The Fast Close Toolkit

CHAPTER TWENTY NINEBudgeting and Forecasting

INTRODUCTION: ACCOUNTABILITY STEMS FROM a well-defined organizational structure and hierarchy. It also is driven by well-established roles and responsibilities for each step of the closing process and a well-documented closing schedule and checklist.

Budgeting is a key responsibility for controllers and their staff and should be linked to the strategic planning process and results.

The controller's organization “controls” access to corporate funds. In many situations, professionals in the controller's organization must approve expenditures according to the organization's delegation of authority policy. Controllers typically are part of the organization led by an organization-wide or divisional chief fiscal officer (CFO). In smaller companies and organizations, the roles of controller and CFO may be combined into one position.

In most companies controllers and their staffs develop reports and analyses that are crucial to the management of the business. In addition to the measurement and analysis of corporate profitability, controllers work closely with people in the marketing function in setting prices for the company's products and services.

A large corporation will have multiple layers of controllers, depending on how its hierarchy of departments and divisions is organized. Working in a controllership function can be an excellent way to get a good overview of the entire company.

ABOUT THE BUDGET PROCESS

According to Price waterhouse ...