A financial controller helps your company limit risks and fraud by checking figures, detecting discrepancies early, setting up internal controls and allowing management to steer on the basis of reliable information. Especially with growth, multiple employees or limited grip on the administration, this prevents financial damage, wrong decisions and unpleasant surprises.
Many entrepreneurs recognize the problem. There is no real-time insight, reports arrive late or figures turn out not to be quite right after all. As long as the business is running reasonably well, this still seems manageable. But in practice, the biggest risks often arise. Think of errors in the administration, cash flow problems that are spotted too late or fraud that only surfaces when the damage has already occurred.
That is exactly where a financial controller adds value. A controller not only checks whether the administration is up to date, but especially whether the figures are reliable, processes are set up properly and management directs on the right information. For entrepreneurs, this means more grip, more peace of mind and better decisions.
What are the biggest financial risks for businesses?
Financial risks do not usually arise from one big mistake. Much more often they are small deviations that accumulate. Especially in growing companies, this happens faster than many business owners think.
- Errors in records: incorrect entries, duplicate expenses, incorrect VAT processing or balance sheet items that do not reconcile properly.
- Cash flow problems: profits on paper, but too little liquidity due to slow accounts receivable, rising costs or insufficient understanding of liabilities.
- Improper reporting: management information that is late, incomplete or based on incorrect data.
- Dependence on one person: all financial knowledge is in one employee, creating vulnerability.
- Internal or external fraud: for example, fictitious invoices, unauthorized payments or deliberate manipulation of figures.
SMEs in particular are at risk of this. Not because the organization is worse designed, but because processes often grow pragmatically in practice. What worked fine at first becomes too vulnerable later. Just then, more control is needed.
What exactly does a financial controller do?
A financial controller ensures that a company’s financial housekeeping becomes reliable, controllable and manageable. Where an accounting system mainly records what has happened, a controller helps you understand what the numbers mean, where risks are and what action is needed.
The existing Oakhill page on what a financial controller does for your business also explains this from a grip on numbers, risk management, reporting and cash flow.
A controller deals with, among other things:
- Checking figures and processes: do sales, costs, margins, balance sheet items and cash flows match reality?
- Spotting anomalies: why are costs rising, margins falling or working capital growing faster than expected?
- Setting up internal controls: who authorizes payments, who processes invoices and how are mutations controlled?
- Improve reporting: so that management can manage faster and better.
- Making risks visible: from operational errors to fiscal, administrative and liquidity risks.
How does a controller protect against risk and fraud?
A controller’s strength lies in combining financial insight with internal control. As a result, problems are not discovered only after the fact, but made visible earlier.
1. A controller identifies anomalies before they become large
When costs rise, margins decline or balance sheet items change inexplicably, it is often an early sign. A controller actively looks for trends, differences and exceptions rather than just the bottom line.
Case Study:
A company is growing rapidly in sales, but its bank account is increasingly under pressure. The controller analyzes the cash flow and discovers that debtors are paying late and that payment agreements with customers are not sufficiently monitored. Without that analysis, management would be looking primarily at revenue growth while liquidity worsens.
2. A controller reduces the risk of fraud through segregation of duties
Fraud is more likely to occur when one person has too much control over a process. For example, when the same employee creates suppliers, books invoices and prepares payments. A controller helps separate those processes and set them up logically.
Case study:
The administration processes invoices, but payments are released only after separate approval by the board or management. New suppliers are also checked periodically. This significantly reduces the risk of fictitious invoices or unauthorized payments.
3. A controller makes reports more reliable
Many business owners make decisions based on figures that are late, too global or incomplete. A controller ensures fixed cut-off times, better reconciliations and clear checks on balance sheets and results.
Case study:
A business owner thinks that the returns are in order, but the monthly reports do not properly reflect outstanding liabilities and inventory. The controller sets up a tighter monthly closing, checks the most important items and ensures that the reporting does match reality.
4. A controller practically sets up internal control
Internal control does not have to be heavy or bureaucratic. For many companies, a pragmatic setup works best. That’s precisely why such work fits well with Oakhill’s controlling services, which works as a bridge between administration and broader CFO support.
- Four-eye principle in payments
- Periodic audit of general ledger accounts and balance sheet items
- Budget versus realization analyses
- Debtor and creditor monitoring.
- Authorizations in systems
- Fixed reporting structure for management
This makes risks tangible and manageable, without bogging down the organization in additional processes.
5. A controller reduces dependence on one person
In many companies, crucial financial knowledge resides with one employee or outside accountant. As long as that goes well, nothing seems wrong. But when people drop out, leave or make mistakes, it often becomes clear how vulnerable the organization is. A controller helps document processes, standardize reports and secure knowledge better.
Case Study:
An organization relies entirely on one employee for monthly closings. No one knows exactly what corrections are made each month. The controller records the process, makes controls transparent, and makes sure the numbers are explainable and repeatable.
When does your company need a controller?
Not every company needs a full-time controller right away. But many companies do need controller expertise as soon as complexity increases or confidence in numbers is strained.
- Your business is growing fast: more customers, more employees and more transactions also mean more risk of errors.
- You have insufficient insight into the numbers: reports are late, unclear or do not provide a handle on performance and cash flow.
- You question the reliability of data: numbers change after the fact or don’t align well with practice.
- You depend on one financial person: knowledge and control are too concentrated.
- You want to manage risk better: for example, toward the bank, shareholder, investor or financing process.
- Your administration is reactive rather than directing: accounting is done, but hardly actively analyzed and monitored.
For companies that additionally need broader financial management, the move to CFO for SMEs is a logical fit.
Oakhill offers financial controller support
At Oakhill, we combine operational clout with strategic insight. We fill the financial controller role flexibly, without the need to immediately hire a full-time employee. This aligns with how Oakhill is already positioning the controller and controlling role on its website.
Our support includes:
- reliable monthly reports and better management information
- cash flow management and liquidity insight
- internal control and practical controls
- analysis of deviations, margins and performance
- design of processes that grow with the organization
Our expertise
Daniel Thijs works as fractional CFO and controller focusing on cash flow management, VAT processes, financial reporting, data analysis and investment appraisals. Richard de Ruijter RC as Chartered Controller with expertise in Accountancy, CFO advisory, controlling, reporting quality. Together they help entrepreneurs with financing, reporting and cash flow management.
Frequently asked questions about a financial controller
What does a financial controller do?
A financial controller checks numbers, monitors financial processes, identifies discrepancies and helps make risks within the organization visible and manageable.
How does a controller help prevent fraud?
A controller helps prevent fraud by setting up internal controls, separating functions, identifying anomalies more quickly and making reports more reliable.
When does a company need a controller?
A controller is often needed when a company is growing, has insufficient insight into the numbers, is dependent on one financial person or has doubts about the reliability of reports.
What is the difference between an accountant and a controller?
An accountant processes and records transactions. A controller looks beyond and helps management manage risk, cash flow, performance and internal control.
Is a full-time controller always necessary?
No. Many companies need controller expertise, but not yet a full-time position. In that case, part-time or flexible support is often a logical solution.