As the role of CFO has become more demanding, CAOs oversee the tactical and operational tasks that CFOs once dominated. Chief accounting officers are often tasked with SEC reporting, regulatory compliance, corporate governance, risk management, cost management, and environmental, social, and governance (ESG) reporting. Chief accountants chief accounting officer vs controller develop financial strategies, oversee the accounting department, make investment decisions, and develop financial strategies. They provide assistance to departments with their reviews and budgets, tax studies, and internal control. It is part of their job to respond to the accounting questions from time management.

• With the right individual at the helm, you can be confident that your company’s finances are in good hands and poised for long-term success.
• A controller is responsible for managing the day-to-day financial operations of a company.
• A good financial controller will develop efficient and effective strategies to increase profit margins, increase employee productivity, and find cost savings through cash management.
• So, they must be detail-oriented, trustworthy, and knowledgeable about the rules and regulations that affect your industry.
• His first venture was CMR Technologies, a FinTech company based in San Francisco serving the investment management consulting space.

Like their accounting counterparts, controllers tend to experience a much better work/life balance than others in the financial industry. Most accountants work standard 40- to 45-hour weeks and enjoy plenty of paid leave, holidays, vacation time, and even a modest amount of schedule flexibility. Despite its boring reputation, accounting consistently ranks among the most satisfying careers.

When Do You Need a CFO?

It includes performing internal audits, reviewing financial statements and reports, and ensuring that the company’s financial systems and procedures comply with legal and regulatory requirements. Chief accounting officers (CAOs) and financial controllers are both accounting experts who report to the chief financial officer (CFO)—but these two roles have subtle, nuanced differences. The controller oversees day-to-day accounting operations whereas the CAO is focused on tasks, such as corporate governance, risk management, and investor relations. The skill sets of chief accounting officers and controllers are complementary, as both ultimately work in tandem to support the CFO.

A controller is a vital position within any organization, responsible for managing the company’s financial activities and ensuring they are in compliance with relevant laws and regulations. Controllers oversee accounting operations, including accounts payable and receivable, payroll processing, budgeting, tax planning, and financial reporting. While both roles coalesce within the financial tapestry, their scopes and responsibilities exhibit nuanced disparities. The Controller, akin to a vigilant sentinel, focuses on the day-to-day operations of financial management. Their forte lies in meticulous oversight of accounting procedures, financial reporting, and internal controls.

What to Look for in a Controller

In the symphony of corporate governance, the convergence of these roles orchestrates a melodic synergy. The Controller’s precision harmonizes with the CAO’s vision, forging a seamless melody that resonates through the corridors of financial stability, regulatory adherence, and strategic growth. In this realm, the Controller’s canvas sprawls across multifaceted landscapes, from establishing accounting policies to liaising with auditors and stakeholders. They weave narratives from numbers, distilling intricate financial data into comprehensible insights that guide strategic decision-making. Imbued with the alchemy of numbers, the Controller’s domain transcends mere arithmetic; it delves into the realms of prognostication and empowerment through data-driven foresight.

As the steward of financial integrity, the CAO forges a nexus between financial data and strategic imperatives. They navigate the labyrinthine landscape of regulatory frameworks, sculpting policies that not only ensure compliance but also serve as beacons guiding the organization towards its financial zenith. The CAO’s canvas is vast, embellished with the brushstrokes of governance, risk mitigation, and strategic financial planning that chart the course for sustained organizational growth. Enter the grand architect, the Chief Accounting Officer, entrusted with crafting and safeguarding the financial architecture of an organization. Beyond the realms of daily accounting operations, the CAO is the visionary behind the design and implementation of financial frameworks that fortify an organization’s fiscal foundation. Their purview extends beyond the ledger’s confines, encompassing regulatory compliance, risk management, and steering the ship through the ever-shifting tides of financial regulations.

CFO roles and responsibilities

Controllers are accountable for the design and execution of financial systems and procedures and for preparing financial statements and budgets. They collaborate closely with other management team members to ensure that the organization’s financial information is accurate, timely, and compliant with all applicable rules and regulations. Controllers also manage the monthly, quarterly, and annual financial close process, ensuring the financial statements are produced in accordance with GAAP. Other important duties include tax accounting, management reporting, and variance analysis, as well as managing both internal and external audits. They have the responsibility of producing financial statements that guide the movement of the company forward. The controller is in charge of the company’s overall financial management, which includes reporting, budgeting, and making plans for the future.

In contrast, the CAO operates at an elevated vantage point, overseeing the grand architecture of financial strategies and regulatory compliance. Controllers are executive-level accountants who manage the day-to-day tracking and reporting of your financial activities. The Chief Financial Officer (CFO), on the other hand, analyzes your financial and operational performance from the context of your business goals. Then they use that information to provide strategic insights to guide your business decisions. Both roles are important, but controllers must focus on today’s details, while CFOs plan for the future.

What is the Difference Between a Controller and a CFO?

Take our one-question “flash survey” and share your input on a timely issue facing controllers and chief accounting officers. Look for a summary of the results in the next edition of Deloitte Digest for Controllership. Mr. Lieberman is the founder and CEO of The CEO’s Right Hand, Inc., a New York-based consulting services firm that provides the full breadth of strategic, financial and operational advice to founders, CEOs and Executive Teams. As an experienced entrepreneur himself, he has served in various C-suite leadership and advisory roles across a wide spectrum of industries.

• Anyone with a background in economics, statistics, mathematics, or finance and a basic understanding of generally accepted accounting principles (GAAP) can perform bookkeeping tasks.
• The accounting department may be missing critical opportunities if there is no one in the role of controller.
• The controller and the CAO are both senior leaders, but the CAO is a business executive and a C-suite officer, as the title suggests.
• Look for a track record of building and executing strategies that successfully improved efficiency and profitability in addition to technical skills.
• Accountants of all stripes serve as bookkeepers or analyze the work of other bookkeepers.
• According to salary data from the Bureau of Labor Statistics (BLS), financial managers’ median annual salary, including controllers, was $129,890 in May 2020.
• As you grow, however, they will need help and will assume the responsibility of hiring a team and leading the accounting department.