What Is A Corporate Controller?

When you start a new business or are thinking about expanding an existing one, one thing you must prioritize is your company’s financial health and success. To know if your business is making the right economic strides, you must do proper accounting and implement the right monetary policies. This is where a corporate controller comes in handy.

Having a suitable corporate controller for your business will provide good financial security. But what is a corporate controller? And how do they differ from a business mentor? This article will answer those questions, along with a few others.

What Does A Corporate Controller Do?

A corporate controller is responsible for all of a company’s accounting-related activities, including high-level accounting, administrative accounting, and finance activities. This individual advises on and reports material budgeting modifications or expenditure variances to the company’s management. However, a corporate controller’s functions vary depending on the type of company they work for.

Functions Of A Corporate Controller In A Medium-Sized Or Subsidiary Company

If you own a medium-sized or subsidiary company, the work of your corporate controller will be operational. Some of their primary functions will include:

●  Supervising, at the basic level, the preparation of the annual accounts of your company. They will also be instrumental in defining the business expense categories of your company.

●  Ensuring that there is full compliance with accounting and tax obligations.

●  Verifying the compliance with tax objectives, standards, and procedures of your company.

●  Detecting errors, deviations, and areas that need improvements from a financial standpoint.

●  Implementing methodological and IT tools to control accounting activities in your business.

●  Optimizing information systems in your organization.

●  Managing your company’s treasury and supervising the level of funds required to take care of common costs and investments. Therefore, a corporate controller plays an essential role in raising capital for a business.

●  Training and motivating the financial and accounting personnel working under them.

●  Reporting all accounting and financial matters to the senior management of your company.

●  Sometimes, a corporate controller is responsible for liaising with external auditors and responding to their demands.

Functions Of A Corporate Controller In A Central Company

If you are running a central company, the tasks of your corporate controller will be significantly modified, especially if the company has subsidiaries. So, if the individual is responsible for the accounting and financial aspects of the central company, their role will be less operational and more dedicated to critical functions, including:

●  Supervising the preparation of the individual and consolidated annual accounts and the financial statements of the whole company.

●  Developing and implementing internal controls.

●  Defining the standards and procedures of your company.

●  Organizing and analyzing your company’s reporting systems.

●  Coordinating your organization’s transversal projects relating to strategy, IT, finance, or accounting.

●  Controlling your company’s overall financial objectives, including budgets, investments, and funding.

●  Participating in the definition of your company’s general business plan.

Corporate Controller Job Requirements

Since a corporate controller is entrusted with the financial and accounting responsibilities of the entire company, they must be qualified and excellent at what they do. As an entrepreneur, you must be sure that the person you hire as a corporate controller has the necessary skills and experience to do the job correctly. Here are some of the leading job requirements of a corporate controller:

●  Bachelor’s degree in accounting, finance, or a similar field.

●  A Master’s degree with a focus on corporate financial management.

●  At least five years’ experience as a financial administrator.

●  Advanced proficiency in financial management and accounting software.

●  Thorough knowledge of accounting standards and industry regulations.

●  Broad experience in corporate finances, auditing, and performance management.

●  Excellent organizational and time management skills.

●  Superb leadership, communication, and teamwork skills.

●  Knowledge of U.S. Securities and Exchange Commission (SEC) regulations and provisions of the Sarbanes-Oxley Act (especially for public companies).

Average Salary For A Corporate Controller

Unlike other professionals in the accounting field, a corporate controller in the United States enjoys an above-average salary. In 2019, the Bureau of Labor Statistics reported that the median annual income for a corporate controller is $129,890; but this is just an average. Some controllers make a lot more. Studies have shown that corporate controllers at Fortune 500 companies earn six figures that sometimes exceed $250,000.

The salaries at small and medium companies are usually lower. Fortunately, corporate controllers working for small companies are considered high-ranking employees who often get to share in the growth and success of their companies via equity ownership.

Summary

The importance of having a skilled and experienced corporate controller in your company is priceless. So, even as you look for a great mentor, you must pay attention to the person you hire as your corporate controller. The financial stability and success of your company will largely depend on the competence of your controller.