The Role of a Financial Controller in Mid-Market: Key Strategies for Success

6 min read

As a business grows, transforming from a small business to a mid-market company, its bookkeeping, accounting, and financial management needs expand, too. What was once an easily manageable back office can quickly balloon into way more invoices, transactions, vendors, employees, expenses, reports, rules, and regulations than can't be effectively managed without the help, oversight, effective systems, and know-how of an experienced financial controller. 

What Is a Financial Controller? Financial Controller Responsibilities

The financial controller (sometimes called a comptroller) is a vital member of a business's financial team. The controller is primarily responsible for establishing and maintaining a business's bookkeeping and accounting system as well as the integrity of its financial records. 

The financial controller is a senior member of the back office department. They are typically responsible for overseeing, managing, and leading the department, attending to the nuts and bolts of back-office operations. This means controllers are usually responsible for compliance, accuracy, efficiency, soundness, and timeliness in financial reporting and back-office procedures. They are responsible for establishing and enforcing financial controls and procedures to mitigate risk and maintain compliance while monitoring financial health and performance. 

The Role of a Financial Controller in a Mid-Market Company

In smaller companies, controllers are sometimes responsible for both the hands-on role of the controller and the more strategic, visionary role of a chief financial officer. In a mid-market company, this could go either way, depending on whether or not the company is large enough to hire experienced, qualified professionals to fill both positions separately. 

If a business only hires a CFO, then the CFO might be responsible for handling some of the responsibilities that would traditionally fall on the controller. If the company only hires a controller, then the controller might be required to provide additional analysis and strategic vision, working closely with the company's CEO to create a financial strategy that is designed to support the business's operating plan. 

Depending on the individual filling the role, this can work out okay. However, it is best for these two positions to be separated - especially when a business really begins to grow. When it comes to successful mid-market finance leadership, separating the roles and responsibilities of CFOs and controllers ensures the right person is doing the job in which they have the most expertise, training, and experience. Otherwise, the company's financial health or accounting system and processes could suffer. 

Financial Controller Responsibilities

The primary roles and responsibilities of a financial controller include:

• Overseeing financial reporting
• Managing the back office
• Designing and implementing bookkeeping and accounting policies and procedures
• Supervising bookkeeping and accounting processes
• Mitigating and reducing risk by implementing proper internal controls
• Ensuring and maintaining compliance with federal, local, and industry regulations
• Monitoring financial performance
• Generating reports, tracking metrics, and providing financial analysis
• Communicating and collaborating with the CFO and departmental leadership
• Facilitating and carrying out the company's financial management strategy (usually devised by or with the CFO)

5 Key Strategies for Financial Controller Success

1. Understand Your Role

Successful mid-market financial leadership for a controller depends entirely upon understanding your definition of success. In order to know what "successful" means for you in your position as controller, then you must understand how your role is defined in your company.

Are you working with a CFO or are you expected to take on the strategic and visionary responsibilities of a CFO, as well?

Having a clear understanding of your roles and responsibilities as a controller in your unique company will help you be more successful. If you're expected to simply establish, manage, improve, and maintain the bookkeeping and accounting department, then you can focus on these more operational aspects of your job.

If you are working with a CFO, have a conversation about how involved you are expected to be (or how involved you wish to be) in the more strategic aspects of financial planning, data analysis, and strategy. This will ensure you have a clear understanding of your roles and responsibilities so that you can best fulfill your duties and meet (or exceed) your employer's expectations. 

Read More: How Do I Know If My Business Needs A Financial Controller?

2. Automation

You can save yourself an immense burden in managing the back office department if you learn to rely on the automation that modern technology has made possible. Wherever manual processes are slowing you down, look for an automation tool that integrates with your accounting software. Implementing applications organization-wide can help you eliminate clunky processes in addition to improving accuracy, efficiency, and compliance to make your job as a controller much easier. 

3. Communication and Collaboration

Controllers are in a mid-management role which means they must be able to communicate and collaborate with individuals in the C-suite, other departmental heads, and the employees working below them in the back office. Taking steps to open up clear lines of communication both ways. This can help you improve your ability to lead and collaborate in addition to providing channels for you to receive feedback about how well the tools and systems you implement are working. 

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4. Networking and Industry Trends

When financial professionals go to work for businesses that aren't accounting firms (i.e. other industries), they need to make a conscious effort to stay up-to-date on bookkeeping and accounting industry trends and developments. In addition to staying current on regulatory changes, you should also keep an eye out for new developments in software and applications to ensure you and your company's back office stay ahead of the curve (or at least that you don't fall behind). 

Find and attend industry events that will keep you up-to-date with the latest advances in finance, bookkeeping, and accounting and create a solid network of industry professionals so that you can work together to stay informed. 

Read More: What's the Difference Between a Financial Controller and a CFO?

5. Professional and Personal Development

In addition to maintaining a presence and connection to the financial management industry, it's also important to continue working on improving your own personal and professional skills. This might include seeking out new certifications or taking classes on leadership, financial strategy, communication, management, or something else that you believe could improve yourself personally or professionally. As you grow, become more experienced, and gather more knowledge, you'll become a better controller, a better department manager, and a beacon of mid-market financial leadership. 

Unlocking the Power of Outsourced Controllers for SMEs

Mid-market companies are in an unusual position where their growth creates a great need for additional help in the bookkeeping and accounting department in addition to a serious need for financial oversight. A controller can provide satisfy these needs. Full-time controllers with industry experience, however, can be difficult to find and expensive to hire. 

Outsourced controllers for small and medium-sized enterprises, however, are the perfect solution because they can deliver everything your company needs including reliability, experience, and affordability. Plus, with an outsourced controller, your business will also have access to additional outsourced services designed to handle everything from your day-to-day bookkeeping needs to the strategic and visionary capabilities of a chief financial officer.