CFO or Controller? Which is Right for your Business?

A financial controller is a senior-level executive who acts as the head of accounting, and oversees the preparation of financial reports, such as balance sheets and income statements. At some companies, financial controllers are involved in evaluating and selecting technology for use within the finance department or other related departments within the organization. A company’s financial operations encompass disparate activities, including accounts payable and receivable, tax and regulatory compliance, payroll, investment management, and more. Given the complexity, even finance professionals may struggle to understand how leadership within their department divides https://www.bookstime.com/ its responsibilities. This is especially true when it comes to distinguishing the roles of the chief financial officer (CFO) and the controller. In short, both the CFO and controller play crucial roles in ensuring your company’s financial health.

• They lead the entire finance department, setting the tone for the team’s culture and ensuring everyone works together effectively.
• They use financial data to assess risk, shape the company’s capital structure, build banking relationships, and plan for growth.
• They oversee the day-to-day accounting operations, including accounts payable and receivable, general ledger, and financial statement preparation.
• Simply, a bookkeeper will lack the expertise and experience to generate those statements reliably past a certain size and complexity.
• They’re the financial controller’s boss, as well as the accountants’, financial analysts, and often also the HR and Operations departments.
• CFOs, while not confined to a specific educational path, generally share a similar foundation with a bachelor’s degree in finance or accounting.
• For CFOs in particular, access to this information is critical for setting successful short- and long-term financial strategies and tracking progress toward goals.

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Most CFOs hold advanced degrees in finance, accounting, or business, typically an MBA or a master’s in finance or economics. They also bring extensive experience in financial leadership, strategic planning, and capital management. Whether a company needs both a CFO and a controller depends on its size, complexity, and stage of growth. Smaller companies often find that one role can cover both functions or that they only have enough work to support a part-time or fractional CFO.

What Size Companies Bring in CFOs?

Carl Long, with over 20 years of experience in accounting and finance, has excelled in roles covering tax, treasury, facilities, procurement, and financial management. They are among the most influential people in a company’s accounting and finance department. They play a significant role in guiding the direction of a company’s future and advising stakeholders on important business decisions. CFOs identify business risks by looking at financial data and making appropriate decisions to mitigate them, among their many leadership functions.

• The controller makes decisions related to managing financial reports, implementing internal controls, and ensuring compliance with financial regulations.
• A financial controller is more internally focused, managing the accounting department, overseeing bookkeeping, and ensuring accurate financial reporting and compliance.
• The CFO plays a central role in negotiating terms and makes certain the transaction aligns with the company’s long-term strategy.
• Hiring a full-time CFO or Controller can be expensive, especially for small to mid-sized businesses.

How a Fractional Controller Enhances Day-to-Day Accounting

Think of them as the guardian of a company’s financial present, ensuring everything adds up (quite literally). CFOs oversee the capital structure, balancing debt and equity to ensure the company has the funds it needs to operate and grow. The Chief Financial Officer is like the financial architect of Accounting Errors a company, designing and overseeing the big picture of the organization’s fiscal health. However, it is not recommended to rely on your CPA for CFO-level responsibilities like strategic direction. A competent Controller paired with a qualified CFO is an effective combination for a business.

Some controllers eventually become CFOs…

Select finance professionals are trained in GAAP fundamentals and may hold a GAAP certification. AICPA’s certification on GAAP for example equips finance professionals with the skills to master GAAP accounting and financial reporting concepts. The CFO role is more comprehensive and includes capital structure and portfolio management.

Risk management and compliance

A CFO is also a visible leader in the eyes of both staff and external stakeholders, serving as the face of the company alongside the CEO. The most successful CFOs are effective communicators who can inspire confidence among employees, investors, and the broader market. With these factors in mind, you will be well on your way to finding the right financial controller for your organization. Finally, be sure to verify that the candidate you are considering has the necessary skills and experience to effectively manage your finances. If you are thinking about hiring a financial controller, there are a few things to keep in mind. If your business is still in the startup phase, it cfo vs controller may not be generating enough income to justify the expense of hiring a CFO.

• With high-quality outsourced accounting services, business owners can leverage the power of a robust, fully functioning back office while only paying for the services, time, and people that are actually needed.
• The entire complex decision of whether to hire a Financial Controller or a Chief Financial Officer (CFO) can be distilled into one powerful question.
• The Controller and CFO work together to develop accurate financial forecasts, which are used to make informed business decisions and adjust the budget as needed.
• Check out these 5 best states for business taxes and 5 worst ones to make the right choice.
• Research indicates that companies conducting proactive market analysis can adapt more swiftly to economic changes, providing a significant competitive advantage.

CFO vs. Controller: Understanding the Key Differences

Does your business need a controller or CFO for its planning, financial reporting, cash management, and decision-making analysis? Learn about the roles and responsibilities of the CFO and controller and when to hire them. At the enterprise level, it’s no longer controller vs. CFO—it’s controller and CFO. These different roles work in partnership to drive your company’s long-term success. The controller ensures accurate, timely financial information, while the CFO uses that data to guide financial strategy, evaluate initiatives, and ensure your capital structure supports long-term growth. A CFO can help when a business is at a crossroads or once it’s reached a level of complexity that requires part-time or full-time strategic assistance.

A controller has four tiers of accountability, each with its own responsibilities. If you’re in Kansas City, one of the experienced financial leaders at Crown CFO can complement your existing finance team and be the advisor they need. Contact Kerry George at to bring a trusted, expert Fractional CFO to your business. Conversely, the CFO is focused on positioning the company for long-term success.