The Main Functions and Responsibility of a Financial Controller

The Main Functions and Responsibility of a Financial Controller

The figure of the controller has become indispensable in organizations in recent years. The functions of the financial controller have evolved, and the context has also helped the profession’s transformation. 

Modern control is no longer limited to coordinating budgeting, measuring, and reporting variances. The best companies have discovered in the function a significant foothold to ensure that strategic objectives are met.

Main functions of a financial controller

The financial controller is responsible for supervising the company’s finances and accounting. Managing, evaluating, and controlling the company’s economic risks are the three fundamental pillars on which its functions are based. Although the functions of the financial controller also include:

  • Coordinating the finance department and management
  • Supervising financial strategies
  • Guaranteeing the achievement of objectives

In an uncertain and changing environment like the current one, the controller must also be aware of technological, social, and economic trends. This will help you to analyze possible incidents in the company and warn management about opportunities for improvement.

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The most demanded financial profiles help define the state of the ratios and balance sheets. They have already been released from the 2020/21 pay freeze and are experiencing a salary increase.

Daily monitoring of financial activities

Financial control involves establishing KPIs to monitor the economic risks of the business. In this way, the controller will be able to carry out daily monitoring to detect budgetary deviations and verify that the norms regarding financial resource management are met.

In the same way, its work is also focused on supervising compliance with tax and accounting objectives and obligations according to current regulations.

Coordination of budgets and internal policies

One of the controller’s primary functions is supervising the company’s annual accounts. The follow-up and study of it will be essential to avoid making mistakes and plan the company’s strategies.

Thanks to the conclusions drawn from these reports, the controller will be able to coordinate and manage the preparation of budgets and financial forecasts, the preparation of monthly balance sheets, and other periodic reports.

Processing of tax procedures

The person in charge of budgetary control must follow up on the organization’s KPIs and be up to date with the different procedures to be carried out. It is essential to keep track of the existing deadlines in the administration to avoid fraud and possible delays.

It is essential to have an annual calendar with the key dates and to be prepared with all the documentation that may be necessary.

Control and supervision of organizational activities that involve financial resources

The controller must have direct contact with all areas of the company. All departments do some form of financial management, which you must be aware of. This way, you will have a global and unified vision of the organization.

Its functions include coordinating the different functional areas and adjusting the different items. In addition, having this general vision, their contribution will be decisive when choosing one strategy or another regarding investment in new products or markets.

They guarantee financial stability

The financial controller ensures that organizations remain financially stable and strong. By knowing the most appropriate indicators and tools for the sector it operates, different actions can be applied most appropriately.

This way, their tasks include managing the company’s capital and funds.

Writing financial reports

Another of the controller’s functions includes preparing reports that make it possible to identify the company’s performance levels. In addition, they must guarantee compliance with accounting and tax obligations to report to the general management and external and internal auditors.

As previously stated, although the controller figure will always be linked to control and supervision, its evolution in recent years has also placed it at the top of the business organization chart. His conclusions will be vital in making strategic decisions for the company.

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