Financial controllers · the role
What does a financial controller do?
The short answer · updated
A financial controller (FC) runs the accounting side of a business. They own the month-end close, the ledgers, management accounts, financial controls, VAT and payroll reporting, cash and the audit. They make sure the numbers are complete and correct, so the finance director, CFO and board can rely on them.
What a financial controller is responsible for
The financial controller is the person who makes the books right. In most companies that covers the list below. In a small company the FC may do much of it personally; in a larger one they lead a team of accountants and ledger staff and review their work.
Underneath all of it is a legal duty. Under section 386 of the Companies Act 2006, every company must keep adequate accounting records: records that show and explain its transactions and disclose its financial position with reasonable accuracy at any time. The FC is usually the person who makes that happen day to day.
- Month-end and year-end close: reconciliations, accruals and journals, closed on a timetable the business can rely on.
- Management accounts: the monthly profit and loss, balance sheet and cash flow, with commentary on what moved and why.
- Financial controls: who can approve spend, raise a supplier or make a payment, and how the ledgers are checked.
- Tax compliance: VAT Returns to HMRC, and PAYE reporting of pay and deductions, whether payroll runs in-house or through a bureau.
- Cash: the bank position, supplier payment runs, credit control and the short-term cash forecast.
- Statutory accounts and audit: preparing the annual accounts and working with the external auditors, where the company needs an audit.
Who a financial controller reports to
In a company with a finance director or CFO, the financial controller reports to them. The FC runs the accounting; the FD or CFO uses the numbers to advise the board and plan the business.
In a smaller company there may be no FD, and the FC reports straight to the managing director, the founder or the chief executive. That makes the FC the senior finance person in the building, often with an external accountant or a part-time FD alongside.
In a group, a group financial controller usually sits over the controllers of each subsidiary and owns consolidation and group reporting.
Financial controller vs finance director vs CFO
The three titles describe three levels of the same function, and many businesses only have one or two of them.
A financial controller owns the accounting: accurate records, a clean close, sound controls and compliant filings. The focus is on what has happened and whether it has been recorded properly.
A finance director runs the whole finance function and uses the numbers to steer the business: budgets, forecasts, funding and the finance view in the leadership team. Our page on what a finance director does sets that role out in full.
A CFO leads financial strategy at executive-committee or board level: capital, investors, acquisitions and the long-range plan. In a smaller business the finance director often covers the CFO work too.
Skills and qualifications
Most financial controllers are qualified accountants. The three common routes are the ICAEW’s ACA, the ACCA Qualification and CIMA’s CGMA Professional Qualification. ACA and ACCA lean towards financial reporting and audit; CIMA leans towards management accounting and business partnering. Each combines exams with practical experience.
An FC needs working knowledge of the accounting standard the company reports under. For most UK private companies that is FRS 102, the FRC’s standard for entities not applying IFRS; larger or listed groups may report under IFRS.
Beyond the technical side, the job rewards method and persistence: building a close timetable and keeping to it, writing controls people follow, and explaining a variance to someone who is not an accountant.
Fractional, interim and part-time financial controllers vs permanent
A permanent financial controller suits a business whose transaction volume, team or reporting needs a controller every day.
A fractional financial controller works a set number of days a week or month, often for more than one company. It suits a growing business that needs a clean close, sound controls and reliable management accounts, but not five days of it. See our fractional financial controller page.
An interim financial controller is full-time for a fixed period: covering a vacancy or leave, fixing a close that has fallen behind, or seeing a system migration, audit or acquisition through. See interim financial controller roles. A part-time financial controller is usually an employee on reduced hours; see part-time financial controller jobs.
Where a fractional or interim FC works through their own limited company, the off-payroll working rules (IR35) may apply. Status turns on how the engagement runs in practice, and a medium or large client makes the determination. Our IR35 guide sets out the tests.
What a financial controller earns
Pay depends on the size and complexity of the business, whether the role covers a group, the sector, location and whether the controller is qualified. A group financial controller or an FC in a regulated or listed business usually earns more than the controller of a single private company.
Our financial controller salary page sets out pay by level and region, each figure with its source. Fractional and interim controllers are paid a day rate rather than a salary.
How to hire a financial controller
Start with the gap. If the problem is a slow or unreliable close, weak controls or management accounts nobody trusts, you need a financial controller. If the problem is planning, funding or a finance voice at the leadership table, you may need a finance director instead; see finance director recruitment.
Then choose the route: permanent, fractional, interim or part-time. Test candidates on your own numbers, such as a sample reconciliation or last month’s management accounts, and confirm any qualification with the awarding body.
We recruit permanent, interim, fractional, part-time and temporary finance leaders. To hire a financial controller through us, start on our fractional financial controller page; every brief gets a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out.
Questions people ask
Is a financial controller the same as a finance director?
No. A financial controller owns the accounting: records, close, controls and filings. A finance director runs the whole finance function and uses the numbers to steer the business. In a smaller company one person may cover both. See what a finance director does.
Is a financial controller a senior role?
Yes. It is usually the most senior accounting role below the finance director or CFO, and in a smaller company it may be the most senior finance role of all. A group financial controller sits above the controllers of individual subsidiaries.
Does a financial controller need to be qualified?
Not by law, but most employers ask for a professional qualification: the ACA, the ACCA or CIMA. Many controllers qualified in audit practice before moving into industry.
Does a financial controller sign the annual accounts?
Not usually. The balance sheet must be signed by a director (GOV.UK). The financial controller normally prepares the accounts and the audit file; a director, often the finance director, signs them.
What is a fractional financial controller?
A financial controller who works for part of the week or month, often for several companies. They run the close, controls and management accounts for businesses that need a controller, but not full-time. See fractional financial controller roles.
How much does it cost to hire a financial controller?
A permanent controller is paid a salary; a fractional or interim one a day rate. Our financial controller salary page sets out pay with sources. On every shortlist we set out each candidate’s pay or day rate.
How do I hire a financial controller?
Define the gap (close, controls, reporting), choose permanent, fractional, interim or part-time, and test candidates on your own numbers. Our fractional financial controller page sets out the process; we send a shortlist of 3–5, each with pay or day rate, availability and IR35 position set out.
