Which Are the Main Challenges for Financial Controllers?

March 24, 2023

In times of constant change and pressure on finance leaders, CFOs are redefining priorities. As shown by a recent survey, the main concern of 90% of them is evaluating the finance strategy’s scope and design. Consequently, companies are becoming increasingly aware that the financial controller’s duties need to be reassessed. This involves a journey of transformation towards the controlling setup of the future. Hence, which are the main challenges for financial controllers in the digital age?

1. Global expansion and evolving technology

Going global means that financial controllers now need to manage the tax and regulatory compliance requirements of the company’s different target countries. Moreover, since new technologies make it far easier for organizations to expand their services worldwide, they will be expected to master financial control solutions that include multiple currencies and provide real-time financial consolidation. Besides this, financial controllers’ responsibilities currently include ensuring that their teams are also equipped with the right skills and knowledge to keep up with the necessary technological updates.

2. Data analysis for strategic planning

Financial controllers are no longer just the data historians of a company, but should have a thorough understanding of its financial data and processes, as well as the skills to analyze them effectively. Hence, financial controllers’ responsibilities go beyond number crunching: now CFOs and CEOs rely on them to translate raw financial data into strategic information to guide their decision-making process.

3. Supply chain risk

Supply chain volatility means that financial controllers must face the task of levering data and making risk-informed adjustments. Cost reduction and building up cash reserves should be one of the top priorities and therefore, close attention must be paid to cash flow. However, keeping prices lower than the competition will no longer be easy.  

4. Interpersonal skills

Strong interpersonal skills are now one of the musts on the financial controller checklist. No longer only the representatives of accounting, they are now expected to communicate financial reports and effectively use accessible language for clients, investors, management and their own teams. Thus, knowing how to clearly explain the ‘why’ behind the figures to stakeholders fosters stronger business relationships.

5. How can automation help financial controllers?

The digitalization and automation of processes and procedures are aimed at reducing manual tasks to the minimum, thus saving costs and time, as well as avoiding manual errors. What can a suitable financial control solution do for you?

  • Streamlining of accounts receivable process with instant access to real-time data.
  • Processing and management of invoices, with accurate invoice and payment data to optimize cash reconciliation.
  • Real-time error identification.
  • Credit scoring model and periodic credit reviews.
  • Internal and external reporting framework, planning to forecast and budget while ensuring operations’ compliance with local and international financial consolidation standards.

If you need a financial control solution able to meet the challenges of today’s fast-changing world Talentia has the CPM solution for you.