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Controllers in mid-sized businesses often face challenges in financial oversight, compliance, and strategic planning. Below are common questions controllers ask, with general, practical answers to help enhance their skills and navigate their roles effectively.
To streamline the month-end close, create a standardized checklist for reconciliations, accruals, and adjustments. Use accounting software like QuickBooks to automate repetitive tasks and ensure accounts (e.g., bank, credit card) are reconciled promptly. Schedule key tasks early in the month and review financial statements for discrepancies before finalizing. Regular team check-ins can help catch errors early and improve efficiency.
Effective internal controls include segregation of duties (e.g., separating invoice approval from payment processing) and requiring dual approvals for large transactions. Document workflows clearly and use software to track changes. Regularly audit controls to identify weaknesses, and streamline repetitive tasks to reduce administrative time, allowing staff to focus on high-value work.
Break down revenue by product, service, or client using cost allocation methods. Calculate gross margins for each stream by subtracting direct costs. Use tools like Excel or cash flow forecasting software to track profitability trends. Focus on high-margin streams and consider phasing out low-performing ones, ensuring data informs strategic decisions.
Maintain organized records with clear documentation for all transactions. Reconcile accounts monthly, correct misallocations (e.g., revenue posted to incorrect accounts), and keep supporting documents like invoices and receipts. Use a pre-audit checklist to verify compliance with GAAP and ensure all adjustments are documented for transparency.
