Does Your Controller Need a Coach? (Part 2)

Few SMEs (Small and Medium sized Enterprises) have a Controller (similar titles are Bookkeeper, Office Manager, Accounting Manager, Accountant, etc.) with a designation and strategic skills in that role. As the owner/President of your business, does the head of the accounting function have limited experience managing an accounting function?

Often a Controller with good basic accounting skills has limited experience and formal training and reports to a President who does not know what guidance or direction to give her. In Part 1 of this article, we laid out six simple steps to enhancing the contribution of your Controller. In Part 2, we will help you guide and coach your Controller to find the time to implement these improvements.

Where to find the time

In Part 1, we suggested six steps which seem like a lot of extra work and therefore could make the Controller’s work-load issues even worse. Here are some solutions.

Publication of monthly financial statements

Publication of monthly financial statements on a timely basis will free up time to focus on other things, after that has been completed. Completing the financial statements earlier in the month does not usually require forsaking accuracy but where it does, it is a worthwhile trade-off for increased time to set up each of the improvements.

If your Controller is focused primarily on the steps required to produce the financial statements, encourage them to focus on the ways to improve what they do for the business, so that they can start feeling like they are a contributor to the success of the business. They should not only be a “bean counter.” Value is provided if they make time to implement the ideas in these two articles and other areas, and use their financial knowledge to contribute real value, as a key executive in your business. This often requires them to analyse base accounting and operational data to provide management with insights that facilitate decisions regarding profitability e.g. an analysis of the profits provided by each product, or product line, to the business bottom line.

Providing late information

If your Controller continues to do tasks and provide information long after it is no longer of value to you, you should consider its value. Critically assess the reports and information provided by the accounting department and whether it is valuable, and whether it is valuable on, say for example, a monthly basis, or is it something you may only need quarterly.

The art of delegation

Ask the Controller what aspects of her workload can be delegated. Many tasks or parts of tasks can be done by someone else. The Controller should review the product or outcome to have control over the information’s quality. Expect the answer “it is quicker to do it myself.” While it may be true the first time, there usually is a significant saving in the long run, by having someone else do it. Often some data gathering and input can be more effectively input at the operations level, or by anyone who may have time e.g. a receptionist.

The need for financial tools

The Controller needs computer tools and skills to effectively do their job. This requires the appropriate software, hardware and training, e.g. courses on using their software. This should be supplemented by processes that are designed for maximum efficiency e.g. avoid re-keying data from one system into another. Relatively small investments in this area can free up time to spend contributing to the profitability of the business.

Measurement is key

Measure the cost of improvements against, say 1% of the Controller’s salary. Examples that have great paybacks in efficiency are: having two (or three) monitors, so that she can work on two or more applications (e.g. the ERP/accounting system and Excel and/or Outlook), having a printer in their office, courses on Excel or other software, etc.

Ensure that the Controller’s staff are competent and able to do their assigned tasks effectively. Coach the Controller on how to manage their staff to ensure that they upgrade their staff’s productivity and skills. Many of the ideas in this article apply to their staff.

About the Author: James Phillipson, Principal, Mastermind Solutions Inc.

James Phillipson is a Chartered Accountant and a Principal of Mastermind Solutions Inc. with extensive experience in large and small businesses. He has provided financial counseling to his clients since 1996, often in the role of or as a coach to a Controller or Chief Financial Officer. James has experience in financial roles in a wide variety of businesses and industries.

To reach James, complete the form on this page and he will contact you directly.