What does controller do at the beginning?

What can we do to learn about new company in short time to gain a good understanding of the company? A couple of things we can keep in mind before getting started.

First, we can create a short-term cash forecast to learn about the company cash position.

Secondly, we need to learn the receivable. Learn our customer, how frequent they order goods or services, and how our billing process works, as well as AR collection process and pain point. Receivable function is a key function of any company. Collecting money timely and accurately are especially important to ensure company have enough cash to handle necessary payroll and vendor payments.

Thirdly, we need to learn about the accounts payable process. Accounts payable are another important function in the company. As a controller we need to make sure at any time, company is paying the right vendor with right amount for the right type of services it received. It is not uncommon that sometimes, company receives fabricated invoices, and services listed on the invoices were never provided.

Fourthly, bank reconciliation needs to be performed on monthly basis, at a minimum. This process will ensure our cash is recorded in correct period. Cash is of the utmost importance in the company. It is worth to spend enough attention on this process.

Lastly, find out the liabilities that company normally incurs. Some company borrow short term funding or long-term loan from lender to fund daily operation or as reserve in case of emergency. Controllers need to make sure that debt payment scheduled by due date, as default on payment may cause lender call off the loan.

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