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Are you looking for a financial controller to help manage your business’s finances? Hiring a financial controller can be a critical step in ensuring your company’s financial stability and growth. But how do you go about finding the right person for the job? We’re glad you asked. Here are some simple steps you can follow that will show you how to hire a financial controller, including tips on what to look for in a candidate.
Assess Your Business’s Needs
Before you start your search for a financial controller, it’s essential to understand your business’s financial needs. What are your financial goals? What kind of financial management do you require? This will help you identify the type of financial controller you need.
Understand The Different Types of Financial Controllers
As you endeavor to hire a financial controller, you’ll quickly discover that they’re not all the same. Depending on your business’s size, complexity, and specific needs, you may require different types of financial controllers. Here’s a breakdown of the most common types:
- Operational Financial Controller
An operational controller focuses on managing the company’s day-to-day financial operations. They ensure the accuracy of financial statements, manage cash flow, and oversee budgeting and financial reporting. This type of controller is ideal for small- to mid-sized businesses that require day-to-day financial oversight but do not need a strategic partner for long-term financial planning. - Strategic Financial Controller
A strategic controller goes beyond managing routine financial tasks and plays a significant role in shaping the business’s long-term financial strategy. They analyze financial data to help guide business decisions, set financial goals, and work with senior leadership to drive growth and profitability. If your business is growing rapidly or planning for expansion, a strategic controller is an invaluable asset. - Divisional Financial Controller
A divisional controller is focused on a specific division or branch of the business. They handle the financials for that unit, ensuring that it operates within its budget and aligns with the overall financial goals of the organization. This role is common in larger organizations with multiple departments or divisions. - Chief Financial Officer (CFO)
In some cases, a CFO may serve a similar role to a financial controller but with a broader scope of responsibilities. A CFO typically handles both high-level strategic financial planning and the operational aspects of financial management. This is more common in large organizations where the complexity of financial management requires a dedicated executive role.
Understanding the different types of financial controllers can help you choose the right fit based on your business’s specific needs.
Create a Job Description
Once you’ve identified your business’s financial needs, it’s time to create a job description that really defines the question, “What is a controller?” and what you should expect from this individual. The job description should also include a clear description of the financial controller’s responsibilities, qualifications required, and experience needed. Be sure to include any essential skills, such as experience with financial reporting, budgeting, and forecasting.
Advertise the Position
When you’re contemplating how to hire a financial controller, posting for the job vacancy probably is the first thing to come to mind. To attract qualified candidates, you need to advertise the position in the right places. Consider posting your controller for hire job description on professional social sites such as LinkedIn. You can also post your advert on job boards, social media, and professional networks. You can also reach out to recruiting agencies specializing in financial roles.
Screen Resumes
Once you start receiving resumes, it’s time to start screening candidates. Look for candidates who meet the qualifications and experience outlined in the job description. Ensure that candidates have the required education, certification, and experience.
Conduct Interviews
After screening resumes, it’s time to start conducting interviews. Prepare a list of questions that will help you understand the candidate’s experience, skills, and financial knowledge. Ask about their experience with financial software and their ability to analyze financial data.
Financial Controller Interview Questions to Ask:
When interviewing prospects for this important position, it’s essential to ask questions that assess both technical expertise and cultural fit. Here are a few financial controller interview questions that can help you evaluate candidates:
- Can you describe your experience with financial reporting and forecasting?
This will help you understand their ability to prepare and interpret financial statements, as well as their experience with future financial projections. - How do you ensure accuracy and attention to detail in your financial work?
Accuracy is crucial in this role, so it’s important to understand their methods for checking and double-checking their work. - Can you give an example of how you’ve improved financial processes in a previous role?
This question evaluates their problem-solving skills and ability to streamline or enhance financial systems. - How do you stay updated with changes in financial regulations and accounting standards?
A strong controller stays informed about relevant financial laws and best practices, which will ensure your company remains compliant. - Tell me about a time when you had to explain complex financial data to non-financial colleagues. How did you handle it?
Communication is key in this role, so you’ll want to assess how well they can simplify complex information for other team members.
These questions for a financial controller interview will give you insights into the candidate’s experience, problem-solving abilities, and communication skills, which are all essential for the financial controller role.
Red Flags During the Interview Process
While interviewing candidates, be aware of red flags that may indicate potential problems with their qualifications or fit for the role. Here are some warning signs to look out for as you’re receiving answers to interview questions for a financial controller:
- Inconsistent Job History: Frequent job changes without a clear reason can be a red flag. While career shifts are normal, a pattern of short stints in previous roles may indicate a lack of commitment or difficulty in adapting to organizational cultures.
- Lack of Industry-Specific Experience: If the candidate lacks relevant experience in your industry, they may struggle to understand the unique financial challenges your business faces. It’s essential that they have a strong grasp of your specific financial needs, especially in regulated industries.
- Vague Answers to Behavioral Questions: When you ask about past experiences, the candidate should provide concrete examples that demonstrate their skills and achievements. If their answers are vague or unconvincing, it may indicate a lack of experience or an inability to apply skills in real-world situations.
- Failure to Discuss Success Metrics: A qualified controller will be able to talk about how they’ve impacted a company’s financial health in measurable terms, such as cost reductions, increased profitability, or improved reporting accuracy. Candidates who can’t provide examples of measurable success might lack the results-driven mindset needed for the role.
- Poor Communication Skills: Effective communication is key, so if a candidate struggles to explain their past roles or experiences clearly, it could be a sign that they won’t be able to communicate financial information effectively to other members of your team.
- Negative Attitude or Disparaging Past Employers: If the candidate speaks negatively about their previous employers or colleagues, it’s a red flag. It suggests a lack of professionalism and may indicate issues with conflict resolution or teamwork.
By being aware of these red flags, you can avoid hiring a candidate who isn’t the right fit for your company.
Check References
Before making an offer, it’s essential to check references when hiring a controller. Speak with previous employers and colleagues to get a sense of the candidate’s work ethic, skills, and overall fit with your organization.
Make an Offer
Once you find a financial controller, it’s time to make an offer. Be sure to outline the responsibilities, compensation package, and benefits of the position clearly. Ensure that the candidate has all the information they need to make an informed decision.
Key Skills to Look For When Hiring a Financial Controller
Nailing down how to hire a financial controller requires a deep look into specific key skill sets and qualities that will help them excel in the role. Here’s a checklist to help you identify top candidates:
- Analytical Skills: A good financial professional should be able to analyze complex financial data and identify trends, patterns, and areas for improvement. Look for candidates who can explain how they’ve used data to drive decisions in past roles.
- Knowledge of Financial Regulations and Laws: Your controller must have a strong understanding of accounting standards and regulatory compliance. This includes knowledge of GAAP (Generally Accepted Accounting Principles) and any industry-specific regulations that apply to your business.
- Proficiency with Accounting Software: Experience with financial software such as QuickBooks, NetSuite, or SAP is crucial. A candidate who can quickly adapt to your systems will save time and ensure that your financial reporting remains accurate.
- Strong Communication Skills: The ability to clearly communicate financial data to non-financial colleagues is essential. A strong financial controller can make complex numbers understandable and is capable of presenting financial reports in an engaging way.
- Attention to Detail: Accuracy is a must for financial controllers. Mistakes in financial reporting can have serious consequences. Look for candidates who demonstrate a meticulous approach to their work and take steps to ensure precision.
- Leadership and Management Skills: If your controller will manage a team, leadership skills are critical. They should have experience managing staff and leading projects to improve financial processes within the organization.
- Problem-Solving Skills: Financial controllers often face unforeseen challenges. Whether it’s a cash flow issue or an unexpected audit, the ideal candidate should be a proactive problem-solver who can quickly assess situations and implement effective solutions.
By prioritizing these key skills, you can find a candidate who is well-equipped to handle the financial responsibilities of your business.
FAQs About How to Hire a Financial Controller
What is the difference between a financial controller and a CFO?
A financial controller is typically focused on overseeing day-to-day financial operations, such as financial reporting, budgeting, and accounting. A CFO, on the other hand, takes a broader, strategic role, managing the overall financial direction of the company, including long-term financial planning and decision-making. In some companies, the roles may overlap, but a CFO generally has a more executive-level responsibility.
When should I hire a financial controller for my business?
Hiring a financial controller is ideal when your business starts to grow and financial tasks become too complex for one person to handle. If your business is handling larger transactions, managing multiple departments, or scaling operations, a financial controller can help maintain financial accuracy, compliance, and strategic guidance.
Should I hire a full-time or part-time financial controller?
The decision depends on the size and needs of your business. A full-time financial controller is ideal for larger businesses or those with complex financial needs that require continuous oversight. A part-time or fractional controller may be appropriate for smaller businesses or startups that need financial expertise but not necessarily full-time involvement.
What is the typical salary range for a financial controller?
The salary for these professionals can vary depending on factors such as location, industry, and the level of experience required. On average, salaries can range from $80,000 to $150,000 annually, with larger companies or those in high-cost living areas offering higher salaries.
What qualifications should I look for in a financial controller?
The ideal candidate should have at least a bachelor’s degree in accounting, finance, or a related field. Professional certifications such as CPA (Certified Public Accountant) or CMA (Certified Management Accountant) are highly valued. Experience with financial reporting, budgeting, tax compliance, and relevant accounting software is also important.
How long does it take to hire a financial controller?
The hiring process can vary depending on the urgency of the need, the number of candidates available, and the depth of the interview process. On average, it may take 4 to 8 weeks to identify and hire the right candidate for the role.
Can a financial controller also manage the accounting team?
Yes, in many organizations, a financial controller is responsible for managing the accounting team. They oversee the preparation of financial statements, ensure compliance with accounting regulations, and coordinate the budgeting process. In smaller businesses, the controller might be more hands-on with accounting tasks, while larger organizations may have a separate accounting manager under the controller’s oversight.
How can I ensure my financial controller is a good cultural fit?
When you’re faced with the prospect of learning how to hire a financial controller, a good cultural fit is essential to evaluate how the candidate aligns with your company’s values and working style. Ask about how they collaborate with teams, their approach to problem-solving, and their leadership style during the interview process. You may also consider using personality or work-style assessments to gauge how well they’ll integrate with your existing team.
Do I need to provide a relocation package for a financial controller?
This depends on the role and location. If you’re hiring a financial controller from out of town and your company requires someone local, a relocation package may be necessary. However, if the role can be performed remotely or if there are qualified local candidates, relocation may not be required.
What kind of support should I provide to a new financial controller during their first few months?
It’s important to provide strong support in the early stages. This includes introducing them to key stakeholders, setting clear goals, providing access to financial systems, and offering ongoing training if necessary. Regular check-ins during the first few months will also help to ensure they understand the company’s financial priorities and allow for addressing any challenges early on.
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Matt Garrett is the Founder and Chief Executive Officer of TGG. He is a regular speaker across the country on behalf of Vistage educating business owners on the need for sound financial practices, and is Vice President of the Board of Directors of FINACA. Under Matt’s leadership, TGG has received the following recognition: INC. 5000 top companies in the U.S. five years in a row; one of “San Diego’s Fastest Growing Companies” the past four years; and is among San Diego’s “Best Places to Work.”
