what is a financial controller

Keeping all of a company’s monetary ducks in a row is tough, especially when operations expand across states and international borders. That’s why corporations hire controllers to oversee all financial reporting on the senior-level management team. Financial controllers are head accountants who direct the preparation of the company’s:

  • ledgers
  • balance sheets
  • income statements
  • cash flow records

Controllers are supposed to “control” the organization’s finance and accounting departments to establish effective procedures. Unlike comptrollers who typically work in government, financial controllers inhabit the private and nonprofit sector. It’s their duty to review financial facts and figures for operations to improve the bottom line rather than taxpayer resources. Controllers usually report to the Chief Financial Officer (CFO). However, smaller companies may only have a controller. Administering a profitable accounting system that processes financial transactions in compliance with federal regulations is their goal.

Salary

The Bureau of Labor Statistics reports that the 531,120 financial management jobs, including controller, in the United States provide a mean yearly salary of $134,330, or $64,58 per hour. Financial controllers make above-average in private corporations and enterprises at $154,640. The highest paid are employed by securities and commodity investment brokerages at $191,180 each year.

Beginning Salary

After being promoted, new financial controllers can expect to land in the bottom 25th percentile of earnings with a yearly income around $84,600. However, it’s possible for financial controllers with years of experience in large, multinational companies to earn over $163,680 annually. In metropolitan areas like New York City and Chicago, controllers can make more than $370,000.

Key Responsibilities

Financial controllers manage the day-to-day operations of their company’s accounting department to ensure adequate support for reporting and auditing transactions. They implement internal controls to ensure fully compliant financial reports are produced with accuracy. Controllers will provide advice on budgeting to help senior executives:

  • mitigate risk
  • achieve corporate goals
  • boost profit

Financial controllers handle the filing of quarterly and annual SEC reports for public corporations. They check that these are addressed in a timely manner:

  • accounts payable
  • accounts receivable
  • payroll
  • debt payments

Some controllers may analyze financial data to inform good pricing, contract, and investment decisions. These managers have a strong hand in contributing to the organization’s financial strategy.

Necessary Skills

There are many attributes that financial controllers must have for this upper-level position. Controllers must possess excellent mathematical skills to establish and implement good accounting procedures. Analytical skills help controllers turn data into smart decisions that improve productivity and profitability. In-depth knowledge of corporate finance is essential to oversee the administration of financial reporting. Being detail-oriented with good organizational ability is important for controllers to keep complex financial records orderly. Controllers should have the interpersonal skills to motivate and resolve conflicts with accounting staff. Communication skills are also essential for explaining dense figures to other senior managers as the company’s financial expert.

Degree and Education Requirements

Climbing the corporate ladder to financial controller usually requires having at least a four-year bachelor’s degree from an accredited business school. Ideal are undergraduate majors in:

  • finance
  • accounting
  • business administration
  • statistics
  • mathematics

Advancement into senior management increasingly necessitates earning a master’s degree though. Consider pursuing:

Graduate programs featuring elite AACSB accreditation stand among the best. Obtaining 150 hours of post-secondary training will qualify you for several certifications. Going for a doctoral degree is optional, but it can aid in promotion to Chief Financial Officer (CFO) if desired.

Pros and Cons of the Position

You’re likely intrigued by the power and prestige of controllership, but the position delivers both advantages and challenges. On the plus side, financial controllers turn their love of numbers into a lucrative, executive career. Controllers make a sizeable six-figure salary with potential for growth in larger companies. Controllers run the accounting departments of companies globally, so you’re not tied down in a specific city. A financial controller’s work positively contributes to the company’s economic health, which is rewarding.

On the other hand, controllers may be stressed with tightening laws in highly regulated industries. Poring over financial reports can be repetitive and require hours at a desk. Work-life balance can be compromised with long workdays beyond eight hours. Financial controllers need impressive resumes by investing in good higher education and certifications.

Getting Started

Finding your way to the coveted corner office as financial controller takes plenty of hard work. Most employers prefer hiring controllers with at least 10 years of financial experience. That means you should start crafting your resume while attending school. Jump onto every chance for applied learning with:

  • internships
  • co-ops
  • field practicum
  • service projects
  • part-time jobs

The more accounting knowledge you have, the better. Many financial controllers begin as:

  • financial clerks
  • staff accountants
  • cost analysts
  • payroll clerks

Having a master’s degree will make the leap easier into management jobs like:

  • financial manager
  • risk manager
  • credit manager

If you fulfill the 150-hour requirement, consider pursuing the Certified Public Accountant (CPA) credential. Having a bachelor’s degree, four years of work experience, and passing exam scores can qualify you for Chartered Financial Analyst (CFA). You could be a Certified Management Accountant (CMA) or Certified Financial Manager (CFM) too.

Future Outlook

The United States remains the world’s leading financial center with a gross domestic product surpassing $16.8 trillion.  Increasing profits from operations in developing global nations will also lead to growth. Therefore, it’s safe to presume that corporate finance won’t be dwindling anytime soon. Controllers will be in demand for planning and directing the accounting systems that make these companies succeed. The BLS predicts that employment of controllers will rise by 7 percent through 2024. Financial controllers can compete for jobs in:

  • public enterprises
  • private corporations
  • financial institutions
  • insurance companies
  • manufacturing firms
  • investment brokerages

Financial controllers save companies millions in losses and penalties by making certain that accounts are monitored and transactions are properly reported. In-depth computing is left to accountants. Controllers must carefully analyze the books and produce reports on corporate performance. Becoming a financial controller places you in the driver’s seat of steering wise decisions regarding the company’s accounting strategy.

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