![]() Someone with a finance degree, for example, is going to have a struggle when going it alone as the top accountant. Take care in such organizations to not put a Finance Director in charge of accounting who does not have a solid background in accounting. In such organizations, its usually most important to the business to put a primary focus on a smooth running accounting organization hence, the importance of having a solid Controller. They are often able to broaden out over time and handle a lot of the typical CFO tasks that come up, which don't tend to be overly complex in a small organization anyway. I will say, though, that in smaller organizations you can often find strong Controllers who are capable of going it alone without a CFO being in the organization. I've seen a lot of Controllers and CFOs get themselves into trouble by not understanding the differences in the roles. In an organization that has complex accounting, the CFO needs to be humble and hire a strong Controller, preferably with a CPA background, to handle accounting and external reporting. The flipside is that being a solid CFO does not necessarily qualify such a person to oversee the accounting function. So, being a successful CPA (BTW, a great prerequisite for a Controller) and/or Controller can lead one to an overconfidence that may not serve that person well if they move into a CFO role. The CFO role requires a much broader skill set. This can make that person a bit one-dimensional, however. In a strict sense, and especially in large companies, the Controller needs to be an accounting guru. People often like to think of the Controller role as being a gateway to the CFO role. Typically reports to top financial officer or CEO. A wide degree of creativity and latitude is expected. Relies on extensive experience and judgment to plan and accomplish goals. Demonstrates expertise in a variety of the field's concepts, practices, and procedures. Requires a bachelor's degree and at least 15 years of direct experience in the field. Prepares financial reports and presents findings and recommendations to top management. These functions include establishing and maintaining the organization's accounting principles, practices, procedures, and initiatives. Responsible for directing an organization's accounting functions. Familiar with a variety of the field's concepts, practices, and procedures. Typically requires an advanced degree with at least 10 years of experience in the field. Typically represents the 2nd most senior finance executive. Oversees all financial functions including accounting, budget, credit, insurance, tax, and treasury. Otherwise, though, accounting belongs to the Controller.ĭirects an organization's financial policies. If the accounting is pretty simple, then sure, the Finance Director can oversee an Accounting Manager. For reasons stated above, I disagree somewhat with including overseeing the accounting function as a role of the Finance Director. It all depends.īelow are the job definitions from. ![]() Conversely, if the complexity of the finance functions warrant a heavy hitter in that role - say, if there's a lot of financing or M&A activity going on, lots of strategic planning, maybe foreign currency hedging, significant risk management - then the company may have to pay up for the Finance Director. Depending on the complexity of the accounting processes and policies applicable to the organization, it is possible that a "heavy hitter" may be needed in the Controller position, and that may necessitate paying much more for that role than for the Finance Director who might be sitting in the office next door. First and foremost, the Controller is the chief accountant. Both roles can exist in the same company. This is the case when the incumbent's primary responsibilities are accounting. In my experience, Finance Director is often used when the Controller title would really be more appropriate. Finance Director and Controller positions are often paid about the same, all else being equal, and the titles are often used interchangeably, and often incorrectly.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |