Accounting controllers play a critical role in the financial health and success of businesses. If you’re an accounting student, finance professional, or business owner, understanding the responsibilities and importance of this role can provide valuable insights into managing finances effectively and advancing your career.
This article will break down the key functions, qualifications, and significance of an accounting controller, answering the commonly searched question, “What does an accounting controller do?”
Who is an Accounting Controller?
An accounting controller, sometimes referred to simply as a “controller,” is a senior-level financial professional responsible for overseeing the accounting and financial operations of a business. They manage essential tasks such as financial reporting, budgeting, compliance, and internal controls. The scope of their duties often depends on the size and complexity of the organization they work for:
- Small companies typically rely on controllers to handle a broad range of financial responsibilities, including having the final say on financial decisions like budgeting and risk management.
- Larger entities usually see controllers focusing on specialized areas, working alongside other executives like Chief Financial Officers (CFOs).
What Does an Accounting Controller Do?
1. Overseeing Accounting Operations
The primary responsibility of an accounting controller is managing accounting records and ensuring the accuracy of financial statements. For publicly traded companies, this means ensuring that reports meet the standards of Generally Accepted Accounting Principles (GAAP) and are submitted on time for shareholder review. These reports need to reflect the company’s financial health fairly and transparently.
Controllers oversee all critical day-to-day accounting functions, including:
- Accounts payable (AP)
- Accounts receivable (AR)
- Payroll
- Inventory management
- Compliance with tax laws and financial regulations
2. Budgeting and Financial Planning
Controllers play a central role in creating and maintaining company budgets. They ensure that the organization’s expenses align with projected revenues and are responsible for servicing debt and ensuring timely payments. These activities require precise planning and forecasting to prevent financial shortfalls.
Key responsibilities in this area include:
- Creating budgets that optimize resource allocation
- Reviewing revenue forecasts to set accurate financial targets
- Delegating budget preparation tasks but making final decisions based on team input
3. Ensuring Compliance
Compliance is a critical part of a controller’s job, especially for publicly traded companies. They ensure all financial practices are in line with local, state, and federal regulations. Controllers also coordinate annual audits required for public companies, providing auditors with the necessary information to assess the company’s financial statements accurately.
4. Analyzing Data and Strategic Decision-Making
Controllers are heavily involved in analyzing financial data to support strategic decision-making. This includes:
- Leveraging internal and external data to identify trends and opportunities
- Providing insights to improve cost efficiency and revenue generation
- Supporting executive leadership with reliable financial projections and recommendations
5. Leadership and Team Management
Accounting controllers often lead accounting teams and oversee financial departments. They manage processes, delegate tasks, and review their team’s output to ensure quality and accuracy. Strong leadership abilities are essential as controllers need to inspire confidence and guide their teams to meet organizational objectives.
Qualifications to Become an Accounting Controller
Education
To secure a role as an accounting controller, individuals usually need:
- A bachelor’s degree in accounting, finance, economics, or statistics.
- A master’s degree in accounting or an MBA is often preferred, as it demonstrates advanced knowledge and fulfills educational requirements for Certified Public Accountant (CPA) examinations.
- A CPA certification, although not mandatory, is highly valued and demonstrates expertise in accounting and financial practices.
Skills
Successful controllers need a mix of technical and leadership skills:
- Numerical proficiency and attention to detail to accurately interpret financial data
- Strong organizational skills to manage multiple responsibilities simultaneously
- Analytical and problem-solving abilities to identify challenges and craft effective solutions
- Communication and leadership skills to build relationships and manage teams effectively
Career Path
Typically, professionals don’t step directly into controller roles. The path to becoming a controller often involves working up the ranks through entry- and mid-level accounting positions, such as:
- Junior auditor or staff accountant
- Financial analyst
- Accounting manager or senior accountant
These roles provide the foundational knowledge and experience needed to excel in a controller position.
Why is the Controller Role Important?
Controllers are integral to any organization because they:
- Ensure Financial Stability: By maintaining accurate records, forecasting revenues, and managing budgets, controllers provide the financial clarity businesses need to thrive.
- Support Strategic Decisions: They assist leadership with actionable financial insights that help organizations make informed business decisions.
- Maintain Trust and Transparency: Compliance with tax laws, regulations, and audits ensures that businesses operate ethically and transparently, preserving trust among stakeholders.
What Does the Future Hold for Accounting Controllers?
The demand for controllers and financial managers is expected to grow significantly. According to the U.S. Bureau of Labor Statistics, this category is projected to see a 16% increase in employment between 2022 and 2032, much faster than the average for all occupations. Factors driving this demand include:
- Increased complexity of financial regulations
- Rising importance of data-driven decision-making
- Ongoing shortages of skilled accountants and CPAs
For anyone aspiring to make their mark in the accounting field, a career as a controller offers excellent prospects, both in terms of job opportunities and financial rewards.
Final Thoughts
What does an accounting controller do? Simply put, they are the backbone of an organization’s financial health, managing everything from day-to-day accounting operations to complex strategic planning. It’s a highly rewarding role for those with a passion for numbers, leadership, and problem-solving.
Whether you’re an accounting student exploring career options, a finance professional eyeing the next step, or a business owner seeking to improve your financial management, understanding the role of a controller is key to success. If you’re ready to take your career in accounting to the next level, don’t overlook this pivotal position in the corporate world.
