Controller vs CFO, which one suits your business needs? 

Your business might be growing to the point where it has come time for an investment beyond a regular staff accountant and/or bookkeeper. Perhaps you need someone who can help your company? Prepare for its first audit? Or need someone who can take the time to look at the bigger picture financially for your company? The biggest difference between a controller and Chief Financial Officer (CFO) is what area of focus they cover. Controllers are more for today’s events and day-to-day details. CFOs focus on the future and bigger, broader events.

Controller: Overview 

Controllers, or even accounting managers, usually focus on the day-to-day accounting activities. Such as ensuring tasks for payroll, Accounts Payable (AP), and Accounts Receivable (AR) are recorded correctly and the financial statements are being updated accurately. In smaller businesses, controllers usually operate with a few other individuals on the accounting team. They can take over some of the responsibilities mentioned for CFOs. As companies increase in size, the Controller takes on more of a managerial approach, reviewing work instead of being hands-on and inputting journal entries directly. A controller’s focus is ensuring accuracy and compliance with financial reporting and metrics that your company needs to succeed. Companies of all sizes hire controllers. They tend to be one of the most important hires in understanding financial reporting and where any issues could come from. 

CFO: Overview 

CFOs focus on the bigger picture of budgeting and planning. They are usually found in larger companies as the company expands beyond what a controller might be able to provide or have time for in their role. However, the scope of the work and value provided by a CFO can benefit small businesses, as well. While controllers are normally experts of accounting, CFOs usually have a strong understanding of accounting as well as a finance background to go with it. CFOs are in constant communication with the CEO and other executives.  They work closely with together. Developing long-term financial strategies and address risk management. CFOs are added to the financial/accounting picture once these responsibilities and tasks either become too much for the controller to handle or there is a need for them in the company’s long-term plans.

Moving Forward

This is just a general overview of differences between controllers and CFOs. If you have a new financial vision for your small business, we would be happy to assist.  We specialize in helping owners achieve their goals. Providing both Controller and Virtual CFOs for your business needs. 

Contributed by: Amanda Dunning