In a large company there is typically an accounting department to oversee all expenditures and profits. This department takes care of all the various budgets and allocates funds accordingly. It is also important that the accounting department keep up with all the books of the business as financial transparency is required by the government and also by stock holders should the company be a public one. The Financial controller oversees all the departments that make up the accounting department and makes sure the sections are communicating with one another.
Function
The basic function of the financial controller is to stay on top of all the various departments and produce critical financial reports for the head of the company. By summing up what is going on in the accounting department, the head of the company can make informed decisions when choosing the steps for moving forward. These reports include profit and loss statements and which areas of the company are performing well versus which sections are not doing so well. This information is key to forming strategy for the long-term success of the company. Often you will be responsible for suggesting the budgets for departments to the president who will approve or alter your budgetary recommendations.
Skills Required for a Financial Controller
In order to be a financial controller you need to have a degree in business administration, finance or accounting. In addition, many controllers go on to get their master’s degrees in these areas. Beyond education you need to have a grasp on financial reporting, problem-solving skills and fairly high-level mathematical skills. You need to be an effective communicator so you can explain the complex financial concepts to people who work outside the financial departments. You also must be able to communicate between departments in a way that lets everyone know what needs to be done and how the departments work together.
You should have extensive supervisory skills as you will often be working with many different individuals and you need to know how to create a productive and happy working environment. It is important that your form a reporting structure in order to make sure tasks are accomplished in a timely manner. You will be required to evaluate employees and determine the hiring, firing and promotion of various individuals.
Compensation
A financial controller’s compensation is greatly determined by the size of the company you are overseeing. Larger companies pay more and the position can command a salary well over $100,000 annually. Sometimes bonuses are structured into the pay scale in order to incentivize the financial controller to be more effective. On average a financial controller makes $82,000 per year. This number encompasses some of the lower paying jobs as well as the high paying positions. The promotion track for the financial controller is usually the Vice President track for the company. This position might require more education but is usually offered to a financial controller who has successful run the department and has proved invaluable to the overall success of the company.
