Significance of a Financial Controller in your Business

February 9, 2022

Significance of Financial Controller in your Business

We come across this terminology of “Financial Controller” many a times across business enterprises, however the average businessman doesn’t have a clear understanding of what financial controllers can do for their business and how can they a significant part in the success of their venture.  For anyone owning or managing a growing business and not having a financial controller, should read this article and understand how important it is to consider evaluating the need of one for their business.

In this article, we shall explain the job of a financial controller, how they differentiate from CFOs, why are they needed, and when should a business be eligible to hire the services of one.

Job of a Controller:

Accounting and Bookkeeping functions in every growing business typically benefit substantially when they are supervised and guided by an expert finance professional.  CPA/Chartered Accountants are such professionals who possess the in-depth and expert knowledge on accounting, reporting standards and financial analytical parameters that can facilitate objective decision making for any business owner.  They assist the accounting function by evaluating their workflow hurdles, off numbers, recommending suitable accounting IT solutions and other tools, defining and assessing key performance indicators, internal controls, audit compliances etc.

Need for a Financial Controller:

Every business that starts growing from a small level, needs to implement necessary controls in its financial processes to assure prevention of financial losses, frauds or errors.  Bookkeepers and Accountants, usually bearing graduate degrees, lack skills or necessary training or insights to have necessary controls in place for an upcoming business.  The Controller would assume ownership of your business’s accounting and become the ultimate decision maker to your financial reporting.  People at times fail to differentiate between the role of a Chief Financial Officer (CFO) and Financial Controller (FC or Controller).  A CFO is mainly concerned chalking the financial strategy for a business and its fund raising and may usually be higher up the reporting chain than a Controller.  A CFO may however play the dual role and work as a controller too.

Businesses that need Controllers:

It is myth that only large businesses need financial controllers.  There are umpteen circumstances in which small and growing business would justify the need for a part-time or on-demand Controller.  Growing small business, with their increasing transactions and rising complexities, need to add a controller to their accounting function to assure their accountants and bookkeepers are guided timely, accounting workflows and policies aptly designed, internal controls are commensurate to the business size, especially if they do not have a CFO.  Entrepreneurs need to focus their energies on business development, products, services and customer experience and they usually most certainly do not bear the financial reporting expertise or the time to monitor their business accounting.  As a business owner you need assurance on the accuracy of your financial reports and the controllers here are the answer to that comfort.  As business owners you simply want indications of burning financial issues that need to be addressed objectively.

A business start-up would not need a controller right away, but once the idea gets its wings and the business starts growing (say for e.g., bearing revenues above $ 0.5 million), starting to have part time controllers makes sense.  The controllers appointed at such stages in a growing business can help the business expand systematically.

Accounting needs to change as businesses grow. An expanding and evolving business will have increasingly complex accounting challenges as time progresses. There will come a point in time when it is necessary to add a financial controller to ensure the company’s accounting is in full compliance with the law, ensure ledgers are properly managed, and provide additional specialized assistance.

If you own or manage a business that is growing or has grown to a point where management needs assistance with the financials, it is time to lean on a financial controller. This professional’s insight and skills will help determine the impact of important business decisions on the company’s finances, ensure all financial information is accurate and provide overarching management. So don’t spend your limited time and effort attempting to handle all your company’s financial challenges on your own. You shouldn’t have to sweat the small stuff of compliance with tax regulations and inventory management when a financial controller can do this highly specialized work correctly down to the very last detail.

GJM & Co. provides Outsourced Virtual Controller services for growing small businesses globally and can assist you with your accounting function management financial compliance goals.  These services are exhaustive and offered at competitive prices as compared to appointing an onsite controller whom a small business may not be able to afford at times.

We trust this article was helpful to you in understanding in brief how to proceed with planning for your business line of credit.  Should you have any queries or need consultation with your application, Schedule a Call today or write to us at