The Essential Controller – An Introduction to What Every Financial Manager Must Know 2e

Preface ix
<p>Chapter 1 Accounting in the Corporation 1</p>
<p>Importance of This Chapter 1</p>
<p>Tasks of the Accounting Function 2</p>
<p>Role of the Accounting Function 5</p>
<p>Role of the Controller 6</p>
<p>Impact of Ethics on the Accounting Role 8</p>
<p>Evolving Role of Accounting 12</p>
<p>Chapter 2 Controller s Responsibilities 13</p>
<p>Importance of This Chapter 13</p>
<p>Variations on the Title 14</p>
<p>Planning Function 14</p>
<p>Control Function 16</p>
<p>Reporting Function 17</p>
<p>Accounting Function 17</p>
<p>Additional Controller Functions in Smaller Companies 18</p>
<p>Controller s Job Description 22</p>
<p>Relationship of the Controller to the Chief Financial Of cer 24</p>
<p>Future Changes in the Controller s Origins and Responsibilities 26</p>
<p>Managing Rapid Growth 28</p>
<p>Chapter 3 Chief Financial Of cer: From Controller to Facilitator of Change 31</p>
<p>Importance of This Chapter 31</p>
<p>Understanding What Chief Executive Of cers Want 32</p>
<p>Task of the CFO 32</p>
<p>Develop and Communicate a Compelling Finance Agenda 33</p>
<p>Build a Commitment to Change within Finance 36</p>
<p>Change Executive Management Practices 40</p>
<p>Enlist the Support of the Chief Executive Of cer 42</p>
<p>Mobilize the Organization 44</p>
<p>Institutionalize Continuous Improvement 46</p>
<p>Chapter 4 Operational Accounting 49</p>
<p>Importance of This Chapter 49</p>
<p>Create Departmental Job Descriptions 50</p>
<p>Create a Departmental Training Program 52</p>
<p>Clear Out Excess Documentation 55</p>
<p>Streamline the Accounting Work– ow 56</p>
<p>Document All Major Processes 58</p>
<p>Correct the Underlying Causes of Errors 59</p>
<p>Use Best Practices 62</p>
<p>Outsource Selected Accounting Functions 64</p>
<p>Chapter 5 Cost Accounting and Costing Systems 71</p>
<p>Importance of This Chapter 71</p>
<p>Purpose of Cost Accounting Information 72</p>
<p>Input: Data Collection Systems 73</p>
<p>Processing: Data Summarization Systems 77</p>
<p>Processing: Job Costing 79</p>
<p>Processing: Process Costing 87</p>
<p>Processing: Standard Costing 90</p>
<p>Processing: Direct Costing 93</p>
<p>Processing: Throughput Costing 96</p>
<p>Processing: Activity–based costing 101</p>
<p>Processing: Target Costing 103</p>
<p>Outputs: Cost Variances 107</p>
<p>Chapter 6 Ratio and Trend Analysis 113</p>
<p>Importance of This Chapter 113</p>
<p>How to Use Ratios and Trends 114</p>
<p>A Caveat 115</p>
<p>Measures for Pro tability 118</p>
<p>Measures for the Balance Sheet 122</p>
<p>Measures for Growth 128</p>
<p>Measures for Cash Flow 129</p>
<p>Measures for Non nancial Performance 132</p>
<p>Interrelationship of Ratios 152</p>
<p>Setting Up a System of Ratios and Trend Analyses 154</p>
<p>Chapter 7 Internal Control Systems 157</p>
<p>Importance of This Chapter 157</p>
<p>Objectives 158</p>
<p>Responsibility for Internal Controls 159</p>
<p>Examples of Internal Controls 161</p>
<p>When to Eliminate Controls 164</p>
<p>Types of Fraud 167</p>
<p>Preventing Fraud 169</p>
<p>How to Deal with a Fraud Situation 174</p>
<p>Foreign Corrupt Practices Act 176</p>
<p>Chapter 8 The Fast Close 179</p>
<p>Importance of This Chapter 179</p>
<p>Different Types of Fast Close 180</p>
<p>How to Achieve a Fast Close 181</p>
<p>Enhanced Closing Process 196</p>
<p>Chapter 9 Internal Audit Function 197</p>
<p>Importance of This Chapter 197</p>
<p>Reporting Relationships 198</p>
<p>Composition of the Audit Committee 199</p>
<p>Role of the Audit Committee 201</p>
<p>Internal Audit Objectives 203</p>
<p>Internal Audit Activities 206</p>
<p>Managing the Internal Audit Function 209</p>
<p>Chapter 10 Recruiting, Training, and Supervision 215</p>
<p>Importance of This Chapter 215</p>
<p>Recruiting Sources 216</p>
<p>Factors to Consider When Recruiting 219</p>
<p>Factors to Consider When Promoting 221</p>
<p>Importance of Reduced Turnover 223</p>
<p>Importance of Developing Career Plans for Employees 228</p>
<p>Importance of Communications with Employees 231</p>
<p>How to Motivate Employees 233</p>
<p>Chapter 11 Controller s Role in Investor Relations 235</p>
<p>Importance of This Chapter 235</p>
<p>Objectives of the Investor Relations Function 236</p>
<p>Evolving Nature of the Function 237</p>
<p>Communication Vehicles for</p>
<p>Investor Relations 238</p>
<p>Investor Relations Message Recipients 239</p>
<p>Information Needs of the Financial Analyst 240</p>
<p>Information Needs of Other Groups 243</p>
<p>Disclosure Policy 243</p>
<p>Organization Structure for Investor Relations 245</p>
<p>Role of the Controller and Other Principals 246</p>
<p>Some Suggested Financial Market Objectives 250</p>
<p>Some Suggested Methods 251</p>
<p>Chapter 12 Taxation Strategy 253</p>
<p>Importance of This Chapter 253</p>
<p>Accumulated Earnings Tax 255</p>
<p>Cash Method of Accounting 256</p>
<p>Inventory Valuation 257</p>
<p>Mergers and Acquisitions 258</p>
<p>Net Operating Loss Carryforwards 259</p>
<p>Nexus 261</p>
<p>Project Costing 262</p>
<p>Property Taxes 262</p>
<p>S Corporation 263</p>
<p>Sales and Use Taxes 264</p>
<p>Transfer Pricing 266</p>
<p>Unemployment Taxes 269</p>
<p>About the Author 271</p>
<p>Index 273</p>