The financial controller typically reports to the company’s chief financial officer (CFO), although smaller organizations – where employees often wear multiple hats – can combine the two roles in a more strategic position than with existence among their larger counterparts.
A financial controller is a senior manager responsible for all the day-to-day accounting and financial activities of a business. While the scope of responsibility varies from company to company and can fluctuate depending on the size of the company, typical duties of a financial controller are to prepare operating budget, perform payroll related work, manage budget plans, monitor financial statements, be a paystub maker, collect, analyze, and consolidate financial data, report significant budget differences or cost differences to management and recruit, select and train of personnel.
Considered the chief accountant of a company and tasked with overseeing day-to-day financial operations, many financial controllers are now also involved in strategic planning and decision-making. As companies expand, seek international business opportunities, and become more reliant on data and technology, the role of financial controller is also changing. They must be familiar with accounting and financial reporting systems, have a strong background in data analysis, and have strong leadership skills, business acumen and communication skills.
Such changes are not without challenges. But these challenges are not insurmountable. Here is an overview of the most pressing challenges financial controllers face and what they can do to overcome them.
Access to Data
Some of the ways financial controllers can improve data access include helping to align data standards across departments, promoting the adoption of a layered architecture that is flexible enough to change business needs and deploying technologies such as machine learning to clean and produce better quality data. The integration can automatically collect financial and operational data into a cloud-based solution, becoming the single source of accurate information for analysis and decision-making.
Organizations are collecting data in record numbers. According to McKinsey & Company, by 2025, the amount of data worldwide is expected to reach 175 billion terabytes, up 66% from 2018. This exponential growth presents many opportunities, but the Managing it for a competitive advantage can also be challenging for financial controllers, who are responsible for helping guide the organization’s development of data governance and data strategy, as well as Apply information to financial planning, asset deployment, liquidity management, and more.
Expand Globally
However, developing internationally poses a number of challenges for financial regulators. For example, they will need to know how to manage the tax and regulatory compliance requirements of the different countries in which the organization does business. Other considerations include multi-currency convertibility, global financial reporting tools and freight monitoring, insurance and customs.
E-commerce capabilities and other new technologies make it easy for organizations to extend their products and services to a global audience. In fact, the share of technology companies present in five or more markets is expected to increase significantly, from 29% in 2020 to 70% in 2025. Having the right software in place is crucial for organizations across the globe. Financial controllers use solutions that cover multiple currencies, tax rules, and reporting requirements across geographies, and provide visibility and consolidation of finances over time would be well positioned to support their businesses.
Robotic Process Automation
The financial controller is well positioned to play a key role in the RPA program, which has the potential to reshape financial and accounting processes. The same skills that organizations have long relied on to evaluate investments, manage projects, document and evaluate processes, identify and implement controls are also essential for RPA programs.
In 2020, finance professionals say 60% of their traditional finance tasks have been automated, up from 34% in 2018, according to Accenture. Sometimes called “intelligent automation” or “intelligent automation”, RPA refers to a growing field of advanced software systems that program “bots” to perform a wide range of tasks. services that previously required human intervention.
For organizations just starting their RPA journey, the financial controller can encourage leadership and IT to assess if there is an opportunity to explore the technology. They can also request quotes from RPA vendors, learn about testing opportunities, and earn RPA certifications to enhance their expertise in the field.
A Distributed Workforce
While there are many benefits—increasing employee productivity aided by advanced technologies, among others—distributed accounting workforces can hinder financial controllers in terms of Team building, communication, and mentoring for less experienced employees. All of these can lead to a perfect storm of errors that can be time consuming and tedious to fix. According to PwC, organizations say remote work is working, with 83% of employers saying the shift to remote working has been a success for their business.
A centralized enterprise system, such as an enterprise resource planning (ERP) solution, used by all employees, can help financial controllers better manage a distributed workforce. their dispersion and ensure the accuracy of everyone’s work. Many ERP systems include workflow tools to monitor bottlenecks, break down data silos, and provide insights into a team’s workload and productivity – activities that financial controllers used to do through direct observation.
Storytelling with Data
Yet more than just communicating effectively, financial controllers must be able to distill financial statements and other new or difficult concepts and ideas into a language that clients, investors, board members, management and their teams are accessible. Telling a story has even more impact. A recent survey of 500 decision-makers found that 71% said data storytelling skills – the “why” behind the data – were crucial when communicating the results of the C-suite or parties, other major relevance. However, about half (49%) said their organization lacks this essential skill.
They may be the face of accountants, but people in financial control can’t just rely on numbers to speak for themselves. This is why it is essential that financial controllers demonstrate strong communication and interpersonal soft skills so that they can communicate effectively with other departments and win their support. Controllers need to feel comfortable with data and analyze it, and use it to support the story they want to tell. Data dashboards and other financial tools can help develop a story that makes messages more memorable, while fostering stronger business relationships.
