Are you running a business? If yes, how are you controlling your finances? Are you able to manage all your business finances on your own? Or you’re outsourcing financial or accounting services for your business? So, many questions, right. Well, answering these questions is important because it will only help you how you manage your finance. But if you aren’t able to manage your business finances, then you definitely need someone who can help you out in this. And this is where financial controller comes into being.

financial controller

Who financial controller is? What is his role? Have these questions in mind, right. Well, this article will talk about the role of a financial controller in your business. But before that, we’ll talk about who exactly he is.

Let’s make a start.

Who financial controller is?

Simply putting, the financial controller is the professional who is responsible for managing business finances. He is basically a company’s lead accountant. They take care of accounting activities and ensure that ledger accurate. He also ensures that the money coming in and out of the company accurately.

Note to consider: Another name of financial controller is ‘comptroller.’

Here are some of the key responsibilities of him. Have a look at them below:

  • – General accounting oversight
  • – Producing internal policies and spend controls
  • – Helps in setting up bank accounts
  • – Helps in coordinating external tax accountants
  • – Also ensures whether the payments received from customers and other debtors

There are many more responsibilities to add to the list. So, let’s make a step further and talk about the role of financial controller in the business deeply below.

The significant role of financial controller in your business

➤ Risk management

One of the main functions of a financial controller is to manage risk occurring in the business. Undeniably, the risk is an intricate part of your business. If you’re doing business then the risk is associated with it. Moderate risk can easily be managed but the high risk can destroy the business eventually. Therefore, he helps in optimizing resource management, cash flow, and operational efficiency while minimizing the risk of fraud. A financial controller will look at the system and reduce the accounting errors and ensure the accuracy of all accounting data.

➤Helps in financial planning and budgeting

Another role is to look at the budget and the future of the business. As a business, if you want long-term growth in your business then you have to manage your business model. Well, there are many factors that a he takes into consideration for financial planning and budgeting, and these are:

  • – Internal and external resources
  • – Competitive positioning in the market
  • – Carrying out a detailed financial plan
  • – The customer behavior and demographics

And many more to add. Having these points in mind allow you to be more proactive in your overall business strategy. And also it helps in preparing a budget for the business in the future.

➤ Decision making and analysis

Not just planning and budgeting, a financial controller also helps in evaluating the impact of investment decisions. He basically helps businesses with an aim to maximize the value of an investment and reducing the risk. So, how financial controller helps the business make a decision that will help them in the future? Based on some key factors and data, he helps the business make a decision which includes:

  • – Investment analytics
  • – Comparison of strategic options with strong criteria
  • – Impact on the cost to serve, margins, and volume

These are some of the key insights through which the controller helps in making a decision. However, there would be many more insights to take into consideration.

➤ Overall accounting tasks

This points highlights that a financial controller is responsible for managing overall accounting tasks. He ensures that all the accounting transactions are appropriately made and documented. In fact, he is also responsible for managing cash-related tasks such as accounts payable, receivables, cash disbursements, bank reconciliation, and payroll. A company can’t be able to manage all these tasks without outsourcing accounting services or taking the help of him.

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The bottom line

A financial controller plays a significant role in your business. If you already read this article who the financial controller is and what are his key functions. I hope you have thoroughly read this article and got to know the meaning of financial controller completely. I guess it is easier for you to know what a financial controller can do for your business. If you got any query just get in touch with us, we would be happy to help you.

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