Controlling means something like steering, monitoring, and controlling. Controlling is often called ” accounting,” and in international business called ” management accounting. ” There are several definitions for the term controlling. Controlling is a system with comprehensive planning, as well as management and control.
Controlling is primarily intended to improve profitability in a company and thus increase profitability. Results from the area of cost and performance accounting are the basis of successful controlling. The findings from these calculations are then primarily used for internal evaluation and further processing.
In doing so, the controlling employees support above all the management and the management to achieve certain goals in the company or create measures for improvement.
The main task of the controlling area is the planning, control, and management of business processes from a business point of view. To do this, it is important to design the key figures that are crucial for the company.
In addition, the controlling is involved in the formulation and finding of corporate goals and supports planning. Above all, the different management levels play a major role. They coordinate the processes and carry out precise planning.
What does the controller profession look like?
Indeed, controlling does not have anything to do with the control of company processes, but control is essential to ensure that the goals are met. These are monitored and carefully checked by the controlling department.
This procedure takes place regularly through an operational target and actual comparison. Using specific analyses, deviations are determined, and the respective causes are researched to create the prerequisites for a successful organization of the company.
However, controlling control is limited because the existing management only carries out the precise determination and implementation of the respective measures. The controlling department assumes a kind of advisory function and is not directly responsible for the actual control.
Business data in controlling
An essential task of controlling is internal data and evaluations to provide management with the information necessary to optimize operations. This includes the exact determination, further processing, and a detailed interpretation of the business data from the individual areas of the company.
For this, reports and key figures must be constantly updated and adapted to the respective requirements. To provide an accurate reimbursement of the data and information, these must be forwarded and explained if necessary. A significant part of this reporting is IT-based. This makes it possible to integrate or link different information systems.
Calculations for profitability
The controllers work in close contact with accounting. For this purpose, plans are drawn up by the respective departments, which contain the target and actual evaluations. Plans and certain scenarios also come into play. Controlling employees also prepare forecasts, budgets, and cost-effectiveness calculations. In addition, there are evaluations of cost centers and cost units, which are incorporated into a monthly and annual financial statement.
Another activity in the area of control is optimizing the interfaces within the company and the developments in the information systems. In addition, there are investment calculations as well as the creation of the key figure systems. In other areas, accounting is also supported, especially about the process and weak point analysis.
Which tasks have to be done in controlling?
The central tasks of the controller are the actual planning, control, and review of the company goals. Controlling is therefore available to the individual departments as well as the management in an advisory capacity. For these tasks to be fulfilled, the analyzes within the company must be maintained and monitored accordingly.
A precise development and continuation of the reporting system are also part of the tasks of controlling. Specifically, this includes, for example:
- Create budget plans
- Make investment calculations
- Make comparisons of target and actual
- strategic and operational planning in the company
What are the prerequisites for working as a controller?
To work in the area of controlling later, either a university degree or a corresponding further education as a controller is necessary. To take an examination at the Chamber of Industry and Crafts, a commercial apprenticeship is necessary in any case or, as an alternative, at least six years of professional activity.
To complete a bachelor’s degree in control, a general or subject-specific university entrance qualification is required. A controlling degree usually lasts three years (6 semesters), with a Bachelor’s degree. There are also very special courses in control, some of which can also be combined. For example, a focus can be placed on the area of accounting controls.
What do the jobs in controlling look like?
Nowadays, companies are more and more controlled by numbers; the controllers are primarily responsible for this, so they are also considered “arithmetic artists” or “bean counters” within a company. But the professional field as a controller is highly regarded because the employees are not simple number checkers but sometimes have to solve very complex tasks that are of great importance for a company.
This includes, for example, finding potential savings or uncovering existing gaps in the area of further training. Controllers primarily deal with economic forecasts and thus represent an important part in the area of administration. With the help of a degree, sufficient knowledge is available to take on management tasks within this area. This guarantees a highly qualified and safe workplace.
Nowadays, experts in finance and accounting matters are in great demand, and companies will always be hired shortly. Controllers with a high level of knowledge in business administration (BWL) in particular, have very good opportunities in the field of controlling.
Different job profiles in the area of controlling
Specializing in one area is always a good investment because experts are in great demand because they are unique for companies. There are also different directions in control, such as working for a trading company or a project-related company.
There are also different IT controllers, sales controllers, production controllers, plant controllers, and financial controllers. Each of these specialist areas has very different key figures and requires additional specialist knowledge.
Salary and earning potential after studying controlling
Controllers with the appropriate training and qualifications have a high area of responsibility within a company and are appropriately remunerated accordingly. The average salary can be expected to be around 3,000 euros (gross).
But with an appropriate degree and a technical specialization, the earnings can be increased even further. In particular, large and internationally active companies often have collective bargaining agreements that are well above the average. With further qualifications to become a specialist, further increases in income are possible.
The numerous distance learning courses are a real alternative to face-to-face studies. The distance learning courses offer you an enormous amount of flexibility and freedom during your studies in terms of quality.