List and describe three ways in which a controller can contribute toward producing an organization s long-range financial plan? Be specific!
A company's Controller is one of the most critical employees involved in the financial reporting process. The Controller is responsible for setting accounting policies, enforcing and adjusting internal control procedures, and overseeing the reporting process.
Answer and Explanation:
Ways a Controller Can Contribute Towards Producing a Long-Term Financial Plan:
- Governance and Culture: The controller is in a position to supervise the accounting department and train employees in the department in the process. This means that he can influence the employee's behavior to ensure that the department is one with integrity, transparency, and competence.
- Budgeting Process: The controller is one of the people with the most knowledge about an organization's financial outlook. By participating in the budgeting process, the controller can help management establish a better benchmark for performance, making for more useful variance analyses at year-end.
- Capital Budgeting: Although the controller's role is not primarily one of a managerial accountant, his knowledge of how GAAP income is reported can help management make decisions that will maximize GAAP-reported income in the future.
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from Accounting 201: Intermediate Accounting IChapter 12 / Lesson 1