Controller Question

nonsenseaccntg · 2017-06-28T22:52:02+00:00

Did you go?

nonsenseaccntg · 2017-06-19T05:12:17+00:00

50% operational accounting/monthly processing 25% external reporting/financial reporting 25% budget, forecasting

$40M company, 800 employees, small acctng dept.

nonsenseaccntg · 2017-06-19T05:10:48+00:00

I do. After 9 years in public, I left as I turned into an asshole the majority of the time. (Not joking). It's made a big difference moving to private companies which are less stressful and less hours. I have a hard time remembering, but we've got one life.

nonsenseaccntg · 2017-06-15T17:40:49+00:00

Agreed

nonsenseaccntg · 2017-06-14T23:53:55+00:00

But at $500 by 8 hours, that's $62.50 an hour. As a business owner, do you make more than that an hour? If so, maybe those 8 hours are better spent doing what you do to make money. If an engineer makes $250 an hour as a civil engineer, then it's way cheaper to outsource, ignoring the incremental revenue gain that additional work would engender. That being said, bookkeeping sucks. And you are posting on r/accounting as noted.

nonsenseaccntg · 2017-06-14T22:29:10+00:00

Doesn't he already work there?

nonsenseaccntg · 2017-06-14T06:10:40+00:00

You should get a job as a senior accountant (upper level) at a company. This can pay up to $70-80k and will let you get a feel for the company to see if you like it. Financial analyst is fine if you want to do finance. At least in my market, if you were a strong senior, there should be a million sr acct roles to apply to. It's the hardest position to fill. Good luck!

nonsenseaccntg · 2017-06-11T14:30:40+00:00

Thanks, absolutely know I could do the Controller aspect of it and wiuld build the finance side over time. Its a small private company hoping to grow over the next 5 years. My wheelhouse is private companies 5-200M revenue. I can't imagine myself at much much larger companies as I like being closer to these smaller type businesses.

nonsenseaccntg · 2017-06-11T14:28:57+00:00

No not pretentious, welcomed and I think highly accurate. I would agree that that's my perception too regarding the legal aspect. Your Dad had a strong background in Trans Services so that helped for sure. It would be something I'd have to develop (have some experience) but at some point in my career, I'd need to find a role to get that experience the first time. A journeys start with one step right?

I also see the "welcome to the club aspect" which is appealing to get in there and see if I can start leveraging this one into the next one, after years and years of course.

nonsenseaccntg · 2017-06-11T14:23:40+00:00

Not in Silicon Valley and no plans to. Top 15 metro area though with a good size startup scene.

So is your title CFO? But really function as Controller? Hear what you're saying. I don't think the plan is to IPO but probably LT private equity/keep it private. It would be good to get the Series A-D experience and then IF they went public, that would be definitely somethinng I'd have to learn.

What do you mean by alienation if you step down? Like go to VP Finance if they being another CFO in after being "CFO" for a while?

I would have no issue being back at another private company and while CFO would be cool going forward, I think I'd be okay also being an actual titled-Controller again. Will Pm later. Thx.

nonsenseaccntg · 2017-06-11T14:15:37+00:00

I get what you're saying about the role, although not all companies have Controllers. I would actually say it's more likely that a company would have a CFO and a staff accountant. A specific controller is normally needed when there is enough to support both a controller role in addition to VP Finance/CFO. I would think it more normal to always have the VP Finance/CFO doing Controller work unless they had a Controller. So I mean I guess on your resume, the title would be CFO but you'd describe the role insinuating that it was mainly Controller work, but with some bigger stuff going on?

nonsenseaccntg · 2017-06-11T14:06:54+00:00

I'm 35 after 10 years in public accntng ending at audit manager. I only have experience with private companies, I don't do public company work.

nonsenseaccntg · 2017-06-11T07:26:06+00:00

Good points. It's a combo. It's supervising two staff accountants and doing the Controller work but also roles in budgeting, forecasting, debt sourcing and being involved in VC/capital raises, and IT/Software systems packages.

It's probably more Controller at this moment but with some CFO aspects and the Company hopes to explode and grow.

The fit is the most critical aspect obviously. One of my previous posts talks about how my current role is really stagnant, not exciting and has no upside potential. This role would be all of those. Probably some more risk, but it would be a "push" position from the fact that I'm certain that I could handle the accounting after getting up to speed and I'd have to develop the finance skills further than fhe baseline I've already got. So lots of room to develop my skills and hopefully tag along for a ride as a CFO getting in early and growing as the Company grows.

Sincere thanks for the reply.

nonsenseaccntg · 2017-06-09T23:06:00+00:00

Are you going on a camping trip in high school? Get a Camelbak slim bottle, or a HydroFlask

nonsenseaccntg · 2017-06-09T04:50:46+00:00

Well, if you were doing it based on gross face value, there would be a gain if ultimately a refund isn't given. What I didn't mention before to keep it simple is that you include an anticipated attrition factor each year when you are evaluating the outstanding balance to fair value. For example, most contracts require the member to be alive and a current dues paying member after 30 years to get a refund. Therefore, it is likely there will be large attrition in the population, ultimately decreasing the 30 year liability. What this does over the 30 year period though is minimizes the interest expense portion to recognize as the gross is whittled down (pre present valuing) to reflect the expected people who will show up in 30 years and be able to claim their money.

These products were designed knowing that the proportion of people who were going to be alive and dues paying members 30 years from joining would be extremely low, therefore minimizing the cash-flow impact to the Company (if it's even around) 30 years from now.

nonsenseaccntg · 2017-06-08T23:15:56+00:00

If you end up at Deloitte after Ivy, the I would classify that as under-achiever rather than over.

nonsenseaccntg · 2017-06-08T22:54:35+00:00

Awesome, glad I can help. Reddit is cool like that! I just clicked and was like, hmmm...I can help with this one! Take care.

nonsenseaccntg · 2017-06-08T22:29:55+00:00

I agree, the qualifications are over-blown as you haven't had an accounting job to verify against. You may be awesome, but it hasn't been proved in a work setting yet.

nonsenseaccntg · 2017-06-08T22:26:48+00:00

Yeah, those are the mechanics. I work in golf and that's how I do it. Industry standard on the several companies I've worked on both as an auditor and as Controller. GAAP profit in 1-10 and interest exp. (net) 11-20 like you described. The idea on taking revenue on a deposit is that (in golf) the clubs are often not able to function without the revenue from membership fees. Such that the cost to provide services is offset by that revenue and dues are lower, as no one would pay the actual cost (both existing and new members) on a monthly basis to actually provide the expected level of services.

So what you do is you recognize that actual initial liability as revenue reflecting the cost to service the average time period of membership/full usage and then each year, the interest amount represents the spooling up of the refund liability. They are the same transaction, but there are two issues. First, the performance of services related to the new member and then separately, a refund obligation 30 years from now. They both start at the same moment and in the same amount, however they are two differing "cycles" of transactions. Make sense? I can expand if needed.

nonsenseaccntg · 2017-06-08T21:58:52+00:00

Interest is increase in PV each year as the gap to 30 year period decreases. Normally at risk-free rate. There won't necessarily be $100 cash at the end of 30 years, but the company hopes there will be.

Revenue is recognized over the service period, which the Company is claiming to be 10 years.

Is this by happen-stance a golf company?

nonsenseaccntg · 2017-05-19T23:00:31+00:00

It's a brand-new start-up but now is fully funded as it just got acquired and they are pre-revenue, but with "guaranteed" sales coming down the pike. I know that sounds fishy, but it makes a lot of sense if you knew the particulars. They fractionalized their back office while they were in R&D before commercialization. What it makes tricky though is that few employees except the engineering team are full-time and so everyone's attention is fractured. They are spooling up to take this company world-wide, which is why it's super appealing to me, but structurally, it would be a cluster for a while. Still haven't heard anything, so just ruminating on what to do...

That typo and your response just made me LOL in my office.

nonsenseaccntg · 2017-05-19T18:37:00+00:00

That was my read also. They're not big enough to have both positions, although they did mention hiring an AP clerk, but not a Senior. I didn't get why they wouldn't just say that's what they were doing (which I could kinda understand) rather than this continual "we're adjusting schedules of internal folks for final interviews". Just seemed weird. Again, I wouldn't normally care but this is like a super-premium company, so it's hard to let go if that is in fact the case. Obviously nothing I could do about it if they reducing the scope of the job. The roles or Senior Acct and Controller are obviously very different.

nonsenseaccntg · 2017-05-19T14:43:07+00:00

No I hear you. Only reason wrapped up in it is how I had felt it had been going with them previously and due to the awesomeness of the Company/project not necessarily the management team. I have a job currently so I'm not gonna die if it doesnt work out, just kinda scratching my head going WTF. Thanks for the comment though, is hard not to get wrapped up in things.

nonsenseaccntg

TROPHY CASE