school stuffs

1. The Controller’s Job

2. Main Job Function
 Planning
 Determines who does the work (staffing)
 what work is to be done (job function)
 timing of work completion (deliverables)
 timely processing of transactions
 issuance of accurate financial statements
 Organizing
 Obtaining & keeping the services of experienced
and well-trained accounting personnel
 Obtaining sufficient floor space, office equipment,
computer hardware & software

3. Main Job Function
 Directing
 Ensures that all employees in the department work
together in an orderly manner to achieve the
controller’s plan.
 Measuring
 Measuring the key performance of all key aspects
of the unit to ensure performance matches or
exceeds standards
 Errors are caught and corrected

4. Main Job Function
 Financial Analysis
 Review, interpretation and generation of
recommendations related to corporate financial
performance
 Requires effective communication skill to convey
information to members of management team.
 Process analysis
 Periodic review and evaluation of performance for
each major processes that is involved in the
completion of transactions
 Maintaining tight financial control over processes
 Cost-effective and efficient manner

5. Job Description
 Auditing
 The scheduling and management of periodic
internal audits
 Preparation of resulting audit reports and
communication of findings and recommendations
to management and the board of directors
 Preparation of work papers for external auditors
and the needed assistance to complete the annual
audit
 Budgeting
 Coordination of the annual budgeting process
 Maintenance of company budget and transfer into
FS

6. Job Description
 Control Systems
 Establishment of a sufficiently broad set of controls
to give management assurance that transactions are
processed properly.
 Cost Accounting
 Coordination of periodic physical inventory counts
 Periodic analysis and allocation of cost based on
activity-based costing pools and allocation methods
 The continual cost review of products currently
under development, using the principles of target
costing
 Periodic compilation and evaluation of inventory
costs

7. Job Description
 Financial Analysis
 Periodic comparison of actual to budgeted results
and the communication of variances to
management, along with recommendations for
improvement
 Continuing review of revenue and expense trends
 Periodic calculation of a standard set of ratios for
corporate financial performance

8. Job Description
 Financial Statements
 Preparation of all periodic financial statements
including accompanying notes.
 Preparation of an interpretive analysis of the
financial statements
 Preparation and distribution of recurring (quarterly)
and one-time management reports (annual reports)

9. Job Description
 Fixed Assets
 The annual audit of fixed assets to ensure that all
recorded assets are present.
 Periodic recording in the financial records and their
proper recording under the correct asset categories
and depreciation method
 Periodic review to determine impairment, if any
 Proper analysis of all capital expenditure requests

10. Job Description
 Policies and Procedures
 Creation and maintenance of all policies and
procedures related to control of company assets and
the proper completion of financial transactions
 Training of department personnel in the use of
accounting policies and procedures
 Modification of existing policies and procedures to
match the requirements of government regulations

11. Job Description
 Process Analysis
 Periodic review of all processes involving financial
analysis to see if they can be completed with better
controls, lower costs, or greater speed.
 Record Keeping
 Proper indexing, storage and retrieval of all
accounting documents.
 Orderly planning for and scheduling of document
destruction, in accordance with the corporate
document retention policy (BIR rules = 10 years; last
5 years – printed; other 5 years – electronic files)

12. Job Description
 Tax Preparation
 Timely preparation and filing of tax returns
 Supervision of all matters relating to corporate
taxation – conducting an effective tax management
program.
 Transaction Processing
 Timely completion of all accounting transactions.
 Proper completion of all transactions authorized by
the board of directors or in accordance with all
authorized contracts
 Proper approval of those transactions in accordance
with company policy

13. Job Qualification
 Analysis of information
 The controller must be sufficiently comfortable with
financial information to readily understand the
meaning of a variety of ratios and trends (data
integrity)
 Communication ability
 Compiling information and communicating it to
management

14. Job Qualification
 Company and industry knowledge
 The controller must have a good knowledge of both
company and industry operations to know how they
impact the operations of the accounting department
 Peculiarity of accounting systems
 Management skill
 Excellent knowledge of the planning, organizational,
directing, and measurement functions needed to
manage the accounting department

15. Job Qualification
 Provision of timely and cost-effective services
 The controller must run the accounting department
as if it were a profit center
 Most efficient methods are used to complete each
task
 Attention of the department is focused on the most
urgent tasks.
 Technical knowledge
 Thoroughly versed with the latest accounting
standards especially for publicly held companies

16. Organizational Structure
 Subcategories, staffed either by clerks or
degreed accountants, who are responsible for
specific tasks
 Cost accounting
 Degreed accountant who conducts job or process
costing and verifies the inventory valuation
 Financial Analysis
 Degreed accountant who compiles both standard and
special-request analysis reports

17. Organizational Structure
 Financial Reporting
 Degreed accountant or senior-level bookkeeper who
prepares the financial statements and the
accompanying notes
 Other periodic reports for public consumption if the
company is publicly held
 General ledger accounting
 Degreed accountant or senior-level bookkeeper who
review and record journal entries and summary
entries of subsidiary journals

18. Organizational Structure
 Payroll processing
 Filled by clerks who calculate pay levels and hours
worked and generate payments to employees
 Tax form preparation and filing
 Degreed accountant with tax experience in a public
accounting background, who completes and files all
government tax forms
 Transaction processing
 Filled by clerks who process all accounts payable,
accounts receivable & cash application transactions

19. Positions
 Billing clerk
 Accountable for creating invoices and credit memos,
issuing them to customer by all necessary means and
updating customer files
 Issue invoices to customers
 Issue monthly customer statements
 Update customer files
 Process credit memos
 Update customer master file w/ contact information
 Track exceptions between shipping log and invoice
register
 Submit invoices by electronic data interchange

20. Positions
 Collections clerk
 Accountable for collecting the maximum amount of
overdue funds from customers, which may include a
variety of collection techniques, legal claims and the
selective use of collective services
 Stratify collection activities to maximize cash receipts
 Issue dunning letters to overdue accounts
 Contact customers regarding overdue accounts
 Issue payment commitment letters
 Negotiate return of unpaid merchandise
 Monitor cash on delivery or COD payments
 Issue credit hold notifications
 Recommend that accounts be shifted to a collection
agency

21. Positions
 Payables clerk
 Accountable for verifying proper payment approval,
processing payments in a timely manner, and ensuring
that discounts are taken
 Match supplier invoices to authorizing purchase orders and
proofs of receipt
 Take all economical supplier discounts
 Obtain payment approvals for non-cost of goods sold invoice
 Issue stop payments and void checks
 Issue reminders to suppliers regarding uncashed checks
 Pay supplier invoices when due
 Monitor supplier W2 form submission (withholding tax)

22. Positions
 Payroll clerk
 Accountable for collecting timekeeping information,
incorporating a variety of deductions into a periodic
payroll and issuing pay and pay-related information to
employees
 Collect and summarize timekeeping information
 Obtain supervisory approval of time card discrepancies
 Obtain overtime approvals
 Calculate commissions
 Process employee advances and paybacks
 Print and issue paychecks
 Calculate and deposit payroll taxes
 Process and issue annual W2 forms to employees

23. Positions
 In smaller company, some of the staff are
performing multi-tasking functions.
 In a larger company, merger of functions are
discouraged
 There can be several levels of controller within a
company
 Corporate controller – reports to CFO
 Plant controller – reports to plant manager
 Division controller – reports to division manager

24. Positions
 Centralization or decentralization of accounting
operation?
 Centralization. Tight management of function and have
fewer worries about accounting control issues arising at
some far-off company locations.
 Decentralization. Train promising accounting managers at
lower levels and evaluate them for promotion
 Presence of local accountant can assist in the rapid
investigation and resolution of problems that would be
impossible from a central location.

25. Ethics
 Convince management team that the company must adopt a
written ethical standard and force the rest of the organization
to adhere to it through regular audits
 Present (code of ethics) to the employees and continue to
reiterate, both by example and communication, that the
principles are a significant foundation underlying all company
operations
 Compliance with SEC and other regulations
 Employee discrimination
 Gifts and payments of money for no return considerations
 Period-end accounting adjustments
 Political contributions
 Use of the company car
 Workplace safety

26. End