Financial Controller vs CFO – How Do They Compare?
January 7th 2025 | Posted by Christine Schneider
Financial Controllers and Chief Financial Officers (CFOs) are equally crucial to a company’s financial success. However, their roles differ significantly in scope, responsibilities, and focus. We will compare the two roles and discuss their responsibilities and focus.
Role and focus of a CFO vs Financial Controller
Comparing the roles of CFO and Financial Controller reveals their focus within an organization. We will start with the financial controller role, which involves the following:
- Ensuring the accuracy and integrity of a company’s financial records.
- Managing day-to-day accounting operations, including financial reporting, compliance, and internal controls.
- Ensuring that past and present financial records are accurate, and operations run smoothly.
Moving on to the CFO role, which involves the following:
- Focusing on the company’s overall financial strategy and long-term planning.
- Leading the financial management and strategy of the organization, including managing capital structure, risk, and strategic decision-making.
- Driving business growth and aligning financial strategies with corporate goals.
Key responsibilities of a CFO vs a Financial Controller
Looking more closely at the roles of Financial Controller and CFO reveals the specific responsibilities of each role, which we have listed below.
Financial Controller
- Financial Reporting, including preparing financial statements and ensuring compliance with regulations and standards.
- Budgeting and Forecasting, including developing budgets and monitoring spending against them.
- Internal Controls and Compliance, including implementing and enforcing internal controls to prevent fraud and errors.
- Audit Management, including coordinating with internal and external auditors.
- Team Management, including overseeing the accounting team, such as accounts payable, receivable, and payroll.
CFO
- Strategic Planning, including developing and executing the company’s financial strategy.
- Risk Management, including identifying and mitigating financial and operational risks.
- Investor Relations, including communicating financial performance and strategy to investors and stakeholders.
- Capital Allocation, including managing investments, debt, and equity to optimize returns.
- Mergers and Acquisitions, including leading due diligence, valuation, and integration processes.
- Leadership, often including being part of the executive team and driving company-wide decisions.
A comparison of key skills
To complete their responsibilities effectively, CFOs and financial controllers require certain key skills. We have listed these skills in the table below for easier comparison.
| Skill | Financial Controller | CFO |
| Technical Expertise | Strong in accounting, compliance, and reporting | Broad financial knowledge, including capital structure and risk management |
| Strategic Thinking | Limited, with a focus on current operations | High, develops long-term strategies |
| Leadership | Leads accounting team | Leads the entire finance function, part of the executive team |
| Communication | Communicates within the finance department | Communicates with executives, the board, and investors |
| Risk Management | Focus on operational risk | Focus on financial and strategic risk |
| Innovation and Technology | Implements financial systems | Leverages technology for forecasting and strategy |
How CFOs and Financial Controllers fit in the reporting structure
CFOs and financial controllers operate at different places in an organization’s reporting structure. The CFO reports directly to the CEO and works closely with board members and investors. The financial controller usually reports to the CFO, although they may report directly to the CEO in smaller organizations that do not have a CFO.
In summary, both roles are vital to the organization. The Financial Controller ensures financial accuracy, and the CFO steers the company toward growth and stability.
