The
controller’s job begins after the bookkeeping is completed.Once the profit plan goal is established,
progress toward that goal is measured and evaluated.Actual values are compared to planned
values and variances are identified and analyzed.The results of analysis are interpreted so
that informed decisions can be made on what actions need to be taken to reach
the profit plan goal.
The
managing principal of a design firm is often an architect or engineer who is
a non-financial manager not trained in accounting.This managing principal is responsible for
making decisions that determine the financial success of the firm.This firm manager should have a basic
understanding of the key indicators of financial performance and how they
relate to the profit plan goal.
It is
the controller’s responsibility to communicate the analysis of the profit
plan progress to the non-financial manager in a meaningful way so that the
appropriate decisions can be made to keep the firm on target to reach the
profit plan goal.
