Regardless of its sector of activity, controlling is the strategic value of a company. Given its importance, it has become the basis for potential improvements in all companies. It is, in fact, a function that aims to motivate managers and encourage them to carry out activities that help achieve organisational objectives. Thus, a management controller is one of the pillars of a company.
Why is the intervention of a management controller essential for a company?
In order to facilitate business management, the intervention of certain professionals is required. To determine the consequences of the actions and decisions of managers, it is necessary to use the services of accounting and management experts, such as the accounting, financial or social controller. The expert will set up management tools while carrying out internal audits in order to evaluate the company’s performance. As the name suggests, controlling is more than just ‘controlling’, this function has broader and more complex tasks. Generally speaking, controllers are performance managers or business partners.
What are controllers responsible for?
A management controller is responsible for financial management so that it can be in the best interest of the company. In other words, this expert ensures that the budget and other resources are used appropriately. During the execution of his/her tasks, this professional uses the appropriate methods and tools. The role of the management controller also includes managing the company’s performance management system. To do this, he/she will establish a dashboard dedicated to the operations managers and the financial departments. With proven skills in cost accounting and cost analysis, this expert can support the company’s financial analysis to ensure effective management of its resources. This financial specialist is also responsible for variance analysis.
The principle of management control
If you know the principles of controlling, you will know how important a management controller is to a company. Thus, you should know that controlling seeks to understand both the extent to which objectives are achieved and information which is consistent with the company’s strategy. That is, to look for the efficiency of the company. Secondly, it is necessary to measure the capacity to minimise the means used to achieve the objective or to achieve the quality objective at the lowest cost. That is, the efficiency of the company. Finally, this function seeks to obtain quality resources in the right place, at the right time and at the lowest cost. This is the economics of the business.