CFO vs Controller: understanding the differences in financial leadership

Put our financial leadership to work at your business with a fractional CFO. They are able to analyze complicated financial data and understand how the company has performed while helping form a vision for where it could go. cfo vs controller Fill out the form below and our team will reach out to discuss how we can help your business implement, or optimize, your accounting function. Whether you require the services of a CFO, a controller, or both, it’s now easier than ever to find the professional your company needs to keep progressing. Within the business’ hierarchy, a CFO will usually report to the CEO and the board of directors while acting as the primary financial spokesman.

Since their role is to act as a trusted advisor to the CEO, President, and others on the management team, it’s important to choose someone with whom you can build a strong working relationship. Remember, the exact responsibilities of a CFO can vary depending on the company’s size, industry, and specific needs. But one thing’s for sure – it’s a dynamic, challenging role that requires a unique blend of financial expertise, strategic thinking, and leadership skills. CFOs oversee major financial decisions, including budgeting, investments, and capital allocation. They ensure these decisions align with the company’s strategic objectives and financial goals. If you know you need help in your business and accounting department right now, but you also know you aren’t ready to commit to hiring a full-time role, you should consider a fractional CFO.

Controller vs. CFO: Understanding the 4 Key Differences

This article compares the CFO and controller roles, exploring their unique expertise, outlooks, and leadership styles. Read on to discover the way their synergy ensures financial excellence. In a large organization, it is important to have divisional and sub-divisional heads to look after the smooth function of the various roles.

Education and Skills

That’s why heads like CFO and controller play a very important part in the functioning and decision-making of an organization. A CFO on paper is responsible for anything to do with finance in a company. Efficient controllers can even reduce the amount of time it takes to close financial periods through combining leadership and advanced accounting knowledge that your bookkeeper may not have. Since these numbers can vary widely, it’s important to weigh multiple factors in a business when thinking about hiring a CFO. These factors can include the rate of growth the business is experiencing, the number of employees, and the current and anticipated financial complexity of the business.

This role looks at annual revenue to identify the next steps for exponential growth. A Financial Controller performs duties such as management of cash flow, conducting compliance audits, budgeting for various departments, compiling financial reports and statements, etc. As the business grows, so does the need for distinguishing these roles. While the CFO is the head of the finance department, the Financial Controller is the leader of financial operations.

Expertise and expectations

A virtual CFO can replace at least one full-time employee with additional savings in the finance department of up to 30%. See our outsourced accounting pricing tiers to learn more about our base packages starting at $1000 per month. The Controller is your reviewer of all financial and monthly reporting. The focus of the controller is generally on more historical financials. Are you struggling to decide whether your company needs a CFO, a controller, or both?

What is a Chief Financial Officer (CFO)?

• Hiring the right controller will be a great step forward to better understand your finances.
• It enables them to scale their departmental operations effectively as their companies grow without adding resources or incurring new operating costs.
• They are ultimately responsible for all financial information required and produced by the company and are the ones who control all the internal accounting processes.
• CFOs oversee the capital structure, balancing debt and equity to ensure the company has the funds it needs to operate and grow.

This technical role can include managing accounts receivable, conducting operations oversight analysis, and creating and monitoring internal controls. The Controller typically reports to and supports the CFO in providing budgeting and forecasting numbers. The Controller’s oversight and monitoring of the business’ finances gives the CFO confidence in the financial data as accurate – and thus, actionable. A bookkeeper is in charge of day-to-day accounting tasks such as paying bills, posting accounts receivables, performing bank reconciliations and issuing 1099s. They are responsible for entering and coding financial data in the bookkeeping or financial management system.

The role of a controller is increasingly important for organizations that use AP automation to streamline their financial processes. Below are some key ways hiring a controller can be beneficial for your organization. Controllers and CFOs each have a role in ensuring their organizations’ future success and financial resilience. This includes adapting strategies and processes as business needs evolve to meet new market challenges and circumstances. As C-suite leaders, CFOs often have a strong finance or business administration background and a deep understanding of financial markets, capital investment, and strategic growth opportunities.

Forget about the CFO vs controller question and hiring a CFO for now. Hiring the right controller will be a great step forward to better understand your finances. If you do already have a controller and your finance needs are becoming more sophisticated, it may be time to search for a CFO.

Typically, the controller and their FP&A team work with and report to the CFO. At the basic level, a controller is tactical, whereas a CFO is strategic. Fintech companies have been experiencing a strong exponential growth in the last few years due to the facility and security they give to the society. Our team ensures you receive and maximize the tax credits you are eligible for. Certain startups can receive up to $500k from the government annually for their prior year’s R&D spend.