FINANCIAL CONTROLLERSHIP

NAME: DONNA KAYE LU DATE: JANUARY 29, 2024

COURSE: BSBA FM-3 BLOCK 1 SUBJECT: FINANCIAL CONTROLLERSHIP

TOPIC: ROLE AND RESPONSIBILITES OF A CONTROLLER

Research and review the following outlined topics:

1. Described and explain what is Controller and its importance in the organization
 A controller is an individual who has responsibility for all accounting-related
activities, including high-level accounting, managerial accounting, and finance
activities, within a company. The duties of a controller include assisting with the
preparation of the operating budgets, overseeing financial reporting and
performing essential duties relating to payroll. Across all of the duties, a
controller often works most with the collection, analysis, and consolidation of
financial data. Although the controller doesn't always maintain the annual budget,
the controller position monitors variances, summarizes trends and investigates
budget deficiencies. The controller may reports material budgeting variances or
expenditure variances to upper management. A controller is important to finance
as they control the risk and reporting aspect of the company. A controller is the
point person for making sure the financial reporting is done correctly. They are
also the person to understand why inaccuracies may exist, what changes must be
put in place, and how those changes will impact future reports.
2. Discuss the following main job functions of controller:
a. Planning- Controllers are responsible for planning financial activities within an
organization. This involves developing budgets, financial forecasts, and strategic
plans. Controllers work closely with other departments to align financial plans with
overall organizational objectives. They ensure that financial goals are realistic,
achievable, and contribute to the success of the company.
b. Organizing- Controllers organize financial resources and establish systems and
procedures to manage and control the financial operations of the organization. This
includes setting up accounting systems, designing internal controls, and implementing
financial policies. Controllers organize financial data to ensure accuracy,
accessibility, and compliance with regulations.
c. Directing- Controllers provide direction by overseeing financial activities and
ensuring they align with the organization's goals. They play a leadership role in
financial management. Controllers lead financial teams, communicate financial
objectives, and collaborate with other departments to ensure a cohesive approach to
achieving financial goals.
d. Measuring- Controllers are involved in measuring and monitoring financial
performance against established benchmarks and objectives. This includes analyzing
financial statements, key performance indicators, and other metrics. Controllers
identify trends, assess variances, and provide insights to support decision-making.
e. Financial Analysis- Controllers conduct financial analysis to interpret and
communicate the financial health of the organization. They analyze profitability,
costs, and financial trends. Controllers provide insights into the financial implications
of business decisions, helping management make informed choices.
f. Process Analysis- Controllers analyze and improve financial processes to enhance
efficiency and effectiveness. This involves evaluating existing financial procedures,
 identifying areas for improvement, and implementing changes. Controllers contribute
to streamlining processes, reducing costs, and ensuring compliance.

3. Explain the following responsibilities of Controller:

a. Auditing- Controllers are responsible for overseeing or directly conducting internal
audits to ensure the accuracy and integrity of financial records. They assess internal
controls, identify potential risks, and ensure compliance with relevant laws and
regulations.
b. Budgeting- Controllers lead the budgeting process, collaborating with departments to
develop and manage the organization's budget. They set financial targets, allocate
resources, and monitor actual performance against the budget.
c. Control systems- Controllers design, implement, and monitor control systems to
regulate financial activities. They establish mechanisms to prevent fraud, ensure
adherence to financial policies, and safeguard assets.
d. Cost Accounting- Controllers oversee cost accounting, tracking and analyzing the
costs associated with production. They provide insights into cost structures, support
pricing decisions, and identify areas for cost reduction.
e. Financial Analysis- Controllers conduct financial analysis to evaluate the
organization's financial performance. They interpret financial data, analyze trends,
and provide insights to support strategic decision-making by management.
f. Financial Statements- Controllers are responsible for the accurate preparation and
presentation of financial statements, including the income statement, balance sheet,
and cash flow statement. They ensure compliance with accounting standards and
provide transparent financial reporting.
g. Fixed Assets- Controllers manage the accounting, depreciation, and valuation of
fixed assets. They ensure accurate reporting on the balance sheet and compliance with
accounting principles related to fixed assets.
h. Policies and Procedures- Controllers establish and enforce financial policies and
procedures. They ensure that these guidelines are communicated and followed
throughout the organization to maintain consistency, transparency, and compliance.
i. Process Analyses- Controllers conduct analyses of financial processes to identify
areas for improvement. They optimize workflows, streamline operations, and enhance
the efficiency and effectiveness of financial processes.
j. Record Keeping- Controllers oversee the maintenance of accurate and complete
financial records. They ensure that financial transactions are properly documented,
organized, and stored to support accountability, compliance, and decision-making.
k. Tax Preparation- Controllers coordinate the preparation of tax returns and ensure
compliance with relevant tax laws and regulations. They work with tax professionals
to accurately report financial information for tax purposes.
l. Transaction Processing- Controllers oversee the recording and processing of
financial transactions. They ensure that transactions are accurately captured,
classified, and entered into the accounting system to maintain the integrity of
financial data.

4. Discuss the following Job Qualifications:

a. Analysis of Information- Controllers need strong analytical skills to interpret
complex financial data, identify trends, and provide insights. They must analyze
information critically to support strategic decision-making and financial planning.
The ability to analyze information enables Controllers to make informed
 recommendations, assess financial performance, and contribute to the organization's
overall success.
b. Communication ability- Effective communication is crucial for Controllers to
convey financial information, insights, and recommendations to various stakeholders,
including executives, non-financial managers, and external parties. Controllers with
strong communication skills can facilitate understanding, promote transparency, and
ensure that financial information is communicated accurately and comprehensively.
c. Company and Industry knowledge- Controllers should possess a deep
understanding of the company's operations, goals, and industry dynamics. This
knowledge helps them contextualize financial data and make informed decisions.
Company and industry knowledge allows Controllers to align financial strategies with
organizational objectives, anticipate challenges, and navigate industry-specific
financial complexities.
d. Management Skill- Controllers often lead financial teams and collaborate with other
departments. Strong management skills are essential for overseeing financial
functions, motivating teams, and ensuring efficient collaboration. Effective
management contributes to a well-functioning finance department, fosters a positive
working environment, and enhances the overall productivity and performance of
financial teams.
e. Provision of timely and cost-effective services- Controllers are expected to deliver
financial services in a timely and cost-effective manner. This involves efficiently
managing financial processes, adhering to deadlines, and optimizing resources.
Timely and cost-effective services contribute to the organization's operational
efficiency, financial accuracy, and overall cost management.
f. Technical knowledge- Controllers needs a strong foundation in accounting
principles, financial reporting standards, and relevant software tools. Technical
knowledge is essential for accurate financial analysis, reporting, and compliance.
Technical proficiency allows Controllers to navigate complex financial landscapes,
maintain accurate records, and ensure compliance with accounting regulations.

5. Duties of Financial Controllers:

a. Manage cash flow- This includes forecasting cash flow needs, planning for foreign
currency needs in advance, and alerting upper management for cash flow
deficiencies.
b. Act as Audit liaison- This includes meeting with external audit staff, being receptive
to audit findings, implementing reporting changes, and communicating to upper
management or the board of directors the outcomes of the audit.
c. Monitor Internal Controls- This includes gathering feedback from audit personnel,
working with managers on designing proper control functions, and gathering data on
the effectiveness of the internal control.
d. Assist in budget preparation- This includes feeding individuals around the company
data and information on historical spending across a variety of general ledger coding.
e. Minimize financial risk- This includes being aware of current processes,
understanding company weaknesses, engaging employees with training, and openly
communicating areas of opportunity to better safeguard assets.
f. Ensure financial compliance- This includes understanding external reporting
requirements, ensuring proper resources are on hand to meet those requirements and
overseeing the final product being delivered to external parties.
g. Compile financial reporting- This includes being aware of recent changes to
financial reporting practices, overseeing a staff that directly contributes to the
 financial statement preparation process, and sometimes certifying that the financial
statements have been accurately prepared to the best of their knowledge.
h. Identify cost savings- This includes understanding where operational efficiencies lie,
how staff can be best utilized, what reporting functions are being duplicated, and
what resources the finance department really needs.
i. Mentor Financial Staff- This includes being a leader to the controller's direct reports
by involving them in higher-level discussions.

6. Enumerate at least 5 job description of a controller under the following Task:

a. Accounting
 Financial Reporting: Prepare and oversee the accurate and timely production of
financial statements, ensuring compliance with accounting standards and
regulations.
 Internal Controls: Establish and maintain robust internal control systems to
safeguard assets, prevent fraud, and ensure the accuracy of financial transactions.
 Audit Coordination: Collaborate with internal and external auditors, providing
necessary documentation and explanations to facilitate comprehensive audits.
 Cost Management: Oversee cost accounting activities, analyzing cost structures,
and identifying opportunities for cost optimization.
 General Ledger Management: Maintain the integrity of the general ledger,
ensuring accurate recording and classification of financial transactions.
b. Finance
 Budgeting and Forecasting: Lead the development and management of the
annual budget, collaborating with department heads to align financial goals
with organizational objectives.
 Financial Planning: Engage in strategic financial planning, providing insights
and recommendations to support long-term financial sustainability.
 Cash Flow Management: Monitor and manage cash flow, ensuring optimal
liquidity for operational needs and strategic initiatives.
 Investment Analysis: Evaluate investment opportunities, assessing risks and
returns to support informed decision-making.
 Debt Management: Oversee the organization's debt portfolio, ensuring
compliance with debt covenants and optimizing financing structures.
c. Administration
 Policy Development: Develop and enforce financial policies and procedures,
ensuring consistency and compliance throughout the organization.
 Contract Review: Review and assess financial implications of contracts,
providing recommendations to mitigate financial risks.
 Insurance Management: Oversee insurance coverage, assessing risks and
ensuring appropriate coverage for the organization's assets and operations.
 Vendor Management: Collaborate with procurement teams to manage vendor
relationships, negotiate terms, and optimize cost-efficiency.
 Facilities and Asset Administration: Coordinate financial aspects related to
facilities, ensuring cost-effective management of assets and infrastructure.
d. Computer Services
 ERP Implementation: Oversee the implementation and optimization of
Enterprise Resource Planning (ERP) systems for efficient financial data
management.
 
Data Security: Ensure the security and integrity of financial data through the
implementation of robust cyber security measures.
 Technology Integration: Evaluate and integrate technological solutions to
enhance financial processes and reporting capabilities.
 Database Management: Oversee the maintenance and management of
financial databases, ensuring accuracy and accessibility of data.
 IT Governance: Collaborate with IT teams to establish and enforce
governance policies related to financial systems and data.
e. Human Resources
 Payroll Oversight: Oversee payroll processes, ensuring accuracy and
compliance with relevant laws and regulations.
 Employee Benefits Management: Collaborate with HR to manage financial
aspects of employee benefits programs, including retirement plans and health
insurance.
 Compensation Analysis: Conduct analysis of compensation structures,
ensuring competitiveness in the market and alignment with organizational
goals.
 Compliance Training: Provide financial compliance training to employees,
ensuring awareness and adherence to financial policies.
 HR Budgeting: Collaborate with HR to develop and manage the human
resources budget, aligning financial resources with HR initiatives and
strategies.

Prepared by:

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Date and time Submitted: _________________

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