SUMMATIVE TEST

Answer briefly the following questions below:

1. What is a Financial Controller?

Answer: A financial controller is a senior-level manager who oversees a
business's day-to-day financial operations. Sometimes called the “company
historian,” financial controllers run the accounting function and are
responsible for the company's books and records. A controller is in charge
of making sure that all accounting distributions are properly made and
accounted for. In smaller firms, the financial controller also performs cash
managing roles and oversees accounts payable, receivable, disbursing of
cash, payroll and bank settlement functions. It is imperative that every
company should have a separation of responsibilities with respect to
accounting jobs to assure accurate checks and balances in the system. A
controller is also in control for starting and implementing internal controls
over the establishment’s accounting and financial actions. This includes
studying and approving all statements. In smaller firms, the controller will
frequently take charge of collections on invoices, particularly the ones that
overdue for over a month. A controller is also accountable for organising
and keeping company records and making them available for examination.
2. Why are financial controllers important?
Answer: Financial control allows the company to evaluate, in a continually
objective and systematic manner, the variances that are generated on
previously established strategic and operational lines. Financial controllers
are primarily responsible for providing accurate and timely company
records by managing the accounting function. Duties include owning the
financial close process and producing financial statements and reports to
guide decision-making
3. What is the difference between a financial controller and a comptroller?
Answer: The controller and comptroller titles refer to the same position,
which is the person responsible for all accounting operations of a business.
The controller title is more frequently found in for-profit businesses, while
the comptroller title is more commonly found in governmental and non-
profit organizations. Controllers work within private or nonprofit
organizations, while comptrollers are employed within the governmental
sector. Both perform similar duties except that a comptroller holds some
 additional responsibilities, as well as a bit more prestigious position within
an agency. Controllers look at financial facts and figures after production or
completion of services rendered; their main concern is the final bottom
line. Comptrollers are different.
4. Why does a company need a controller?
Answer: A controller can supervise your accounting team and streamline
your financial processes. They can also assist with hiring new members for
your accounting department while making sure you have the most qualified
professionals. The duties of controller include assisting with the
preparation of the operating budgets, overseeing financial reporting and
performing essential duties relating to payroll. The controller has many
tasks which might include preparing budgets and managing important
budgeting schedules throughout an organization.
5. Required skills for a financial controller.
Answer:
● Master's degree in accounting or equivalent.
● Proven experience in finance management.
● Good communication skills.
● Strong leadership qualities.
● Excellent interpersonal skills.
● Sound knowledge of accounting fundamentals.
● Auditing experience.
● Compliance oriented.
● Proficiency in accounting software.
● Analytical skills.
6. What are the duties and responsibilities of a Financial controller?
Answer:
● Preparing financial reports.
● Analyzing financial data.
● Monitoring internal controls.
● Overseeing and preparing income statements.
● Participating in budgeting processes.
● Managing financial transactions.
● Streamlining accounting functions and operations.
● Developing plans for financial growth.
● Evaluating and managing risk.
● Coordinating audit processes.
7. What are the steps to become a financial controller?
Answer: To become a Finance Manager, it is recommended that you hold a
bachelor degree or higher in a related field, in addition to having
experience in the industry.
● Complete a Bachelor of Accounting or a degree in a related field.
● Get accredited as a Chartered Accountant or Certified Practising
Accountant. You’ll need to have attained an approved undergraduate
degree to apply for accreditation.
● Gain experience as an Accountant. Financial Controllers will need
substantial relevant experience.
● Considering pursuing postgraduate education, preferably in business
administration, finance, or economics.