What Are the Main Types of Financial Controllers?

To become a financial controller means to monitor the financial health of a company and its financial operations. The financial operations of an organization maintain financial compliance and provide strategic recommendation data. In this article, we are going to explore the different types of financial controllers and what they do. The main types are:

• Corporate Financial Controller: Corporate financial controllers work in large companies and ensure that the company runs financially well. They manage financial statements, produce reports for senior management, and provide the company’s financial health and strategic objectives.
• Divisional/Regional Financial Controller: In a large corporation with several divisions or more than one location, a divisional or regional financial controller supervises the financial affairs of a particular business unit or region. He reports to the corporate financial controller and is concerned with his division’s performance.
• SME Financial Controller: Financial controllers working in SMEs have a broader remit encompassing financial planning, reporting, and budgeting. Their responsibilities will likely be more strategic and operational, and they may have no other finance team members to work with.
• Project Financial Controller: a person who directs and monitors the economic aspects of large projects, such as building infrastructure or implementing IT systems, overseeing the budgeting, forecasting, and reporting for the project and ensuring the financial targets of the project are met.
• Nonprofit Financial Controller: Nonprofit financial controllers manage the financial affairs of charitable or nonprofit organizations. They make sure that funding is spent appropriately, according to donor expectations and the law, with a particular eye towards the spending of grants, fundraising, and cost management.
• Public Sector Financial Controller: A financial controller in the public sector is responsible for the finances of a department of government or a public institution. They must maintain government regulations and policies while getting the most from the available public funds for their services and programs.
• Manufacturing Financial Controller: A manufacturing financial controller prepares budgets, monitors financial transactions, and performs cost accounting for manufacturing industries. They are responsible for the economic aspects of production, such as materials, labor, and overhead costs.
• Interim Financial Controller: A temporary appointment to replace a departing controller, to manage an economic transition, or to spearhead a project; an experienced professional who can step into a role and manage the company’s financial affairs in the interim.
• Consulting Financial Controller: A consulting financial controller works on a consultancy basis and advises companies on economic matters. They are often employed to review financial processes and procedures, manage audit investigations, or advise companies on financial strategy.
• International Financial Controllers: International financial controllers oversee the finances of multinational firms’ international branches or subsidiaries. Validate financial statements from different countries to produce a consolidated position, ensure compliance with international accounting standards, and manage currency exchange risks.

What Does a Financial Controller Do?

As a financial controller, you must ensure that the company’s financial operations run smoothly and that the economic strategies support the business goals. You oversee the accounting functions and financial reporting and provide management insights to help them make better decisions. Below is a detailed breakdown of what a financial controller does.

• Financial Reporting: Financial controllers are responsible for preparing correct and timely financial statements, such as income statements, balance sheets, and cash flow statements. They also ensure that these reports meet the applicable accounting standards, such as International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP).
• Budgeting and Forecasting: The financial controller drives the company’s budgeting process, for example, assessing how achievable a particular budget is and whether it is aligned with the business strategy. They also generate financial forecasts to help guide management decision-making and future planning. This might include looking at ‘scenarios’ to project how finance might develop under particular conditions.
• Managing Financial Operations: A financial controller manages financial operations day to day, such as ensuring that payroll is executed, accounts payable and receivable are up to date, and tax compliance is maintained.
• Internal Controls: Internal financial controllers establish and maintain the company’s internal controls to protect and safeguard the business’s financial assets; that is, financial policies and procedures are in place to adequately protect the business from fraud or other financial mismanagement.
• Compliance and Audits: The financial controller is responsible for ensuring that the company complies with all relevant financial regulations and laws, such as tax laws, reporting standards, and other industry-specific regulations. The financial controller also manages the outside audits by working.
• Cash Flow Management: The financial controller manages the organization’s cash flow. This includes ensuring sufficient cash is available to fund short-term operations, including payroll and debt obligations, and managing short-term investments and liquidity strategies.
• Financial Analysis: financial controllers analyze the company’s performance through the lens of its finances and, depending on the type of the company and the specific role, other internal stakeholders. They can identify insights based on financial data, such as where the highest costs can be slashed, where increases in revenues can be made, how current financial processes can be improved, what are the key performance indicators (KPIs), how to measure them, and what recommendations can be made to maximize business objectives.
• Tax Planning and Compliance: Financial controllers are responsible for ensuring that the company pays the correct amount of tax and only pays what is required. This involves working closely with tax advisors to prepare and submit tax returns and keeping abreast of any changes in tax regulations.
• Overseeing the Finance Team: Financial controllers supervise the finance and accounting teams, leading, coaching, and monitoring them to ensure the job is done correctly and everyone has the training to do a good job.
• Strategic Financial Planning: Financial controllers work with other executives to formulate long-term financial strategies to achieve a company’s goals. They contribute to the development of the strategic economic plan.

Average Financial Controller Salary

The salary of a financial controller working in the UK can vary depending on factors such as experience, location, size of company, and the sector of work (the finance and technology sectors, for example, are often in higher demand than others). Financial controllers working in larger companies earn higher wages than those working in smaller businesses. Here is a summary of a typical financial controller’s salary in the UK.

• First-Level Financial Controller: Junior financial controllers, usually newly promoted from senior accounting roles, earn £45,000-£55,000 a year. At this point, the professional is still gaining experience in broadening the scope of financial management.
• Mid-Level Financial Controller: Mid-level financial controllers have 5+ years of experience and can expect to earn between £55,000 and £80,000 per year while managing the finance team, overseeing financial reporting, and contributing to strategic and business decisions.
• Senior Financial Controller: The salaries of senior financial controllers with years of experience or who work in large organizations can vary between £80,000 and £120,000. Their duties often involve leading complex financial operations, such as multi-national finances, and national multinationals significantly impact the company’s economic strategy.
• Top Financial Controllers: In large multinational corporations or companies with complex financial structures, top financial controllers can earn upwards of £120,000. These controllers often work alongside CFOs and are responsible for high-level financial decision-making and oversight.
• Bonus and Incentives: Performance-related bonuses (often linked to financial targets, cost-saving measures, or audits) are usually given to financial controllers, particularly in larger organizations.

Financial Controller Skills

To become a financial controller, you need a combination of technical accounting knowledge, financial management skills, and leadership abilities. Financial controllers must be able to analyze financial data, manage teams, and ensure compliance with regulations. Here are the key skills required for a career as a financial controller:

• Leadership and Team Management: The financial controller’s key role is overseeing the finance team. They are responsible for the team’s performance, so important leadership and management skills are needed to motivate and encourage the finance team members and work cross-functionally with other departments.
• Budgets and Forecasts: Financial controllers must be able to form budgets and financial forecasts. This requires knowledge of the organization’s economic needs, understanding its future business aspirations, and making financial predictions from current data.
• Analytical Thinking: Financial controllers must decode complicated financial information, detect patterns, and provide meaningful recommendations to senior management to help them make well-informed decisions. Good analytical skills will enable them to do this.
• Regulatory Knowledge: Financial controllers must also be able to command the legalities of financial regulations, tax laws, and practical compliance issues particular to an industry. They must adhere to all legal and regulatory standards or face the risk of fines or an audit.
• Attention to Detail: Financial controllers must pay attention to detail. They must carefully check documents such as a company’s financial reports, budgets, and operations because mistakes can lead to severe consequences.
• Communication Skills: As a financial controller, you must communicate well and explain financial information to senior management, investors, and other stakeholders who may need a financial background.
• Problem-Solving: Confronted with financial problems such as overcoming cash flow problems, optimizing financial processes, cutting costs, or improving profitability, the financial controller must be a master problem-solver.
• Technology Expertise: Experience with financial software, enterprise resource planning (ERP) systems, and accounting platforms such as Sage, QuickBooks, or Oracle is expected, as well as familiarity with data analysis tools and financial modeling software.
• Strategic Thinking: Along with short-term financial and operational management, the financial controller’s role involves long-term financial strategies. This means thinking strategically about the future of the company’s finances and suggesting the best recommendations to foster growth and sustainability.

Financial Controller Tips

Here are some practical tips for aspiring financial controllers who want to build a successful career in this challenging and rewarding role:

• Begin With Accounting Experience: Start your career with accounting experience as a foundation. Ideally, this would be done as an accountant or financial analyst to learn the basics of financial reporting, tax compliance, and internal controls.
• Get Professional Qualifications: Getting professional qualifications such as ACCA (Association of Chartered Certified Accountants), CIMA (Chartered Institute of Management Accountants), or ACA (Associate Chartered Accountant) is critical when you want to become a financial controller.
• Build Leadership Skills: As a financial controller, you will be responsible for leading a team of finance professionals. Develop your leadership and management skills by building your supervisory experience, participating in leadership training, or finding a mentor in the financial community who can guide you through a successful leadership career.
• Keep Up With Regulations: Financial regulations and tax laws are constantly changing, and it’s vital for a financial controller to stay current. Attend industry seminars, webinars, and training courses regularly to ensure your knowledge is up to date.
• Build Strong Relationships with Departments Outside of Finance: Financial controllers often work with other departments, such as operations, HR, and sales. Building strong relationships with the heads of these departments will help you understand their financial needs and improve cross-functional collaboration.
• Be Proactive with Financial Planning: Don’t wait for financial problems to arise before taking action. Be proactive in monitoring the company’s financial health and identifying potential issues. Regularly review budgets, forecasts, and cash flow to ensure that the company remains on track.
• Improve Constantly: An excellent financial controller continually thinks of ways to optimize financial processes and become more efficient. You should follow the development of new financial technologies and tools and new best practices that can improve your financial operations and make them more accurate.

Financial Controller Requirements

To become a financial controller, you must have education, qualifications, and experience. Here is an overview of the typical requirements for entering this field:

• Education: Although no standard education is required to become a financial controller, a bachelor’s degree in accounting, finance, or a similar field is usually required. Most financial controllers have a background in accounting, business administration, or economics, and many have advanced degrees such as a Master’s in Accounting or an MBA with a finance concentration.
• Professional Qualifications: Professional accounting qualifications such as the ACCA, CIMA, or ACA are often required for financial controllers. They provide evidence of a high level of accounting and financial management. They are usually needed to progress to more senior roles in finance.
• Experience: This role typically requires at least several years of experience in roles such as accounting clerks, accountants, financial analysts, or auditors. These roles help to develop the technical skills and leadership abilities that financial controllers need to manage their company’s finances.
• Technical Proficiency: Technical financial controllers should be proficient in financial software and accounting platforms. Since they are responsible for financial operations, they need an understanding of tools that can be used to manage financial processes, including ERP systems, financial modeling software, data analysis, and other tools.
• Regulatory Knowledge: This field can get wonky: you need to be up to date with financial regulations, tax laws, and industry-specific compliance requirements (and quite a few of those!) to ensure the company’s financial practices are legal.

How to Become a Financial Controller

Becoming a financial controller will help me gain experience in accounting and finance, gain professional qualifications, and develop the necessary skills to run a company’s financial operations. Here’s a step-by-step guide to help you get your career off the ground as a financial controller.

• Earn A Degree In Accounting Or Finance: First, you must earn a bachelor’s degree in accounting, finance, or a related field. This will give you the knowledge base to understand the various types of financial statements, tax regulations, and accounting methods.
• Get Experience in Accounting Jobs: Start working as an accountant, auditor, financial analyst, or other related job to gain technical skills and experience in financial reporting, tax compliance, and budgeting.
• Get a Professional Qualification: If you want to be an accountant, the ACCA, CIMA, or ACA can help you qualify as a professional in accounting and financial management. It is also required to become a financial controller.
• Develop Leadership and Management Skills: As you gain experience, pursue projects where you lead or manage junior accountants. This will build your leadership and management skills and prepare you to manage a finance team as a financial controller.
• Keep Up With Regulations: Keep up with financial regulations, tax laws, and industry standards. Take classes and attend seminars and conferences to stay abreast.
• Apply for Financial Controller Jobs. By then, you’ll qualify for financial controller positions. Renovate your CV to emphasize your experience in financial reporting, leadership, and regulatory compliance.
• Focus on Continuous Improvement: As a financial controller, it’s important to continuously improve your skills and stay updated on new technologies, tools, and best practices in financial management. Consider pursuing advanced degrees or certifications to further your career.

Get Qualified as a Financial Controller

Certificate in Finance, Finance Management Essentials, Finance Management, Transport Economics and Finance Advancements

Frequently Asked Questions

Why Should You Become a Financial Controller?

As a financial controller, you will be at the heart of the company’s financial planning and evolution. This is a rewarding role for someone interested in analyzing numbers, solving problems, and leading a team of financial professionals.

Is Being a Financial Controller a Good Career Choice for You?

If you have good accounting qualifications, enjoy the details of financial analysis, and crave leadership responsibility, being a finance controller might be a great career move. This position has a mix of technical and strategic responsibilities and is usually a step towards senior finance roles such as CFO.

Financial Controller Salaries

The salary of a financial controller in the UK depends on experience, industry, and company size. Entry-level financial controllers can earn between £45,000 and £55,000. Experienced financial controllers can earn between £55,000 and £80,000. Senior financial controllers or large corporate companies can earn more than £120,000.

Which Qualifications Can Help with a Career as a Financial Controller?

For example, in the UK, becoming a financial controller requires certain certificates, such as the ACCA (Association of Chartered Certified Accountants), CIMA (Chartered Institute of Management Accountants), or ACA (Associate Chartered Accountant). These qualifications prove that you have good experience in financial management.

Do I Need to Be an Experienced Financial Controller to Get Started?

No, most accounting or financial analysis positions are entry-level roles for financial controllers. The financial controller position requires experience in accounting and economic analysis to prove yourself.

Financial Controller Career Outlook

This sector continues to demand financial controllers. There is a high demand for financial controllers in the finance, manufacturing, and technology industries. These industries need people to manage their finances and meet regulatory requirements.

Financial Controller Hierarchy and Progressing Within the Role

Before becoming controllers, financial controllers often work their way up from senior accountant or financial analyst roles. Eventually, they can move into a more senior role, such as finance director or Chief Financial Officer (CFO), responsible for the company’s overall financial operations.

Financial Controller Exit Options and Opportunities

Because the job opens doors to other senior financial roles (finance director, chief financial officer, financial consultant) and the skills gained—control, organization, planning, reporting, accuracy—are highly valued in many roles, controllers have several exits. Some become specialists, like tax experts, auditors, or financial analysts. Some become entrepreneurs, setting up financial advisory businesses.