Commonly referred to as the comptroller or controller, this positions involves management level supervision of the quality of accounting and financial reporting of an organization.¬
Controllers need to foresee potential problems and resolve them quickly before they become bigger issues. The earlier in the problem resolving process that a controller can influence a course of action, the more likely the process will be successful.¬
This means a controller must be able to have both a theoretical understanding of the entire company and some day to day practical skill applications. They must be able to understand each accounting department and how it functions in relation to the business. A controller will mostly like supervisor a bookkeeper and all managers of each accounting department such as accounts receivables, payables and productions if necessary. In short, the controller’s job is to make the company’s business financial objectives achievable.¬
There are five areas that are mainly the responsibility of the controller:
This includes things like costing and pricing products, predicting revenue and sales; essentially anything related to how much profit can be made on a particular product or service.¬
Manufacturing Costs (purchasing)¬
This includes determining the costing involved in purchasing raw materials and component parts for the company including but not withstanding; overseas costs, shipping charges, tax related costs and cost per item.¬
Revenue Analysis Methods¬
The object of revenue analysis is to develop ways to improve both aggregate revenue sources and per unit revenue. Simply, how to make a better profit on each item or service.¬
Is the creation and maintenance of objectives such as tracking structure costs, costs behaviors and revenue streams. The entire budgeting process can include things like office supplies, employee salaries and many other overall company costs.
A controller must ensure that management receives accurate information on issues in a timely manner to take appropriate action. Failure to do so may result in him/her being held accountable for loss of revenue.
Many small business owners tend to take on the role of controller simply based on the fact that many of them are in charge of the financial flow of the company and do their own cost/profit analysis. This may save money on hiring a controller but in reality not being able to foresee major costing issues or a better profit results in lost of revenue. If you do not have time or money to consider hiring a full time controller why not outsource one? Outsourcing your bookkeeping is a great way to a the very least have someone analyze your situation so that you can be assured that you are getting every piece of revenue that you are entitled to and this inself is worth the investment. Talk to one of our¬ outsourced bookkeeping¬†providers today!