What Difference Between Line, Staff, Controller and Treasurer

Organizations go with their own basic mission objectives. People who have direct responsibility to achieve the basic objectives of an organization be in “ LINE POSITIONS “, while “ STAFF POSITIONS “ consist of people who support and have indirect responsibility to achieve the organization’s basic objectives.

For example, an organization which has the basic mission to produce and sell televisions, has line positions and staff positions. Line positions consist of Vice Presidents of Manufacturing, Vice Presidents of Marketing, Factory Manager, Production Manager, Assemblers manager, Electrical Foreman. They are managers who set policy and make their decisions which have direct impact on productions.

Staff positions consist of Vice Presidents of Financial, Vice Presidents of Human Resources, Controllers, Cost Accounting Manager and Purchasing Manager. These people have no authority over the managers in the production area but they may have influence upon the organization. Using accounting information, management accountants  have significant input into policies and decisions.

The chief accounting officer called Controller. He or she as a controller supervise all accounting departments because management accounting plays critical role on the operation of an organization. The controller is often viewed as a member of the top management team and is encouraged to participate in planning, controlling and decision making activities. A controller has responsibility for internal and external accounting requirements. Direct responsibility for internal auditing, cost accounting, financial accounting including financial reports and statements, systems accounting including  analysis, design, internal controls and taxes. The duties of a controller may vary from firm to firm. In some firms, the internal audit department may report directly to the financial vice president or some other vice president.

The Treasurer is responsible for the finance function such as to raise capital, manage cash and investments. As a treasurer, he or she may also charge of credit, collection, insurance and reports to the financial vice president.

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