So most companies have a big corporate office and a bunch of regional offices that they allocate money to, I get that. Let’s say a given office gets a $500,000/yr operating budget (just throwing out a random number). How do they spend exactly $500,000? Because they obviously don’t want to go over budget but they don’t want to have a surplus and lose $ next year. So is there wiggle room? Would they spend $499,995 or something?
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That is the role of a financial controller and their respective finance team(s).
Their job is to monitor expenditure and keep managers informed as to how much of their budget they have spent and how much they have left.
They typically do this on a monthly basis: ‘month end’ is where they sum up all expenditure and earnings for the past month so they can report on the company’s performance that month, and to check if they are on target for their budgets for the year. It gives companies an opportunity to reign in spending if needed.
The financial controllers report to the Chief Financial Officer who, in addition to reporting the company’s finances to the board &shareholders, helps set company strategy based on its financial performance and expected performance.
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