Question

What would a Controller of an organization criteria be when selecting an investment vehicle?

What would a Controller of an organization responsibility be in relation to property, plant, & equipment?

Answer 1

A controller is a person who is the head of the accounting department of a company. He is also called chief accounting officer who directly reports to the chief financial officer. Controller role in the organisation to assist in the computation of budgets, financial statements or payroll activities etc. He is the person related to all financial activities of the business.

The role of the controller is to prepare budgets, need and requirement for the investment vehicle. A detailed investigation is made before buying the equipment. The controller is responsible for:

• Protecting assets and ensuring internal controls.
• Utilise cash into fruitful investments.
• Preparing depreciation charts to properly amortise the asset.
• whether there is positive cash flow in the business.
• To check whether the asset is providing inflows in the business.
• If the asset is not providing positive inflows the purchase should not be made.
• Apart from the cash requirement the controller sees whether there is need for the asset in the business.
• Keeping the information private. etc.

Being a finance person he will look after all the criteria and requirements before buying an asset. His actions should be detailed and monitored enough to make a profitable investment either in vehicles, property and plant. He will be responsible for all transactions relating to accounting and finance thus, he should be accountable to those. If needed he can take advice from other personnel for better decision.