As businesses continue to grow and expand, the role of a financial controller becomes increasingly important. A financial controller is responsible for managing a company’s finances, ensuring that all financial transactions are accurate and compliant with relevant regulations.
With such great responsibility comes the need to strive for excellence, which is why it’s essential to have clear goals and objectives in place. By setting measurable targets, updating key data points, identifying impending risks and reviewing company records on a regular basis, financial controllers today can remain agile enough to accurately guide their organizations through challenging times.
If these goals sound applicable to your role or responsibilities, read on as we explore some of the key goals of a financial controller in detail. By keeping a close eye on specific goals, not only will you become a top-tier financial controller but also provide significant value as an asset to any team or organization.
What is a Financial Controller?
A financial controller is a senior-level executive who oversees the accounting and finance functions within an organization. They are responsible for ensuring that financial reports are accurate and timely, managing budgets, forecasting future financial performance, and identifying areas for potential cost savings.
Financial controllers work closely with CFOs and other executives within the organization to ensure that business decisions are financially sound. They play a key role in developing and implementing policies and procedures related to finance and accounting, they monitor real-time data, evaluate processes, and the list goes on.
The Many Tasks of Financial Controllers:
- Analyze financial data and create reports to present to executives and stakeholders
- Create and manage budgets for the organization or department, monitoring expenses and income
- Prepare financial statements in accordance with Generally Accepted Accounting Principles (GAAP)
- Track cash flows to maximize available resources and minimize associated risks.
- Manage investments, like stocks, bonds, mutual funds, etc., by assessing risk and return potentials
- Oversee financial compliance with internal policies and external regulations
- Monitor real-time data of performance indicators like inventory levels, market prices, currency exchange rates, etc., to ensure accuracy of accounting records
- Develop meaningful metrics that help measure performance against benchmarks established by the organization or department’s goals
- Prepare annual corporate tax returns for filing purposes and monitor regulatory requirements for filings on a quarterly basis in case of changes or updates to applicable laws or regulations
- Evaluate existing processes related to finance operations like accounts payable/receivable or payroll, identifying areas that need improvement or require automation for efficiency gains or cost savings purposes
Top 8 Goals of Financial Controllers
With so many tasks to manage, it is essential to prioritize and remain organized. Prioritizing and keeping straight goals is paramount for financial controllers if they want their organization to run smoothly. To stay on top of the game, here are a key goals that a financial controller should focus on:
1. Managing Cash Flow
Your top priority is to ensure that your company has a strong and stable cash flow, and this involves managing all financial transactions and optimizing accounts payable and receivable.
To effectively manage cash flow, it is good to develop a cash-flow projection that forecasts expected cash inflows and outflows. This will help you identify potential cash shortfalls and adjust your strategy accordingly. You can also establish clear policies and procedures for managing cash flow, including guidelines for managing credit and debt. Finally, consider working with your accounting team to implement technology solutions which can help streamline cash flow management and improve accuracy.
2. Financial Reporting
Another important goal of a financial controller is to prepare monthly, quarterly, and annual financial statements and to ensure that all financial reports are accurate and comply with regulatory requirements. Additionally, they must create reports for internal stakeholders with information on the current state of the company’s finances as well as projections for future performance.
Ensuring accurate and timely financial reporting is critical to maintaining the trust and confidence of your stakeholders. It’s important to establish strong internal controls to ensure financial information is accurately recorded and reported. This includes developing policies and procedures for financial reporting, ensuring that all financial data is accurate and complete, and conducting regular audits to identify and address any discrepancies.
3. Budgeting
Financial controllers are responsible for developing and managing the company’s budget. To do it effectively, it’s important to collaborate closely with other departments to ensure the budget aligns with the company’s goals and objectives. This involves analyzing past performance, forecasting future performance, and identifying potential risks and opportunities.
In addition, consider developing a contingency plan that outlines how the company will respond to unexpected changes in the market or other factors that could impact the budget. Regularly monitor the budget to ensure that it remains on track, and make adjustments as necessary to keep the company on course.
4. Risk Management
For financial controllers managing risk is a critical aspect of the role. They must identify potential risks and develop strategies to mitigate them. They do this by reviewing financial elements such as investment potential, business performance evaluation, and the process of insurance placement. They also use analytics to study portfolios for growth and assess resources for capital investments.
Some financial controllers put into place various credit policies and look for ways to reduce inefficiencies through bench marking to maintain low-cost borrowing and secure returns. In any way, to keep risk under control you should monitor economic trends to ensure smart investment decisions are made and create performance reports that measure progress relative to budget expectations.
5. Compliance
Ensuring compliance with regulatory requirements is another key goal of financial controllers. They must stay up-to-date on changes in regulations related to accounting and finance, as well as ensure that their organizations comply with these regulations.
You must stay up-to-date on laws, regulations, and compliance requirements to protect both the company’s assets as well as its legal standing in various markets. Emerging technologies like accounting automation software could help you improve processes and ensure compliance.
6. Cost Control
Controlling costs involves identifying areas where costs can be reduced without negatively impacting business operations. Financial controllers must be proactive about identifying areas where cost reductions may be possible or additional revenues could be generated by leveraging existing resources or introducing new products or services into the market. They should strive to develop a comprehensive understanding of current industry trends in order to maximize the potential profit margins for their organization.
To effectively manage costs, it’s important to regularly review all areas of the company’s operations and identify opportunities for cost savings. This might include renegotiating contracts with suppliers, implementing more efficient processes, or reducing staffing levels.
7. Forecasting
As a financial controller, you must be able to effectively forecast the company’s financial performance using data-driven insights and strategies. This involves analyzing trends and projections to predict future financial outcomes and identify potential risks and opportunities.
To improve your forecasting capabilities, consider leveraging data analytics and other technology solutions that can help you make more accurate predictions. In addition, regularly review your forecasting models to ensure that they remain accurate and adjust them as necessary based on changing market conditions.
8. Strategy Development
Finally, financial controllers play a key role in developing long-term strategies for their organizations by analyzing market trends, identifying opportunities for growth, and making recommendations to other executives within the organization, so strategy development should be on your top-goals priority list.
You are responsible for developing budget models and analyzing financial trends which can help inform decisions related to operations. By incorporating quantitative analysis into the strategies, you can assess the company’s short-term and long-term goals, identify areas of improvement and risks, track progress, and create fiscal policies designed to meet or exceed goals set by the leadership team.
Financial Controllers FAQ
What qualifications do I need to become a financial controller?
Most companies require at least a bachelor’s degree in finance or accounting along with several years of experience in a related field. A financial controller typically has at least three years of relevant experience that includes financial analysis, strategic planning, and transaction execution – as well as advanced computer skills in spreadsheet software programs. Certifications such as Certified Management Accountant (CMA) or Certified Public Accountant (CPA) might be needed for certain positions.
What skills do I need as a financial controller?
Skills required include analytical thinking ability, strategic thinking capacity, excellent communication skills, detail-oriented mindset, strong leadership abilities, expertise in GAAP accounting principles, proficiency with technology tools like Microsoft Excel/QuickBooks/Sage 50 etc., and knowledge about tax, laws and regulations affecting businesses.
What are the top goals of financial controllers?
Financial controllers have several goals that they aim to achieve in order to ensure their organization’s financial stability and success. These primary objectives include providing accurate and timely financial reports, monitoring budgets and cost controls, maintaining internal control systems, developing strategies for long-term financial health, and supporting senior management in decision making. Financial controllers also often help with forecasting, cash flow analysis, working capital management, budgeting, payroll processing, and implementing effective accounting processes.
How do financial controllers provide accurate and timely financial reports?
Financial controllers use a variety of methods to provide accurate and timely financial information to their organizations. They use various sources of data like previous records or industry benchmarks to establish realistic expectations for the company’s future performance. Additionally, they typically use software tools like spreadsheets or specialized accounting software to help produce more precise reports in a shorter amount of time.
What role does a financial controller have in developing strategies for long-term financial health?
A key part of a financial controller’s job is helping to create strategies that will promote long-term financial stability for their organization. This includes analyzing current and historical trends in order to identify any potential risks or opportunities which may be present in the near future that could affect the company’s bottom line. Once these risks or opportunities are identified, they can then work with senior management on developing strategies which will best protect their organization while still allowing them to achieve their desired goals over time.
How can financial controllers improve their performance?
Financial controllers should have a deep understanding of the organization’s goals and objectives, as well as its operations, products, and services. This can help them better identify potential risks and opportunities, as well as develop more effective financial strategies.
They should stay informed about changes in financial regulations, tax laws, and industry trends.
Financial controllers can also leverage technology solutions to improve accuracy and efficiency in financial reporting, budgeting, and other financial operations, and work closely with other departments, such as sales, marketing, and operations, to develop financial strategies that align with the organization’s overall goals and objectives.
