A controller - essentially the "lead accountant" - boasts formal training, significant technical accounting experience, tax and regulatory compliance knowledge, and the ability to train, guide, lead, and mentor other accountants. The role of a controller in an organization is indeed multi-faceted. It encompasses the entire accounting department and daily activities related to accounts receivable/payable, payroll, bank reconciliation, revenue, expenses, assets, liabilities, equity, staff, IT management, etc.

This position is challenging to define as it oversees technical accounting, accountability, compliance, finance strategy, and leadership, all rolled into one role! A well-trained controller pays attention to detail with respect to daily accounting activities while also keeping in mind the bigger picture to help facilitate, promote, and support future expansion. It's no surprise that the demands of the job constantly evolve on a daily basis, making this role a crucial part of client accounting services.

Controller functions vary across companies based on the size and complexity of the business and industry. In fact, startups and small businesses may not even hire a dedicated controller or a CFO — as doing so is often very cost-prohibitive — and maturing operations may combine controller and CFO positions with the associated expectation of flexibility. On the other hand, larger businesses and corporations can easily divide accounting and finance responsibilities among various roles such as director of accounting, controller, chief financial officer, treasurer, VP of finance, etc. 

What does a Controller do?

• Think of the controller as the "quarterback" of the accounting world: the person ultimately responsible for ensuring all financial statements are accurately recorded, thoroughly verified/reconciled, and delivered to the appropriate internal/external stakeholders.

• The controller is responsible for planning, directing, and monitoring all accounting-related activities in an organization, ensuring all ledgers and sub-ledgers accurately reflect cash in and outflows.

• The controller understands the company's financial objectives and has the skills to train the entire accounting staff to achieve those same goals.

• Duties include overseeing financial reporting, monthly/quarterly/annual close, preparing budgets, monitoring variances, performing extensive economic analyses to continually gauge the company's financial health, creating and developing policies/procedures, and training accounting personnel.

• The controller is responsible for daily accounting department operations and hires, trains, and monitors staff.

• Directly responsible for tasks related to accounts payable/receivable, GL/revenue accounting, trial balance review, fixed assets accounting, treasury/bank reconciliation, payroll management, information technologies & accounting information systems management, reconciliations, and other accounting-related activities.

• Reports to the CFO in a larger organization, whereas smaller companies generally combine controller/CFO positions.

• Works with external auditors/CPAs, tax consultants, and regulatory authorities to ensure tax/GAAP compliance and tax return filing.

• Minimum job requirements include A bachelor's degree, 15 to 20 years of progressive technical accounting experience, and the ability to manage/build an accounting team.

Why or when do I need a Controller?

• Two key reasons, at a minimum, typically dictate the need for a controller:

• You're looking to get more out of your current bookkeeping arrangement. Perhaps the size and complexity of your business are rapidly expanding, and you need someone with extensive experience who can plan and monitor your operations and make valuable recommendations.

• An external "influence" requires a controller, such as an agreement/contract that requires GAAP compliance, audit, review, or compilation. A local/state/federal authority might require a trained professional to oversee your accounting and finances, or a lender requires an experienced professional per contract parameters.

• As your business grows and thrives, the complexity and volume of your daily financial activity will increase and dictate GAAP and other regulatory compliances. You may, in fact, begin to experience the following:

• Your current accounting team is ripe for enhanced organization and training to manage daily tasks.

• You are concerned about compliance.

• Your financial reports are late, inaccurate, incomplete, disorganized, and unhelpful.

• Your internal controls are weak, making the business vulnerable to fraud and theft.

• You are losing time and resources to manual processes.

• You lose sight of what is and isn't working for your business.

• Financial statements do not paint a clear enough picture to help you understand the current state of affairs.

Small business owners already have a lot on their plate running their business before they can even think about ‘accounting.’ Fortunately, YBL’s Fractional Controller/CFO package delivers a wide range of services to support & promote your business development. Our services are 100% remote, customizable, and scaled for growth.