Financial controllers can benefit from a strong compensation potential and increased demand for their skills. The financial controller salary can be influenced by experience, education, and location. Financial controllers and comptrollers have comparable tasks, but they also have significant variances. Comptrollers, for example, generally work for government agencies. Here, we’ll see an overview of the average financial controller salary at both the entry level and the senior level.
What is the Average Salary of A Financial Controller?
According to PayScale, the average financial controller salary is $85,710.
The parts that follow go through how experience and education affect financial controller wages. Aspiring financial controllers should think about how location and industry can affect earning potential.
Financial managers, including financial controllers, are classified as management occupations by the BLS. Management occupations are the highest-paying occupational group according to the BLS. The median yearly salary for these professionals is $109,760.
Financial controllers, according to PayScale, can rise to high-level executive positions such as chief financial officer. According to the site, chief financial officers earned an average yearly compensation of $137,110 in September 2021.
Financial Controller Salary by Education
Higher education can help financial controllers make more money. As of September 2021, financial controllers with a bachelor’s degree in finance made an average yearly salary of $85,260, according to PayScale. This is consistent with the general average wage for the profession. Financial controller salaries with an MBA in accounting and finance grew to an average of $93,520 in September 2021.
Getting an MBA takes time and money. This investment may result in a pay raise or promotion. Learners gain vital expertise as well. They can network with their peers and alumni to find career possibilities and professional assistance.
Financial controller salaries with an MBA in accounting and finance grew to an average of $93,520 in September 2021.
Many accounting, finance, and MBA programs are offered online or in a hybrid format. Students frequently continue to work while in class, earning money and gaining experience.
Financial Controller Salary by Experience
The earning potential of a financial controller is influenced by experience. The more time financial controllers spend in the field, the more money they make.
According to PayScale, the annual compensation for a junior financial controller was $65,200 in September 2021. Early-career professionals witnessed a small increase in pay. The average salary increased to $84,910 for those with five or more years of experience.
Employers frequently reward good performance with bonuses and other perks.
Financial Controller Salary by Location
Financial managers’ and financial controllers’ salaries vary by location. High-demand positions for financial managers frequently pay the highest wages. With a solid international corporate image, New York is the highest-paying state for financial managers.
Although metropolitan places such as New York and New Jersey pay greater earnings, prospective financial controllers should also consider the high cost of living in these areas.
To recruit talented individuals, areas with promising business environments may provide competitive wages. U.S. News & World Report, for example, ranks Colorado as one of the best states for the economy and employment. Both the business environment and growth contribute to that rating. Colorado also ranks among the highest-paying states for financial managers, as shown in the table below.
Salary of the Chief Financial Officer
The typical yearly income of a chief financial officer (CFO) might vary depending on a variety of circumstances, but according to income.com, the median remuneration for a CFO in the United States as of May 2021 was $393,377 per year. CFOs in the bottom 25% of the salary distribution should expect to earn $299,442 per year, while those in the top 25% should expect to earn $499,992 per year.
In comparison, the median weekly earnings of full-time workers in the United States in June 2021 were $984, or $51,168 per year, according to the Bureau of Labor Statistics. As a result, the average CFO earns over eight times the average worker, making the CFO a relatively wealthy position in comparison.
Factors that Affect the CFO Salary
Geographic location, as well as the person’s expertise and personal qualifications, are the key elements that influence the median compensation of a CFO. Base pay and incentives account for around 80% of a CFO’s overall compensation in a given year. Other forms of pay include bonuses, rewards, and perks.
When bonuses are factored in, the median annual total remuneration for a CFO is $541,930. Those in the bottom 25% should expect to make $375,642 per year, while those in the top 25% should expect to earn $792,957 per year. Social Security, 401(k), disability, healthcare, pension, and time off are all additional CFO perks. The average CFO values these bonuses and perks at around 20% of overall salary.
A business car or driver, a sizable severance package—also known as a golden parachute—relocation fees, use of a private plane or helicopter, and first-class flights are some of the perks of the position. While healthcare is a standard perk, high-level executives like CFOs also have access to disability and life insurance. A dedicated parking area, huge offices, and private bathrooms are examples of workplace perks.
Total salary is affected not just by experience but also by job location. Pay will be higher in big urban regions and “financial capitals of the world,” such as New York City. The table below shows the basic pay and total pay, including annual bonuses, for 10 major metropolitan areas.
What is the Average Salary for an Entry Level Financial Controller?
The average annual salary for an Entry Level Financial Controller in the United States is $111,385 as of June 21, 2023.
In case you need a quick salary calculation, that works out to about $53.55 per hour. This equates to $2,142 each week or $9,282 per month.
The majority of Entry Level Financial Controller salaries in the United States currently range from $92,500 (25th percentile) to $129,000 (75th percentile), with top earners (90th percentile) making $148,000. The average salary range for an Entry Level Financial Controller varies significantly (by up to $36,500), implying that there may be several prospects for promotion and increased income dependent on skill level, location, and years of experience.
According to recent ZipRecruiter job posts, the Entry Level Financial Controller job market in Dallas, TX and the surrounding area is quite active. An Entry Level Financial Controller in your region earns an annual salary of $109,933, which is $1 (%) less than the national average of $111,385. Texas ranks 33rd out of 50 states in terms of entry-level financial controller wages.
What Is the Role of a Financial Controller?
The IMA refers to the “Four Faces of Controllership” as the four categories in which a financial controller works. Stewardship, operator, catalyst, and strategy are some of them.
Stewardship and operator take up the majority of a financial controller’s time, while catalyst and strategy activities account for around 30% of a controller’s attention. Each “face” is responsible for the following tasks:
Stewardship: The protection and conservation of a company’s resources, as well as the truthful reporting of its financial condition.
Operator: Effectively manages the finance organization.
Catalyst: Provides the appropriate information at the appropriate time to aid in business performance.
Strategy: Provides financial information and analysis to leaders as they move the organization toward its mission and goals.
What Are the Responsibilities of a Financial Controller?
Their primary task is to close the company’s books in a timely, accurate, and efficient manner. Finally, they are in charge of the financial closing process and provide general accounting control.
This includes a variety of responsibilities that vary by firm but generally include:
- Invoice approval: entails ensuring that invoices are correctly approved and coded in the general ledger.
- Monitoring and balancing cash flows into and out of a business in order to meet obligations and optimize investment.
- Coordination with external financial, compliance, and tax auditors.
- Internal controls: The process of developing and monitoring firm policies and internal controls, particularly expenditure controls, in order to protect company assets and reduce fraud.
- Budget: Assisting with or producing the budget entirely, including the incorporation of historical data.
- Debt management entails managing loan arrangements for company borrowings as well as collecting money due to the company by customers.
- Financial strategy: Creating a financial strategy that includes risk management plans and opportunity predictions.
- Compliance: Ensuring that local legislation, tax provisions, and related industrial and financial rules are followed.
- Financial reporting and analysis: Providing financial reporting and analysis to inform decision-making.
- Identifying efficiencies and potential for cost reductions across the organization.
- Mentoring and managing the accounting and financial employees are examples of leadership.
- Payroll administration includes payroll processing and labor tax compliance.
- External reporting entails preparing tax and financial statements for the corporation, as well as filings with the Securities and Exchange Commission (SEC).
- Banking consists of opening bank accounts and managing banking relationships.
- Stakeholder management is the process of advising firm executives on operational actions based on knowledge of the underlying business.
How to Become a Financial Controller
According to the US Bureau of Labor Statistics, job growth for financial controllers is predicted to outperform the overall rate for all occupations. There are numerous paths to becoming a financial controller for people who are interested in pursuing this career.
The following are the essential steps to become a financial controller:
#1.Complete a relevant college degree(s)
Obtain a bachelor’s degree in accounting, finance, or business administration. Most states demand at least 30 additional credits over most bachelor’s degrees if pursuing a CPA licensure. Companies are increasingly requiring master’s degrees for controllers.
#2. Get some work experience
Most controllers have five to ten years of financial experience. A typical career path is from staff accountant or cost accountant through accounting manager, assistant controller, and finally controller. Work experience in public accounting, particularly at one of the “Big Four” companies, is frequently regarded as a significant advantage.
#3. Obtain a license
Complete the prerequisites for a professional license, such as a CPA, CMA, CFA, or CFC. The CPA license has traditionally been regarded as the gold standard. It is also critical to maintain the requisite continuing professional education to keep licenses in good standing and stay current in the field.
Is Financial Controller a Stressful Job?
A financial controller’s job can be difficult due to a high volume of work, tight deadlines, compliance expectations, team oversight, and flawless precision.
How Hard Is It to Become a Financial Controller?
The road to becoming a controller can take more than a decade. Controller positions may have stringent qualifications, such as college degrees, certifications, and years of experience. Controllers manage their department and an organization’s money, which may be intimidating to certain candidates.
Is the Financial Controller Higher than the CFO?
Finally, the CFO is in charge of the finance department. They are the boss of the financial controller, as well as the accountants, financial analysts, and, in some cases, the HR and operations departments. The Financial Controller is sometimes known as the Chief Accountant.
In Conclusion
In large corporations, the chief financial officer is a key executive. CFO salaries vary greatly depending on experience, sector, and company location. Furthermore, many CFOs receive the majority of their income in the form of stock options, bonuses, or other variable compensation.
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