Importance of Financial Controller in any Business

One of the most important functions in any company is that of the finance controller. For those who are uninformed, they tend to think the sole function of this position is that of the head of Accounts Payable and Accounts Receivable, but it goes far beyond that capacity. In fact, the finance controller is in charge of any financing and accounting function throughout the company.

In this blog we will try to highlight the importance of Finance Controller in any company, and more so for SMEs. It’s a sad fact that 90% of businesses fail in their first ten years, and 60% don’t even make it to their third birthday. All those hope and dreams, all that money –  gone down the drain. It is for this very reason ‘Finance Controller’ plays a vital role in the success of any organization.

Growing a business from small start-up to larger enterprise is not an easy process to pin down. Growth that takes generations for one company to achieve, might happen in a few years for another. But the process which determines how quickly a business expands, will be the result of a combination of several key decisions. There are pivotal moments along the way, one of which is the decision to appoint a full-time finance director. While a CFO is responsible for finalizing financial policy, a controller’s financial analysis skills are instrumental in helping to assess risk, analyze efficiency and inform policy decisions made by executive management.

Financial controller is a person who is responsible for:

·         Financial accounting

·         Cost and managerial accounting

·         Taxes

·         Data processing

Controllers are responsible for maintaining complete  compliance with state, local, and federal law. They are also responsible for keeping your financial reporting in compliance with accepted accounting policies.

To ensure that company’s objective is met. He provides financial advice to executive directors and management and to the board on business and recommends strategies to management that will contribute to the company’s growth and profitability. He creates and advances a culture of continuous improvement and creates motivation among employees.

Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk

Importance of Dashboard in Managing Accounts

To manage your business, you need relevant financial data that's delivered in real time.

So today we will be highlighting the importance of DASHBOARD. It's important to obtain the right financial reports in order to continually make adjustments and better decisions for the future health of your business. There are two levels of reporting in the world of accounting and bookkeeping. The first level is the financial statements themselves. These are detailed reports consisting of rows and columns of numbers like balance sheet and income statements. Often these reports are difficult for the average layperson to understand, interpret, and use in everyday business management. The second level of reporting is what’s known as Dashboards. These graphical reports represent what are called “Key Performance Indicators”. These reports are used by owners and management to track key metrics on a regular basis. When a key metric suddenly changes, these reports reflect those changes so that management can react quickly and decisively to make course corrections. Without the availability of these reports, serious business problems can remain undetected for long periods of time and often well after it’s too late.

The informed companies – SME or big,  are the most successful companies as they are very clear about their short-term and long-term goals, and also about their business current status, the financial health of organization.  They take decision quickly based on the facts always available at their fingertips. They are always ready to take wise at crucial phases of the growth.  In order to make effective business decisions, one need to have access to valuable, real-time data and information in the form of Dashboard. These tools can also help you create business goals and identify metrics and key performance indicators to help you measure the success of your agreed-upon goals and objectives.

Accurate and thorough information is the foundation of all successful business ventures because it provides a wealth of information about prospective and existing customers, the competition, and the industry. For any venture, be it small or big businesses, it is very important to have information at fingertips Because you probably have more expenses for your business than you dared imagine. This can make it hard to guarantee you have the cash reserves to call on when needed. And when in the infancy of relationships with suppliers, non-payment of bills will not be received favorably. By using a dashboard tool, you can keep track of what has historically been paid, when and to whom, and use this to better forecast the finances you will need for the future.  

Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk