Financial Controller | Functions Of The Financial Controller
Financial Controller : After the crisis suffered in 2020, companies are committed to incorporating talent with a great capacity to adapt and solve problems within the financial departments. And it is that inflation, economic uncertainty, and the increase in the cost of living are relevant financial issues that put businesses on alert.
Faced with this confusion, companies feel the need to have professionals who provide a strategic and analytical vision, which allows them to anticipate crisis situations and this is where the figure of the financial controller plays a key role.
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What Is A Financial Controller?
The financial control figure of the financial controller has been gaining weight over the years. It is an essential figure for any company because it controls and supervises the finances; in addition to designing functional financial strategies that link the management and accounting of a business.
The responsibilities of a financial controller vary greatly depending on the size of the company since in medium and large companies it becomes more important because the survival of the business depends on it, both in the short and long term.
The tasks of this figure are closely related to the company’s budgets and the fulfillment of objectives, as well as compliance with tax obligations and expense forecasts.
Due to the many functions that the financial controller performs in companies, we are going to analyze the most relevant ones to discover why they are key figures in any business.
Functions Of The Financial Controller
As we have already seen, the responsibilities of this figure vary depending on the size of the company, but the difficulty of the accounting and financial actions, and the number of employees in the accounting department also influence it.
However, although the functions of this figure can be very varied, some of a general nature are always established that are usually common to any financial controller, regardless of the sector in which they are employed.
SUPERVISE THE ANNUAL ACCOUNTS OF THE COMPANY
If there is no person in charge of studying and checking the company’s annual accounts, it is likely that the same mistakes will continue to be made year after year. For this reason, it is essential that there is a professional who supervises and analyzes these accounts at the end of each financial year, in addition to controlling internal audits and making monthly and quarterly reports.
DETECT ECONOMIC ERRORS
It is normal for mistakes to be made within the accounting department due to the stress with which they work. The financial controller must supervise and verify that there are no such errors in the accounts or in the analysis of the company’s financial statements.
SET BUSINESS GOALS
He is in charge of planning all the economic objectives that the company must meet, whether in the short, medium, or long term. This function must be carried out together with the management of the company or the accounting staff, among others.
LOOK FOR ACTIVITY MONITORING TOOLS
The financial controller is in charge of selecting the control tools of the business activity, always seeking that they are technological, informatic, and methodological. Depending on the size of the company, different methods will be needed to manage the transactions and movements that are made.
Therefore, this figure has to be informed of the latest computer and technological developments in order to implement changes and improvements in all the tools that are regulated by information systems.
TREASURY AND FUND MANAGEMENT
In addition to keeping track of the company’s annual accounts, this figure must also manage the company’s funds and treasury because it is essential to know what the company’s assets are in order to make decisions in the most effective way possible.
ANALYZE STRATEGIC DECISIONS
These types of decisions are essential for the company because they mark the strategy and the path to be followed. The financial controller must analyze all the decisions made by the company’s management and ensure that they are positive.
IT IS THE LINK BETWEEN THE DIFFERENT DEPARTMENTS
The financial controller is in charge of managing the financial control department, but they also have to act as a leader and coordinate their team with other departments, usually with management, accounting, and management.
STUDY THE INSURANCE POLICY
As every company assumes risks at some point in its existence, it is important that it is backed by insurance that guarantees a mattress to hold on to in case of danger. The controller studies the insurance policy of the company and works for its continuous improvement.
ANALYZE THE RESULTS OF THE COMPANY
In addition to setting the economic objectives that the company must meet, the financial controller must also prepare reports on the fulfillment of said objectives and analyze them to find out the possible problems that have arisen and work to solve them.