Comptroller Meaning Example Types Roles Responsibilities

Comptroller Meaning

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A comptroller is different from a controller, who is only responsible for the costs of the final products of a business. Usually, the Chief Financial Officer (CFO) acts as the comptroller of a corporate firm besides planning and managing the organization’s finances, including the related risks. In some corporate frameworks, they are separate professionals considered equivalent to the CFO.

Key Takeaways

Comptroller is a top management official found in a profit-oriented, non-profit, or government organization to look after the accounting and financial reporting of the concerned entity.It is different from a controller, who is only accountable for the finances related to the final costing or pricing of the company’s final product.Their types depend on where the individuals work – in a business, non-profit firm, or government.These professionals should acquire either a Certified Public Accountant, Chartered Financial Analyst, or Certified Management Accountant degree.

What Does a Comptrollers Do?

A comptroller plays a vital role in taking care of the financial reportingFinancial ReportingFinancial reporting is a systematic process of recording and representing a company’s financial data. The reports reflect a firm’s financial health and performance in a given period. Management, investors, shareholders, financiers, government, and regulatory agencies rely on financial reports for decision-making.read more of any profit-making or non-profit-making entity. As a result, the concerned person checks all important financial documents before the final publication or presentation. Such important financial publications of a government or corporate organization include the balance sheetBalance SheetA balance sheet is one of the financial statements of a company that presents the shareholders’ equity, liabilities, and assets of the company at a specific point in time. It is based on the accounting equation that states that the sum of the total liabilities and the owner’s capital equals the total assets of the company.read more, income statements, cash flow statements, etc.

These professionals report to the CFO or the President or Chief Executive Officer (CEO). They become a single point of contact for the business owner or the government for all the financial matters, making the decision-making process easier. They conduct variance analysisVariance AnalysisVariance analysis is the process of identifying and analyzing the difference between the standard numbers that a company expects to accomplish and the actual numbers that they achieve, in order to help the firm analyze positive or negative consequences.read more to figure out ways to improve the entity’s financial performance.

These top financial executives are the final decision-makers in matters involving a huge outflow of money to ensure companies or the government remain prevented from heavy losses.

Roles & Responsibilities

As a link to financial matters, the need to keep note of every accounting functionAccounting FunctionAccounting functions are financial systems that help in the bookkeeping of financial information in an organization, financial analysis, summary creation, reporting of transactions and act as the backbone for almost any business. Accounting as a system tries to identify, assess and record the transactions of financial nature in a very systematic approach.read more and economic activity for correctness and accuracy. Here is a list of roles and responsibilities they shoulder:

They take care of the company’s funding plans, manage budgets, secure loans, etc.As stated above, they conduct variance analysis to figure out ways to improve financial performance.These top management professionals ensure the financial reports meant for the publicly traded companiesPublicly Traded CompaniesPublicly Traded Companies, also called Publicly Listed Companies, are the Companies which list their shares on the public stock exchange allowing the trading of shares to the common public. It means that anybody can sell or buy these companies’ shares from the open market.read more are accurate.The executives deal with processing all accounting transactions, including payrollPayrollPayroll refers to the overall compensation payable by any organization to its employees on a certain date for a specific period of services they have provided in the entity. This total net pay comprises salary, wages, bonus, commission, deduction, perquisites, and other benefits.read more, expenditures, billings, accounts payableAccounts PayableAccounts payable is the amount due by a business to its suppliers or vendors for the purchase of products or services. It is categorized as current liabilities on the balance sheet and must be satisfied within an accounting period.read more, accounts receivableAccounts ReceivableAccounts receivables is the money owed to a business by clients for which the business has given services or delivered a product but has not yet collected payment. They are categorized as current assets on the balance sheet as the payments expected within a year.
read more, receipts, etc.They also conduct an internal auditInternal AuditInternal audit refers to the inspection conducted to assess and enhance the company’s risk management efficacy, evaluate the different internal controls, and ensure that the company adheres to all the regulations. It helps the management and board of directors to identify and rectify the loopholes before the external audit.read more of staff and ensure that the financial statementsFinancial StatementsFinancial statements are written reports prepared by a company’s management to present the company’s financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels.read more are prepared according to the generally accepted policies and accounting standardsGenerally Accepted Policies And Accounting StandardsGAAP (Generally Accepted Accounting Principles) are standardized guidelines for accounting and financial reporting.read more.Comptrollers are experts in financial matters and control the treasury as well.They report directly to the CEO and the management of the company. These executives put forth their report every quarter to properly view the company’s financials to help assess the business-level performance.They also participate in fundraising initiatives for companies under the guidance of the CEO.

Qualifications & Skills

Besides having deep knowledge of financial techniques, accounting principlesAccounting PrinciplesAccounting principles are the set guidelines and rules issued by accounting standards like GAAP and IFRS for the companies to follow while recording and presenting the financial information in the books of accounts.read more, and commonly practiced business tactics, a comptroller also needs specific qualifications and degrees. Whether it is a comptroller in Texas or Maryland or in any other region of the United States, they either acquire a Certified Public Accountant, Chartered Financial Analyst or Certified Management Accountant degree.

In addition, they are free to opt for advanced certifications, including Certified Government Financial Manager or Certified Internal AuditorCertified Internal AuditorA certified internal auditor (CIA) is an accountant recognized as a certified internal auditor conferred by the Institute of Internal Auditors (IIA) in internal audits after passing CIA exams and upon completing the required work experience.read more.

Types

Comptrollers can be classified into different groups based on where they function. They are either found in a profit-oriented company, a non-profit organization, or the government. In a business premise, they oversee the accounting and financial processes.

In a non-profit firm, these professionals ensure that donations and expenses are recorded well. On the other hand, as government professionals, they offer their financial insight into the financial functioning of an entity. In addition, their role might vary based on the nature and function of the government firm.

Examples

Let us consider the following examples to understand how these professionals work:

Example #1 – The Comptroller of the Currency

The office frames, charters, regulates, monitors, and supervises all the national banks in the United States. In addition, it keeps a watch on the branches and agencies of the foreign banks operating in the nation.

Example #2 – The Comptroller of Public Accounts

These professionals in Texas serve the citizens virtually. Their range of services extends from collecting taxes to estimating revenue, managing treasury, etc. In addition, it has the right to write checks and keep the books for major businesses in the state. The duties and responsibilities are specified in the Texas Tax Code and Texas Government Code’s Chapter 403.

Comptroller vs Controller

According to Cornell University, the word comptroller came into existence in the 1800s as a result of misspelling the word controller. However, as both the terms are prominently in use to date, the ones using them face confusion about their proper usage.

While the term comptroller refers to someone who looks after the overall financial aspect of an organization, the controller is the one who is accountable for the costs or expenses related to the final product that a company offers. Normally, the comptroller’s position is senior to that of a controller.

Moreover, there is one more major difference between controller and comptrollerDifference Between Controller And ComptrollerA controller is responsible for managing the organization’s financial affairs like financial analysis, reporting and holds the position of the financial head in the private organization. In contrast, the comptroller performs the exact duties and simultaneously manages the financial affairs of the government organization.read more with respect to where the finance official works. The former is the term for the finance professional at a corporate firm, while the latter is how people address these high-rank executives in a government organization.