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