Comptroller

A comptroller is a top management official who looks after the financial aspects of government, profit-making, and non-profit organizations. The person in charge is responsible for various financial affairs, starting from keeping a watch on accounting professionals to monitoring the financial reporting procedures of an entity.

A comptroller is different from a controller, who is only responsible for the costs of the final products of a business. Usually, the Chief Financial Officer (CFO) acts as the comptroller of a corporate firm besides planning and managing the organization's finances, including the related risks. In some corporate frameworks, they are separate professionals considered equivalent to the CFO.

• Comptroller is a top management official found in a profit-oriented, non-profit, or government organization to look after the accounting and financial reporting of the concerned entity.
• It is different from a controller, who is only accountable for the finances related to the final costing or pricing of the company's final product.
• Their types depend on where the individuals work – in a business, non-profit firm, or government.
• These professionals should acquire either a Certified Public Accountant, Chartered Financial Analyst, or Certified Management Accountant degree.

A comptroller plays a vital role in taking care of the financial reporting of any profit-making or non-profit-making entity. As a result, the concerned person checks all important financial documents before the final publication or presentation. Such important financial publications of a government or corporate organization include the balance sheet, income statements, cash flow statements, etc.

These professionals report to the CFO or the President or Chief Executive Officer (CEO). They become a single point of contact for the business owner or the government for all the financial matters, making the decision-making process easier. They conduct variance analysis to figure out ways to improve the entity's financial performance.

These top financial executives are the final decision-makers in matters involving a huge outflow of money to ensure companies or the government remain prevented from heavy losses.

As a link to financial matters, the need to keep note of every accounting function and economic activity for correctness and accuracy. Here is a list of roles and responsibilities they shoulder:

• They take care of the company's funding plans, manage budgets, secure loans, etc.
• As stated above, they conduct variance analysis to figure out ways to improve financial performance.
• These top management professionals ensure the financial reports meant for the publicly traded companies are accurate.
• The executives deal with processing all accounting transactions, including payroll, expenditures, billings, accounts payable, accounts receivable, receipts, etc.
• They also conduct an internal audit of staff and ensure that the financial statements are prepared according to the generally accepted policies and accounting standards.
• Comptrollers are experts in financial matters and control the treasury as well.
• They report directly to the CEO and the management of the company. 
• These executives put forth their report every quarter to properly view the company's financials to help assess the business-level performance.
• They also participate in fundraising initiatives for companies under the guidance of the CEO.

Besides having deep knowledge of financial techniques, accounting principles, and commonly practiced business tactics, a comptroller also needs specific qualifications and degrees. Whether it is a comptroller in Texas or Maryland or in any other region of the United States, they either acquire a Certified Public Accountant, Chartered Financial Analyst or Certified Management Accountant degree.

In addition, they are free to opt for advanced certifications, including Certified Government Financial Manager or Certified Internal Auditor.

Comptrollers can be classified into different groups based on where they function. They are either found in a profit-oriented company, a non-profit organization, or the government. In a business premise, they oversee the accounting and financial processes.

In a non-profit firm, these professionals ensure that donations and expenses are recorded well. On the other hand, as government professionals, they offer their financial insight into the financial functioning of an entity. In addition, their role might vary based on the nature and function of the government firm.

Let us consider the following examples to understand how these professionals work:

Example #1 - The Comptroller of the Currency

The office frames, charters, regulates, monitors, and supervises all the national banks in the United States. In addition, it keeps a watch on the branches and agencies of the foreign banks operating in the nation.

Example #2 - The Comptroller of Public Accounts

These professionals in Texas serve the citizens virtually. Their range of services extends from collecting taxes to estimating revenue, managing treasury, etc. In addition, it has the right to write checks and keep the books for major businesses in the state. The duties and responsibilities are specified in the Texas Tax Code and Texas Government Code's Chapter 403.

According to Cornell University, the word comptroller came into existence in the 1800s as a result of misspelling the word controller. However, as both the terms are prominently in use to date, the ones using them face confusion about their proper usage.

While the term comptroller refers to someone who looks after the overall financial aspect of an organization, the controller is the one who is accountable for the costs or expenses related to the final product that a company offers. Normally, the comptroller's position is senior to that of a controller.

Moreover, there is one more major difference between controller and comptroller with respect to where the finance official works. The former is the term for the finance professional at a corporate firm, while the latter is how people address these high-rank executives in a government organization.

This is a guide to the what is Comptroller & its meaning. Here we explain its types, and functions using currency & public accounts as examples. You can learn more from the following articles –

• Financial Controller
• Junior Company
• Capital Market Careers
• CFO vs Controller