With so many different accounting roles within a business, it can be difficult to distinguish the duties of each. Here we take a look at the role of a controller to help you assess the need for this function within your business.
A financial controller is typically responsible for the holistic accounting functions within a business. This doesn’t mean that the controller will necessarily perform each function, they might need someone who is closer to the business operations to carry out the duty, while they manage each step to ensure accurate ledgers within a business that comply with GAAP guidelines. The role of a controller can be thought of as a high-level post within the accounting division that ties all of the outputs of other accounting functions. The greatest benefit of a controller is its strategic role as the go-between the finance division and a business’s senior management.
Closing entries to reset the balances on temporary accounts (which show balances over a single accounting period) to become permanent accounts within the balance sheet, as a way of including all accounts in your business’s long-term financial records, giving a more accurate and comprehensive view of the finances.
Reviewing of financials allows you to better understand the financial health of your business as financial statements give insight into operations and cash flow.
Top-down budgeting takes the burden off of lower management to create a budget on their own, saving time and resources.
Providing work supervision of finance teams to ensure that everyone understands account statuses in an effort to reduce errors.
Adjusting entry preparation as required to ensure that your financial statements reflect accurate data.
Preparing final financial statements to provide necessary insights into revenue, expenses, profitability, debt load, and cash flow within your business.
Working with the businesses to ensure accurate and timeous tax filing so that your business remains tax-compliant and in good standing with the IRS.
Overseeing accruals and prepaid transactions, and more – play a crucial role in your records of current liabilities and current assets and are imperative to an accurate financial overview of your business.
In many instances, the functions of a controller may be considered on par with that of a CFO within a business, as controllers are also equipped to perform high-level business advisory and analysis in terms of forecasting, budgeting, and risk analysis.
Owners of small businesses often tend to the recordkeeping and accounting needs of their businesses by themselves, but these demands become full-time jobs when the business expands. There is also a great opportunity for error and a mess in accounting when a business does not have a dedicated controller during its time of rapid expansion.
Here are 3 definite signs your business is in need of dedicated controller services:
The services of a controller will help alleviate some of the financial challenges by creating smooth processes to ensure that your business remains in full compliance with local and where necessary, multistate tax obligations.
At Fusion CPA, we offer a host of outsourced accounting services. Whether it be accounting, bookkeeping, or controller services you need, we can help you decide which of the accounting roles your business needs most. You can also outsource a combination of these functions to our accounting experts, who have years of experience and expertise across different industries.
We also have CFOs on our team to assist you with business growth when you’re ready to make the most of your business’ potential.
We are outsourced bookkeepers, CFOs, and entrepreneurs who are passionate about offering our clients a lasting relationship to help their business grow.
You need trustworthy, up-to-date accounting software that suits your industry and your business needs. We will guide you through the implementation and customization process so your company can grow with confidence.
Your business has specific issues and needs that your bookkeeping software needs to be able to handle. In fact, when you’re using the right software, you can move beyond compartmentalized business data.
You know you’re using the right software when your finances, sales, marketing, and operations data is integrated to give you a clear picture of your company’s financial health. Your data should also be easy to find and use.
If not, talk to us about choosing and integrating the best solution for your business. Our accounting services can be adjusted to suit your specific needs – and we know how important the right software is for business growth.