Bookkeeping

Controller vs CFO: The Differences and Similarities

chief accounting officer vs.controller

Coders code, drivers drive and copywriters write copy—but not every job title is quite so descriptive. 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.

chief accounting officer vs.controller

Controller vs CFO: 3 Key Differences

Mr. Lieberman is the founder and CEO of The CEO’s Right Hand, Inc., a New York-based consulting services firm that provides the full breadth of strategic, financial and operational advice to founders, CEOs and Executive Teams. As an experienced entrepreneur himself, he has served in various C-suite leadership and advisory roles across a wide spectrum of industries. This provides business and operational acumen and boosts their ability to snag high-paying, highly competitive roles. Many controllers are content to forego such a transition and stick to accounting.

Controller Roles & Responsibilities

  • CFO and controller salaries and other compensation vary by company revenues (size) and private vs. publicly traded status, and candidate qualifications and experience.
  • The biggest distinctions can best be described by breaking down the operations and responsibilities of each role.
  • Factor in variable compensation, benefits, and taxes, and you’re looking at a total cost of approximately $200,000 per year.
  • Fractional CFOs perform all the same functions as full-time CFOs and can help you solve specific financial problems on a part-time basis.
  • Add in variable compensation, benefits, and taxes, and you’re looking at between $300,000 and $400,000 (or more) annually.
  • Deciding when to bring on permanent in-house talent in either or both roles isn’t an exact science—every business is different, after all—but there are a few guiding principles to keep in mind.

On the other hand, the CAO is primarily responsible for maintaining the accuracy of financial records. This includes reconciling bank accounts, verifying invoices, analyzing financial statements, and ensuring that proper accounting procedures are followed. The CAO may also be responsible for meeting regulatory and compliance requirements.

CFO roles and responsibilities

It’s very difficult to nail down an average salary for mid- or upper-level accountants, but the majority of career accountants earn above $60,000 within three to five years after becoming CPAs. According to the Bureau of Labor Statistics (BLS), the median annual wage for accountants and auditors in 2020 was $73,560 ($35.37 per hour). Some positions, such as tax managers or internal audit managers, can earn as much as $130,000.

chief accounting officer vs.controller

In large companies, the controller reports to the Chief Financial Officer (CFO). In smaller organizations, however, the controller may report directly to the president or CEO. If you are running a small business, your controller may do much of this work themselves. As you grow, however, they will need help and will assume the responsibility of hiring a team and leading the accounting department. As big-picture thinkers, CFOs can’t be cavalier with details but also don’t need to concern themselves so much with all the ins and outs. They instead focus more on the company’s overall financial state, not each individual revenue stream or expenditure.

  • His first venture was CMR Technologies, a FinTech company based in San Francisco serving the investment management consulting space.
  • They work to prevent fraud and maintain accuracy for their co-workers, investors, creditors, and regulators.
  • Like their accounting counterparts, controllers tend to experience a much better work/life balance than others in the financial industry.
  • For example, A CFO for a small company (~$10MM in revenues) will expect a base salary of around $200,000-$250,000.
  • They also play a crucial role in identifying potential risks and opportunities and recommending mitigation strategies.
  • An uninformed observer could reasonably assume that accountants have something to do with a company’s accounts, for example, or that a financial analyst’s role would include analyzing financial data.

Financial Officers vs Accounting Officers

chief accounting officer vs.controller

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.

Accountants

Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. The number of accounting and auditing jobs in the United States is only expected to increase by 4% between 2019 and 2029. The terms Controller and Chief Accounting Officer https://nulled.ws/tags/partnerka/ (CAO) are often used interchangeably even though they represent different roles within a business. According to a 2021 exit survey with Ohio University MBA graduates, 43% of respondents had already received a pay increase and 36% had already earned a promotion. If you’re serious about becoming a leader in business, earning the right education is your first step.

chief accounting officer vs.controller

What are the Daily Responsibilities of a Chief Financial Officer (CFO)?

BLS data projects the number of financial manager jobs will grow 15% between 2019 and 2029. While the data does not break out the number of those positions that will be for the controller role, this is much faster than the 4% projected growth rate for all occupations during this period. In larger, established corporations, the owner(s) and the CEO are typically different people. While the CEO is heavily involved in decision-making and business operations, the business owner will possess a smaller role in the day-to-day business. The owner may sometimes consult with the CEO, but more often, they take a less hands-on approach.

Controller vs. Chief Accounting Officer: Which Management Position Suits You Best – Recommended Reading

  • According to a 2021 exit survey with Ohio University MBA graduates, 43% of respondents had already received a pay increase and 36% had already earned a promotion.
  • When it comes to authority and decision-making, the roles of accounting officers and financial officers differ.
  • Most of the time, these jobs involve using data to help an organization make decisions or keep track of how investments are doing.
  • As you grow, however, they will need help and will assume the responsibility of hiring a team and leading the accounting department.
  • If you’re serious about becoming a leader in business, earning the right education is your first step.
  • If their business fails, they may face financial hardships and even bankruptcy.

Other controllers work for the government and are akin to chief financial officers (CFOs) for their respective agencies. Ultimately, the decision between hiring a controller or a chief accounting officer comes down to your business needs and budget. When it comes to deciding whether you need a controller or a chief accounting officer for your business, there are several factors to consider. The size and complexity of your organization’s financial operations will play a major role in determining which position you need.

It is important to note that while qualifications and experience are necessary, soft skills such as communication, problem-solving, and teamwork are also highly valued in management positions. Most accountants work standard https://4stor.ru/user/Mne+Gusto/ 40- to 45-hour weeks and enjoy plenty of paid leave, holidays, vacation time, and even a modest amount of schedule flexibility. Despite its boring reputation, accounting consistently ranks among the most satisfying careers.

The CFO role is more comprehensive and includes capital structure and portfolio management. At a macro level, CFOs are responsible for liquidity, forecasting, ROI, and reporting. http://booksshare.net/index.php?id1=4&category=lunguistics&author=andreev-nd&book=1986&page=29 Controllers are accounting experts and should maintain adherence to the most recent Generally Accepted Accounting Principles (GAAP) and all relevant taxation regulations.

They’re the financial controller’s boss, as well as the accountants’, financial analysts, and often also the HR and Operations departments. As the title implies, a CFO is the chief financial officer in a business, typically serving as the trusted partner of the CEO and the rest of the leadership team. The controller and the CAO are both senior leaders, but the CAO is a business executive and a C-suite officer, as the title suggests. The controller is in charge of the accounting department, but the real decision-makers in the finance division are the CFO and CAO. Once the controller has a clear picture of where the company needs to go, it may begin planning.