The evolving role of financial controller services in the digital age

Traditionally, in-house and outsourced controllership has focused on numbers, leaving little time for high-value strategic work.

Technology is changing that.

Reporting has become faster, automation opportunities have increased and financial data has become easier to access, even in real time. Whether your organization has a full-time financial controller or uses outsourced financial controller services, controllers can now look beyond day-to-day accounting operations to the strategic work that impacts organizational performance.

What does a financial controller do?

A financial controller oversees an organization’s accounting operations and helps maintain the accuracy and integrity of its financial information. Depending on the organization, financial controller responsibilities can include oversight of:

• Financial reporting
• Budgeting
• Cash flow management
• Internal controls
• Accounting processes
• Accounting staff

But the role is increasingly expanding beyond reporting what has already happened. With greater access to timely financial data, controllers can identify trends, uncover issues and provide insights that help leaders understand the financial impact of business decisions.

What are financial controller services?

Financial controller services give organizations access to controllership expertise and support for managing their accounting and financial reporting functions. These services may supplement an existing accounting team or provide fractional controller support when an organization doesn’t need, or isn’t ready to hire, a full-time controller.

What are the benefits of financial controller services?

The benefits of financial controller services include:

• Stronger financial oversight: Financial controller services can help organizations gain greater visibility into their finances while strengthening the processes used to manage them.
• Flexible access to leadership: For organizations with limited internal resources, a fractional financial controller can provide access to experienced financial professionals without adding another full-time position.
• Greater technology expertise: Controller services providers with experience in accounting technology can help your organization modernize systems for more automated transactions and reporting tasks.

The evolution of controllership

Technology is transforming the way controllers can access, update and report on financial data, helping them transition from an administrative role into a more strategic one. This shift is also changing what organizations can expect from an outsourced financial controller. Rather than relying solely on controllers to oversee reporting and accounting processes, organizations can use these services to gain additional financial insight and support decision-making.

Whether the controller is in-house or outsourced, modern controllership increasingly includes responsibilities such as:

Building relationships

Controllers are not only expected to deliver information but also to build the internal and external relationships necessary to act on it.

In this more collaborative position, any lack of soft skills is going to be more pronounced. Controllers need to develop their ability to communicate solutions, work with teams and maintain key external relationships, such as vendors and financial institutions.

Leading their team

Continued talent shortages mean accounting departments are increasingly having to do the same work with fewer people, and getting that done effectively requires strong leadership.

Controllers should be working with their staff to identify upskilling and educational opportunities so that they have a clear vision of their career progression. This can help boost overall employee satisfaction, leading to better employee retention. It also helps empower teams to do their work effectively and adapt to how technology is impacting their roles.

Being proactive

Increased access to up-to-date financial data is helping controllers shift their focus away from primarily historical reporting to being more proactive in identifying and implementing corrective action.

Controllers are no longer working with a set-it-and-forget-it budget. They have the information and capacity to make decisions and hold departments accountable on a more regular basis. They can also improve planning, working with departments on issues such as setting more realistic goals and reducing costs instead of just reconciling past activity.

Making business decisions

Controllers are a source of valuable financial knowledge for any business. But too often, they’re stuck generating reports rather than applying that knowledge to improving financial health.

With technology making reporting easier, controllership services can devote more attention to interpreting data and supporting strategic decisions. Controllers can serve as an important financial voice when business decisions are being made, helping leaders understand potential financial implications and evaluate their options with better information.

How technology is transforming financial controller services

Rather than reducing the time it takes to manage day-to-day financial operations, the latest accounting innovations are focused on repurposing it.

Here are three key technologies that are changing the way controllers use their time:

1. AI

AI is helping controllers automate the decision-making process by streamlining access to actionable insights.

Where controllers previously had to manually pull data and make charts, AI takes those same pieces of data and automatically works to identify transit trends and analytics.

For example, when looking at a specific vendor, a controller would need to go through the vendor’s records, pull that data and aggregate it manually to identify important trends like a rise in average costs. AI can identify that trend automatically, freeing controllers to focus on larger issues like reevaluating that vendor relationship or negotiating lower costs.

2. Cloud-based ERP

Workplaces are increasingly going mobile and financial data should be following suit.

Cloud-based ERPs allow controllers to access near real-time financial data from any location. They eliminate the need to manually initiate and update systems, helping controllers reduce administrative work and increase efficiency.

3. Financial dashboards

Using dashboards not only helps give controllers easier access to financial data but also helps improve the way they communicate it.

A typical financial report requires the recipient to have some financial literacy to be able to understand and apply the data. Dashboards help bridge that gap by presenting the numbers in more impactful representations, like bar graphs and charts. This visual formatting can make it clear how financial data relates to business activities.

Dashboards also make it easier to drill down into specifics, allowing you to manipulate data into a more meaningful format rather than just looking at the high level. For example, you can filter a financial report on payroll for a specific time period, department or even an individual employee.

Read more:

• Pros and cons of outsourced controllers
• Financial scenario planning and capital strategy
• Why cash flow visibility is becoming a leadership issue