What Does a Controller Do?

When a business owner makes the decision to scale up their business, it can come with a set of unexpected growing pains. The obvious goal is to increase the revenue, or money coming in, without incurring significant costs. The question is how.

First and foremost, a company must keep accurate financial records. These records can be used to create financial statements that give a real-time overview of the company’s financial health. Subsequently, financial statements can be used to analyze data, create budgets, forecast outcomes based on different scenarios, and calculate risks.

A controller, whether full-time, part-time, or outsourced, can perform all the above-mentioned tasks. She or he also oversees the accounting department, and acts as a right hand to the business owner and executives in making decisions.

Let’s take a closer look at the responsibilities of a controller, what to look for when hiring one and outsourcing options.

Key Responsibilities of a Controller
“Controllers serve as an organization's financial gatekeepers, maintaining a comprehensive understanding of the company's financial position, cash flow, and profitability. They analyze financial data, identify trends and potential risks, and provide insights and recommendations to support informed decision-making by senior management and stakeholders.” Don Young, Controller West to East Business Solutions.
One of the primary responsibilities of a controller is to oversee the preparation of financial statements, including balance sheets, income statements, and cash flow statements. They ensure the accuracy, integrity, and timeliness of financial reporting to provide stakeholders with a clear picture of the company's financial performance.

Controllers also assist in developing and monitoring budgets and forecasting financial trends and outcomes. By analyzing financial data and market trends, they help management make informed decisions and set realistic financial goals for the company.

They establish and maintain internal control procedures to safeguard the company's assets and prevent fraud or financial mismanagement. They also implement financial policies and procedures to ensure compliance with regulatory standards and best practices.

Controllers analyze financial data to identify trends, variances, and opportunities for improvement. They provide insights and recommendations to management based on their analysis, helping to drive financial performance and operational efficiency.

They assess and manage financial risks faced by the company, including market risks, credit risks, and operational risks. They develop risk mitigation strategies and monitor risk exposure to protect the company's financial health.

Controllers coordinate and oversee external audits, ensuring compliance with audit requirements and presenting financial information to auditors. They work closely with auditors to address any audit findings and implement recommendations for improvement.

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