Difference Between CFO and Controller

The CFO controls and manages everything related to finance in a company. CFO stands for chief financial officer for a company and comes directly below the company’s CEO. On the other hand, the controller reports directly to the CFO of the company and makes sure the day-to-day operations relating to finance are executed and run properly.

Who is a CFO?

  • Three important divisions report directly to the CFO of a company. Those three divisions are the controller, treasurer, and tax manager. Again the position of the controller is divided into four more subdivisions.The function of a CFOCFOThe full form of CFO is Chief Financial Executive, and he or she is a top level executive of the firm who is responsible for the firm’s overall finance functions and has the authority to make financial decisions for the organization. read more is to control and manage everything that relates to finance in a company. Though he is responsible for overlooking everything related to finance, his primary role is to make forward-looking budgetingBudgetingBudgeting is a method used by businesses to make precise projections of revenues and expenditure for a future specific period of time while taking into account various internal and external factors prevailing at that time.read more, projections, planning, and other forward-looking financial strategies.That’s why I run the operational and backward-looking functions related to finance. A CFO is essential whenever a company needs to make accounting changes or has chosen between projects by doing projections andCash flow forecasting is forecasting or anticipating the cash inflow and outflow for the future period by the management of the business to make sure that the business will have sufficient funds to carry out the activities on a regular basis, and if there is any shortfall, they has to plan for alternate sources of funding for the business.
  • read more cash flow forecastingCash Flow ForecastingCash flow forecasting is forecasting or anticipating the cash inflow and outflow for the future period by the management of the business to make sure that the business will have sufficient funds to carry out the activities on a regular basis, and if there is any shortfall, they has to plan for alternate sources of funding for the business.
  • read more or want a solution for complex financial strategies. Three more divisions report directly to the CFO.

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Who is a Controller?

  • A controller’s rank is similar to the ranks of treasurer and the tax manager of a company.Under the controller, four more divisions directly report to the controller. Those four divisions are accounting, financial planning accounts receivable, and accounts payable. The main function is to make sure that the day-to-day operations relating to finance are executed and run properly.These functions include approving all day-to-day transactions within the organization and creating recurring and monthly reports. Its function also includes keeping track of all theAccounts receivables is the money owed to a business by clients for which the business has given services or delivered a product but has not yet collected payment. They are categorized as current assets on the balance sheet as the payments expected within a year.
  • read more accounts receivablesAccounts ReceivablesAccounts receivables is the money owed to a business by clients for which the business has given services or delivered a product but has not yet collected payment. They are categorized as current assets on the balance sheet as the payments expected within a year.
  • read more and accounting payable.

CFO vs Controller Infographics

Let’s see the top differences between CFO vs Controller.

Key Differences

  • The CFO of a company is responsible for almost anything related to finance. The rank of aCEO is the highest-ranking executive with the primary responsibilities of taking major corporate decisions, a medium of communication between corporate working and the board of directors. Whereas, CFO is a senior executive responsible for financial affairs, taking significant decisions relating to investment, making strategies and managing financial activities.read more CFO in the company comes just below that of a CEOCFO In The Company Comes Just Below That Of A CEOCEO is the highest-ranking executive with the primary responsibilities of taking major corporate decisions, a medium of communication between corporate working and the board of directors. Whereas, CFO is a senior executive responsible for financial affairs, taking significant decisions relating to investment, making strategies and managing financial activities.read more. The controller of reports directly to the CFO of the company, and the rank of a controller within the organization is under CFO.The main function of a CFO is to make future projections of cash flow, make financial strategies, and make estimates to decide which project to undertake. A controller is responsible for the smooth functioning of the day-to-day finance-related operations. Those involve approving transactions to create weekly and monthly reports and looking after accounts receivables and payables.Three important divisions report directly to the CFO of the company are a controller, treasurer, and tax manager. Four important divisions report directly to the company’s controller: accounting manager, financial planning manager, accounts receivable manager, and accounts payable manager.The rank of a CFO is similar to other positions like a chief operating officer (COO), chief information officer The full form of CMO is Chief Marketing Officer. The CMO is the person in charge of managing the return on investment of organization’s marketing efforts and is also responsible for overseeing activities, communication, and the generation of opportunities that aid in the maximization of value for clients, customers, and business partners.read more(CIO)(CIO)CIO stands for Chief Information Officer, a designation usually given to the highest executive senior, who is in charge of the information technology strategies and undertakes roles like recognizing the need and technology development in the enterprise, installing and maintaining hardware and software of computer systems.read more and chief marketing officer (CMO)(CMO)The full form of CMO is Chief Marketing Officer. The CMO is the person in charge of managing the return on investment of organization’s marketing efforts and is also responsible for overseeing activities, communication, and the generation of opportunities that aid in the maximization of value for clients, customers, and business partners.read more. A controller’s rank is similar to the ranks of treasurer and the tax manager of a company.

CFO vs Controller Comparative Table

Conclusion

In a large organization, it is important to have divisional and sub-divisional heads to look after the smooth function of the various roles. That’s why heads like CFO and controller play a very important part in the functioning and decision-making of an organization. A CFO on paper is responsible for anything to do with finance in a company.

The CFO has to make all the critical decisions related to finance like cash flow projections, budgeting, deciding on which project to choose, and also take care of all the impacts of accounting changes. But as one person can’t look after everything, he has divisions who directly report to him. One of those important divisions is that of a controller responsible for mainly managing the day-to-day finance operations, including accounts receivables and accounts payable.

This has been a guide to CFO vs. Controller. Here we discuss the top differences between CFO and Controller and infographics and comparison tables. You may also have a look at the following articles –

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