If we were to ask you right now: what is your budget for this year? Your market share? What is your debt level? What are your main recipes? And the costs? Could you answer all of these questions in a few minutes? If the answer is “yes”, you probably have a control sector in your company. Otherwise, it’s time to find out about controllership in companies and, who knows, implement it in yours.
According to a survey carried out by IBPT (Brazilian Institute of Tax Planning), the main cause of the bankruptcy of 42% of small and micro companies is due to the lack of planning and little market view. Among other problems presented in the survey, 14.43% said that the business failure was due to the complexity of management technologies available on the market. And this is where controllership in companies comes in, as its purpose is to assist in these points.
What is Controllership?
To explain briefly, Controllership is part of the Accounting Sciences area and is responsible for the budgetary and administrative control of a company. Speaking in a simpler way, we can consider it the “evolution” of Accounting, because in addition to accounting and economic issues, the management of the company as a whole is continuously working.
Controllership functions
The first step in Controllership is to structure financial and accounting operations, covering the following contexts:
- Accounting costs;
- Cost and expense management;
- Sales price formation;
- Fundraising strategies;
- Employee productivity and performance assessment;
- Cash flow.
Thus, the functions performed by this area are:
- Planning: is the delimitation of a project in order to achieve an objective;
- Organization: consists of the organized structuring of activities and processes to achieve the objective;
- Management: aims to define an efficient separation of tasks, always within the limits of management;
- Control: it is the measurement of the quality and efficiency of the projects if compared to the expected objective.
Importance of controllership in companies
If you are looking for success for your company, you need to keep something in mind: continuous monitoring is essential. After all, the market is constantly developing, and you need to be attentive and up-to-date to ensure the competitiveness and enlightenment of the consuming public.
Based on this scenario, it is more than necessary that your company has a strategic plan, which foresees the demands of customers, suppliers and other stakeholders (interest group). It is exactly at this point that the controller function is needed. This professional does the monitoring required to achieve the desired objectives.
When carrying out this strategic planning, your company will have greater precision in management, resulting in a better choice of path and finding more appropriate solutions.
Among the benefits obtained are:
- Reduction of strategic risks in the short, medium and long terms;
- Visualization of the organization’s general scenario, which makes it possible to make predictions for the future, reduce the chance of errors and facilitate decision-making processes;
- Increased productivity, since rework is avoided;
- Decrease unnecessary costs.
In short, controllership in companies is crucial to ensure compliance.
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