Financial experience is essential when managing the day-to-day challenges of running a business in today’s competitive marketplace. A part-time controller may be exactly what your company needs to keep your finances in check and excel. However, what exactly does a part-time driver do? Basically, a controller manages the current state of a company’s finances and is responsible for day-to-day financial operations.

Typically, a controller will report directly to the company’s CFO, but for smaller companies, the functions of the CFO and the controller can be integrated into one, in which case the controller will report to the CEO. The role of the controller plays an important role in your company’s finances, from overseeing the accounting and finance department to reporting and compliance coordinator. Below is a more detailed explanation of what a controller is responsible for managing in a company.

Processes

The data controller decides the procedures and processes to be used by the accounting team. It is important for the controller to choose the policies and procedures that best suit the business, as they will determine how the finance departments operate. This can include everything from the type of accounting software used to benchmarking and reporting.

Financial reports

When it comes to financial reports, the controller is largely responsible for producing these documents. Reports are created by the controller with the help of accounting and finance staff, but it is the controller’s responsibility to ensure that these reports are on time and follow generally accepted accounting principles. These reports should also closely reflect the most current financial status of the organization.

Financial decisions

The controller also has a great influence on the financial decisions of the company, as the position has a deep understanding of the financial status of the organization. When the leadership team looks at potential changes in the business, such as adding a new product or changing services, the controller determines the financial risk involved in the decision and determines whether the organization can financially support the change in the future.

Budgets

Much of the information for decision making is based on the company’s budget, which the controller is also responsible for creating. Depending on the needs of the business, a controller will create a budget for the year or by quarter. After the budgeted year or quarter passes, the controller performs a budget-to-actual report that shows an analysis of how much actual money was spent during the period and how much is budgeted for. The company can make budget adjustments in the future once it knows these numbers.

Payments

The controller is responsible for ensuring that all payments are made on time. The position oversees the accounts payable and receivable staff to ensure that providers receive payments on schedule and also to ensure that clients pay for their services. Payments on time are essential for the business to run smoothly.

This is true not only when it comes to customers and suppliers, but also when paying employees. In addition to customer and vendor payments, the controller must also ensure that the payroll is accurate. The controller does this by monitoring tax deductions and insurance payments to ensure the correct amounts are withheld so that paychecks are accurate. Without accurate paychecks, employee satisfaction can decline, which is another reason the controller role is so vital to an organization.

Compliance

Finance departments face great scrutiny, especially after the Enron and WorldCom financial scandals followed by the 2008 financial crisis. Businesses now have to endure a host of regulations that dictate how they manage their finances and how they report financial information to the public. .

A controller takes on the task of ensuring that a company complies with all applicable financial rules and regulations. This means interacting with shareholders and presenting accurate information to build and maintain the trust of customers and shareholders. It also involves helping to prepare documents for the audit officer during a routine audit. When a controller prepares the documents and assists the auditor, the process runs much more smoothly. Subsequently, the controller will handle any changes that the auditor requires for compliance.

Taxes

In addition to handling audits, the controller also files company taxes. If the business decides to hire a third party to handle the taxes, the controller remains responsible for providing the records and reports that will be necessary to accurately present the tax documents.

Ultimately, a controller monitors the financial stability of a company. The controller can perform this task effectively because the position requires years of experience. By working through the ranks from a basic accounting or auditing position, the controller is well versed in the decisions necessary to effectively manage the financial departments of any company.

If you think your business could benefit from the experience mentioned above, consider hiring a part-time driver. A part-time controller is ideal for your business because you will get the financial consulting your business needs without the cost of hiring a full-time employee. You’ll have more time to focus on serving your clients, building new customer relationships, and delving into core business issues when you have someone you can trust to manage finances.