They can benefit your company by providing a balance of financial expertise and accounting services management that bridges the communication between C-suite and day to day functionality of the accounting department. The controller carries out the implementation and day-to-day management of the operations of the accounting department. The controller’s oversight and account management enable the CFO to meet the company’s strategic goals. A good financial controller will develop efficient and effective strategies to increase profit margins, increase employee productivity, and find cost savings through cash management. Bottom line, financial controllers and CFOs enjoy a symbiotic relationship.

• They also monitor internal controls, handle compliance audits, assist with budgeting and, to a certain degree, analyze financial information.
• For reasons stated above, I disagree somewhat with including overseeing the accounting function as a role of the Finance Director.
• Mix them up and you will not secure job interviews or suitable candidates if you want to hire real talent.
• Before we dive in, however, allow me to give you the 30-second answer.
• Controllers handles the preparation of various reports, including accounting financial report, income statements, balance sheets, forecasts, etc.

Like the controller, CAOs need to know the numbers inside and out, but CAOs are watching out for potential threats and opportunities that will impact the business. This is most clearly reflected in the CAO’s role in ESG reporting and risk management. Depending on a firm’s size, controllers may supervise the accounting department staff, participate in the accounting process during tax season, and coordinate the hiring and onboarding new additions to the finance team. They are more in line with financial reporting than financial planning. The controller is more of a Chief Accountant, and this person reports to the CFO of a company.

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Then consider whether the company needs a Chief Financial Officer too. A CFO is the top financial executive in a firm, responsible for its overall financial strategy. A CFO’s purview covers overall market conditions, competitive analysis — in some cases — and the company’s equity structure.

Controller salaries vary depending on experience, the size and location of the company, and the complexity of the industry. Controllers at small companies (~$10MM in revenues) typically make $150,000 annually. Factor in variable compensation, benefits, and taxes, and you’re looking at a total cost of approximately $200,000 per year. On the other hand, middle-market companies can expect to spend closer to $300,000 per year all in. The CFO drives the company’s strategic direction (including go-to-market, hiring, funding, etc.) and communicates them to the external and internal stakeholders.

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Although similar roles are often combined, there are differences among these three positions. Being able to discern the different roles of each one is useful when deciding which expert is best suited to what a company needs, or if all of their roles are needed. The CFO is not just responsible for preparing financial statements — instead, the CFO analyses financial trends, identifying opportunities, reducing costs, as well as identifying threats to the company.

He can also spearhead finance operations (FinOps), leveraging technology to increase efficiency in running the finance function. Depending on the size of your business and its stage of life, the role you choose for that leader might be a controller, CFO, or both. The clarity we provided above can help you make the right choice, but taking action is vital. Don’t wait until you have unchecked growth or are ready to investigate an IPO before getting a financed-minded person on your team to help guide strategic decisions.

Finance Team Hierarchy

A controller or comptroller oversees the finance department and reports to the CFO. No matter what stage your company is in, it’s crucial to have a team in place that can help with making sound financial decisions. With so many titles such as CFO, controller, and comptroller floating around, it’s not always clear what roles a finance team should be comprised of. Knowing when to hire a full-time CFO, fractional CFO, and controller is essential for growing your business. Strategic finance to drive business value, business forecasting and planning, financial fund-raising, and M&A are important skills for the CFO.

Not sure that your business would benefit from outsourced CFO Services? Check out our blog for tips and criteria that you can use to evaluate whether it is the right time for your business to consider fractional CFO providers. The salary https://www.bookstime.com/articles/cfo-vs-controller range for a CFO is quite broad and dependent upon experience, the size of the company, the complexity of the industry, etc. For example, A CFO for a small company (~$10MM in revenues) will expect a base salary of around $225,000.

Who is a Finance Controller?

When your company can afford to pay a full-time CFO and a controller, consider whether the current controller is promotable to the Chief Financial Officer position. If yes, hire a new controller for day-to-day accounting activities and to support the CFO with useful financial analysis. Before your company can afford a full-time in-house Chief Financial Officer, it should obtain rate quotes for pricing and consider hiring a fractional CFO for its needed CFO services. Meanwhile, train your Controller to become a productive CFO later and request that the fractional CFO mentor your current controller and finance team.

They also make sure that accounting transactions are managed correctly, so that accurate financial records are maintained. The CFO reviews financial reports, manages risks, and targets future growth. Some day-to-day activities of the CFO include financial analysis, forecasting, finalizing financing, fund management, planning, implementing, strategizing, and coaching the rest of the finance team.