What Does a Cost Controller Do?

A cost controller keeps track of a company’s budget and ensures that it doesn’t go over budget. In essence, a cost controller ensures that his company stays financially afloat. These individuals can work in a variety of industries, but their responsibilities are generally the same. Analyzing project costs, creating a budget, tracking costs throughout each project, meeting with department supervisors, and managing subordinates are just a few examples.

A cost controller will typically spend some time analyzing the potential costs before a project gets off the ground. For instance, if a company wants to replace its computers with newer models, the controller will calculate the upfront costs. He may also look into the possibility of additional unforeseen costs, such as software programs that must be purchased for the new computers. The project can start once the controller approves it and believes his company has the financial resources to support it.

Another important aspect of this job is creating a project budget. A cost controller must develop a realistic budget for each project in order to avoid unnecessary spending and financial trouble. To do so, he might look over financial reports and add up the estimated costs of a proposed project. Because mistakes could jeopardize his company’s financial well-being, accuracy is essential.

In addition, the controller must keep a close eye on spending throughout the duration of a project. He usually does this by comparing the company budget with actual expenses at each stage. If the numbers match, the project can move forward as planned. Significant deviations from the budget, on the other hand, may necessitate project revisions in order to stay on schedule.

Meeting with department supervisors on a regular basis is another common job duty in this position. Because open communication is so important for staying on budget, a cost controller may meet with supervisors one-on-one or hold multiple meetings throughout the project’s various stages. He might talk about short-term goals, long-term goals, and the status of a project. A controller must be a good communicator in order to do his job well.

In addition, some people may be in charge of subordinates. This is more common in larger businesses, but it can also happen in smaller ones. Most of the time, this entails overseeing accountants and other employees in a company’s financial department. When necessary, the cost controller may provide training and assistance, as well as disciplinary actions. As a result, this position necessitates a person with strong leadership abilities.