.   Engaging with Stakeholders:

Financial controllers are also bridges between management, investors, and even a company’s external auditors. They provide company management with information to make strategic decisions and pursue management objectives.

Roles of a Financial Controller in Different Business Sizes

Financial controllers play an important role regardless of any business size.

●    Small-sized business:

Small organizations often cover more financial control responsibilities, including bookkeeping and payroll, tax filings, and strategic planning. Moreover, the financial controller also does product analysis and gives insights into the profit and loss of the company. This flexibility makes them useful to startups and growing businesses without a full-fledged accounting department.

●    Medium-Sized Businesses:

In mid-size companies, the financial controller’s role involves achieving operational efficiency, undertaking work within a set budget, and consolidating that work into financial reporting for management.

Additional responsibilities may include cost analysis and enhancing efficiency, making the financial controller role more strategic. Also, apart from product, profit and loss analysis, a financial controller gives insights into where the company is making less money and where it can make more money. These allow medium and small businesses to grow and expand

●    Large Businesses:

Financial controllers usually work alongside accounting and financial staff in large companies. They operate at a higher level of activities, including forecasting, financial strategy, and high-level regulation compliance.

Does My Business Need a Financial Controller?

Whether your business requires a financial controller will depend on your business’s size, complexity, and growth ambitions. Here are a few scenarios where hiring a financial controller makes sense:

1.   Your Business is Growing Fast

With businesses scaling, financial complexity also grows. Manually managing budgets, taxes, and compliance can become overwhelming. A financial controller helps smooth the run of these processes so that the business works properly.

2.   Better Financial Reporting is What You Need

Suppose your business struggles to obtain accurate or timely financial reports. In that case, a financial controller can set up effective systems and procedures. This expertise guarantees financial transparency, a prerequisite for attracting funding and investors.

3.   You’re expanding or Investing

Financial analysis lies at the heart of planning mergers, acquisitions, or international expansion. The financial controller provides insight into the firm’s financial state and helps us make the right decisions.

4.   You Lack Internal Controls

Fraud or financial misconduct may bring your business to a grinding halt. Financial controllers pursue solid internal controls that protect the company from various misfeasances.

How to Hire the Right Financial Controller

Here are several things you should look for in hiring a financial controller:

• Qualifications: Prefer candidates having relevant experience and strong background in finance and accounting. Qualifications such as CA or ACCA should also be there on the resume, as financial controllers with these degrees will have better exposure and expertise in the field.
• Experience: Select someone who has worked in your field before. This is the best way to ensure they understand your business’s unique financial challenges.
• Skills: Moreover, financial analysis, budgeting, leadership, and overseeing the use of accounting software are key sense skills.

Benefits of Having a Financial Controller

• Improved Financial Efficiency: A financial controller optimizes processes, pinpointing where money is wasted and where resources can be made to work for us more efficiently.
• Enhanced Decision-Making: A financial controller brings informed decisions on expansion, investments and other strategic moves.
• Reduced Risk: The financial controllers reduce risks of fraud and non-compliance by keeping internal controls and being compliant with regulations.
• Scalability: A financial controller ensures that your systems scale with your business, supporting your ambitions.

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Conclusion

A financial controller isn’t just someone who can do numbers – they’re a strategic asset that can guide a business through the increasingly complex financial landscapes. Financial stability and operational efficiency are highly dependent on having a financial controller, whether you are a small startup or a large corporation.