CFO vs Financial Controller: What Skills Do These Professionals Need?

The roles of a CFO (Chief Financial Officer) vs Financial Controller are both critical to a company’s financial health. However, they differ in scope, responsibilities, and required skills.

We will discuss the CFO vs Financial Controller roles and reveal the skills required by top professionals in these roles.

The CFO’s role within the organization and key skills

A CFO concentrates on the organization’s financial strategy, long-term planning, and overall financial health. This senior professional plays a key role in decision-making at the executive level. They often interact with the board of directors and investors. To undertake their role, top CFOs require the following skills:

• Highly developed strategic thinking that enables them to understand the company’s long-term goals and devise financial strategies to achieve them.
• Knowledge and experience in mergers and acquisitions, investments, and capital-raising activities.
• Strong leadership and communication abilities that enable them to lead the finance function and collaborate with other executives.
• The ability to communicate complex financial data to stakeholders, including non-financial executives and investors.
• Knowledge and experience in financial forecasting and risk management.
• The ability to develop financial models and forecasts.
• Risk management abilities.
• Knowledge of regulations and the ability to keep updated with changes.
• In-depth knowledge of taxation and compliance.
• An understanding of modern financial technology and the ability to use it to the advantage of the business.

The Financial Controller role within the organization and key skills

The job of a financial controller is to be responsible for the day-to-day financial operations of an organization. They ensure accurate financial reporting by managing accounting processes, compliance, and internal controls. The financial controller often reports to the CFO. To undertake their role, top financial controllers require the following skills:

• Proficiency in technical accounting skills.
• Expert knowledge of accounting standards.
• Proficiency in providing accurate and timely financial reporting.
• Strong attention to detail.
• A focus on accuracy in the compilation of financial statements, ensuring compliance with regulations.
• The ability to identify discrepancies in financial records.
• Experience in budgeting and cost management.
• Experience in process improvement and the ability to implement improvements.
• Expertise in streamlining accounting processes and improving efficiency.
• The ability to implement internal controls to prevent fraud and errors.
• Proven analytical and problem-solving abilities.

Career progression for CFOs and financial controllers

The financial controller role is often a stepping stone to a career as a CFO. It’s a technical role that involves operational management in the organization. Financial controllers require technical accounting expertise, detail orientation, and process management skills.

To progress to the more strategic role of CFO, they must develop the necessary skills and experience, including the ability to develop informed financial strategies that align with organizational goals and have a vision for the future of the business, as well as strong leadership and communication abilities.

The financial controller and CFO roles are both essential to the ongoing success of an organization. The skills of the individuals undertaking these roles complement each other, and they allow the individuals to work productively together.