Finance Controller vs. CFO: What's the Difference?
A CFO and a Financial Controller (FC) are both roles within the finance department of a business. A CFO (also known as a Finance Director (FD)) and Financial Controller can have some overlapping responsibilities, which can make it hard for SME’s to know the difference between the roles, and to know whether they need the support of an FC or CFO.
At The Finance People we are often approached by companies who believe they need a CFO, however upon further discussions it is apparent they actually require a Finance Controller, Finance Manager, Accountant or another level of finance support.
We offer a consultation service which is completely bespoke and will allow us to establish exactly what kind of support it is that your business needs. Contact us to book a consultation.
Nevertheless, we are going to guide you through the difference between a Finance Controller and a CFO in this article.
What is a Finance Controller?
The Finance Controller of a business may be their lead accountant, they will be ‘the do-er’ and responsible for day to day operations. Typical tasks for a Finance Controller will be around accounting and reporting, as well as other necessary functions such as internal financial processes.
A FC is responsible for the operational side of a businesses finances, they will look at data, trends and performance and provide this information to those that need it - such as the CFO or Directors.
Some examples of key responsibilities include:
External financial reporting - such as tax statements
Internal financial reporting and analysis
Approving invoices
Accounts payable, accounts receivable and managing accounting department
Payroll
A Finance Controller is there to manage the traditional financial duties of a small business, however they are not best equipped to support growing businesses.
A CFO and a Financial Controller are both roles within the finance department of a business.
What is a CFO?
A CFO, previously known as an FD, is the financial leader of a business, with authority only superseded by the Directors or Chief Executive Officer (CEO). A CFO will be relied upon for strategic financial and business advice, working with shareholders and directors they will have a wider company view and authority.
A CFO’s role goes beyond the reporting and maintenance of a FC’s job requirements. A CFO will look to implement strategies to grow a business and reach financial goals.
Some examples of key responsibilities include:
Liaising with the Directors/CEO
Strategic planning
Negotiate contracts
Manage investor relationships
Creating plans for revenue growth
Staff management - finance, HR, IT etc
Managing debt
Market analysis
There is some crossover when it comes to Finance Controller and CFO. For example, both roles are responsible for the risk management strategy, action plans from management reports, projecting cashflow and to review policies and procedures.
To put it simply, the main difference between the two is that the FC is responsible for reporting financial performance, whereas the CFO will act on the results supporting the business strategically.
Do I need a Finance Controller or a CFO?
For many businesses, there is not the demand to have both a Finance Controller and a CFO. A CFO when required, can take on many of the responsibilities of a Finance Controller.
Whether your business needs a finance controller or a CFO (or both) can be established through a consultation with The Finance People, we can take a detailed look at what responsibilities you need assistance with and the goals you would like your business to achieve. We can then combine that with your current resource and make a recommendation for the support we believe you could benefit from.
We can offer flexible options when hiring a finance expert to suit your companies needs, from part-time, interim and fractional CFOs, to fractional FCs, finance managers or other finance experts. Contact us today to arrange your consultation.