The Controller's Function: The Work of the Managerial Accountant

The function of the corporate controller has come a long way from its beginning, when controllers were charged simply with the recording of business transactions. Today's controller must be equal parts accountant, manager, computer expert, and detective and must fulfill these roles with resources reduced to match the lean and mean tenor of the times. Yet few if any books on the subject go beyond the standard accounting functions to offer advice on the management of these diverse responsibilities.

The Controller's Function provides guidance and advice on every aspect of the position and pays special attention to those areas not generally addressed in the literature. A strong emphasis is placed on recent technological developments that can increase the speed, accuracy, and efficiency with which specific tasks are completed. Controllers will learn how to:

• Institute quick-closing procedures and supply last-period results more quickly
• Establish an on-line perpetual inventory system that reduces the need for a year-end physical inventory
• Select the optimal accounting software for the job at hand
• Make the most of activity-based costing, manufacturing cells, and electronic data interchange

Other topics of special importance include an overview of internal control and business planning functions; spotting and preventing fraud; designing control systems; developing business plans, long-range financial plans, and annual budgets; installing and maintaining accounting, data collection, and internal control software; disaster recovery planning; and more. Easy-to-use tables and checklists help organize tasks, streamline activities, and monitor progress.

For company controllers, assistant controllers, and financial executives, The Controller's Function is both an important source of useful, innovative ideas and a handy quick reference for day-to-day use. It is also an indispensable guide for financial analysts, internal auditors, public accountants, and anyone concerned with company financial and accounting operations.

Finally, a book that goes beyond the purely technical aspects of the job and examines the controller's duties and responsibilities in a variety of areas:

• Internal control and auditing
• Strategic planning
• Annual and long-range financial planning
• Sales and distribution expenses
• Direct labor, material, and overhead cost analysis
• Research and development
• General and administrative expenses
• Cash and investments
• Receivables and inventory
• Closing procedures
• Performance measurements and trends
• Taxes and insurance
• Computer hardware and software trends and selection
• And much more

JANICE M. ROEHL-ANDERSON is a Principal in Ernst & Young's Denver Information Technology Consulting Group, with over fourteen years of accounting and systems-related experience. She specializes in information systems security; financial and cost accounting system analysis, design, selection, and implementation; long-range information system planning; and information management reviews/audits. Ms. Roehl-Anderson has an MBA in accounting and information systems from the University of Southern California.

STEVEN M. BRAGG is Director of Finance at Isolation Technologies of Denver. Formerly controller of Carts of Colorado, Mr. Bragg was responsible for all accounting, purchasing, production control, MIS, and warehousing functions. He received his MS in finance from Bentley College in Massachusetts and is currently coediting the fifth edition of Controllership, also published by Wiley.