Controller vs CFO: Understanding Key Differences

At a macro level, CFOs are responsible for liquidity, forecasting, ROI, and reporting. Thankfully, financial controllers and Chief cfo vs controller Financial Officers are quite distinct. And as we’ll explore, it’s relatively easy to see what sets these two positions apart. “One of my big pushes here is to try to start automating stuff even more than we already do. So of course, BILL helps with that.”

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• They’re responsible for closing books on time and preparing accurate monthly reports reflecting your company’s financial status.
• Without a Controller, financial reporting could be messy and unreliable.Without a CFO, a company might lack vision and strategic growth.
• The precise differences between certain finance roles can be nuanced and hard to follow.
• A skilled outsourced bookkeeper can handle day-to-day accounting tasks, ensuring accurate records.
• This requires strong leadership skills and the ability to influence others.

By $10MM, the controller is more involved with managing internal controls, closing processes and report generation, as these tasks are more intensive and time-consuming than in smaller companies. At this size, there are many more moving parts in the accounting function, so the role is that of a classic controller. It is quite possible that you’ve seen other businesses with CFOs and controllers who have the exact same responsibilities. Hopefully, by the time you’re done reading this post, you’ll have a clear understanding of what these roles typically cover, where they sometimes overlap, and how https://www.bookstime.com/ you can plan out the makeup of your finance team.

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Then, let’s get on a call to strategize the best next steps to build your legacy business on sustainable strategies for long-term growth. The difference between Controller and CFO roles is vast, but most businesses, regardless of size, need both to succeed financially. As the founder of Brady CFO, I aim to help America’s small, family-owned, backbone businesses develop a strategic plan for the future. The CFO manages the Controller and their team of financial analysts that perform FP&A (Financial Planning & Analysis) activities. The focus of this team is to analyze the results of the financial reports produced by the Controller and identify what changes can be made to improve operating performance.

Salary

When you factor in additional costs such as bonuses, benefits, and taxes, the total cost of hiring a full-time Controller can be substantially higher. Evaluating your organization’s financial landscape is the first step in this decision-making process. If your business requires high-level strategic planning, such as fundraising, mergers, or market expansion, an Payroll Taxes outsourced CFO is likely more suitable.

Some controllers eventually become CFOs…

A CFO is a high-level financial leader focused on long-term financial planning, forecasting, and strategic decision-making. They use financial data to assess risk, shape the company’s capital structure, build banking relationships, and plan for growth. Their work involves analyzing income statements, balance sheets, variances, and other financial statements to guide strategic planning. In contrast, the controller is primarily responsible for financial reporting, record keeping, management of information technology, and accounting. Therefore they are mainly the people from accounting backgrounds instead of the finance and banking background of a CFO. While both roles have their merits, not all businesses need or can afford a full-time Controller or CFO.

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While there can be some grey area between a controller and CFO, a controller’s primary role is to ensure that the company’s financial reporting and accounting are accurate. A controller, also known as a financial controller, is a senior-level exec responsible for managing a company’s accounting activities. It is their job to ensure that money is being paid and received promptly and legally. If a controller deals in the daily minutiae, then a CFO is all about the big picture.