CFO vs. Controller: What’s The Difference (& Why Does It Matter For Your Startup?)

It’s not always obvious which roles you should be hiring for in your company or when to do so. For many high-growth startups, hiring for the financial side of a business presents its own set of complexities, among them whether to  hire a controller or a chief financial officer (CFO). What’s the difference in these roles, and which one is most important for your business?

This article examines the roles and responsibilities of a CFO vs. a controller, and identifies signs that indicate your startup should hire one or the other. We’ll also introduce a third option that can fulfill your startup’s financial management needs—without hiring either one.

“For many high-growth startups, hiring for the financial side of a business presents its own set of complexities, among them whether to  hire a controller or a chief financial officer (CFO).” 

CFO Vs. Controller: What’s the difference?

A CFO is:

The senior executive responsible for managing the financial actions of a company. The CFO’s duties include financial planning and tracking cash flow as well as analyzing the company’s financial strengths and weaknesses and proposing corrective actions.

CFOs focus is on long-term strategic financial planning and growth working closely with the CEO; they make decisions based on analysis of the accounting department as well as the sales and marketing departments. In addition to strategic planning, CFO responsibilities include overall financial strategy,  preparing financial projections, scenario modeling, comparing actuals vs. budget, reporting and presenting financials to the board/investors, and more.

A controller oversees the accounting operations of a company.

Controllers are responsible for financial management and regulatory compliance; overseeing accounting and record-keeping operations, including preparation of financial reports (profit & loss/income statement, balance sheet and cash flow statement), are included in their role. They may also be responsible for managing other business-wide issues, including IT, human resources, insurance, sales tax reporting, and federal income tax reporting, among others.

CFO vs. Controller Responsibilities: A Detailed Breakdown 

Area Of Responsibility

CFO

Controller

Functional oversight/management 

✅Accounting: GAAP

✅ Accounts payable/receivable/billing

✅ Financial Analysis

✅ Tax

✅ Treasury Strategy

✅ Non-finance staff responsibility (HR, IT, etc.)

Strategic Planning 

✅Participation in strategy discussions

✅Selection of initiatives

✅Creation of financial plan (p/l, b/s, cash) 

✅ Tax strategy

✅ Risk Management Strategy

✅ Internal Control Strategy

✅ Market/Product Analysis

Management Reporting

✅ Design management reports

✅ Prepare management reports

✅ Develop action plans for management reports

✅ Design financial statements: historical and projections

✅ Prepare financial statements: historical and projections

Budgeting/Forecasting

✅ Develop budget targets and other financial plans

✅ Facilitate budget process

✅ Prepare budgets and financial forecasts

✅ Project cash flows

✅ Review capital requests/approval process

✅ Process capital requests

✅ Job costing 

Board of Directors/Investors

✅ Board reporting, preparation and delivery

✅ Maintain investor relations

Contracts/Outsourced Functions

✅ Negotiate contracts

✅ Negotiate outsourced functions

✅ Maintain insurance coverage

Mergers & Acquisitions/Divestiture Activities

✅ Develop M&A targets

✅ Financial offer

✅ Negotiate acquisitions

✅ Due diligence

✅ Implementation

✅ Divestitures/shutdowns

Investment/Funding Activities

✅ Develop banking relationships

✅ Maintain banking relationships

✅ Arrange debt financing

✅ Conduct equity placements

✅ Invest funds

✅ Issue credit to customers

✅ Monitor cash balances

SEC/SOX/Internal Controls/Audit 

✅ Review and submit SEC reports

✅ Prepare SEC reports

✅ Design and review policies and procedures

✅ Maintain policies and procedures

✅ Review internal control system

✅ Maintain internal control system

✅Manage auditor relationship

✅ Prepare audit information/schedules

✅ Develop action plans relative to internal control needs

Financial Analysis

✅ Develop key metrics measurements

✅ Maintain key metrics measurements

✅ Banking and operational reporting package

✅ Develop action plans