Financial management careers offer solid job security, strong salary potential and plenty of room for advancement. In the accounting field, these senior finance professionals lead accounting departments and help shape financial strategy at organizations of all sizes.
But what is a controller, exactly? In this article, we’ll examine these professionals’ responsibilities and the skills required to excel in their profession. We’ll also explore earning potential, job outlook and prerequisites for this role.
What Does a Controller Do?
Controllers oversee the preparation of their organizations’ financial reports. Such reports may include analyses of future expenses or earnings, income statements and balance sheets. Financial controllers typically manage their organizations’ budget, audit and accounting departments, making them high-level financial managers.
Much of an accountant’s job description focuses on tracking current and past financial data. These responsibilities are also part of a controller’s job. But a controller takes an active role in forecasting and strategizing for their company’s future. Controllers must understand their employers’ financial goals and offer data-informed recommendations on how to meet them.
Job Duties for Controllers
Financial controllers oversee standard accounting functions. These functions include keeping internal financial records, generating reports, issuing and collecting payments, processing payroll and ensuring compliance with relevant laws and regulations. Controllers may not handle these duties themselves, but they are responsible for ensuring their staff executes them correctly.
At publicly traded companies, controllers also oversee the process of producing shareholder reports and submitting financial statements to the Securities and Exchange Commission in accordance with Generally Accepted Accounting Principles.
Additionally, controllers perform key leadership and advisory functions. A controller hires, trains and supervises accounting team members and sets their department’s tone, priorities and operational strategy. Executives rely on controllers’ forecasting skills, financial knowledge and analytical ability to help set sensible company budgets and navigate financial issues.
Areas of Expertise
Controllers’ areas of expertise can also vary. These professionals need a deep understanding of accounting as it relates to their industry and company profile. For example, a controller working for a healthcare organization must understand the healthcare industry’s specific tax concerns. Similarly, an employer that conducts business in several countries might look for a controller with experience working for multinational companies.
What are Comptrollers?
A comptroller is a type of controller. The titles are similar, and their responsibilities overlap, but these professions are not identical. Controllers typically work at for-profit companies, and comptrollers work in government or nonprofit settings.
While controllers often work under CFOs, especially at large companies, a comptroller position is equivalent to a CFO role in terms of seniority.
Controller Work Environments
Financial controllers’ duties vary depending on the size of their organization.
Large Companies
At larger companies, the controller usually reports to the chief financial officer (CFO). They may also share management duties with a treasurer.
The bigger the organization, the more likely it is that the controller acts primarily as an overseer. As such, controllers focus less on hands-on accounting and more on supervising the employees in charge of taxes, accounts and payroll.
Small and Midsize Companies
Smaller organizations often combine the roles of controller and CFO. While large companies have more robust accounting departments, at a smaller company, the controller may be the only accountant on staff. These controllers take on a variety of duties and execute more day-to-day accounting tasks like bookkeeping.
Skills for Financial Controllers
To become a controller, you need a robust accounting skill set, honed over years of industry experience. You also need strong leadership and interpersonal abilities. Below, we’ll look at some essential skills for financial controllers.
Analytical Skills
A controller’s responsibilities extend beyond performing calculations and generating financial records. Since controllers contribute to their organization’s overall financial strategy, they need sharp analytical skills to extrapolate actionable meaning from raw numbers.
Attention to Detail
In the accounting profession, details are crucial, and even small mistakes can be costly. All accountants—from entry-level clerks to department heads like controllers—need to keep a sharp eye out for any inaccuracies and discrepancies. Since a controller bears the final responsibility for their entire team’s work, this quality is especially important for the role.
Communication
Controllers use communication skills to lead and motivate their staff. They also present reports and other findings to executives and shareholders, so they must know how to explain complex financial information to those without accounting backgrounds.
Math
Controllers should have an excellent grasp of arithmetic and basic algebra. These professionals rarely use advanced math like calculus or statistics, however.
Organizational Skills
Financial controllers may oversee multiple departments. Top-notch organizational skills can help controllers keep track of vital data and documents and make sure their departments run efficiently.
Financial Controller Salary and Job Outlook
According to the U.S. Bureau of Labor Statistics (BLS), financial management careers—which include financial controllers—typically pay above-average salaries and see strong demand.
Financial managers make a median annual salary of $131,710, according to the BLS. The agency also projects a 17% growth in employment for these professionals from 2021 to 2031. This is much faster than the national average projected growth of 5% for all occupations.
How to Become a Controller
You can’t step into a financial controller position fresh out of college. This advanced role usually comes after many years of study and work experience. Still, a controller’s high salary and increased responsibility may make the long haul worth it for ambitious accounting professionals.
Earn a Degree
Most controllers start with a bachelor’s degree in accounting or a business administration bachelor’s, though some controllers may come to the profession from different fields.
A bachelor’s is the minimum educational requirement for a controller role, but employers often prefer candidates with a master’s in accounting, an MBA in accounting or a similar graduate degree. A master’s degree also fulfills the educational requirements for the Certified Public Accountant (CPA) credential, which many controllers hold. Read on for more information on how to become a CPA.
Obtain Certification
Certification can help aspiring financial controllers gain job-relevant skills and knowledge. Though certification is not always mandatory for controllers, many employers prefer or require it.
Controllers often earn the CPA designation. CPA licensure requirements vary by state but usually include a bachelor’s degree and at least two years of accounting experience. Candidates must also pass the Uniform CPA Examination®. Most states require at least 150 semester hours of education as well, for which reason aspiring CPAs often earn a master’s degree.
Controllers can also benefit from earning a Certified Management Accountant (CMA)® or Chartered Financial Analyst (CFA)® title. To qualify for the CMA, applicants need either a bachelor’s degree or one of several finance certifications, plus at least two years’ experience in the field. CFA candidates need a bachelor’s degree or professional experience. Both certifications require an exam.
Gain Experience
Controllers usually come into the role with at least 10 years of progressive accounting experience, including some time in supervisory positions.
A controller may start in a junior accounting position before progressing through mid-level jobs like staff accountant to become an accounting manager or supervisor. Some controllers also come from auditing or cost control backgrounds.
After building managerial expertise in the field, experienced accountants can qualify to become assistant controllers. Eventually, they may step into senior financial controller roles.
Frequently Asked Questions (FAQs) About Controllers
What is the job of a controller?
Controllers manage companies’ financial departments. They oversee accounting teams, advise executives on finance matters, help create company budgets and ensure that accounting functions run smoothly.
Is a controller an accountant?
Accountants and controllers perform many of the same duties. Both roles prepare financial reports, manage taxes and track financial data. Controllers also oversee accounting staff and play a more active part in their companies’ financial planning.
What is the difference between a controller and a CFO?
At smaller companies, the same individual might act as both controller and CFO. However, in large organizations where these roles are separated, the CFO determines company financial strategy, and the controller focuses on accounting activities and reports to the CFO.
More From Advisor
- What Is A Nurse Practitioner? Types, Qualifications And Career Data
- How To Become A CPA: A Step-By-Step Guide
- How To Become An Actuary: Responsibilities, Practice Areas And Certifications
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
