What Is a Controller?
A controller is a top boss who manages the money-related stuff in a company. They make sure everything adds up right and follows the rules, aiming to help the company grow financially. Their main job is to protect the company’s money and reputation, which also affects how well the company does in the market.
Duties and responsibilities
Controllers handle all the money details of a company. They keep the big bosses updated with money reports and set up rules for handling finances correctly. This includes taking care of budgets, managing cash, running payroll, and making sure benefits for employees are sorted out right.
They also prepare yearly money reports like profit and loss statements and balance sheets, and they make sure the numbers are correct for audits. Plus, they make decisions about insurance and ways to reduce financial risks.
Work environment
Controllers usually work in an office and have their own space since they’re part of the top team. But they don’t just sit at a desk all day. They often meet with other leaders in the company and sometimes with outside people like auditors or tax consultants. Their job involves a lot of teamwork and decision-making in meetings about budgets, plans, and strategies.
Typical work hours
Controllers typically work regular office hours from 9 AM to 5 PM. However, as one of the company’s key decision-makers, they sometimes need to work extra, even on weekends, especially during busy times like tax season or when planning the budget.
How to Become a Controller
If you want to manage a company’s money, becoming a controller is a solid career choice. Here’s how you can get there:
Step 1: Earn a bachelor’s degree
Start by getting a degree in accounting, finance, or something similar. This degree teaches you all about handling money, understanding taxes, and the rules businesses must follow.
Step 2: Gain experience
After college, start working at jobs like accounting clerk or financial analyst. These jobs let you use what you learned in school in real life.
Step 3: Get certified as a CPA
It helps a lot to become a Certified Public Accountant (CPA), though it’s not always required. You’ll need to pass a tough exam and keep learning new things in your field to get and keep this certification.
Step 4: Climb the ladder
Work your way up through jobs like senior accountant or financial manager. You’ll need at least five to seven years of experience before you can become a controller. Show off your skills in financial reports, budget planning, and forecasting.
Step 5: Consider a master’s degree (optional)
Some people get a master’s degree in business administration (MBA) or finance to boost their careers. This step is optional but can help you stand out when applying for higher jobs.
Step 6: Apply for jobs
With all your experience and education, you’re ready to apply for controller jobs. Make sure your resume highlights your skills in managing money, overseeing finance teams, and planning financial strategies.
How Much Do Controllers Make?
Compensation for controllers varies by experience, industry, education, location, and organization size. Factors such as the complexity of the employer’s financial operations, their specialties, and the industry’s regulatory requirements can significantly impact compensation.
Highest paying industries
- Securities and Brokerage
- Investment Funds and Private Equity
- Other Investment Pools and Funds
- Federal Executive Branch
- Software Publishers
Highest paying states
- New Hampshire
- New Jersey
- New York
- Connecticut
- Massachusetts
The average national salary for a Controller is:
$122,650
Types of Controllers
- Financial controller: These guys are the big bosses of money management in large companies. They handle everything from preparing monthly money reports to managing investments and monitoring the company’s money risks, ensuring they are under control.
- Corporate controller: In a big company, corporate controllers keep an eye on all financial activities. They analyze money data, make sure the company meets all money-related rules, and work with other managers to set financial targets.
- Cost controller: Cost controllers are like the budget watchdogs in companies that spend a lot on materials and making products. They find ways to cut costs, watch over budgets, and suggest changes to make more money.
- Operations controller: These controllers work closely with the team that handles day-to-day operations. They focus on money stuff directly linked to the company’s activities, like managing budgets, checking how well different parts of the company are doing money-wise, and verifying that each product line is making money.
- Division controller: In really big companies, split into different parts, each part might have a division controller. These controllers manage the finances for their specific part of the company, including making financial reports and overseeing their budgets.
- Government controller: Government controllers handle the purse strings in government agencies. They manage public money, keep an eye on government spending, and ensure all financial activities follow the rules.
Top Skills for Controllers
- Financial smarts: Controllers need to really understand money matters. It’s all about following the rules and making smart money decisions based on those rules.
- Big picture thinking: Being a controller isn’t just about the day-to-day; it’s about looking ahead. You need to be able to think about the future of the company’s finances, spot potential money issues before they happen, and plan out financial strategies.
- Leadership: A big part of the job is leading a team. You must be good at directing others, setting clear goals, and creating a team atmosphere where everyone feels motivated and valued.
- Sharp analytical skills: Controllers have to be good at looking at complex money data and making sense of it. This means spotting trends, understanding detailed financial reports, and using this information to make wise decisions.
- Communication and quick decision-making: You have to be able to explain money stuff in a way that everyone can understand, whether they’re money experts or not. Also, making quick, smart decisions is key, especially when under pressure.
- Eye for detail: In finance, every little detail matters. Being detail-oriented helps ensure that all financial reports are spot on and that the company follows every financial law and standard.
Controller Career Path Options
If you’re working as a controller and want to take your career further, here are some ways you can grow:
Get certified
Getting certifications like CPA (Certified Public Accountant), CMA (Certified Management Accountant), CGMA (Chartered Global Management Accountant), or CFM (Certified Financial Manager) is a great first step. These can make you more credible and open up new job opportunities.
Move up to chief financial officer (CFO)
A common next step for controllers is to become a CFO. As a CFO, you’d oversee all the money-related activities in a company, including planning budgets, managing investments, and handling risks. It’s a big-deal job that involves making strategic decisions and sometimes even helping to steer the whole company.
Take on bigger roles
You could also aim for other high-level jobs like director of finance or vice president of finance. These positions come with more responsibilities, like shaping broader business strategies and making major decisions.
Try consulting
If you’re looking for something different, consider consulting. This means advising other companies on how to handle their finances better, from improving their financial reports to managing their money more effectively.
Explore new horizons
Lastly, you might want to look for opportunities in bigger or more well-known companies or even try working in a different industry. This can give you new experiences and help you climb even higher in your career.
Similar Job Titles
Controller Position Trends and Outlook
This job has changed a lot because of new technology and software. While controllers used to focus mainly on keeping track of a company’s money, now they’re expected to help plan and grow the business too.
They now use real-time data and analytics tools to provide insights that help shape the company’s future. This means companies are on the lookout for those who are not just good with numbers but also skilled in using advanced data tools.
Employment projections
The U.S. Bureau of Labor Statistics predicts that jobs for financial managers, including controllers, will grow by 17% through 2031. The need for skilled controllers is likely to stay high because of new financial regulations and a greater focus on keeping firm finances transparent and accountable.
Controller Career Tips
Learn the business inside out
Your impact on the company is huge because you help make big financial decisions. To do this well, you need to really understand how the company works. Know how the company makes money, what costs it has, where the money comes from, and what risks are involved. This deep understanding helps you give smart advice and keep the company financially strong.
Network with others
Building a strong professional network can do wonders for your career. Networking can lead to new opportunities, valuable resources, and fresh insights. Connect with other finance professionals to learn from their experiences, exchange ideas, and maybe even find mentors. Here are some groups where controllers can connect:
- American Association of Finance & Accounting
- Institute of Management Accountants (IMA)
- Financial Executives International (FEI)
- Professional Association for Corporate Controllers (PACC)
Be ethical all the way
In finance, being ethical is a must. Follow all the rules and guidelines, keep sensitive info safe, and make sure you and your team are always doing the right thing. Promoting ethical behavior helps maintain trust and integrity in your work.
Work well across different teams
Controllers need to work with various departments, not just finance. You might work with operations, sales, or HR. Understanding and collaborating across departments can give you a clearer picture of the company’s financial health and help the business succeed.
Keep learning
Staying current is key in the finance world. Keep learning about new laws, industry changes, and tech advances. This can involve:
- Earning more certifications like CMA or CPA
- Attending webinars, workshops, or seminars
- Joining professional development programs from finance and accounting organizations
FAQs
What is the role of a controller in a company?
A controller is typically in charge of all financial aspects of a company. Their roles and responsibilities include preparing financial reports, monitoring the budgets, overseeing the accounting team, ensuring the company adheres to the tax laws, implementing financial strategies to achieve sustainability, and participating in executive decision-making.
What skills should a good controller possess?
A successful controller must have excellent financial management and accounting skills. They should be analytical, detail-oriented, and adept problem-solvers. They should also possess good leadership and communication skills for managing a team and explaining financial information to non-finance personnel. Also, familiarity with the latest finance software and technologies is critical.
What kind of education does a controller need?
Most companies require their controllers to have a bachelor’s degree in accounting, finance, or a related field. However, given the complexity and responsibility of the role, many prefer their controllers to have an MBA or a master’s degree in finance or accounting. In addition, certification such as CPA or CMA is usually required or highly desirable.
What are the daily tasks of a controller?
Day-to-day tasks can vary based on the company’s size and the industry. However, they often oversee all company accounting practices, including accounting departments, preparing budgets, financial reports, and tax and audit functions. They also direct financial strategy while supporting the executive management team by offering insights and financial advice that will allow them to make the best business decisions for the company.
How much experience is required to become a controller?
Most companies require substantial work experience in finance or accounting for controller positions. Typically, 5 to 10 years of experience in various finance roles is required before stepping into this leadership position. Some companies may prefer prior experience in a controller or a similar role, showcasing one’s capabilities to oversee all financial aspects of a business.
What is the difference between a controller and a CFO?
While both have crucial roles in the financial management of a company, their functions are usually distinct. A controller is typically concerned with the past and present of a company’s finances; they handle regulatory compliance, manage accounting procedures, and generate financial reports. A CFO, on the other hand, is more future-oriented; they strategize long-term financial planning, negotiate with external parties, and make executive-level decisions. Often, a CFO will supervise the controller’s work.
Is being a controller stressful?
Yes, this career can involve high levels of stress. Since this role is responsible for all financial matters of an organization, it often comes with heavy responsibilities and long hours, especially during fiscal year-ends, tax seasons, or financial auditing periods. However, stress levels can be managed with proper organization, efficient team management, and sustainable work practices.
Is being a controller a good career?
Being a controller can be rewarding for those passionate about finance and numbers. It provides an opportunity to make strategic decisions, build a strong team, and contribute significantly to a company’s financial health and growth. Though the role comes with high responsibility, it also brings the satisfaction of playing a crucial role in shaping a company’s financial future. Additionally, they usually earn a high salary because of the demanding nature of their job.
What type of companies need a controller?
Almost every medium to large-sized company across different industries will have a controller to manage their financial processes. In smaller companies, the role could be taken on by an owner or general manager, but as a business grows, so does the need for a dedicated financial professional to keep accurate books, ensure legal compliance, and help with strategic planning. This position is commonly found in companies within industries like finance, manufacturing, retail, and healthcare.
Can a controller become a CFO?
Yes, it is common for controllers to progress to the position of CFO in their career. Given their extensive understanding of company finances and their experience in maintaining financial health, they are often seen as apt candidates for the more strategic role of a CFO. However, while they are typically more focused on numbers and compliance, CFOs need a broader skill set, including strategic planning, leadership, and negotiation skills.