Controller is a management consultant, often treated as a business partner, dealing with expert interpretation of results and relationships of various indicators. He is employed to search for relevant means of achieving objectives set out by managers. He is also considered as an aid for methodical and informational support of management decisions.
The role of the Controller
The main role of the Controller involves coordinating of operation of the controlling system. Controller can be executive assistant, whose role is to identify the problem and its solution, with adequate knowledge of the situation of the company. Another example is the role of moderator, in which he controls all the processes occurring in the company.
Controller in the organizational structure
There are two options for the location of controllers in the company's organizational structure:
- Linear - control department takes equal position with other departments, managers of these departments work together on an ongoing basis to help in the transfer of insights and irregularities in the activities of individual departments, controller is in direct contact with those responsible for the effects of the activities of specific departments. In such position it is easier to introduce corrective actions.
- Support position - controller ranks high in the hierarchy of the company, but has only advisory function, without the formal possibilities of direct communication with those responsible for carrying out the various goals of the company which results in slower flow of information, which hinders the rapid response to arising threats.
Functions and tasks of Controller
Controller tasks were proposed by the Financial Executive Institute. These include:
- Planning: development of plans for the company, budgeting systems and planning procedures,
- Reporting and interpretation of data: data processing system development, coordination of reporting systems and procedures,
- Assessment and advice for managers
- Tax calculation and optimization,
- External reporting: supervision and coordination of the preparation of obligatory reports,
- Protection of company assets by enforcing proper internal control
- Continuous research and analysis of economic or political environment.
- Cohen, J., Krishnamoorthy, G., & Wright, A. M. (2002). Corporate governance and the audit process. Contemporary accounting research, 19(4), 573-594.