Accountant vs Controller: What’s the Difference?

The duties of a controller include assisting with the preparation of the operating budgets, overseeing financial reports, and performing essential duties relating to payroll. It’s very difficult to nail down an average salary for mid- or upper-level accountants, but the majority of career accountants earn above $60,000 within three to five years after becoming CPAs. According to the Bureau of Labor Statistics (BLS), the median annual wage for accountants and auditors in 2020 was $73,560 ($35.37 per hour). Some positions, such as tax managers or internal audit managers, can earn as much as $130,000. Many accountants aspire to be partners at accounting firms, where they can earn hundreds of thousands of dollars. A common yet underappreciated role of the business controller is interpreting financial data.

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Likewise, without a CFO, the larger fiscal picture may be neglected, and the company may not have an accurate forecast of future finances. The best controllers go beyond managing their firm’s financial operations to take an active role in designing, building and running the business applications, controls and reporting systems their firms rely on. As the title implies, a CFO is the chief financial officer in a business, typically serving as the trusted partner of the CEO and the rest of the leadership team. Controllers are important to finance because they control the risk and reporting aspects of the company.

Who Reports to the Controller?

• A common yet underappreciated role of the business controller is interpreting financial data.
• The most common are business controllers and corporate controllers, who handle entire accounting systems for their employers.
• For smaller companies, this means setting up the accounting infrastructure and performing the bookkeeping, whereas larger companies use controllers in an overseer role.
• The controller is responsible for maintaining accurate books and reports and for running the day-to-day accounting operations of the business.
• The accounting department may be missing critical opportunities if there is no one in the role of controller.
• Controllers are responsible for ensuring that all departments work within their respective budgets.

Few accountants ever worry about burning out or feel compelled to switch industries, and many will move into positions of prominence and importance in an organization. One such position is the controller (sometimes spelled «comptroller,» but always pronounced «controller»), who is the person responsible for a firm’s accounting-related activities. Keep in mind that if your bookkeeping isn’t timely and accurate, your controller and CFO won’t chief accounting officer vs controller have the basic financial statements they need to fulfill their roles. All they really need is a thorough understanding of basic financial accounting principles and how to correctly classify different kinds of transactions in the accounting system to create accurate financial statements. A controller enables growth by building, establishing and overseeing a firm’s financial operations—all of which are necessary for the business to scale.

Financial Planning and Analysis

A controller is the point person for making sure the financial reporting is done correctly. They are also the person to understand why inaccuracies may exist, what changes must be put in place, and how those changes will impact future reports. A controller often oversees the department leads within finance for each respective department tied to financial reporting. This may include the accounts payable lead, procurement lead, purchasing lead, financial reporting manager, or payroll manager.

Difference Between CFO and Controller

For help determining the next best step for your firm to achieve your goals and successfully scale operations, schedule a consultation with Aprio’s CFO Advisory team. Neither role is more important than the other, and both are incredibly important to the functioning of a successful, growing business. It may seem counterintuitive, but it is almost always a good idea to bring on a controller first, while getting strategic guidance from a consulting CFO. Instead of simply saying no, the best CFOs ask questions, listen to concerns, solve problems and confidently make decisions that drive innovation and growth. Accountants of all stripes serve as bookkeepers or analyze the work of other bookkeepers. They work to prevent fraud and maintain accuracy for their co-workers, investors, creditors, and regulators.

Financial Controller Roles, Duties, Skillset, and Career Path

In many situations, a company’s vice president of finance mimics the traditional role of CFO. A vice president is often tasked with the highest-level of financial and accounting oversight, while a controller’s role is more limited to the financial preparation and management of the financial reporting process. For companies with both a controller and vice president of finance, the controller would most likely report directly to the vice president. In general, CFOs often take a greater presence in external-facing tasks including mergers, acquisitions, or involvement with investors.

Duties of Financial Controllers

The CFO leads the company’s finance function and is a strategic partner to the business owner and other members of the C-suite. It’s a big job and one of the most important because all business decisions are based on this data. The controller reports to the CFO, sometimes alongside the treasurer and tax manager.

Many become Certified Public Accountants (CPAs) and are held to a strict code of professional ethics, not unlike those in the medical industry. True contentment encompasses mental, emotional, and physical health, purpose, and relationships. Wealth does not guarantee happiness and can impact mental health, relationships, and sustainable living.

The roles of both the controller and CAO are senior leadership positions, however, as the title implies, the CAO is a business executive and a C-suite officer. The controller has leadership responsibility for managing the https://www.bookstime.com/ accounting staff, but the CFO and CAO ultimately set the tone as copilots of the finance department. The controller carries out the implementation and day-to-day management of the operations of the accounting department.