Does a CFO need a controller?

In most cases, yes. CFOs and controllers are complementary roles. The controller handles day-to-day accounting operations, freeing the CFO to focus on strategy. Without a controller, a CFO would spend too much time on operational accounting tasks.

Which is higher: CFO or controller?

CFO is typically the higher position. In organizational hierarchy, the controller often reports to the CFO. CFO is a C-suite executive role responsible for overall financial strategy, while controller is a senior management role focused on accounting operations.

Can a controller become a CFO?

Yes, but it requires developing new skills. Controllers have strong accounting expertise but need to develop strategic thinking, leadership, business acumen, and communication skills to become effective CFOs. Many successful CFOs started as controllers.

CFO vs Controller: Key Differences and When You Need Each

Q: What is the difference between a CFO and a controller?

A controller manages accounting operations: month-end close, financial reporting, compliance, and managing the accounting team. A CFO provides strategic financial leadership: planning, forecasting, fundraising, and guiding major business decisions. Controllers look backward at accuracy; CFOs look forward at strategy.

Quick Answer

A Controller manages accounting operations—ensuring accurate books, timely month-end close, and compliance. A CFO provides strategic financial leadership—planning, forecasting, fundraising, and guiding business decisions. Controllers focus on what happened (accuracy); CFOs focus on what should happen (strategy). Most growing businesses need both roles.

As businesses grow, finance needs become more complex. You might have a great bookkeeper, but now you're wondering: do I need a controller, a CFO, or both? Understanding the distinct roles of these positions helps you build the right finance team for your stage.

What Does a Controller Do?

A financial controller (or comptroller) is responsible for the day-to-day management of accounting operations. They're the "general" overseeing your accounting "army"—making sure everything runs smoothly and accurately.

Key Controller Responsibilities

Month-end close: Managing the process of closing the books each month, ensuring all transactions are recorded
Financial reporting: Preparing accurate financial statements (income statement, balance sheet, cash flow)
Internal controls: Establishing and maintaining procedures to protect assets and ensure accuracy
Compliance: Ensuring adherence to GAAP, tax requirements, and regulatory standards
Team management: Overseeing bookkeepers, staff accountants, and AP/AR staff
Audit support: Coordinating with external auditors and managing the audit process
Accounting systems: Managing and optimizing accounting software and processes

Controller Mindset

Controllers are detail-oriented and focused on accuracy. Their primary question is: "Are these numbers correct?" They ensure the financial foundation is solid before anyone else makes decisions based on the data.

What Does a CFO Do?

A Chief Financial Officer provides strategic financial leadership for the entire organization. While controllers ensure the numbers are right, CFOs use those numbers to guide business strategy.

Key CFO Responsibilities

Financial strategy: Developing plans to achieve business goals, allocate capital, and drive growth
Planning and forecasting: Building budgets, projections, and scenario models for decision-making
Fundraising: Securing debt or equity financing, managing investor/lender relationships
Cash management: Ensuring adequate liquidity and optimizing working capital
Board relations: Presenting financial information to the board and supporting governance
Strategic decisions: Analyzing major decisions (M&A, pricing, expansion) from a financial perspective
Risk management: Identifying and mitigating financial risks
Leadership: Leading the entire finance function, including the controller

CFO Mindset

CFOs are strategic thinkers focused on the future. Their primary question is: "What should we do?" They translate financial data into actionable insights and guide major business decisions.

CFO vs Controller: Side-by-Side Comparison

Aspect	Controller	CFO
Primary Focus	Accounting operations	Financial strategy
Time Orientation	Past/present (what happened)	Future (what should happen)
Key Output	Accurate financial statements	Strategic plans and decisions
Stakeholders	Internal teams, auditors	Board, investors, lenders, CEO
Typical Salary	$100,000-$200,000	$200,000-$400,000+
Reports To	CFO or CEO	CEO and Board
Credentials	Often CPA	MBA common, CPA optional

Key Takeaway

Think of it this way: the controller makes sure you have accurate, reliable financial data. The CFO uses that data to make strategic decisions and guide the business forward.

How Controllers and CFOs Work Together

In well-functioning finance departments, controllers and CFOs are complementary:

The controller ensures the month closes on time with accurate data
The CFO analyzes that data to identify trends and issues
The controller maintains compliance and internal controls
The CFO presents results to the board and investors
The controller manages the accounting team day-to-day
The CFO sets the overall finance strategy and priorities

This division of labor allows each role to focus on what they do best. Without a controller, a CFO wastes time on operational accounting. Without a CFO, a controller lacks strategic direction.

When Do You Need a Controller?

Consider hiring a controller when:

Revenue exceeds $3-5M and financial complexity has increased
Your bookkeeper is overwhelmed or lacks sophistication for your needs
Month-end close takes too long or produces unreliable data
You need better internal controls as the company grows
You're preparing for audit or have compliance requirements
You have multiple entities or complex accounting needs

Controller Cost

Full-time controllers typically earn $100,000-$200,000 depending on market and experience. Part-time or outsourced controller services run $2,000-$6,000 per month.

When Do You Need a CFO?

Consider adding CFO services when:

Revenue exceeds $2-5M and strategic decisions become more complex
You're raising capital (debt or equity) and need financial sophistication
Cash management is challenging despite healthy revenue
You have investors or a board expecting professional financial leadership
Major decisions loom (acquisition, expansion, exit) requiring financial analysis
Your controller needs strategic direction from above

CFO Cost

Full-time CFOs cost $200,000-$400,000+ in salary plus benefits and equity. Fractional CFO services provide similar strategic value at $3,000-$15,000 per month.

Do You Need Both?

The answer depends on your size and complexity:

Under $3M Revenue

A good bookkeeper plus a fractional CFO for strategic decisions may be enough. Controller function can be outsourced or handled by a senior bookkeeper.

$3M-$20M Revenue

This is typically where you need both roles. A controller (full-time or part-time) handles accounting operations, while a fractional CFO provides strategic guidance. This combination is cost-effective and covers all bases.

$20M+ Revenue

You likely need a full-time controller and should consider whether fractional CFO services still suffice or if it's time for a full-time CFO. This depends on complexity and growth trajectory.

Can One Person Do Both Jobs?

Some companies hire a "Controller/CFO" hybrid, especially at smaller sizes. This can work but has limitations:

Pros

Cost savings with one salary instead of two
Simplified organizational structure
One person owns all of finance

Cons

Operational accounting often crowds out strategic thinking
Different skill sets—strong controllers may lack strategic CFO abilities
Not scalable as the company grows
Burnout risk from trying to do two jobs

Key Takeaway

The hybrid approach works for some smaller companies, but typically the operational demands of the controller role prevent strategic CFO work from getting adequate attention. As companies grow, separating these roles becomes essential.

Building Your Finance Team

A typical progression for growing companies:

$0-$1M: Bookkeeper + CPA for taxes
$1-$3M: Senior bookkeeper or part-time controller + fractional CFO as needed
$3-$10M: Full-time controller + fractional CFO
$10-$30M: Controller + accounting staff + fractional CFO (heavier engagement)
$30M+: Controller + team + full-time CFO consideration

This progression isn't rigid—your specific situation, complexity, and growth rate matter more than revenue alone.

Next Steps

Not sure whether you need a controller, CFO, or both? Schedule a free consultation to discuss your specific situation. We'll help you understand what level of financial leadership makes sense for your stage and goals.