How to become A Financial Controller

Financial Controllers make strategic decisions to ensure that a company’s financial operations run seamlessly and safeguard its financial resources. They collect, analyse and consolidate financial data, ensuring that the business spends wisely, invests profitably and remains financially healthy and successful. In addition to financial reporting, Financial Controllers may also be involved with the functions of treasury, tax, financial planning and the expansion of business partnerships.

• Financial Comptroller
• Comptroller
• Chief Accounting Officer
• Chief Financial Officer
• Finance Director

What do Financial Controllers do?

A Financial Controller would typically need to:

• Manage an organisation’s financial processes and accounting-related activities, ensuring that all financial operations proceed smoothly towards achieving organisational objectives while abiding by internal controls, external regulations and accounting standards
• Conduct financial analysis and share findings and insights with senior management and executives to help them make strategic financial decisions that ensure organisational profitability and financial stability while minimising risk
• Report to the Chief Financial Officer (CFO) or the CEO directly; advise the CFO and board of directors on financial matters
• Keep an eye on company spending; oversee transactions, such as accounts payable and receivables, payroll and balance sheet; ensure timely book closing; troubleshoot and resolve complex accounting problems
• Collaborate with managers to create and implement internal control policies and procedures and monitor their effectiveness
• Maintain records, accounting procedures and policy documentation; control financial systems and implement financial software, ensuring data is complete and accurate
• Prepare timely and accurate financial reports and statements, such as annual reports, balance sheets, income statements, expense reports and cash flow statements; share them with senior management
• Oversee taxation activity, ensuring compliance with financial or tax regulations; understand external reporting requirements, ensure the availability of resources to fulfil them and oversee the final reports to be delivered to external parties 
• Stay aware of changes to financial reporting practices; supervise the team that directly contributes to the financial statement preparation process; certify the accuracy of financial statements to the best of their knowledge, if needed
• Develop and support company-wide budgeting and forecasting processes; monitor business performance against budget and forecasts
• Track material budgeting or expenditure variances; investigate, explain and rectify budget deficiencies; report all findings to management
• Collaborate with other departments, including marketing & sales, purchase, IT and HR, to ensure the organisation is on track with its finances
• Manage cash flow and maintain profitability; forecast cash flow needs and highlight deficiencies, plan for foreign currency requirements and manage bank accounts
• Oversee internal and external audits, liaise with auditors, organise paperwork, respond to audit inquiries and ensure compliance with audit requirements
• Inform top management or the board of directors of audit findings and accordingly make reporting modifications and other improvements in the company's accounting and financial practices
• Hire, train, mentor and supervise the finance department staff; manage a team of specialised finance professionals, establish goals, delegate work and provide feedback
• Evaluate the firm’s financial performance against internal and external benchmarks; identify business strengths, areas of improvement, opportunities and risks
• Collaborate with senior management and executive leadership to assess investment ideas, plan and execute projects and programs, and develop future financial policies

Financial Controllers primarily work in office settings across various industries, such as healthcare, finance, manufacturing and technology. They may be placed in cubicles or a private office within their company's finance department or with other senior executives. They spend considerable time at their computers, analysing financial data, generating reports or attending online meetings with other departments. However, the type of industry, size of the organisation and particular job function can determine the specific work environment and whether it is more formal and structured or relaxed and collaborative.

Since Financial Controllers handle significant responsibilities and their work is fast-paced, they must perform well under pressure, manage stress, meet deadlines and take action quickly to resolve issues.

Some Financial Controllers may have the choice to work from home or another distant location due to the growth of remote work. However, depending on company requirements, you may still be required to travel for in-person meetings and other work.

While specific schedules depend on the company and industry, Financial Controllers typically keep regular business hours, Monday to Friday, in full-time jobs. However, their job being fast-paced, global and high-pressure, they may need to work extended hours, including evenings, weekends or holidays, to tackle urgent financial matters, meet project deadlines, prepare financial reports, fulfil the demands of the end of a financial quarter or fiscal year, attend meetings, or collaborate with international teams in different time zones. 

You may spend time collaborating and meeting with your team members and colleagues from other departments, such as sales, marketing, IT or operations. Prioritisation is critical for Financial Controllers to strike a work-life balance.

Some companies allow their employees to set their schedules with flexible start and end times or work from home. Research suggests that flexible hours and generous telework policies appeal more than salary to the younger generation. There has been an incremental increase in employers willing to give promising employees a chance to adjust their schedules per the job demands.

Finding a new job might seem challenging. Financial Controllers can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies.

Financial Controllers are generally employed by:

• Banks 
• Investment Groups
• Manufacturers
• Utility Companies
• Large Corporations
• Small Businesses
• Hotels
• Technology Companies
• Hospitals
• Colleges & Universities
• Government Agencies
• Non-Profit Organisations

Professional associations and organisations, such as the Financial Executives International (FEI), are crucial for Financial Controllers interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation.

Professional associations provide members with various continuing education and networking opportunities, and mentorship services. Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• The pressure to fulfil the company's financial goals even in the face of financial challenges or economic uncertainty
• Constantly monitoring and analysing financial data and market trends; managing financial risk, debt, compliance with regulations and the company’s cash flow, particularly during a financial crisis or market instability
• Incorporating the latest financial technology, tools and systems into financial processes to enhance reporting and analysis and the ability to lead change and initiatives
• Selecting and retaining the diverse members of a finance team and integrating their mix of financial, commercial, and technical skills; navigating interpersonal conflicts using effective leadership and communication skills
• Understanding the company’s product, services and market
• Staying up to date with rapidly changing financial trends and regulations; ensuring compliance with financial regulations and making optimal financial decisions
• Balancing short-term and long-term financial objectives as well as multiple priorities, such as regulatory compliance, accurate financial reporting and working towards a firm’s strategic goals, some of which may be in conflict 
• Converting raw financial data into useful information that can facilitate understanding and guide business strategy
• Effectively presenting complex financial information to diverse stakeholders, including executives, board members and staff
• Delivering factual information through a cost-benefit analysis to help senior management estimate the economic benefits of any decision based on evidence rather than opinion or bias
• Introducing additional processes and tools into place to enhance financial analysis and reporting
• Collaborating with various organisational functions, particularly IT, to achieve corporate goals
• Lack of a work-life balance due to extended hours to meet deadlines, prepare financial reports or work with international teams

Most employers seek Financial Controller candidates with extensive experience of at least five to seven years in accounting and finance. However, it may take even longer to land the role.

To begin with, any academic program that a potential Financial Controller takes up typically requires a period of supervised experience, such as an internship. Financial Controllers will benefit from tasks outside the classroom that align perfectly with lessons inside it. One may hear countless stories from more experienced professionals and obtain valuable hands-on experience when they turn seemingly routine incidents into unique learning moments.

Given that employers give importance to education and experience, try to undertake summer internships, part-time work at an entry-level position or short-term paid/voluntary work in accounting firms before graduating to prepare you for a career in finance. Such opportunities offer you a taste of the career, give valuable insight into how a company or institution and the industry operate, help build useful contacts and improve your prospects of getting a permanent job upon graduation. 

The experience may also help determine whether the public, private or voluntary sector is best suited to realise one’s ambitions. Your educational provider’s career service department can provide information about viable opportunities for work placements, internships and voluntary work in diverse sectors.

Once you graduate, you can begin to acquire experience in the financial field and knowledge of the industry by working in entry-level roles, such as accountant, financial analyst or auditor, before taking on managerial and leadership roles. Typically, entry-level positions require a bachelor’s degree in finance or accounting, preferably with professional certification. You can pursue an MBA (Master of Business Administration) to boost your knowledge, skills and career progression once you acquire some experience in the workplace. 

Building experience in leadership roles is critical to becoming Financial Controller, as it is a role that requires you to manage the entire financial team. While there are several pathways to becoming a Financial Controller across the private sector, in government roles or nonprofits, aspirants are frequently backed by several years of experience working as auditors or accountants, followed by adequate time as an assistant controller. For instance, working as a government auditor or in a senior-level accounting role in the corporate world can earn you the assistant controller title.

Make sure your resume represents your education, certifications and experience clearly, as these demonstrate your understanding of accounting principles and tax laws and your suitability for the role of Financial Controller. 

Even while in high school, aspiring finance professionals can check with a teacher or counsellor about relevant work-based learning opportunities available in their school or community that can help them connect their school experiences with real-life work. Join some groups, try some hobbies or volunteer with an organisation of interest, so you can have fun while learning about yourself and be directed toward a future career. 

Read about the profession and interview or job shadow experts working in finance and accounting to prove your commitment to course providers and prospective employers. 

While the minimum academic qualification for aspiring Financial Controllers is a bachelor's degree in accounting, finance, business or economics from an accredited college or university, you can boost your employment prospects and career progression by earning an MBA (Master of Business Administration) in finance. By covering topics such as financial analysis, taxation, forecasting, and business strategy, an MBA prepares you well for the role of a Financial Controller and its responsibilities, which include providing leadership and financial guidance. You may also acquire a master’s degree in finance, accounting or economics.

Regardless of which major you choose for your bachelor’s degree program, cover some coursework in accounting, budget analysis, financial management, forecasting, auditing and tax law in preparation for launching your career.

Take high school courses in mathematics, economics, accounting and business to prepare you for college. English and speech classes will help you develop your research, writing, and oral communication skills.

A combination of education, experience, and testing is generally required to gain certification, though requirements differ from region to region. Certification from an objective and reputed organisation can help you stand out in a competitive job market, carry a significant salary premium of up to 18 per cent, increase your chances of advancement, and become an independent consultant. Successful certification programs protect public welfare by incorporating a Code of Ethics.

Aspiring Financial Controllers should acquire credentials relevant to finance and accounting, for which they need a minimum of an accredited bachelor’s degree.

The Certified Public Accountant (CPA) credentials, awarded by the American Institute of Certified Public Accountants (AICPA), are reputed and well-known across industries globally. They represent a professional’s expertise in accounting and financial management.

The Chartered Financial Analyst (CFA) certification, offered by the CFA Institute, is also widely accepted and demonstrates mastery in investment management and analysis. Those operating in investment-heavy sectors may find this certification especially valuable. It requires candidates to possess at least four years of investment decision-making experience and clear all three levels of the CFA exams, which cover investment tools, asset valuation, portfolio management and wealth planning. The rigour of the exams demands considerable study time and an average of four years to complete. 

The Certified Management Accountant (CMA) credentials, offered by the Institute of Management Accountants (IMA), emphasise financial planning, analysis and control and may be valuable for professionals in management accounting or financial management.

The Chartered Global Management Accountant (CGMA) certification is a designation for management accountants offered by the Association of International Certified Professional Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA). Earning a CGMA certification demonstrates your entrepreneurial and leadership skills, points to your abilities in advanced financial analysis and management, and encourages career progression.

The Association for Financial Professionals (AFP) grants the Certified Treasury Professional (CTP) credentials, which attest to the holder's proficiency in treasury management. This certification is valuable for Financial Controllers whose responsibilities involve risk and cash management.

The Global Association of Risk Professionals (GARP), an organisation committed to developing risk management practices globally, grants the Financial Risk Manager (FRM) credentials based on their expertise in quantitative analysis, market risk, credit risk, operational risk and risk management techniques. The qualifying exam tests their mastery in identifying, assessing and managing financial risks.

The Certified Financial Planner (CFP) credentials are highly valued by those wishing to prove their dedication to achieving competence in financial planning practices and meeting ethical standards. 

Other relevant and useful credentials include the Financial Modeling & Valuation Analyst (FMVA) certification, the Chartered Alternative Investment Analyst (CAIA) designation, the Project Management Professional (PMP) certification offered by the Project Management Institute (PMI) and the Certified Information Systems Auditor (CISA) designation provided by the Information Systems Audit and Control Association (ISACA). Also, consider acquiring the qualifications provided by the ACCA (Association of Chartered Certified Accountants).

Finance Directors may also need to undergo an employment background check, including but not limited to a person’s work history, education, credit history, motor vehicle reports (MVRs), criminal record, medical history, use of social media, and drug screening.

Performance, experience, and the acquisition of professional qualifications drive career progression. Employees with consistently high levels of performance may be eligible for promotion every two to three years. 

Finance professionals frequently begin their careers in entry-level positions, such as Financial Analyst or Accountant, honing their accounting, budgeting and financial analysis skills in these roles. Adequate experience can earn you a promotion to a Senior Financial Analyst position, which expands your responsibilities to include financial planning & analysis, budgeting, forecasting and advising senior management on finance-related matters. Further progression leads you to managerial roles, such as Finance Manager, which puts you in charge of a team of financial analysts in the finance department of a unit of the organisation and the department’s daily financial operations. 

Before taking on the senior-management position of Financial Controller, you may need to demonstrate your capabilities by transitioning through the role of Assistant Controller. 

From serving as a Financial Controller, you may head to the position of Finance Director or Chief Financial Officer (CFO) of the company, in charge of financial strategy, budgeting, risk management, financial reporting and compliance. You will also play the role of a financial advisor to the CEO (Chief Executive Officer) and board of directors on how to achieve organisational goals and objectives through effective financial management. Eventually, you may reach the highest position in the organisation, that of the CEO.

You may also change companies to achieve career progression or launch your consultancy. You may enter academia or research on completing your PhD in finance or related subjects.

The desire to accelerate career growth and personal development has an increasing number of millennials choosing to job hop and build a scattershot resume that showcases ambition, motivation, and the desire to learn a broad range of skills.

Studies prove that job hopping, earlier dismissed as “flaky” behaviour, can lead to greater job fulfilment. Employees searching for a positive culture and interesting work are willing to try out various roles and workplaces and learn valuable, transferable skills along the way. 

Candidates with the necessary financial management skills, experience, education and certification have the best job prospects.

Continuing professional development (CPD) will help an active Financial Controller build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning. It allows you to continually upskill regardless of age, job, or level of knowledge. 

Financial Controllers must stay current with the most recent economic trends and the best practices and technical developments related to financial management. Attending seminars and training sessions to keep in touch with and understand the impact of frequently changing legislative and compliance requirements on their organisation is also necessary for Financial Controllers.

Since Financial Controllers frequently handle managerial duties, they should consider attending seminars or training sessions on management, communication and leadership skills.

You must also keep pace with recent technological developments in your industry. Furthermore, you must attend training sessions to learn how to use cutting-edge financial software or other tools that can boost your efficiency and accuracy.

Acquiring relevant certifications, such as Certified Public Accountant (CPA), Certified Management Accountant (CMA) or Chartered Financial Analyst (CFA), demonstrates your specialised capabilities to current or prospective employers and gives you a competitive edge in the job market. Continuing education (CE) through earning a master’s degree or PhD in finance or related subjects helps you build new knowledge and skills that you can apply to your work and help your organisation achieve its financial targets.

Financial Controllers can also seek guidance from more experienced finance professionals since their mentorship and feedback can help you chart your career progression.

STANDARD WORK ENVIRONMENT

Financial Controllers primarily work in office settings across various industries, such as healthcare, finance, manufacturing and technology. They may be placed in cubicles or a private office within their company's finance department or with other senior executives. They spend considerable time at their computers, analysing financial data, generating reports or attending online meetings with other departments. However, the type of industry, size of the organisation and particular job function can determine the specific work environment and whether it is more formal and structured or relaxed and collaborative.

Since Financial Controllers handle significant responsibilities and their work is fast-paced, they must perform well under pressure, manage stress, meet deadlines and take action quickly to resolve issues.

Some Financial Controllers may have the choice to work from home or another distant location due to the growth of remote work. However, depending on company requirements, you may still be required to travel for in-person meetings and other work.

Some Useful Subject Choices for Your Bachelor’s or Master’s Degree

• Accounting: Given that many Finance Directors begin their financial career as professional accountants, a bachelor’s degree in accounting can give them a helpful start. Coursework typically includes standard accounting practices, financial decision making and tax laws. You could earn a master’s degree or credentials in a relevant field.
• Finance: A bachelor’s or master’s degree in finance typically includes courses in data analytics, risk management, capital allocation and economics.
• Business Administration: You may also choose business administration as your bachelor’s degree program major and head to an MBA (Master of Business Administration), specialising in finance. Along with teaching you financial analysis, an MBA fosters your managerial skills and business acumen, which are essential for the senior management role of Finance Director.
• Mathematics: Finance Directors must be capable of conducting complex economic modelling and financial analysis. A bachelor’s degree in mathematics, with the possibility of a minor in finance, equips you with the necessary knowledge and skills and can lead you to a master’s degree in a relevant subject. 
• Economics: A bachelor’s or master’s degree in economics gives you comprehensive knowledge of several useful aspects of the finance function, including international trade, business competition and interest rates.

Some Useful Skills for a Financial Controller

• Mathematical Abilities: Numbers are often at the core of a Finance Director’s work, whether assessing income statements, analysing accounting records or preparing tax information. To build your proficiency in mathematics, which, in turn, can boost your productivity and accuracy in finance, you may opt for mathematics as a minor during your bachelor’s degree program or enrol in online classes at a community college.
• Analytical & Technological Abilities: Finance Directors must use their analytical abilities to swiftly and accurately understand and evaluate extensive information, using which they arrive at well-considered financial decisions and strategies for their company. Since digital tools help tackle complex financial data, building your technological abilities can support you in analytical processes.
• Managerial Abilities: Finance Directors must coordinate the work of a large group of departmental staff. Knowing several methods for properly managing large groups might be helpful when handling these duties. Attending leadership development training seminars can equip you with the necessary strategies and strengthen your managerial skills to succeed as Finance Director.  
• Communication Abilities: Finance Directors must clearly explain their goals to their team, senior management and other company personnel so they can understand them and actively contribute to them. Consider signing up for a public speaking course to enhance your communication skills so that you can coordinate your work more efficiently while optimising company operations.

Controlling vs Accounting

Controlling is integral to the financial accounting process of a business. However, there is a distinction between accounting and controlling. Financial Controllers are not required to perform direct accounting themselves but must ensure the accurate and timely recording of financial data. Also, in larger companies, controllers report to a finance executive, such as the CFO or the CEO, as they are typically not members of the executive leadership team.

Finance Director vs Financial Controller

The roles of both the Finance Director and Financial Controller exist in some organisations, while other enterprises may opt for one or the other to head the corporate finance function. There can be considerable overlap in the responsibilities of Finance Directors and Financial Controllers, given that they are both employed within the finance department of an organisation. However, there are also certain distinctions between the two, particularly when both roles are functional in an enterprise.

Some Similarities:

• Both carry out strategic financial planning for their enterprise, developing and implementing risk assessment and management solutions. 
• They are responsible for budgetary procedures, including scheduling and accountability. 
• Both also liaise with auditors and participate in giving incentives to staff. Both collaborate to help design and carry out any new initiatives decided upon by the business. 
• They actively review an organisation’s internal control system, which is the set of procedures and policies ensuring all accounting reports are uniformly reliable and accurate.

Some Differences:

• In terms of organisational hierarchy, a Finance Director ranks higher than a Financial Controller and earns a higher remuneration. 
• Financial Controllers are typically responsible for generating and managing financial reports, including statements indicating a company’s revenue increase or decrease for a specific period and strategic planning reports. Finance Directors manage an organisation's financial operations, analyse the reports, identify the causes behind any change or discrepancy and assess the company’s market position and competitiveness. Accordingly, they give expert advice on any action to take. 
• Financial Controllers process the capital requests that Finance Directors have approved.
• Finance Directors arrange debt financing while Financial Controllers watch over the available funds. 
• Accounts payable and receivable and billing typically fall within the purview of a Financial Controller’s responsibilities, while Finance Directors tackle taxes.
• Finance Directors conduct equity placements and take part in investing business funds and building relationships with banks and external funders, while Financial Controllers maintain those relationships and monitor the investments made.

Financial Controller vs Other Financial Roles

Depending on organisational size and other factors, the role of a Financial Controller may go by different titles and differ in its scope of responsibilities. However, controllers and other senior finance professionals may also have differentiated duties and positions in the organisational structure, especially in larger businesses.

Financial Controller vs Chief Financial Officer (CFO)

A firm's Financial Controller and CFO are influential figures in its finance function, yet they frequently hold separate roles with distinct responsibilities. Controllers may have greater involvement than the CFO in delivering general ledgers, trial balances and internal financial reports to more senior management. They also implement internal controls and ensure financial accuracy. On the other hand, the CFO builds a more extensive and longer-term perspective of the organisation based on internal reports. Furthermore, CFOs liaise more than Financial Controllers with external stakeholders, such as investors, and may be more involved with particular events, such as mergers and acquisitions.

Financial Controller vs Vice President of Finance

A firm's vice president of finance frequently fills the conventional position of a CFO. A Financial Controller typically supervises financial preparation and manages the financial reporting process, but a vice president oversees the financial and accounting function of an organisation at the highest level. The Financial Controller would likely report directly to the vice president of finance in businesses with both positions in the hierarchy. 

Financial Controller vs Financial Planning and Analysis (FP&A)

Financial Controllers typically review actual transactions and ensure accurate reporting of expenses and revenue without dealing much with theoretical financial aspects. The reports they generate are useful to financial planning and analysis (FP & A) managers, who use their historical data to create budgets, forecasts and long-term plans based on the company's objectives. These plans may or may not be implemented and may need to be revised quarterly in case there are new projections and forecasts.

Controller vs Comptroller

Similar yet senior to a controller who usually works in for-profit firms, a comptroller typically works in public or nonprofit institutions. Both roles are generally mutually exclusive in an organisation, and each would report either to the CFO (Chief Financial Officer) or the CEO (Chief Executive Officer).

Current Scenario

The employment outlook of a particular profession may be impacted by diverse factors, such as the time of year (for seasonal jobs), location, employment turnover (when people leave current jobs), occupational growth (when new roles are created), size of the occupation, and industry-specific trends and events that affect overall employment.

There is a growing need for companies to manage their financial operations and ensure compliance with regulations. Furthermore, as businesses grow internationally, they require Financial Controllers with international finance & accounting expertise. 

Given the pandemic and worldwide financial and labour crises in the 2020s, finance professionals have had to foster new and diverse skills to fulfil current responsibilities and take on new ones. Their roles have also evolved over the decades from chief number crunchers to incorporating elements of steward, technologist and project manager. 

At the same time, retirement, job uncertainty generated by automation, fewer takers of the CPA exam over the years and a less-than-glamorous vision of accounting as a profession may be causing shortages in the supply of professionals qualified to become Financial Controllers. 

All factors put together, there is a projected rise in demand for Financial Controllers. In particular, companies seek professionals who can adapt to evolving organisational needs and the global financial climate and manage various responsibilities, including crisis management, technology, and digital transformation. Regardless of the state of the economy, Finance Directors are essential for the success of any organisation as they attempt to expand it and enhance its profitability. Hence the demand for professionals qualified and experienced in accounting and finance is projected to grow over the next decade. 

Artificial intelligence (AI) equips finance professionals with data-driven tools to predict how competitors will react to a firm’s strategic moves, how customers may respond, and where risks may emerge.

Financial Controllers are situated in a firm’s higher-level financial management positions. Although theirs is not an executive role, they lead financial reporting, managing the processes that produce financial statements. A Financial Controller also collaborates with the external audit team, helps internal management with budget creation and spots opportunities for cost- and risk-reduction measures.

Do not wait for complications to surface before responding; be proactive instead. Your duty as the Financial Controller is to anticipate possible financial problems before they develop into serious ones.