Howard Katzenberg’s Post

These are some good guidelines for Controllers looking to step up their game and impress their CFO.

7 things every CFO wants in a Controller: 1. Strategic thinking Your controller must connect accounting data back to big-picture business objectives. You want someone who communicates insights, not just presents reports. Example: A strategic controller might analyze revenue trends and highlight which products/services are most profitable. 2. Advisory mindset The best controllers are proactive, not reactive. They seek out ways to improve financial processes and procedures rather than waiting to be asked. Example: An advisor-minded controller may recommend automating invoice approvals to improve accuracy and free up manager time. 3. People leadership With the oversight of the accounting team, strong management skills are essential. Evaluate their ability to optimize roles and workflows and foster collaboration. Example: A great people leader might implement cross-training to improve continuity and knowledge sharing. 4. Technology fluency Today's accounting landscape relies on new tools. Look for experience integrating and leveraging systems to drive efficiency. Example: A tech-fluent controller could implement an AI-powered AP solution to automate data extraction and approvals. 5. Compliance expertise Deep knowledge of regulatory filings, audits, and compliance is important for risk mitigation. Example: An expert controller may routinely review payroll tax filings and conduct internal audits to verify compliance. 6. Focus on controls Top controllers treat internal controls as a key tool for data integrity and fraud prevention, not just a formality. Example: A controller focused on controls may develop automated three-way match policies for added fraud protection. 7. Balance of strategy and details This role sits at the intersection of high-level planning and nitty-gritty execution. Look for fluidity operating at both levels. Example: An ideal controller can both assess capital investment opportunities and correct a booking error. The right controller brings a lot to the table. P.S. I'm Howard Katzenberg, CEO of glean.ai and I post daily at 8:15 am EST to share my experience and help my finance friends grow.

7 things every CFO wants in a Controller: 1. Strategic thinking Your controller must connect accounting data back to big-picture business objectives. You want someone who communicates insights, not just presents reports. Example: A strategic controller might analyze revenue trends and highlight which products/services are most profitable. 2. Advisory mindset The best controllers are proactive, not reactive. They seek out ways to improve financial processes and procedures rather than waiting to be asked. Example: An advisor-minded controller may recommend automating invoice approvals to improve accuracy and free up manager time. 3. Leadership With the oversight of the accounting team, strong management skills are essential. Evaluate their ability to optimize roles and workflows and foster collaboration. Example: A great people leader might implement cross-training to improve continuity and knowledge sharing. 4. Technology fluency Today's accounting landscape relies on new tools. Look for experience integrating and leveraging systems to drive efficiency. Example: A tech-fluent controller could implement an AI-powered AP solution to automate data extraction and approvals. 5. Compliance expertise Deep knowledge of regulatory filings, audits, and compliance is important for risk mitigation. Example: An expert controller may routinely review payroll tax filings and conduct internal audits to verify compliance. 6. Focus on controls Top controllers treat internal controls as a key tool for data integrity and fraud prevention, not just a formality. Example: A controller focused on controls may develop automated three-way match policies for added fraud protection. 7. Balance of strategy and details This role sits at the intersection of high-level planning and nitty-gritty execution. Look for fluidity operating at both levels. Example: An ideal controller can both assess capital investment opportunities and correct a booking error. The right controller brings a lot to the table. Credit To Mr.Howard Katzenbarg

There are several worst decisions that an accountant can make in his operations. Some of them include: 1. Lack of attention to detail: An accountant must be highly detail-oriented as they deal with financial data and numbers. Failing to pay attention to small details can lead to errors in financial statements, calculations, and reporting, which can have severe consequences for the organization. 2. Failure to maintain ethical standards: Accountants have access to sensitive financial information and data. Making decisions that compromise ethical standards, such as manipulating financial records, can have serious legal and professional ramifications. 3. Ignoring compliance and regulatory requirements: Accountants are responsible for ensuring that financial reports and statements comply with relevant laws and regulations. Failure to adhere to compliance requirements can result in legal consequences, fines, and damage to the reputation of the organization. 4. Poor communication skills: Effective communication is essential for accountants, as they often collaborate with other departments, clients, and management. Failing to communicate effectively can lead to misunderstandings, errors, and delays in financial operations. 5. Inadequate analysis and forecasting: Accountants play a crucial role in analyzing financial data and providing accurate forecasts. Making poor judgments or failing to conduct thorough analysis can lead to incorrect financial projections, which can impact the strategic decision-making process of the organization. 6. Lack of continuous professional development: Accounting is a constantly evolving field, with frequent changes in regulations, technology, and industry practices. Failing to invest in continuous professional development can result in outdated knowledge and skills, limiting the accountant's ability to make informed decisions. 7. Inefficient use of technology: Accountants nowadays heavily rely on technology for various tasks such as data analysis, financial reporting, and software management. Poor utilization or misuse of technology can hinder the efficiency and accuracy of accounting operations. 8. Lack of proactivity and risk assessment: Accountants should proactively identify and assess potential risks and challenges that could impact the organization's financial health. Failing to do so can expose the organization to financial and operational risks, hindering the decision-making process. 9. Inability to provide value-added insights: An accountant's role is not limited to recording financial transactions and preparing reports. They should also provide value-added insights and recommendations to management based on their financial expertise. Failing to provide such insights can limit the accountant's influence and contribution to the organization's success. 10. Poor time management: Accountants often face tight deadlines and multiple tasks. Failing to manage time effectively can lead to delays .

Your Organization is Incomplete without this Strengthening Financial Reporting: A Proactive Approach to Audit Preparedness Preparing for audits can be a daunting task, but by strengthening your financial reporting practices ahead of time, you can streamline the audit process and ensure compliance with regulations. Here are some key strategies to consider: Establish Robust Internal Controls: - Implement segregation of duties. This can apply to multiple tasks not just ones requiring payment of or receiving funds. - Conduct regular reconciliations. Balance Sheet accounts reconciled monthly and also Income Statement accounts can be reconciled for closer view of departmental cost distribution. - Document policies and procedures. Back up, Back up, Back up. Every journal entry should have a back up attached to it. Whether it be an invoice or email trail containing the approval process. Maintain Accurate and Up-to-Date Records: - Keep detailed financial records. Financial Statements saved at every step of the way can aid in reconciling difficult items that will can be found by looking at older version of your financial snapshots. - Maintain supporting documentation. For ongoing transactions and adjustments. Back up, Back up, Back up. Every journal entry should have a back up attached to it. Whether it be an invoice or email trail containing the approval process. Adopt the Appropriate Accounting Standards; IFRS or ASPE: For Simplicity, here is a brief summary: - ASPE (Accounting Standards for Private Enterprises): Tailored for privately-held Canadian companies. Generally simpler and less complex than IFRS. Focuses on providing cost-effective accounting standards. - IFRS (International Financial Reporting Standards): Globally recognized accounting standards. Used by public companies in many countries, including Canada for publicly accountable enterprises. More comprehensive and complex than ASPE, aiming for consistency and comparability of financial statements worldwide. - Invest in software that automates processes. The above and below will be made a lot simpler depending on how good your software is. A tailored software fit can improve accuracy and provide real-time financial data and streamline reporting and make audits less time-consuming. Engage with External Auditors: - Maintain open communication to address questions or concerns promptly and ensure alignment on reporting standards. Conduct Internal Audits by acting like an External Auditor: Identify and address potential issues before the external audit. Reduce the likelihood of surprises during the audit process. These are of course simplified point for further discussion only. Should I expand on one of these points? Do you think I missed something important?

In the dynamic world of finance, Reporting Accountants play a crucial role in providing assurance on key financial aspects linked to capital market transactions. Ever wondered who they are, why they're essential, and what exactly they do? Let's dive into the world of Reporting Accountants, shedding light on their significance and the standards that guide their activities. Who is a Reporting Accountant? A Reporting Accountant is a financial expert who steps into the spotlight during capital market transactions. Their primary role involves preparing reports for investment circulars, and ensuring compliance with regulatory requirements. These reports may include public opinions mandated by capital market transaction rules. Duties of a Reporting Accountant? One of the key responsibilities of a Reporting Accountant is to meticulously review historical financial statements prepared by the client's auditors. This involves forming an independent view of pre-existing audit work and assessing the accuracy of financial forecasts presented by the client. The Reporting Accountant scrutinizes profit forecasts, ensuring they align with applicable accounting standards, and are consistent with information in the public domain while offering valuable insights into their accuracy and reasonableness. According to our Local Laws, the following are their key responsibilities ( Section 179 Of SEC Rules And Regulations, 2013) (1) Review the audited financial statements or audited statements of the public company and issue a report. In the course of this assignment, he shall: • Review the statutory auditors' work • Review significant trends and investigate unusual variations; • Discuss with the management and auditors, all significant issues • Ascertain that the accounting policies adopted are in compliance with international accounting standards as well as the consistency of their application; (2) Review prospective financial information to be included in the prospectus and issue a report. (3) Prepare his report, addressed jointly to the directors of the public company and the lead manager of the offer and thereafter disclose same in the prospectus. When is a Reporting Accountant Needed? The services of Reporting Accountants are required in various financial transactions, including: • Private companies undergoing an IPO. • Companies issuing debt securities. • Premium listed companies engaged in business acquisitions or disposals etc. Compliance and Standards Beyond local regulations, Reporting Accountants adhere to international standards such as ISAE 3400 and ISRE 2400 (Revised). These standards provide a structured framework for carrying out engagements related to financial transactions, ensuring transparency and reliability. In Conclusion, Reporting Accountants are instrumental in maintaining the integrity and reliability of financial information, offering a shield of assurance in the complex world of capital market transactions.

Controller vs. Finance Director – the Great Debate🎙! The controller has long been the “right hand” or “lieutenant” for the CFO in large and multinational size companies. Typically, they have followed a traditional career path of deep technical accountancy expertise (e.g. CPAs, CAs,) with significant exposure to the month-end close process and reconciliation. In summary, the controller has 3️⃣ primary functions as outlined in a recent Forbes article: 1️⃣  Oversees standard accounting functions. These functions include keeping internal financial records, generating reports, issuing and collecting payments, processing payroll and ensuring compliance with relevant laws and regulations.   2️⃣  Oversees the process of producing shareholder reports and submitting financial statements to the Securities and Exchange Commission (SEC) at publicly traded companies.   3️⃣  Hires, trains and supervises accounting team members and sets their department’s tone, priorities and operational strategy. While this model has been successful for many years, a new model is emerging for small-to-medium sized businesses (SMBs): a less structured and leaner finance team model that doesn’t have the capital or resources to afford a controller or the technical accounting compliance needs that a publicly traded company has. There’s also two other differentiators that aren’t traditionally in the controller’s wheelhouse ⚙ – data management and technology enablement. This is where a finance director can be a massive🤯 game changer. But how do you know if a finance director is qualified to make a difference?🤔 Stay tuned as I will be sharing the answer to the above and more with my “Finance Director Foundations 101” reference guide 📖! Do you agree that the controller becomes a less relevant role for smaller enterprises? Full Article: https://lnkd.in/eCdZHi8h #controller #financedirector #smbs

Understanding Audit Assertions in Financial Audit Integrity. An audit assertion in auditing is a claim business owners and managers make that states all information they share during an audit is accurate. This information may include things like income statements, balance sheets, credit reports, debt listings, cash flow statements and payroll listings. International Standards on Auditing ISA 315 provides the guideline on identifying and assessing the risk of material mistatement and also outlines the assertions. Auditors test these assertions during an audit to make sure that each statement is accurate. They typically research a team's financial statements, either manually or with accounting software, to discover any discrepancies. Understanding assertions in auditing can help auditors perform their job better and provide businesses with insights into what to expect during this process. Inorder to carry out audit procedures,auditors use the following assertions: Types of Audit Assertions 1.Accuracy Accuracy assertions state that information included in a statement remains accurate. . Auditors may use these assertions when tracking discrepancies to better understand where a company's tax concerns may start. 2.Classification Classification assertions state that all financial information received proper and fair classification. These statements help protect both auditors and businesses by ensuring that these classifications remain properly sorted and detailed during audits. 3.Completeness A completeness assertion claims that all transactions are complete and recorded on the proper financial statements. Auditors may also use account balance completeness assertions to ensure that all assets, equity balances and liabilities received a proper and complete recording. 4.Cut-off This transaction-level assertion states that all information for specific periods remains accurate. Companies may use these assertions when reporting on specific periods without looking beyond them. 5.Existence This account-balance assertion states that specific accounts exist during the period covered by the audit. These statements may help catch any discrepancies when auditors notice accounts that didn't exist during the audited period. 6.Occurrence This transaction-level assertion states that an event included in a company's financial paperwork truly happened. 7.Rights and obligations Companies use these account-balance assertions to claim ownership of assets in their financial statements. These assertions claim that the business has rights and obligations on these assets, including tax payments. 8.Valuations These account-balance assertions state that all liabilities, assets and equity balances received proper valuation from either the company or a valuation company. Using these statements helps protect businesses by asserting a base value for each item undergoing an audit.

𝗧𝗵𝗲 𝗕𝗶𝗴 𝗗𝗶𝘃𝗶𝗱𝗲: 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝘃𝘀. 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴—𝗪𝗵𝗶𝗰𝗵 𝗦𝗶𝗱𝗲 𝗔𝗿𝗲 𝗬𝗼𝘂 𝗢𝗻? Alright, it’s Day 3, and we’re keeping the momentum going! After tackling the thorny world of taxation, today we’re getting into something that might just spark a little debate—financial accounting versus management accounting. Which side are you on? Let’s get one thing straight: financial accounting and management accounting aren’t just fancy names for the same thing. They’re more like two siblings with completely different personalities—each essential in their own right but with very distinct vibes.🚀 Financial Accounting is the polished, suit-and-tie sibling. It’s all about the big picture—the official story you tell the outside world. This is the stuff that goes into your annual reports, crafted to keep shareholders, creditors, regulators, and the public in the loop. It follows strict rules like IFRS or GAAP, making sure everything is transparent, consistent, and—dare I say—impeccable.🍀🥸 Management Accounting, though, is the cool, laid-back sibling who’s more about getting things done behind the scenes. This is your internal reporting, the stuff that helps management make decisions on the fly. There’s no need to follow rigid guidelines here—management accounting is all about providing relevant, timely insights that can shape a company’s strategy. It’s less about crossing t’s and dotting i’s, and more about diving deep into the nitty-gritty details like cost behavior, budgeting, and forecasting.🎯 So, why does this matter? Because being a great accountant means knowing when to break out the formal financial statements and when to roll up your sleeves with some gritty management reports. It’s about playing both roles effectively, depending on the audience and the goal. 🎯 So, stick around, because tomorrow we’re diving into something truly exciting, and believe me, this is another piece of the mystery you’ll definitely want to catch. Let’s keep the momentum rolling! Drum roll!!!🎺🎺🎺

Improving Financial Reporting Accuracy Accurate financial reporting is crucial for making informed business decisions and maintaining regulatory compliance. Here are some tips to enhance the accuracy of your financial reports: 1. Implement Robust Accounting Systems 💻 Utilize reliable accounting software to track transactions, generate reports, and ensure data accuracy. Systems like QuickBooks can streamline reporting processes. 2. Maintain Consistent Record-Keeping 📂 Keep detailed and organized records of all financial transactions. Consistency in record-keeping reduces errors and ensures comprehensive reporting. 3. Reconcile Accounts Regularly 🔄 Perform regular reconciliations of bank statements, ledgers, and other accounts. Reconciliation helps identify discrepancies and ensures your reports are accurate. 4. Follow Standard Accounting Principles 📜 Adhere to generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS) to ensure your reports meet industry standards. 5. Train Your Team 🏅 Ensure that your accounting team is well-trained and up-to-date on best practices and regulatory changes. Proper training minimizes errors and improves reporting accuracy. 6. Review Financial Statements 🔍 Regularly review financial statements for accuracy and completeness. Cross-check figures and verify calculations to catch any mistakes before finalizing reports. 7. Implement Internal Controls 🛡️ Establish internal controls to safeguard against errors and fraud. Controls such as segregation of duties and approval processes enhance the integrity of financial reports. 8. Utilize Checklists ✅ Use checklists to ensure all necessary information is included in your reports. Checklists help maintain consistency and prevent omissions. 9. Conduct Regular Audits 🔎 Schedule periodic internal and external audits to assess the accuracy and reliability of your financial reports. Audits provide an additional layer of verification. 10. Seek Professional Advice 👩💼 Consult with financial experts or accountants for complex reporting issues or when implementing new reporting standards. Professional advice ensures accuracy and compliance. Accurate financial reporting supports better decision-making, regulatory compliance, and overall business success. What strategies do you use to ensure your financial reports are accurate? Share your tips or questions in the comments!