Does Your Business Need a Controller?

November 12, 2021

Your business is growing and so you find yourself wondering if your business needs a controller. Maybe you are also going through moments of anxiety, so in this post, we will help you make the best decision for your business. 

To answer this question, you probably need to ask yourself questions beyond what you imagine before making the final decision. If your financial processes and reports are taking more time than necessary and are inaccurate, if you are facing a cash crunch, or if you don’t know how to discern which metrics are critical and work on the most important ones, then your business might need a controller. 

There are different reasons why you might want to hire a controller to strengthen your financial area, most people who own a small business arrive at this point with a series of doubts about it. However, questioning the possibility is a big step in deciding. The most important step is to be clear about the functions of a controller and what responsibilities he or she will have in your business and the responsibilities that you, as the owner, will continue to have. 

What Does a Financial Controller Do?

A financial controller is a person in charge of the accounting responsibilities of a company. His main task is to make the company’s accounting comply with financial regulations efficiently and accurately. As well as overseeing and recording the finances of the business. 

Some of their services include:

• Managing the accounting team
• Inventory management
• Organizing and setting up financial processes
• Month-end closing

A controller is a direct link between the accounting team and the business owner or manager to achieve business goals by linking the financials to the company’s objectives. 

In a small to medium sized business (SMB) the controller and chief financial officer (CFO) are usually the same person so there are some corresponding CFO tasks such as:

• Preparation of budgets and business forecasts
• Risk assessment
• Due diligence in mergers and acquisitions

Does My Business Need a Controller?

If the business has become more financially complex, or the business operations tend to become more segregated, lines of business have been added, or processes are simply not being efficient and fast enough, then perhaps the best option is to have a financial controller. 

This person will help you generate data and interpret it for you so that you as the owner can understand why changes have occurred over time. The controller will also give you advice so that the company is able to save capital and use it wisely to continue to grow your business. 

What Skills Should a Financial Controller Have?

To hire a controller you should look for a person who knows how to anticipate the needs of your business and is able to provide timely financial data, analysis, and advice. 

They also need to have good accounting practices and be able to communicate and report financial processes to management. This is knowledge and experience that a controller should have:

• Experience: It is important for a financial controller to have several years of experience and to have worked in an accounting or auditing firm and to have a master’s degree in accounting or an MBA. Must be a Certified Public Accountant (CPA) or Certified Management Accountant (CMA), i.e., have expertise in financial planning and analysis, auditing, and general accounting functions. 
• Technical Skills: Artificial intelligence models and specialized accounting software are now available. A controller does not need to have an in-depth knowledge of these programs; however, he/she needs to know how to use them in order to maximize the efficiency of the accounting team. 
• Leadership Skills: Like all area leaders, a controller needs leadership skills that allow him to motivate his team. In addition, he or she needs these skills to be able to communicate information effectively to higher-level parties. Communication is a fundamental tool for an accountant to be able to read the accounting books and clearly translate all the information in order to support the finances of the business. 

If your business needs a little more structure because it has grown, then it might be time to bring on a controller.