What Is A Controller In Finance? Role And Responsibilities (2024)

Financial management careers offer solid job security, strong salary potential and plenty of room for advancement. In the accounting field, senior finance professionals known as controllers lead accounting departments and help shape financial strategy at organizations of all sizes.

But what is a controller, exactly? In this article, we’ll examine these professionals’ responsibilities and the skills required to excel in their profession. We’ll also explore earning potential, job outlook and prerequisites for this role.

What Does a Controller Do?

Controllers oversee the preparation of their organizations’ financial reports. Such reports may include analyses of future expenses or earnings, income statements and balance sheets. Financial controllers typically manage their organizations’ accounting departments, making them high-level financial managers. They also work closely with internal and external auditors to provide transactional records and explain accounting information.

Much of an accountant’s job description focuses on tracking current and past financial data. As the top accountants at their firms, these responsibilities are also part of a controller’s job. However, a controller takes an active role in forecasting and strategizing for their company’s future. Controllers must understand their employers’ financial goals and offer data-informed recommendations on how to meet them.

Job Duties for Controllers

Financial controllers oversee standard accounting functions. These functions include keeping internal financial records, generating reports, issuing and collecting payments, processing payroll and ensuring compliance with relevant laws and regulations.

Controllers may not handle these duties themselves, but they are responsible for ensuring their staff executes them correctly. They also oversee the performance of internal accounting controls such as monthly bank reconciliations.

At publicly traded companies, controllers also oversee the process of producing shareholder reports and submitting financial statements to the Securities and Exchange Commission (SEC) in accordance with Generally Accepted Accounting Principles (GAAP).

Additionally, controllers perform key leadership and advisory functions. A controller hires, trains and supervises accounting team members and sets their department’s tone, priorities and operational strategy. At some companies, controllers use forecasting skills, financial knowledge and analytical ability to help set sensible company budgets and navigate financial issues, while at other workplaces, these duties are handled by financial planning and analysis teams.

Areas of Expertise

Controllers’ areas of expertise can also vary. These professionals need a deep understanding of accounting as it relates to their industry and company profile. For example, a controller working for a healthcare organization must understand the healthcare industry’s specific tax concerns. Similarly, an employer that conducts business in several countries might look for a controller with experience working for multinational companies.

What Are Comptrollers?

A comptroller is a type of controller. The titles are similar, and their responsibilities overlap, but these professions are not identical. Controllers typically work at for-profit companies, and comptrollers work in government or nonprofit settings.

While controllers often work under chief financial officers (CFOs), especially at large companies, a comptroller position is equivalent to a CFO role in terms of seniority.

Controller Work Environments

Financial controllers’ duties vary depending on the size of their organization.

Large Companies

At larger companies, the controller usually reports to the chief financial officer (CFO). They may also share management duties with a treasurer.

The bigger the organization, the more likely it is that the controller acts primarily as an overseer. As such, controllers focus less on hands-on accounting and more on supervising the employees in charge of taxes, accounts and payroll.

Small and Midsize Companies

Smaller organizations often combine the roles of controller and CFO. While large companies have more robust accounting departments, at a smaller company, the controller may be the only accountant on staff. These controllers take on a variety of duties and execute more day-to-day accounting tasks like bookkeeping.

Skills for Financial Controllers

To become a controller, you need a robust accounting skill set, honed over years of industry experience. You also need strong leadership and interpersonal abilities. Below, we’ll look at some essential skills for financial controllers.

Analytical Skills

A controller’s responsibilities extend beyond performing calculations and generating financial records. Since controllers contribute to their organization’s overall financial strategy, they need sharp analytical skills to extrapolate actionable meaning from raw numbers.

Attention to Detail

In the accounting profession, details are crucial, and even small mistakes can be costly. All accountants—including entry-level clerks and department heads like controllers—need to keep a sharp eye out for any inaccuracies and discrepancies. Since a controller bears the final responsibility for their entire team’s work, this quality is especially important for the role.

Communication

Controllers use communication skills to lead and motivate their staff. They also present reports and other findings to executives and shareholders, so they must know how to explain complex financial information to those without accounting backgrounds.

Math

Controllers should have an excellent grasp of arithmetic and basic algebra. These professionals rarely use advanced math like calculus or statistics, however.

Organizational Skills

Financial controllers may oversee multiple departments. Top-notch organizational skills can help controllers keep track of vital data and documents and make sure their departments run efficiently.

Technology

Like other accounting professionals, controllers need a strong grasp of industry-standard accounting software and spreadsheets. As managers, they should also understand enterprise resource planning systems—software systems that help companies integrate and manage essential business functions across an entire organization.

Accounting Standards and Financial Reporting Requirements

To lead their departments effectively, controllers should be proficient in relevant accounting standards and requirements. Depending on their company profile, these may include GAAP, International Financial Reporting Standards and SEC financial reporting regulations.

Financial Controller Salary and Job Outlook

According to the U.S. Bureau of Labor Statistics (BLS), financial management careers—which include financial controllers—typically pay above-average salaries and see strong demand.

Financial managers earn a median annual salary of $139,790, according to the BLS. The agency also projects a 16% growth in employment for these professionals from 2022 to 2032. This is much faster than the projected growth of 3% for all occupations.

How To Become a Controller

You can’t step into a financial controller position fresh out of college. This advanced role usually comes after many years of study and work experience. Still, a controller’s high salary and increased responsibility may make the long haul worth it for ambitious accounting professionals.

Earn a Degree

Most controllers start with a bachelor’s degree in accounting or a business administration bachelor’s, though some controllers may come to the profession from different fields.

A bachelor’s is the minimum educational requirement for a controller role, but employers often prefer candidates with a master’s in accounting, an M.B.A. in accounting or a similar graduate degree. A master’s degree also fulfills the educational requirements for the Certified Public Accountant (CPA) credential, which many controllers hold.

Obtain Certification

Certification can help aspiring financial controllers gain job-relevant skills and knowledge. Though certification is not always mandatory for controllers, many employers prefer or require it.

Controllers often earn the CPA designation. CPA licensure requirements vary by state but usually include a bachelor’s degree and at least two years of accounting experience.

Candidates must also pass the Uniform CPA Examination®. Most states require at least 150 semester hours of education as well. Aspiring CPAs often earn the additional 30 credits beyond a typical bachelor’s by completing master’s degrees.

Controllers can also benefit from earning a Certified Management Accountant (CMA)® or Chartered Financial Analyst (CFA)® title. To qualify for the CMA, applicants need either a bachelor’s degree or one of several finance certifications, plus at least two years’ experience in the field. CFA candidates need a bachelor’s degree or professional experience. Both certifications require an exam.

Gain Experience

Controllers usually come into the role with at least 10 years of progressive accounting experience, including some time in supervisory positions.

A controller may start in a junior accounting position before progressing through mid-level jobs like staff accountant to become an accounting manager or supervisor. Some controllers also come from auditing or cost control backgrounds.

After building managerial expertise in the field, experienced accountants can qualify for assistant controller roles. Eventually, they may pursue senior financial controller roles.

Frequently Asked Questions (FAQs) About Controllers in Finance