The Differences Between a CFO, Controller and Accountant

Should you hire a CFO, controller or an accountant?

One definition of an accountant is a professional who performs accounting functions such as audits or financial statement analysis who usually has a variety of administrative roles within a company's operations.  Accountants may perform financial functions related to the collection, accuracy, recording, analysis and presentation of a business, organization or company's financial operations. Accountants can be employed with an accounting firm, a large company with an internal accounting department, or can set up an individual practice.

Non-controller accountants can specialize in many areas.
​

• Auditor
• Tax accountant
• Forensic accountant
• Public accountant
• Management accountant
• Cost accountant
• Government accountant
• Project accountant
• Investment accountant
• Staff accountant
• Social accountant (aka Corporate Social Responsibility Reporting and Sustainability Accountant)

Forensic accountants for the FBI even go through firearms training. They are much different than a stereotypical calculator-punching accountant.

Accountants may also wear the hat of a bookkeeper or analyze the work of other bookkeepers. In this case, an accountant works to prevent fraud and maintain accuracy for their co-workers, investors, creditors, and regulators.

With such a wide variety of specialties accountants can fill, it is difficult to pin down a specific list of responsibilities. The general job duties of an accountant can include:
​

• Prepare journal entries
• Complete general ledger
• Monthly closings
• Preparation of monthly financial statements
• Reconcile and maintain balance sheet accounts
• Draw up monthly financial reports
• Prepare analysis of accounts as requested
• Assist with yearend closings
• Administer accounts receivable and accounts payable
• Prepare tax computations and returns
• Assist in preparing budgets and forecasts
• Assist with payroll administration
• Monitor and resolve bank issues including fee anomalies and check differences
• Account and bank reconciliations
• Review and process expense reports
• Assist with preparation and coordination of the audit process
• Assist with implementing and maintaining internal financial controls and procedures

​Some accountants become Certified Public Accountants (CPAs). A Certified Public Accountant (CPA) is an accounting professional who has passed the Uniform CPA examination and has also met additional state certification and experience requirements.  CPAs are held to a strict code of professional ethics.

Controllers often supervise bookkeepers, tax managers, credit managers and other accounting staff while reporting directly to the CFO, CEO or business owner. In smaller companies, a controller might be the only financial manager in the company or, they might supervise a team of accountants. They manage their duties with help from a clerk, bookkeeper or administrative assistant. In general, a controller concentrates on accounting and compliance while a CFO focuses on the forward-looking strategy of the organization.

There are a few different types of Controllers.
​

• Most common are business controllers and corporate controllers who manage an entire accounting system for their employers.
• In a smaller company, you may see a controller setting up the accounting infrastructure and performing the bookkeeping, while larger companies use controllers more in the role of oversight management.
• Other controllers may work for the government (also known as comptrollers) and are viewed similarly to business controllers for their respective agencies.

The CFO or controller is considered a member of the executive staff and plays a critical role in organizing and managing the accounting staff in a company.

While there may be some overlap based on an individual business’s circumstances
a CFO’s responsibilities may include:

• Develop and maintain a company’s financial policies and procedures
• Handle insurance and risk management policies
• Selection and maintenance of financial software
• Protect company assets
• Maximize return, and limit risk, on cash by minimizing bank balances; making investments
• Prepare budgets and recommends plans
• Schedule expenditures, analyze variances and initiate corrective actions to meet budgets
• Advise owners and executives on financial markets, trends and best practices
• Develop proactive tax strategies
• Prepare special reports by collecting, analyzing, and summarizing information and trends
• Manage outsourced financial activities
• Study existing and new legislation, anticipate future legislation, enforce adherence to requirements
• Recruit, select, orient, and train employees to maintain financial staff
• Maintain financial staff job results by coaching, counseling, and disciplining employees; planning, monitoring, and appraising job results

A controller’s responsibilities may include:

• Monitoring and controlling cash flow
• Establish, monitor, and enforce internal controls to protect assets
• Establish, monitor, and enforce policies and procedures
• Create and complete financial reporting systems (daily/weekly/monthly/quarterly/annual)
• Monitor and confirm financial condition by conducting audits; providing information to external auditors
• Oversee payroll, benefits, accounts receivable and accounts payable
• Collect, interpret, and report financial data
• Monitor debt and credit, pursue collections
• Comply with federal, state, and local legal requirements
• Schedule and assign employees; follow up on work completed by employees
• Recruit, select, orient, and train employees to maintain financial staff
• Maintain financial staff job results by coaching, counseling, and disciplining employees; planning, monitoring, and appraising job results

​Again, there are many variables, and the roles change from business to business, and industry to industry.  

CFOs and controllers typically have a great deal of accounting and business experience, and tax management knowledge. A CFO may also be expected to lend their expertise on investments, creditor relationships, corporate governance and in other strategic areas.
​
Next Step

Many CEOs and business owners are uncomfortable with the quality of financial reporting generated by their accounting department. This discomfort is often based on their concerns about the competency or skills of the accounting team to know the kind of information to provide or how to provide it.

Their concerns include:

• Answers to financial questions are inconsistent and may seem untrustworthy.
• Reports have errors which appear to be caused by staff not properly supervised.
• Management does not get the information needed to make good decisions.
• Reports are delivered late and as a result, not useful.
• Reports are too difficult to read or delivered with dense financial data.

One solution is to hire an interim or fractional CFO or controller.

All businesses, from start-up operations to international companies, face similar financial challenges.  An interim or fractional CFO or controller can offer sound financial advice and help your organization to improve, analyze, and interpret accounting data. A fractional financial executive provides:

• Intuitive insight with questions to help you think about your business in a new way.

• Broad experience with the financial challenges from a multitude of different companies.
• Financial expertise at a lower cost than if you hired a full-time, permanent financial employee.

Overview

Accountants prepare financial reports to facilitate the analysis on how well the company is doing and keep tabs on a company's money. They ensure the company's financial records are accurate and watch for theft. Some accountants may specialize in a certain area, such as payroll or taxes.
A controller oversees the accounting department and is responsible for its accuracy and timeliness. The controller controls the company's cash flow, oversees the production of financial reports, prepares tax, payroll and debt payments, and ensures the company is in compliance with government reporting requirements.

A CFO focuses on the forward-looking strategy of a business. The CFO provides executive financial insight and expertise to ensure the organization’s ability to reach its goals and long-term financial success.

If you need more time to focus on business growth, need a better understanding of business finances or more control of funds and fewer financial surprises, you should consider a fractional CFO or controller. They will also help you improve business decision-making capabilities, enhance financial controls to increase profit, and improve quality and timeliness of financial information.

About the Guest Contributor:
​CFO Selections

CFO Selections provides finance and accounting fractional and interim consulting, as well as executive search services to a wide range of business and non-profit organizations. Established in 2002, the company focuses on locating and recruiting the highest caliber senior-level talent available. Its team of consulting CFOs and Controllers work in a collaborative and problem-solving way to generate maximum results.