A controller is responsible for all accounting-related activities, including high-level accounting, managerial accounting, and finance activities within a company. The controller reviews fabric budgeting variances or expenditure variances to management. It is also known as comptroller. In the next section, we will learn the functions of controller and responsibilities.
Functions of Controller
The functions of controller are as follows:
The controller prepares an adequate plan for the control of various operations. Such a plan would include establishing cost standards, expense budgets, sales forecasts, profit planning, and a program for capital investment.
2. To Measure Performance
The next essential functions of controller are to measure the performance against approved plans and standards and to report the results of operations to all levels of management.
3. Evaluating and Advising
Functions of controller include an evaluation. It evaluates the effectiveness of the policies, organisation structure, and procedures in attaining the objectives of the business.
4. Tax Administration
To administrate tax policies and procedures, he has to supervise all matters relating to tax accounting. It requires the preparation of tax returns and filing the same with the tax authorities in time. It is one of the controller functions.
5. Reporting to Government Agencies
The controller supervises and coordinates the preparation of reports to government agencies. He must ensure that all the reports that have to be submitted periodically are prepared correctly and submitted in time. The functions of controller also include reporting to the Government agencies.
6. Protection of Assets of Business
To ensure fiscal protection of the business’s assets, this function of controller requires establishing adequate internal control and auditing and assuring proper insurance coverage.
7. Appraisal of External Influences
The controller has to continuously monitor economic and social forces and government influences, interpret their effect on business, and report the same to the top management.
Duties of Controller
In this section, we will discuss the responsibilities of controller that he has to fulfill. The Controller’s Institute of America explains the following duties of controllers.
- It is the duties of controller to install and supervise all accounting records of the business enterprise.
- Preparing and interpreting the financial statement and reports of the business enterprise is one of the responsibilities of controller.
- The controller does the continuous audit of all accounts and records.
- Compiling the cost of production is performed to fulfill the duties of controller.
- The compilation of the cost of distribution is the responsibilities of controller.
- The controller can take and cost of inventories.
- Tax administration.
- Preparation of the annual budget.
- The controller ascertains whether all the assets are appropriately insured.
- The treasurer signed the approval for payment of all cheques, promissory notes, and other negotiable instruments.
- These are the responsibilities of controller that are performed for better decision-making.
A controller is different from an accountant. Although not all management accountants have the same responsibilities, controllers typically earn more money and are responsible for leading teams and setting up departments. Here, in this blog, we will learn the duties and responsibilities of controllers. Also, we discuss the functions of controllers.