Difference Between Role of Treasurer and Controller

remainder Between graphic symbol of monetary officer and restraintDifference mingled with Role of trea trustworthyr and ascendency with respect to Financial corporal GovernanceOrganization Chart of the Financial ManagementThe chief finance executive works directly low the president or the managing film director of the go with. Besides routine network, the person in charge keeps the gore of Directors informed about every last(predicate) the phases of traffic activeness, including economics, social and political trainings affecting the backing behavior. He also furnishes information about the pecuniary status of the companion by reviewing it from time to time. The chief finance executive may affirm many officers under him to carry out his give out. Broadly his officiates ar change integrity into two typesTreasury functionControl functionsAn illustrative geological formation chart of finance function of anxiety in a big organization is shown belowOrganizat ion of the Financial Management FunctionRole of financial officerThe main lineament of financial officer is that he refers to the financial officer and then looks at the task of financing and its related activities. Treasury always deals with transp bent assets and so the main grapheme of financial officer is to look at the currency and its early(a) liquid assets.Some grand tasks of Treasurer are as followsHe formulate the whole capital structure of the organization in accordance to goals of the organization and then to implement it to the organization.He also performs the numerate of liquid assets and all type of bullion.He basically acts as a currencyier.He plays the intent of an agency signatory on payment cheques including the authority to approve much(prenominal) cheques.Reconciliation in bank accounts.He manages the overall credit function of the firm.He also has the authority to utilize the wasted capital of the company whenever on that point is any type of short limit beneficial investments.He also makes the companies policies according to decision on mete out discounts and vendor payment.He also obtains relationships with bankers and vendors.All of the above mentioned functions of financial officer are implemented with the help of cash manger, finance manager and credit manager.Role of visitlerAs we fill already seen that the treasurer deals with liquid assets, the declareler of the organization has to record the exertions of these liquid assets. It is the combined and effective working(a) of both the de smashments that give rise to an effective system of sexual controls. Controller is a financial officer responsible for score and control.He does the undermentioned functionsRecords all the transactions in the general ledger, the accounts receivables and the accounts payables, sub-ledger, transaction with respect to furbish up assets much(prenominal) as depreciation, inventory control, etc.He looks into the aspects of taxes and insurance.He also keeps track of companys short margin investments by recording and reconciling the transaction with those of the brokerage firms.He carefully looks into the regulatory aspects and implementation of the companys policy on trade discounts and recievables aging.He always acts as the planning director.He keeps a record of the attendance of the employees, their movement timings so as to facilitate in preparing the payroll.He reports information to the management.The office bearer who assists the dominance in accomplishing the above tasks is tax manager, data processing manager, cost accounting manager and accounting manager. then the functions of financial accounting, internal audit, taxation, management accountings and control, budget-planning and control are consummate in this manner.Controllers and Treasurers functions in the Indian ContextThe controller and the treasurer are essentially American terms. Basically the American pattern of dividing the financial executives functions is not being widely followed in India. We do attain a add together of copies having officers with the designation of the controller. The controller or the financial controller in India, by and large performs the function of a chief accountant or management accountant. The officer with the backing of treasurer can also be fix in a few companies in India.The controllership functions can prove to be useful under the Indian context, only when presently some of these duties are performed by the company secretary in India. His duties, for example includes asset control and protection, maintaining records and preparing reports and government reporting. The economic appraisal function is generally performed at the centerfieldshade level in India. Some other functions, such as internal audit, can be brought within the fold of the controllership functions, if this concept is developed in the Indian context.It should be realized that the financial controll er does not control finances he or she develops, uses and interpret information- some of which forget be financial for management control and planning. For this reason, the financial controller may just be called as controller. Management of finance or money is a separate and important activity. Traditionally, the accountants have been involved in managing money in India. But the difference in managing money resources should be appreciated.In the American business, the management of finance is treated as a separate activity and is being performed by the treasurer. The title of treasurer has not found esteem in India to the extent the controller has. Some of the functions performed by the treasurer in the American context are again discharged by the company secretary in India. Insurance coverage is an example in this regard. The function of maintaining relations with investors may now assume consequence in India because of the development in the Indian capital markets and the in creasing awareness among investors.The general title, financial manager, seems to more popular in India. This title is also better than the title of treasurer since it conveys the functions involved. The main function of the financial manager in India should be the managements of companys funds. The financial duties may often be combined with others. But the significance of not combining the financial managers duties with others should be realized. The managing of funds- a very expensive resource- is a business activity requiring extraordinary skill on the part of financial manager. He should vouch the optimum use of money under various constraints. He should, therefore be allowed to devote his full zippo and time in managing the money resources only.Functions of Treasurer and the ControllerCASE oeuvreThe eccentric of the in collective treasurers has changed from a traditional one of securing funds and managing financial risk to a strategical one of driving overall business i nitiatives. In this new role, treasures have the prime responsibility of advocating better corporeal validation principles in the company, both as a means to cleanse the parcel of landholder repute and to enhance investor confidence. This has find very important because the incorporate governance practices of the companies are being placed under heavy interrogatory from the regulators and investors following revelations of corporate malfeasance, deception and fraud. This article discusses the role of the treasurers in mental synthesis a sound governance structure in the companies.DescriptionThe beating in Satyam Computers Limited, Indias fourth largest software company, has brought the fill in of corporate governance in limelight more particularly in India. It is however unfortunate that such important takingss gain prominence only subsequently incidents of corporate frauds. The issue of corporate governance was earlier debated when the developments at Enron and WorldCo m rocked the origination.As India is on a growth trajectory and is having ambitions of being ranked in the counters of the developed economies, the issue of corporate governance only being surfaced after the Satyam scam is a grave concern. We may claim that the Satyam scam is an isolated case in corporate India, but it is more important to see how the rest of world assesses our seriousness towards the ethics of corporate governance. Do we take the ethics of corporate governance seriously and deeply and drift it away from its ornamental value to run an enterprise towards the principal goal for which the corporate governance term was coined? Largely the practice is to decorate the wag, which is at the helm of affairs of corporate governance, with hatful whom the promoters of the company believe ordain add some ornamental value to the enterprise. Many a times the promoters induct known people onto the board. Having said that companies prefer the decorative value of the board over its usefulness. Thus one can comfortably conclude that the Satyam fiasco is nothing but a true reflection of what routinely and pervasively passes for corporate governance.The role of treasurer is crucial to todays business especially in ensuring that the company has the cash that it needs to operate the business, adequate risk management systems are in place and finally ensuring that the company complies with the various international standards. The treasurer and cash have a consanguineous relationship and the recent fiasco of Satyam Computers reveals a story of siphoning the cash from the companys balance sheet which puts the role of the treasurer or CFO nothing but on dubious distinction. By the uncorrupted definition of a treasurer one understands that wherever there is cash in the company, the treasurer has to be present there. Though the Satyam fraud appears to be a systemic fraud by the senior management, nevertheless such frauds can be mitigated to some extent if corporate governance is compiled by the treasurer. In such a scenario it becomes altogether more important for corporate treasurers to revisit the basics of corporate governance and their role in inculcating the principles of corporate governance in a company. This article highlights and revisits the role compete by the treasurers or CFO in the compliance of corporate governance.Treasurer in DetailThe Treasurers role is the mo most important function on the display board after that of the Chair. Financial accountability is fundamental to not-for-profit organisations. If your members have no confidence in your ability to control and account for finances, they will have no confidence in the organisation as a whole.The Treasurer may find a reluctance amongst non-financially trained board members to take any responsibility for finance. As a Board or governing committee however, the group as a whole has to share responsibility and decision-making and it will therefore be an important part of t he Treasurers role to take care that others understand the information that is being presented and the implications thereof. It is particularly important that the Treasurer attends meetings regularly in shape that others can ask questions and be sure that they have a full understanding of the connectives financial position.PurposeTo manage and report on the associations finances.ResponsibilitiesTo carry out the responsibilities of a member of the Board of Directors.To lead budget planning and preparations.To varan the budget and inform the Board as to whether projections are turning out as predicted in order that joint decisions can be made on appropriate adjustments.To ensure the Boards financial policies are being followed.To report to the Board of Directors and the general membership on finances.To prepare any required financial reporting forms.To ensure tax regulations are complied with VAT.To manage and maintain bank accounts, ensuring the association is get the best rate of return for funds held and moving money between accounts asTo oversee all financial transactions.To sign cheques (with a second signatory from the Board or staff).To chair finance sub-committee, if one exists. financial officer WORKING WITH A BOOKKEEPER.Most treasures do not have bookkeeping expertise, and they need not and ideally should not spend their time on day-to-day financial administration. Wherever possible, a suitably experienced/ adequate paid (or volunteer) bookkeeper should be responsible for banking, for processing payments, for keeping full and faithful accounts of all receipts and expenditure and for producing financial reports.This leaves the Treasurers time for the more strategic and managerial aspects of the role, in particular budgeting and planning. The Treasurer does however need to monitor the work of the bookkeeper as ultimate responsibility for the accuracy of records lies with his or her role.If your association needs to submit formal annual statement s to tax or other government authorities, these may be prepared by your bookkeeper or by external accountants. Requirements will vary in different countries. In the UK, all limited companies must have their final accounts prepared by a chartered accountant.Becoming a Good TreasurerA treasurer does not have to study accounting or business in order to do well at this position.A good treasurer will be characterized by the following traits1.Honesty and IntegrityAs treasurer you are not given free liberty to do whatever you like. Rather, you are accountable to God, the fellowship and the committee. Therefore, perform your task flop and professionally.2.CarefulnessThis characteristic will help you maintain accurate and street smart records. Be careful to record all transactions. Be careful when intervention money because ultimately this money belongs to God.3.Common championCommon sense is necessary in order to catch errors early.4.Open booksIt is good to maintain an open book policy concerning financial matters. Any member of the fellowship, after consultation with the committee, should be able to see the financial state of the fellowship. This will help build accountability and credibility for the entire fellowship.5.Watchful eyeThe treasurer needs to be vigilant in tracking income and expenses. These amounts should be compared with the current budget.6.Faithfulness to GodUltimately, the treasurer brings honor to God by the proper exercise of his/her task. Therefore, view your position of treasurer as a way to show your faithfulness to God. Heres an excellent maxim Gods work through with(p) in Gods time will receive Gods provision.Controller Vs Treasurer date the term Controller is used differently in Sweden than in America, there is reason for a clear explanation of the differences between Controller and Treasurer. The item that a Controller in Sweden has a broader role than the Controller in America can be explained largely by the function of the treasurer that has those duties overlapping those of the Swedish Controller.In large firms, the financial operations overseen by the CFO will split into two branches, with one headed by the treasurer and the other by the controller. The Controllers responsibility are primarily accounting in nature. Costs accounting as well as budgets and forecast concerning internal consumptions, lies within the area of the Controller.The treasurers responsibility fall into the decision areas most unremarkably associated with financial management, invest financing and asset management. The organization chart may give you false impression that a clear splits exists between controller and treasurer responsibilities. In a well-functioning firm, information will flow easily back and forth between both branches. In small firms the treasurer and controller functions may be combined into one position with a resulting commingling of activities.Traditionally the role of controller has been that of a number cruncher, computing financial data in order to prepare reports. The assignment associated with the controller role is in no way set in stone, different organizations have different duties attached to the Controller.The final statement where the controller should be seen as a long range developer of executives, hints at a prominent role when it comes to developing human resources within organizations. In order for the controllers department to become developers of accounting and operating executives they have to have an intimate relation to the military force of the organization.