In the past, companies were not as large as they are today and could manage without the many positions that are commonly seen in big corporations. Two positions often seen today are CFO and Controller. To an outsider, these roles may appear similar due to the nature of their responsibilities. However, there are several differences between the two positions.
Key Takeaways
- A Controller is a financial manager who is an expert in the latest financial systems and software. They efficiently manage cash flow, bookkeeping, and can create weekly or monthly financial reports. In some cases, they can even make major cash flow decisions.
- A CFO is a higher-ranking position than a Controller. They have the qualifications to handle all tasks that a Controller does, as well as more complex situations such as negotiating debt and equity financing and maintaining good relations with banks and other financial institutions.
- If a company has a Controller who is performing well and taking on challenges beyond their responsibilities, they may not need a CFO. However, if the tasks become too much for the Controller, the company can either hire a part-time CFO or replace the Controller with a full-fledged CFO.
