Today’s financial controller is not your father’s financial controller. Althoughthe role was once all about math and accounting, now that’s just the baseline.Nowadays, those who excel as controllers also have people, communication and informationtechnology (IT) skills, as well as a knack for strategic planning, business development andbusiness intelligence. And even then, there’s no guarantee of ever being tapped tofill the position above controller: chief financial officer (CFO).
Here’s how to gain the skills and experience needed to become a financial controller— and, if desired, use them as a springboard to move up to CFO.
What Skills Do You Need to Become a Financial Controller
A financialcontroller’s primary purpose is to oversee how a business spends money and tomaintain accurate and timely books and records. But there is considerable nuance in how therole is executed from one organization to another. In larger or more mature companies thattypically employ both a controller and CFO, typical core responsibilities for controllersmay include:
- Overseeing internal audits to strengthen internal controls and find errors or fraud.
- Owning all financial closeprocesses that lead to generating financial statements and closing the books.
- Maintaining accounting books and records.
- Managing the accounting team’s daily activities.
- Managing monthly, quarterly and annual financial reporting.
- Managing receivables, payables, payroll and the general ledger.
- Monitoring bank balances.
- Approving and coding invoices to ensure reporting accuracy.
- Producing public filings with the Securities and Exchange Commission (SEC).
The controller may also be expected to contribute to:
- Budgeting.
- Developing the business.
- Tax planning.
- Managing cash flow.
- Rolling out ERP, reporting, payroll and other software.
- Evaluating risk.
- Setting prices.
- Preparing financial projections.
- Conducting due diligence during mergers and acquisitions.
- Fostering business partnerships.
In smaller or more entrepreneurial organizations, the financial controller often assumesresponsibilities handled by the CFO or other leaders in larger companies. These may include:
- Buying insurance coverage.
- Overseeing public offerings.
- Interacting with lenders and investors.
- Defining customer credit limits.
- Investing pension and surplus funds.
- Making changes to the pension plan.
- Maintaining employee files and other key HR functions.
- Following up with customers.
All told, that long list of responsibilities demands that a person be able to think bothstrategically and tactically. No wonder, then, that a financial controller must possess awide range of hard and soft skills, including:
- Accounting skills: Controllers typically have years of accounting andauditing work on their resumes. That experience provides the foundation for dataanalysis and business intelligence tasks that extend far beyond bookkeeping. They alsoare generally experts in the intricacies of U.S. Generally Accepted Accounting Practices(GAAP), SEC regulations and International Financial Reporting Standards (IFRS).
- Communication skills: Accounting work often involves reconciling whatwas budgeted with actual expenses. The ability to explain to stakeholders where thosenumbers come from — and what they mean — is critical. So is the ability tocommunicate (and enforce) accounting policies to people outside the accountingdepartment.
- People skills: Many controllers supervise an accounting staff, so theyshould be able to motivate and develop their staff’s skills. They must also earnthe respect and trust of their peers who perform other functions, as well as that of thecompany’s top leaders. In smaller companies, people skills can be valuable inbuilding strong relationships with suppliers, vendors and other outside entities thatare critical to the success of the business.
- Creative-thinking skills: Controllers can add more value to thebusiness by finding new ways to increase accounting and financial efficiencies, boostproductivity, simplify processes and automate tasks. When a company is in high-growthmode, a controller plays a critical role in its scaling. All of that demands a talentfor looking forward.
- Strategic-thinking skills: Controllers are often asked to set pricesand allocate resources (among other things). This requires an understanding about howthe data they’ve collected actually impacts the business.
- IT skills: The days are dwindling for controllers who rely onspreadsheets or even basic accounting software. Instead, they more often rely on anenterprise resource planning (ERP) system to build workflows and automate processes thatcross several departments.
How Do You Become a Financial Controller?
The need for trained, knowledgeable financial controllers is creating a strong job market.According to the Bureau of Labor Statistics, employment prospects are expected to increase7% between now and 2030, an increase of approximately 96,000 jobs, with most of those jobsbecoming available as current job holders leave the profession or retire. Where will allthose new controllers come from? While some may earn a controller title without followingany prior, expected career path, those who do will be the outliers: Most upcomingcontrollers will share backgrounds that include specialized education, certification andyears in the trenches. Let’s examine the paths that typically lead to a career as afinancial controller.
- Earn a degree.
Most companies require at least a bachelor’s degree from an accrediteduniversity in finance, accounting or economics. Experts advise that courseworkinclude accounting, budget analysis, communication, financial management,forecasting auditing and tax law. Many controller positions now also require amaster’s degree, typically a Master of Business Administration (MBA). Severaluniversities offer these degree programs online, designed specifically forprofessionals in the workforce looking to advance in their careers.
Beyond coursework, it’s never too early to begin networking. During college,join accounting or finance clubs, or join the American Institute of Certified PublicAccountants (AICPA) as a student affiliate member. Internships offer practicalexperience.
- Get certified.
Although financial controller jobs now encompass far more than accounting, theystill require being adept at managing the books. Earning a certification is a widelyaccepted way to prove expertise in that area. Arguably the most valuablecertification in the field is as a Certified Public Accountant (CPA). To take thetest to earn a CPA, candidates need at least 150 hours of post-secondary educationand at least two years of professional accounting experience.
Other certifications include:
- Certified Management Accountant (CMA), which prepares people towork in a corporate environment by focusing more on management andexecutive-level duties (such as budget analysis) and less on accounting tasks(such as preparation of tax returns).
- Chartered Financial Analyst (CFA), which is bestowed by the CFAInstitute to certify a financial analyst’s competence. In addition toaccounting, CFA exams cover economics, ethics, money management and securityanalysis.
- Certified Fraud Examiner (CFE), for finance professionalsworking to combat fraud. Those pursuing this certification will be tested onsuch topics as law, investigation and fraud deterrence.
- Certified Financial Controller (CFC), which demonstratesmastery of a broad range of financial skills. The 18-part exam includes suchtopics as long-term debt, dividend policy and multinational finance.
Each of these certifications has merit, but anyone pursuing a financial controllerjob may want to consider them as additions to earning a CPA. Keep in mind, too, thatcontinuing education credits are a regular requirement for maintaining a CPAlicense.
- Pay your dues.
No one gets hired as a financial controller right out of school. People have to worktheir way up the due-diligence ladder, learning skills and gaining experience alongthe way. To gain that experience:
- Work for one of the Big Four accounting firms (PricewaterhouseCoopers,Deloitte, KPMG or Ernst & Young), if possible, as anaccountant orauditor.
- Take a job in a small firm, a startup, the government or a nonprofit. Such jobsmay be less prestigious than a job at one of the Big Four (depending on thespecific firm), but they still offer valuable broad experience and directexposure to operations.
- Serve as an assistant controller. Before seeking the top job, plan to gainexperience first as a staff accountant and then as an assistant controller. Mostassistant controllers have auditing or cost-control backgrounds, and so theexpectation is that you’ll spend a minimum of two years (and likely manymore) in this role before being qualified enough to be considered for promotion.
- From the outset of this journey, expect to invest 12 to 20 years before landingthe controller job. Use that time to build a solid skill set comprisingexpertise in enterprise-level financial management software and ERP systems;experience with GAAP, IFRS and SEC rules; and top-notch decision-making, problemresolution and creative-thinking skills.
- Stand out.
Every financial controller wants to succeed — and possibly set themselves upfor the next career step. As a new financial controller:
- Take charge. To make a difference, make the role proactive, notreactive. Controllers can drive change, always keeping an eye on how a changewill pay off for the business, the finance team and their own careers.
- Cut costs. Let’s face it: The controller job is aboutmoney, but the role itself doesn’t make money. Still, controllers canbenefit a business’s bottom line — they can streamline theirdepartments, automate where possible and keep head count low. They can suggestcost savings for lines of business, too.
- Be aware. As one expert observed, “Visibility is theantidote to risk.” Look around and accurately observe everything. Doing somakes it easier to navigate the shoals of fraud, compliance, controls andobstacles. Then share any observations with the team.
- Avoid groupthink. Being new to the financial controllerposition affords an opportunity to maintain an “outside” perspectivethat makes it easier to think outside of the proverbial box and drive change. Sohang on to that perspective as long as possible.
- Dump the grunt work. Figure out how to eliminate or automate asmuch routine work as possible. This will free up more time to thinkstrategically.
Controller to CFO
Now that you’re the financial controller, your next stop is CFO, right?Not necessarily. That leap depends on the size of the organization. In larger companies, thecontroller typically serves as the CFO’s right hand; in smaller companies,responsibilities are often combined into one role, where the controller:
- Handles most of the basic accounting tasks (like an accountant)
- Collaborates with the CEO (like some financial directors)
- Communicates with banks (like financial managers)
- Manages investor relations (like a CFO)
In larger organizations, the CFO role requires additional skills and, likely, a change inmindset. Whereas a controller is about the numbers, the CFO is about the story behind thenumbers. In other words, today’s CFO role looks less like a finance role and more likean operational role. (In fact, many organizations are eliminating the chief operatingofficer (COO) position and assigning those responsibilities to the CFO.) The question thenbecomes: How does someone whose only experience has been in finance prepare to take on theresponsibilities of a CFO?
- Spend time in operations. Companies are increasingly looking for CFOswith an intimate understanding of how the business actually works and who its customersare. If becoming CFO is the goal, consider stepping off the finance track for a time torun a division of the company.
- Improve communication skills. CFOs are typically the company’soutside face (and voice) to bankers, analysts, investors, ratings agencies and others.Credibility with those entities requires fluency in their languages. And keep in mind,top-notch presentation skills also are critical for pitching ideas and explaining thenumbers internally.
- Be ready for the promotion. It’s easy to get caught up inday-to-day tasks, but that may make it harder to move up. Focus on the future and onstrategy to develop a long-term perspective.
- Lead an outside project. Is the company implementing a new IT system?Does the company need an accurate sales forecast? Jump at the chance to manage suchprojects to demonstrate your ability to get the job done. Such projects also offerinsights into other parts of the business and can help build strong relationships.
- Get a mentor. Find someone more senior in the organization who iswilling to act as a guide and share the spotlight. Observing some of their activities(such as calls with analysts) offers the opportunity to learn how to field businessquestions when the time comes.
- Act the part. If the goal is to be a C-level executive, start dressing,speaking and acting like those who already are. Show an ability to read a room andadapt.
- Develop empathy. Wait — isn’t HR supposed to be thetouchy-feely department? Yes, but experts say successful CFOs are generally disengagedfrom their own egos. An effective way to accomplish that is to focus on others. Greaterempathy will also build tolerance for ambiguity and taking risks.
- Engage with others. It will be tough to succeed as a CFO (or becomeone) if you’re working on a figurative island. Instead, reach out to other leadersin the organization, tap others as a resource and be available as a resource yourself.Seek candid feedback from peers. Be a dependable team player.
- Get the knowledge you need. Depending on the CFO opportunity inquestion, specific knowledge may be required. For example, a role in a public companymay demand a deep dive into investor relations.
Financial controllers are in demand and will be at least through this decade, according tothe BLS. But not just anyone can apply for the position. The road to becoming a financialcontroller requires dedication, determination and a stellar set of marketable skills. Theideal candidate will follow the path through education, certifications and job experience,all of which can lead to a rewarding career with strong job prospects. The road might evenlead to the office of the CFO.
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Financial Controller Career Path FAQs
How do you become a financial controller?
To earn a controller title, start with a degree in accounting or finance — and maybeadd an MBA. Next, accrue several years of experience as an accountant or auditor. Finally,work a stint (at least two years and likely longer) as an assistant controller.
What is the career path for a controller?
Once you become a controller, the next career step may be to assume the same position in alarger organization or a different industry, or it may be to seek a role as group financedirector or a move to operational finance. With careful planning, it may even lead to CFO.
Can a controller become a CFO?
Yes — but making the transition is not a slam dunk. To have the best chance,operations experience is necessary. So are polished communications skills and effective teamskills. It also helps to develop empathy in order to be comfortable with ambiguity andtaking risks.
Are financial controllers in demand?
Yes. The profession is expected to expand 7% between now and 2030. That means approximately96,000 new jobs becoming available in the field over the next decade.
