Which is more strategic, controllership role or business analyst?

Alfonso Llanes, studied at Florida International University

Answered just now

Recently there has been some discussion about the definition of two roles: Business Controller (BC) and Financial Controller (FC). The role of a controller in the US is given a different interpretation and is completely geared towards protection of assets and managing risks where in European companies there is no discernible difference. In emerging economies however, there is still a need to define these roles as It is also a very different market environment with its own set of challenges.

Tasks Definitions of a Business Controller

A Business Controller is business and commercially focused. He blends with other functions outside of finance— in a way a consultant does. He is active, aggressive, forward looking and future oriented. With his strong background in logistics, production and sales, he can develop business plans and define ways to identify gaps, and take advantage of market opportunities. He needs to understand what drives the business and has to define ways to measure and report on the key indicators. He will concentrate more on the P&L than on the Balance Sheet. Often he also needs to think of ways to identify cost saving opportunities and efficiency gains. It is a social job and he is a real part of the line management and decision making, including all risks involved for the particular business.

Tasks Definitions of a Financial Controller

A Financial Controller will have responsibilities for the accuracy of reporting historical information. His job description requires competencies that consist of understanding and assuring compliance with regulations such as GAAP, IFRS, SOX and tax norms. The Financial Controller will manage the external audit and do the statutory reporting to stockholders. A Financial Controller will run reports and controls on Accounts Payable, Accounts receivable, etc. He relies more on the Balance Sheet than the P&L analysis. He is also responsible for controlling the financial liabilities of the business such as payable accounts and outstanding loans. Finally, he is more into the financial works of the company than with business development.

From these definitions of functions one can conclude that a business controller will need participate strategically in the business using creativity and innovation in order to keep the company at par with current technologies and market needs. Whilst the Financial controller spends most resources making sure the numbers agree on both sides of a ledger and compliance with regulators is achieved on regular basis.