Published first 2021 via Mpya Finance website
If I had gotten a dime for every time I’ve explained what a business controller does, I probably wouldn’t have been a millionaire, but I would undoubtedly have had a bill or two in my pocket. Holler if you recognize yourself!
- What do you do for a living?
- I work with business controlling.
- What does a business controller do?
- I work with analysing companies’ operations… Among other things, by xxx and yyy (the explanation continues and deepens).
- Hm…
Cut to 5 minutes later.
- I still don’t get it… what do you DO as a business controller? And if you’re a business controller, what does a financial controller do?
- So, like this. I’m an economist.
- Aha! Why didn’t you say it right away!”
Let’s do this properly, once and for all. (I have a feeling there are as many interpretations of this as the number of times I have gotten a ”Wrong! Do it again!” when I did my first cash flow statement.)
We start with what different types of controllers there are. The most common types of controllers there are, are financial controller, business controller, supply chain controller, project controller and good old-fashioned CONTROLLER (Yes, because why bother, really?)
We start with the general explanation of what controlling is:
In the controlling profession one is expected to work with business management. Most often, this means that, with the help of economic analysis and forecasting, decisions or business approaches should be directed towards what is best for the business.
When you then take this further, we end up with the different types of controllers, which are really a breakdown of the overall definition.
Accountants work with bookkeeping in the general ledger and ensure that all income, expenses, assets and liabilities are booked and arranged so that it is possible to present and keep up correctly.
After that, a financial controller takes over and ensures that what is now in the ledger corresponds to the expectations that have existed and the budgets, as well as forecasts, that have been set. In addition to this, a financial controller makes ongoing analysis of the economic situation, and continuously follows up on the events that affect expectations you have had of the figures.
It can be said that a financial controller is current-oriented and reports results and how well you have achieved goals.
A business controller is then the one who looks to the future. Here, the analysis of the business plays a role and forms the basis for which steps follow the result presented. With the help of the current situation analyses that the financial controller has made, and in consultation with the business, the business controller can now make their analyzes of the expectations that exist for the future and form support for decisions that need to be made in order for this future to be achieved. Just like everyone else in a finance function, a business controller also needs to do ongoing analysis and reporting, but with more focus on how the business works and should act for the future.
Since these two controller variants above are the most common, I only cast a quick glance at the other variants I mentioned a moment ago.
Supply chain controllers work towards the supply chain of a business’ production and ensures that it works as it should and that the various components are directed towards previously set goals.
Project controller works like a business controller, but the focus is niched towards a specific or several specific projects in a business.
If you are a controller, I hope that this long-windedness has helped a little in how to explain to curious friends. And if you are a curious friend, I hope you now better understand what your friend does for a living.
What business controller is called in Spanish is a completely different story that I think we’ll take over a beer, preferably on a playa somewhere warm!
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