08/11/2023
Business controlling is a vital function that helps managers and executives make informed decisions based on data and analysis. Business controllers are responsible for tasks related to financial analysis, financial forecasting, financial planning, and financial monitoring. They also work closely with the business and operations to understand the market, the strategy, and the performance of the organization. In this article, we will explore what business controlling is, what are the main tasks and skills of a business controller, and how business controlling differs from financial controlling.
What is business controlling?
Business controlling is the process of producing, analyzing, and presenting relevant decision-making information for managers and executives within an organization. Business controlling aims to support the strategic and operational goals of the organization, as well as to ensure compliance and efficiency. Business controlling is usually led by a CFO, a head of business control, or a head of controlling, who oversee a team of business controllers (sometimes also referred to as operational controllers) 1.
Business controllers work within the finance department, but they are more involved in the business and operations than other controllers. They need to see the whole picture of the organization’s goals, purpose, and business model, and to link business-critical information to their analysis. They also need to communicate with internal and external stakeholders, such as managers, auditors, and customers, and to provide them with relevant and reliable information.
What are the main tasks and skills of a business controller?
A business controller’s tasks are varied and depend on the size, industry, and structure of the organization. However, some of the common tasks include 1:
Translating strategic goals into measurable key performance indicators (KPIs).
Understanding what is happening in the market and proactively acting by contributing to updated forecasts.
Analyzing business processes and reporting them to management.
Controlling and monitoring business processes, budget, and budgeting.
Initiating improvement processes in financial and operational management together with internal stakeholders and establishing control and measurement of the implementation.
Conducting commercial analysis and developing financial scenario analysis.
Reporting results to management to allow for timely changes to be made and goals to be achieved.
To perform these tasks effectively, a business controller needs to have a combination of technical and soft skills, such as 2:
A degree in economics, finance, accounting, or a related field.
Knowledge of accounting principles, financial statements, and financial modeling.
Proficiency in using software tools, such as Excel, PowerPoint, ERP systems, and business intelligence tools.
Analytical and problem-solving skills, as well as attention to detail and accuracy.
Communication and presentation skills, as well as the ability to explain complex financial data in a simple and clear way.
Business acumen and understanding of the organization’s strategy, operations, and market.
Teamwork and collaboration skills, as well as the ability to work independently and under pressure.
How does business controlling differ from financial controlling?
Business controlling and financial controlling are both part of the controlling function, but they have different focuses and scopes. Financial controlling is more concerned with the accuracy, completeness, and compliance of the financial data and reports, while business controlling is more concerned with the relevance, reliability, and usefulness of the decision-making information 2.
Financial controllers are mainly involved in the preparation and consolidation of the financial statements, the audit and review of the financial data, the compliance with the accounting standards and regulations, and the management of the internal control system. They also provide financial analysis and reporting, but mostly from a historical and retrospective perspective.
Business controllers, on the other hand, are more involved in the planning and forecasting of the financial and operational performance, the analysis and interpretation of the financial and non-financial data, the identification and evaluation of the risks and opportunities, and the recommendation and implementation of the improvement actions. They also provide financial analysis and reporting, but mostly from a forward-looking and prospective perspective.
In summary, business controlling is a crucial function that helps managers and executives make informed decisions based on data and analysis. Business controllers are responsible for tasks related to financial analysis, financial forecasting, financial planning, and financial monitoring. They also work closely with the business and operations to understand the market, the strategy, and the performance of the organization. Business controlling differs from financial controlling in terms of the focus and scope of the information and analysis. Business controlling is more relevant, reliable, and useful for decision-making, while financial controlling is more accurate, complete, and compliant with the accounting standards and regulations.
