ASSIGNMENT #1

Patrice Ylla Solis

BSBA Financial Management

F/S- 1:00-2:30 PM
Define Controllership (Research and find 3 different meanings) –

1. Controllers have the primary responsibility of managing the cost and finances of an organization. Those with careers in
controllership write reports, conduct analysis of corporate funds, and have the final word on approving expenditures.
(https://learn.org/articles/What_is_Controllership.html)

2. The chief accountant in a company or government. The controller is the head of the accounting department and is
responsible for financial and managerial accounting. He/she helps management interpret and appropriately respond to
accounting data. A controller is also called a comptroller.
(https://financial-dictionary.thefreedictionary.com/controllership)

3. The person in a corporation who is in charge of accounting and auditing is an example of a person who holds the
responsibility of the controllership.
(https://www.yourdictionary.com/controllership)

Who does the Controller report to?

A controller is an individual who has responsibility for all accounting-related activities, including high-level accounting,
managerial accounting, and finance activities, within a company. A controller typically reports to a firm's chief financial
officer (CFO), although these two positions may be combined in smaller businesses. The duties of a controller include assisting
with the preparation of the operating budgets, overseeing financial reporting and performing essential duties relating to payroll.

The controller prepares budgets and outlines important budgeting schedules throughout an organization. This includes the
collection, analysis, and consolidation of financial data. Although the controller doesn't always maintain the annual budget, the
controller position monitors variances, summarizes trends and investigates budget deficiencies. The controller reports material
budgeting variances or expenditure variances to management.
(https://www.investopedia.com/terms/c/controller.asp)

Distinguish the following:

A. Treasurer vs. Controller

- Treasurers and controllers both serve important financial functions within a company, but their responsibilities are quite
different.
A Controller is in charge of the company’s accountants. They are the highest in the food chain, as far as accounting
goes. A financial controller is in charge of supervising the preparation of financial reports and presenting them to
management. In some governmental organizations, a controller is also known as a financial comptroller.
A controller reports to the chief financial officer (if the company has one), formulates policies for the company and
oversees the audit, budget and accounting departments in their company.

The Treasurer oversees the finance department. In some companies, controllers can be referred to as the vice president
of finance. Their main responsibility is to help their company grow its funds and invest the money they have wisely.
The treasurer is the person who helps the company grow its revenue. He or she builds and nurtures relationships with
 banks and investment companies so that they know where the best place is to invest the company’s money.
(https://nuvest.net/treasurer-vs-controller-whats-difference/)

B. Financial Manager vs. Financial Controller

- Finance controller and finance manager are two specialized positions in the finance department. This is the age of
specialization and within a single department specialized posts are created so that all operations go on smoothly with
roles and responsibilities of all posts clearly demarcated.
A Financial Manager is responsible for all the financial risks undertaken by the company. He is the person who does
financial planning and also keeps records. He has the duty of keeping the top management aware of all financial
records.
A finance manager is responsible for financial budget, allocations to different departments and explanations for
expenditures of various departments. This means that apart from having good accountancy skills, a finance manager
also needs good HR skills.

A Financial Controller is subordinate to finance manager and needs to report to the manager every now and then. He
mainly plays the role of an accountant, supervising accounts and reporting financial statements to finance manager. He
is appointed to implement internal controls and to continually monitor them to ensure their success. He collects all the
data and conveys the same to the finance manager. He is often asked to make financial forecasts based upon data he has
gathered.
(https://www.differencebetween.com/difference-between-finance-controller-and-vs-finance-manager/)
 SEATWORK #1

Patrice Ylla Solis

BSBA Financial Management

F/S- 1:00-2:30 PM

1. What makes a good Controller?

- The top controllers in today’s best run companies overcome these challenges by transforming processes altogether, and
making use of technology and people to maximize their efficiency. They streamline and automate key close tasks like
consolidation and reporting with cloud-based applications. Because these applications reside in the cloud, they’re easier
to deploy, use, and manage. By automating processes and eliminating manual tasks, controllers can allocate their
personnel to more value-added activities.

2. What are the duties of a Controller?

- A controller’s duties can vary depending upon the size of the company, the complexity of accounting and financial
operations and the number of people employed in the accounting department. The controller provides financial
leadership and is instrumental in forming accounting strategies. A controller's role, especially in smaller companies, can
include broad visionary responsibilities as well as hands-on management.

3. What does a Financial Accountant do?

- A certified financial accountant is responsible for general oversight of a client's or a company's financial needs. He is in
charge of maintaining proper records and bookkeeping, complying with required tax filings, and managing business
plans. A certified financial accountant may also act in a financial advisory position, counseling companies or
individuals on the best way to invest their assets to maintain or increase their accounts.
QUIZ #1

Patrice Ylla Solis

BSBA Financial Management

F/S- 1:00-2:30 PM
Discuss the changing role of the controller in the Organization, in the Business World and in the Economy in general.

Controller in the Organization –

A controller, also known as a comptroller, is the chief accounting officer of a company or organization. The controller is usually
responsible for analyzing, interpreting, and controlling the organization's accounting and financial records. As the chief
accounting executive, the controller's duties cover all of the accounting functions in the organization. These may include general
accounting, cost accounting, budgeting and forecasting, accounting methods and procedures, taxes, and internal auditing.

Controller in the Business World –

The controller directs and plans financial activities and monitors the accounting department in the business. This position is
responsible for financial reports to stockholders and tax returns as well as financial reports created for inside the organization.

The controller directs investments and budgeting in the business. When a business builds new offices or makes purchases of large
equipment, the controller sets the budget and determines the amount of money that will be spent on the project. This position may
determine the budgets for each department within an organization.

The business controller reports directly to the president in an organization. The position requires extensive experience in financial
matters. Controllers may determine the accounting method used in the organization.

Controller in the Economy in General –

Banks are the cornerstone of a national financial system. Their key services are to provide a safe haven for the earnings of
individuals and to make loans to companies in need of capital, either to start operating or to stay in business. Without this
source of available capital, businesses would be hard-pressed to continue growing and returning a profit to their owners and
outside investors. By channeling savings into the business sector through loans – and also offering loans to individuals to buy
cars and homes – banks boost overall economic growth and development. The duties of a financial controller revolve around
ensuring that a business is operating effectively and efficiently. Financial controller duties are to manage accounting and monitor
internal controls. Furthermore, the financial controller responsibilities include banking and finance activities, proper reporting
and payment to all taxing authorities, insurance recommendations and related purchases and corporate documentation.