Careers in financial control
Financial controls are the policies and procedures that govern how a business overseas the direction, allocation and utilization of their financial resources. Those employed in this area are at the heart of how an organization manages its resources—past and present— to operate efficiently.
A key responsibility of this sector is to ensure the financial resources strategy is properly executed. It also prepares information for outside entities, such as regulators, tax agencies and external auditors – that enable them to evaluate the business.
In many ways, financial control acts as an internal operating unit, determining whether statements need to be adjusted to reflect irregularities, unanticipated changes, or anomalies.
Financial control staff conduct internal analysis of a company’s results. They approach this from different perspectives at different times, measuring the outcomes against business plans, as well as short-, medium-, and long-term objectives.
In many ways, financial control acts as an internal operating unit, determining whether statements need to be adjusted to reflect irregularities, unanticipated changes, or anomalies. For these reasons, work in this field requires precision and great attention to detail.
The importance of financial control
Below are some of the many reasons why financial control is important.
Effective financial control can help to improve a company’s overall efficiency by identifying processes that can be enhanced. It can also assist in monitoring whether operations are running smoothly, and whether sales, earnings, inventory, surpluses, and other key financial indicators are on track.
Internal controls help finance teams to optimize the allocation of resources, leading to increased production, the reduction of waste, and elimination of inefficiencies. These measures help companies to be more confident with the future direction of financial matters and bring about better decision-making.
Although not all irregularities identified by financial controls are nefarious, fixing them can lead to better management practices. The early identification of such issues can improve operations, and help to avoid problems with regulators. Fundamentally, it allows the company to use preventive measures to ensure problems are corrected and not repeated.
Financial controls can also identify ways to improve the maintenance of cash flow. With the right control mechanisms in place, the cash coming in and out can be better monitored and scheduled, helping with the efficiency improvements noted above.
The management of resources, such as cash flow, capital, real estate, durable equipment and other assets, is at the core of business operations. Sound financial management impacts on the other resources that need to be optimized. A clear understanding of resources helps C-suite executives, small-business owners, and executives at companies of all sizes, to allocate and reallocate resources to where they are needed most. Because so many critical business decisions need to be made quickly, leaders require immediate access to information to make the best decisions.
Financial controls can detect fraudulent activity in an organization. They can also prevent this activity from having a harmful impact, or isolate anomalies that need to be investigated. This activity can take many forms, from employee fraud to online theft.
Successful companies have sound financial controls in place. This includes procedures and financial roles defined for every level, from senior leadership down. With each person knowing their obligations, everyone can understand the importance of financial processes and their role within them.
By communicating the results of financial control staff, companies show that improvements are being made and that the company is committed to sound, ethical, business practices. This financial transparency can help to motivate employees.
An in-depth look at financial controls
There are many important roles within financial controls. Here we take a closer look at some of the key functions.
Cash flow management
Poor cash flow management is one of the leading causes of business failures. Managing the in- and outflow of cash affects what can be done strategically and opportunistically, how and when bills can be paid, and how much cash a company has at its disposal at any one time. Cash flow management staff monitor, analyze, and optimize the net cash receipts after subtracting cash expenses.
Cash flow management staff look at credit policies, invoicing procedures, payment schedules, and negotiations with vendors and suppliers, to ensure that predictive modeling can drive long-term planning.
Cash flow forecasting is critically important in the short term, and also gives decision-makers the information they need to plan and strategize. Cash flow management staff look at credit policies, invoicing procedures, payment schedules, and negotiations with vendors and suppliers, to ensure that predictive modeling can drive long-term planning.
Cost management
Cost management is the process of planning and controlling a business budget. It includes planning, financing, funding, scheduling, and controlling costs, so the business can remain on track.
Cost management includes 4 key functions. The first 3 are: resource planning, cost estimating, and cost budgeting. The final one, cost control, measures variances from the plans, and the corrective actions taken to mitigate this.
Company tax strategy and preparation
Internal tax departments work to develop strategies that minimize a company’s tax liability—at the state, local, or federal level— in each country where taxes are collected. Devising these strategies and executing them ensures that companies pay as little tax as legally required in each jurisdiction. In addition, these strategies help free up resources for other business needs.
The internal tax department is also responsible for preparing and filing tax returns in each jurisdiction, or for collaborating with outsourced tax experts to complete those tasks.
Corporate tax professionals need to pay attention to the changes to tax codes. Further, they need to analyze what the ripple effects of these changes mean for a company’s financial standing. Often these changes are interwoven with regulatory mandates and other considerations.
The internal tax department is also responsible for preparing and filing tax returns in each jurisdiction, or for collaborating with outsourced tax experts to complete those tasks.
Internal audit
Internal audit professionals assess a company’s internal financial controls, including accounting procedures and corporate governance. They make sure that a company is complying with applicable laws and regulations, maintaining accurate financial records, collecting and reporting data correctly.
Internal auditors use various well-established assessment techniques to gain a clear understanding of whether employees are following documented internal controls.
Internal audit departments are often responsible for identifying opportunities to improve operational efficiency. They may identify flaws, errors or necessary corrections, allowing leadership to take corrective action and reporting it prior to external audit processes taking place.
Internal auditors use various well-established assessment techniques to gain a clear understanding of whether employees are following documented internal controls. They also use analysis tools, such as comparing inventory, matching transactions, and reconciling accounts.
Statutory accounts
Statutory financial statements are annual reports that break down the financial actions a company took the previous year. This does not include every transaction, instead being a high-level statement of a company’s spending.
Statutory reports frequently include balance sheets and profit-and-loss statements. They are usually formatted in a simple, standard way, that allows for shareholders, employees, and other stakeholders to understand the financial health of a company and the actions that are being taken.
External audit
Financial control staff work with external auditors to prepare statements and reports. Together they collect the required paperwork, data, information, and manage end of year audit processes.
Audit preparation staff may be asked to:
- communicate the process, timeline, and responsibilities to key members of staff
- schedule and conduct training sessions for those asked to participate
- produce documents
- review and distribute findings
- draft and circulate for approval any management responses
- respond to questions from auditors and staff
- collect, review and deliver requested records
- meet regularly with the external audit team to address status, questions, and potential issues
- recalculate information as required, and verify information related to issues raised by auditors
Closing the ledger
Closing processes take place at the end of a month, quarter, or fiscal year. They ensure that systems are ready for the next period and that financial transactions from the previous period are accounted for.
Financial staff often close the ledger by completing the following:
- recording all transactions
- posting journal entries to the appropriate ledger accounts
- building a trial balance
- preparing and posting adjusted entries
- producing formal financial statements
Due diligence management
Companies that want to acquire another business should apply due diligence procedures that evaluate, verify, and report on assets and liabilities of the target acquisition.
It often includes analyzing accounting procedures, examining supporting documents, interviewing management, and preparing forecasts of future earnings.
Due diligence often goes beyond what is on the balance sheet. It is about assessing and mitigating risk before a major investment is made. It often includes analyzing accounting procedures, examining supporting documents, interviewing management, and preparing forecasts of future earnings.
Who should work in financial control?
Financial control can be perfect for pragmatic thinkers. Those working in this area often need to ground CEOs and other senior leaders in the true financial state of a business, whether good or bad.
Jobs in this field are sometimes stressful because they can, for example, involve ensuring that companies and employees remain in compliance, and act in a legal and ethical manner.
Although not all positions in financial control require CPA certification, the majority of them do.
Where do financial control professionals work?
Many financial control jobs are in companies or accounting firms. There are also government positions, for example at the Internal Revenue Service (IRS). Generally speaking, companies tend to pay better, the government is the most flexible, and accounting firms fall somewhere between the 2.
With the aid of more sophisticated accounting software and the use of standardized practices, many financial control tasks can now be outsourced to more affordable locations.
With the aid of more sophisticated accounting software and the use of standardized practices, many financial control tasks can now be outsourced to more affordable locations. For example, a company in New York might use an accounting firm located in a lower cost U.S. location, or even abroad.
Another reason for the popularity of outsourcing is the cadence of the work. In many financial control jobs, a few days a month are very demanding, and the rest of the time is less busy. The 2 months of work around auditing season and during interim audits also tend to be intense. Together, these factors make outsourcing a sensible choice, with companies saving money by billing by the hour, rather than hiring full-time staff.
General education requirements
Although not a regulatory requirement, many financial control staff are CPA qualified. This is one of the best ways to gain the education, skills, and experience, to work in this field.
Requirements to become a CPA differ from state to state, but in general, the first step to certification is a bachelor’s in accounting or related field, such as economics or business administration. These programs vary in content, and most high-school graduates make the choice based on the college they want to attend and where their focal interest lies. Unlike accounting, economics is not only about income and expenses. It deals with the production and consumption of money, as well as how it can be transferred between areas. Meanwhile, a business administration degree covers strategic financial planning, rather than specific tasks related to accounting such as tax work.
In most states, 150 college credits are required for CPA certification: 30 of these need to be in accounting and 24 in business administration. Most undergraduate degrees only contain 120 credits. Therefore, candidates tend to make up the 30 remaining credits by either completing a master’s degree in accountancy or a post graduate certificate.
Upon completion of their education, would-be CPAs need to accumulate work experience in the field. The required duration is dictated by the state, but typically is at least 12 months or 2,000 hours. The work can be paid or unpaid. During this period, the candidate works alongside a qualified CPA. Financial operations is a popular sector for those who need to complete this period of work experience.
The final step is to take the CPA exam. There are 4 parts to this test: auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation. Upon passing this exam, some states require candidates to pass an additional ethics exam, but in most jurisdictions you can apply for your license directly after completing the CPA exam.
Careers in financial control
There are many different roles in financial control. Below we look at some of the most common positions.
Tax Preparers
A tax preparer creates tax returns for businesses. This involves calculating taxes owed or refunds due, obtaining information necessary for those returns, and reviewing financial records. The position is different from an accountant, who analyzes and interprets financial records and advises on financial issues.
Total employment
62,600
Projected growth (2018-2028)
5.5%
Degree required
High school diploma
Tasks and duties
Typical tasks of a tax preparer include:
- explaining the tax preparation system to clients or employers
- collecting the necessary financial records, such as pay slips and income statements
- inputting financial data to accounting software
- filing tax documents with the relevant government authorities, such as the IRS, and representing clients at these agencies
- maintaining good relationships with clients to keep existing customers and attract new ones

Educational requirements
The required education varies, depending on position level. You do not necessarily need a bachelor’s to become a tax preparer—a high school diploma and tax preparation certificate from a vocational school may suffice. Note, those with a bachelor’s degree in accounting frequently receive a higher salary.
Accountants
If you have passed your CPA exam, becoming an accountant is the logical next career step. Accountants examine, analyze and interpret the financial conditions of a business for C-suite leaders. They may manage departments within a financial organization, such as tax, audit, or finance operations.
Total employment
1,274,620
Projected growth (2018-2028)
6.4%
Degree required
Bachelor’s
Tasks and duties
Typical responsibilities of an accountant may include:
- working on various accounts and preparing tax returns
- analyzing the financial performance of companies or organizations
- conducting risk analysis and making predictions
- presenting financial reports to clients or management
- advising on an organization’s finances and making recommendations

Education requirements
This role requires a minimum of a bachelor’s degree in accounting or a related field. Some positions may necessitate a CPA, or certification in audit management, both of which can lead to upper-level positions and higher salaries.
Treasurers and controllers
Treasurers and controllers manage the financial operations for a business. This includes delegating and monitoring financial activity. They also maintain relationships with external finance professionals, assess and make recommendations about funds and surpluses.
Total employment
653,080
Projected growth (2018-2028)
16%
Degree required
Bachelor’s
The role
The majority of treasurer and controller roles are in the private sector. Responsibilities in this position often include:
- supervising employees working in the financial reporting space
- directing financial planning
- creating and developing organizational policies and programs
- preparing financial statements
- analyzing financial records to improve budgeting

Educational requirements
Typically, the required education is a bachelor’s degree, but many professionals in this role have a master’s in accounting or a related field such as finance.
Internal auditor
Internal auditors review and assess financial statements, processes, and other internal controls, to ensure compliance with regulatory, legal and ethical practices. They may investigate discrepancies and recommend responses and procedural changes.
Typical tasks of an internal auditor include:
- assessing an organization’s financial risk and making suggestions to mitigat
- improving accounting processes
- monitoring internal staff and making suggestions to improve efficiency
- presenting financial information to management
- evaluating the accuracy of financial documents and ensuring they comply with federal requirements
The role requires a minimum of a bachelor’s degree, although many companies prefer candidates with a master’s in accounting. Some positions may necessitate a CPA, or certification in audit management. Other candidates move into this role via a related position, such as bookkeeping or business administration.
The average salary for an internal auditor is $60,002.
Next steps for financial control
The best financial control professionals will have unparalleled understanding of how a business has functioned historically. Those interesting in using this knowledge to formulate strategies for business or economic growth in the future should look to move into financial planning and analysis. Experienced accountants who want to stay on the pure accounting side of things can move into accounting management roles, overseeing more junior accountants or directing a company’s financial operations department or function.
Additional resources
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Institute of Internal Auditors
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