Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Find a Job
  • Tutoring
  • Home
  • Accounting, Taxation, and Reporting
  • Managerial & Financial Accounting & Reporting

Controller - Explained

What is a Controller?

Written by Jason Gordon

Updated at April 7th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What is a Controller?What Does a Controller Do?Requirements for ControllersSpecial ConsiderationsAcademic Research on Controllers

What is a Controller?

A controller refers to an employee or an individual in a company that manages the finances and accounting activities of the company. A controller is often in charge of all accounting and financial activities of a company, a controller can also be the head of the accounting department of a firm and is responsible for collating all financial reports and accounting activities. In large companies, a controller directly reports to the chief financial officer (CFO) of the firm. In smaller businesses, the duties of a controller and a CFO can be merged and assigned to one person. Controllers are also referred to as financial managers.

Back to: ACCOUNTING, TAX, & REPORTING

What Does a Controller Do?

Based on the various sizes and function sod businesses, the duties of controllers vary. While the roles of a controller and CFO are separated by large companies, small companies merge their roles. Government institutions and NGOs, on the other hand, have a comptroller, who occupies a more senior position than a controller. The duties of a controller include the following;

  • Preparing the budgets of a firm, including budgets for various operations and departments.
  • Collation and analysis of financial reports and data.
  • Managing and maintaining the annual budget of a firm.
  • Investigating deficiencies in budgets and making direct reports to the management.

In some organizations, controllers participate in employee recruitment, training and employee appraisal. Erring employees are also sanctioned by controllers in some organizations.

Requirements for Controllers

When a company wants to recruit a controller, there are certain requirements that applicants must meet, they include the following;

  • A bachelors degree in business administration, finance or accounting.
  • A minimum of 10 years of experience in accounting, financing or other related fields.
  • Professional certification or designation, such as Certified Public Accountant (CPA), Certified Financial Manager (CFA) and others.
  • A masters degree in accounting, finance or business administration is a plus.
  • Other requirements include integrity, honesty and high professional conduct.

Special Considerations

Oftentimes, controllers are required to work or liaise with external auditors for effective management of accounting activities and financial reporting. External auditors also help controllers maintain the required standards needed for discharging their duties and performing their roles. In publicly traded companies, controllers file the financial statement of the company and are accountable to regulatory and oversight bodies. For many businesses and organizations, controllers ensure adequate monitoring of all financial activities and analyze the risks and impacts of certain activities. These controllers also ensure that companies strictly comply with ethics and regulations and also obtain necessary licenses and permits. Other duties of controllers include filing of state and federal tax reports and financial statements for companies.

Related Topics

  • Managerial Accounting
  • Institute of Management Accountants
  • Annual Report
  • Certified Financial Statement
  • Common Size Financial Statement
  • Accounting Personnel in an Organization
  • Comptroller vs Controller 
  • Financial Statement Analysis
  • Cost Accounting
  • Operating Income
  • Profit Margin  
  • Paid in Capital
  • Retained Cash Flow
  • Book Value (Company)
  • Adjusted Book Value
  • Book Value (Asset)
  • Accounting Insolvency
controller

Was this article helpful?

Yes
No

Related Articles

  • Trial Balance - Explained
  • Accounts Payable Turnover Ratio - Explained
  • Asset Turnover Ratio - Explained
  • Net Asset Value (Investments) - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand