You make decisions every day for your business. The business that are successful long-term make those decisions with detailed data to back each one. This comes from financial reporting, marketing analytics, data from your CRM, and many other sources. As a small business owner, you’re likely managing your financial reporting and accounting yourself whereas many larger companies have a team to make that happen. That team would consist of a controller and also a CFO. If you could pick one to sit with you and help make decisions which one would be right for you? Let’s find out.
What Does a Controller Do?
The controller is a term that many people often use interchangeably with CFO. In the controller’s job description, they work specifically in finance and accounting by overseeing all of those duties within an organization. The controller position will involve being responsible for working closely with the chief financial officer to make sure every decision made falls in line with what board members expect.
You can think of a controller as someone whose role is to keep the business between the lines. Ensuring every transaction is accurate, every rule is followed for tax purposes, mistakes, fraud, and everything in between is being kept an eye on.
What Does a CFO Do?
A CFO or Chief Financial Officer is mainly involved in detailed financial strategy for a business. They are responsible for staying up to date on what’s going on financially in the company. This will include being involved with various departments, ensuring they have enough money to continue business operations, and finding new ways to bring revenue into a company.
A CFO will focus on navigating growth through financial data and finding new ways to grow revenue, reduce expenses, and increase net profit.
Do You Need a Controller and a CFO?
You Need a Controller If:
- You need someone to manage your accounting
- You want a second set of eyes during tax season
- You need someone to manage your books and records
- Want confidence in your reports
You Need a CFO If:
- You’re at the point where you don’t just want revenue, but also growth in that revenue.
- You need someone who can help get you there through financial strategy and data analysis.
- Need help managing your cash flow
- Want confidence in acquiring new debt or paying off debt
There are multiple reasons why both a CFO and controller are important rules in businesses. Frankly, every business needs both at a certain point. When you’re focused on growth connecting with a CFO is likely the right step for you to add fuel to the fire. If you’re in a state of reorganizing and restructuring then bringing in a controller to take a look could be helpful. We’d be happy to help with any financial questions you have when deciding what’s next for you and your business.