It is very important to understand the meaning of financial control, its objectives and benefits, and the steps that must be taken if it is to be implement correctly. Because Financial Control has become an essential part of any company finaces.
Financial Control : The Definition
Financial control can be seeing as the analysis of a company’s actual results, approached from different point of view at different times, compared to its short, medium and long-term objectives and business plans.
These analyses require control and adjustment to ensure that business plans are being followed correctly and it’s can be amended in there any anomalies, irregularities or unpredicted changes.
Financial Controller Responsibility
A Financial Controller can be refer as the lead accounting executive in a company, their duty is vary depending the size of the company, the complexity of accounting and the number of people employed in departement.
- Accounting Oversight
A financial controller is responsible to make sure that all accounting allocations are corectly made and documented.
In some smaller companies, the financial controller may also doing cash management functions and monitoring debt, accounts receivable, cash disbursements, payroll and many accounting related stuff.
Every company should keep a separation of duties to accounting functions to insure that there are checks and balances in the system.
- Building Internal Controls
A financial controller is also responsible for building and executing internal controls the company’s accounting and financial procedures.
This includes reviewing & approving invoices to be paid, as well as reviewing accounts receivable aging reports.
Coordinating with external tax accountants for income tax preparation of the company, This includes keeping company records organized and available for examination.
- Financial Planning
Financial controllers in some smaller companies are responsible for all banking and finance activities. They also responsible for providing accurate and comprehensive financial Data to executive management for long-term financial strategy.
In any situations, they must provide crucial financial information and work together with executive management to coordinate all financial planning functions with business operations.