Picture this: You’re the owner of a growing business. New opportunities are knocking at your door, everything seems to be on the right track, until you take a closer look at your financials. You realize that costs are escalating rapidly, cash flow is tighter than expected, and profitability isn’t quite where it should be. You need someone who can make sense of the numbers, identify gaps, and steer your financial strategy in the right direction.
Enter the Controller, the financial expert who keeps your business on solid ground while helping you plan.
What is a Controller, and Why Are They Essential?
A Controller is more than an accountant, they are the financial strategist of your business. They oversee accounting functions, ensure accurate financial reporting, and provide strategic insights that shape the future of your company. Working closely with CFOs, Controllers analyze past and present financial data to forecast future trends, helping you pinpoint where to cut costs and where to invest more to drive revenue.
According to the Institute of Management Accountants and Deloitte Development LLC, a Controller operates in four critical roles:
• Steward: Protecting your company’s financial assets by managing risk, ensuring compliance, and preventing fraud through internal controls and audits.
• Operator: Overseeing day-to-day accounting, optimizing cash flow, and managing vendor relationships to maintain financial efficiency.
• Strategist: Analyzing data to forecast trends, develop budgets, and identify cost-saving opportunities to fuel business growth.
• Catalyst: Driving financial accountability and best practices, while leading process improvements to foster innovation and efficiency.
By balancing these roles, Controllers not only ensure financial stability but also contributes to long-term business success.
How Controllers Spend Their Time vs. How They Should
According to a report by the Institute of Management Accountants and Deloitte Development LLC, controllers are often caught up in stewardship activities, with a significant portion of their time devoted to ensuring compliance and managing risk. Ideally, controllers should be dedicating more of their time to strategic and catalytic roles, where they can focus on driving business growth, improving processes, and influencing decision-making.
What a Controller is Not
A common misconception is that a Controller is just a glorified bookkeeper. But if your Controller is spending their time tracking daily transactions, categorizing expenses, or reconciling bank statements, one of three things may be happening:
- You don’t have a Controller, just a bookkeeper with a fancy title.
- You’re overpaying someone for work that a lower-level employee could handle.
- Your Controller may soon leave for a role that better aligns with their expertise.
By understanding the true responsibilities of a Controller, you can maximize their financial leadership and ensure long-term success.
Responsibilities of a Controller
While every Controller is responsible for overseeing financial reporting, managing budgets, and ensuring compliance, their specific duties vary across industries. Let’s explore how their role differs in the context of different industries.
1. Controller in a Construction Company
• Job Costing & Budgeting: A Controller acts as a Strategist by analyzing financial data for each construction project, ensuring costs align with budgets, and identifying areas to improve profitability. As an Operator, they track labor, material, and subcontractor expenses to optimize financial efficiency and make necessary adjustments.
• Compliance and Internal Control: As a Steward, a Controller ensures compliance with GAAP and tax regulations. They prevent fraud by implementing strict controls to avoid substitution of materials with lower-quality ones, minimizing material waste like scraps or damage.
• Collaboration with Teams: As a Catalyst, a Controller bridges the gap between finance and project execution by working closely with project managers. They ensure financial accountability and drive cost-conscious decision-making.
2. Controller in a Restaurant
• Inventory Management: As a Steward, a Controller implements inventory control systems to maintain optimal stock levels, minimize waste, and prevent theft. In the Operator role, they ensure accurate tracking of food and beverage costs, keeping financial records precise and reliable.
• Third-Party Delivery Platform Management: A Controller takes on the Operator role by reconciling financial transactions from third-party delivery platforms (like Uber Eats or Grubhub), ensuring that commission payouts are accurate, and delivery pricing are profitable for the business.
• Reporting & Performance Analysis: As a Strategist, a Controller analyzes key performance indicators such as Prime Cost Percentage and food/labor costs, providing valuable insights to help restaurant owners and managers drive profitability and make data-driven decisions for growth.
The Benefits of Having a Controller in Your Business
Having a Controller isn’t just a luxury, it’s a game-changer. Here’s why:
• Informed Decision-Making: A controller empowers you and your leadership team to make informed decisions backed by solid data, detailed financial reports, and actionable insights, eliminating guesswork.
• Improved Financial Accuracy: They ensure your records are up to date and error-free, reducing financial risks.
• Cost Control & Profit Maximization: Controllers help identify areas to cut costs without compromising quality, ensuring steady profitability.
• Better Cash Flow Management: Controllers provide clear visibility into cash flow, enabling more accurate forecasting, strategic budgeting, and efficient resource allocation. This ensures liquidity is maintained and financial obligations are met on time.
• Strategic Planning & Forecasting: With a deep understanding of financial data, a controller plays a key role in forecasting future trends and creating strategic plans to drive growth.
Why Every Business Needs a Controller
A Controller isn’t just someone who crunches numbers, they transform financial data into actionable strategies that can revolutionize your business. They identify opportunities, highlight inefficiencies, and keep your company on the path to long-term success.
At ProcStat, we specialize in providing expert Controllers who bring clarity and precision to your finances. With their guidance, you can make smarter decisions, optimize costs, and unlock your business’s full potential.
Let’s turn your financial data into your strongest asset!!
Shekhar Mehrotra
Founder and Chief Executive Officer
Shekhar Mehrotra, a Chartered Accountant with over 12 years of experience, has been a leader in finance, tax, and accounting. He has advised clients across sectors like infrastructure, IT, and pharmaceuticals, providing expertise in management, direct and indirect taxes, audits, and compliance. As a 360-degree virtual CFO, Shekhar has streamlined accounting processes and managed cash flow to ensure businesses remain tax and regulatory compliant.
