If you're a business owner, then you know having a solid financial foundation is essential for success. But what if you're not sure who to hire to help with your finances - a CFO vs. controller? This blog post will discuss the key differences between these two positions and help you decide which one is right for your business.
Before we get into when to hire which person for the job, let's talk about exactly what a CFO does and what a controller does.
CFOs are tasked with caring for the financial health of a company. They create long-term financial plans, track and analyze financial data, and make sure that the company is adhering to financial regulations. CFOs also work with investors and lenders to secure funding for the company.
(Don't miss this post next to find out what makes a successful CFO)
Controllers are responsible for the day-to-day financial operations of a company. They oversee accounting, create financial reports, and develop internal controls to ensure that the company's finances are managed effectively.
(Did you know we offer CFO advisory services at Two Roads? We can help you with all aspects of financial planning and management, from cash flow forecasting to tracking financial data)
So, when should you hire a CFO vs. a controller? First, it's important to note these roles aren't interchangeable. You'll need to decide which one is right for your business based on your needs, or whether both roles are necessary to fill at your company.
In many cases, CFOs are brought in once a business grows beyond being a "small" business, although this is not a rule. On the other hand, a controller is often hired first, when businesses are in earlier stages.
Here are a few things to consider when making your decision:
Your company's size: If you're a small business owner, then you may not need a full-time CFO. A controller can handle the day-to-day financial operations of your company. As your company builds and expands, you may need to hire a CFO to help with long-term financial planning.
The stage of your company: If you're running a startup, then you may want to hire a part-time CFO to help with financial planning and securing funding. Once your business is up, running and growing, you can hire a controller to handle the day-to-day financial operations.
Your financial needs: If you're looking for someone to help with long-term financial planning and analysis, then a CFO is right for you. If you need someone to oversee accounting and create financial reports, then a controller is usually the way to go.
Next, let's go over some examples of when to hire a CFO versus when to hire a controller.
(Waiting too long to hire help when you need it is one of the biggest mistakes many entrepreneurs make. Read about other mistakes entrepreneurs make trying to save money here)
Your business is growing rapidly and you need someone to help with long-term financial planning.
You're looking for someone to help secure funding from investors or lenders.
You need someone to monitor financial data and compliance with regulations.
You're in need of day-to-day financial management, such as overseeing accounting and creating financial reports.
You want to develop internal controls to ensure the company's finances are managed effectively.
We hope this blog post has helped you better understand the key differences between a CFO and a controller. Still not sure which one is right for your business? Contact us at Two Roads - we'd be happy to help!
Here are three more posts to read next: