CFOs work closely with other C-suite members and are accountable to the Chief Executive Officer (CEO). They are responsible for a company’s financial stability and juggle various tasks, such as financial reporting, strategic planning, and leading the finance department. CFOs also act as bridges between the finance team and other departments across the company to ensure everyone is aligned with the company’s financial goals and overall strategy.
CFO: Strategic Partner for Growth
When she’s not wielding her digital pen, you can find her conducting culinary experiments in the kitchen or enjoying a good laugh with her family and friends. Controllers are also tasked with identifying potential financial risks, implementing and monitoring internal controls, coordinating audits and complying with industry standards. Revenue isn’t the only factor determining whether you need a controller, a CFO, or both. Here are some situations which often prompt small business owners to hire a CFO in addition to or instead of a controller. To give you a little more insight, here are some situations which prompt small business owners to hire a controller.
- Download our Executive Growth Reports now to see the kinds of reports a controller or CFO should deliver and keep them handy to compare with reports you receive from candidates.
- Usually, a small business or a young startup only requires a controller.
- At some point, you’ll start to find keepingtrack of your finances difficult, and when this happens, it’s an indicationthat you need to move up the hierarchy of financial needs.
- They oversee accounting, financial reporting, and internal controls, emphasizing profitability and operational efficiency.
Controller responsibilities
As a partner to multiple finance leaders, Chargebee has a front-seat view of how modern finance leaders drive strategies to scale a SaaS business. Here’s a story encompassing the importance of a strong finance function that drove IPO readiness at a leading SaaS business. Record-keeping comes at the base of the financial hierarchy, next is reporting. We have planning and forecasting on the third level, and the top-level consists of strategy setting. Every individual responsible for managing your company’s finance must work hand in hand to maximise the business growth. Ultimately, both roles are essential for a well-functioning finance department, and the decision should align with your company’s goals and growth stage.
At the enterprise level, it’s no longer controller vs. CFO—it’s controller and CFO. These different roles work in partnership to drive your company’s long-term success. The controller ensures accurate, timely financial information, while the CFO uses that data to guide financial strategy, evaluate initiatives, and ensure your capital structure supports long-term growth.
You can identify the business ideas to focus on and take your business to success levels with sufficient information and data. SaaS CFO duties cfo vs finance controller: whom does your saas business need really come into their own as you’re building out your wider financial operations. They will add the most value at a strategic level—thinking longer term, leading fundraising efforts, managing stakeholders, and aligning the business. You might be raising capital and need to understand your options, get your financial reporting in order, and create a compelling investment story.
Getting Maximum Value from Your Fractional CFO
The CFOs who thrive will develop capabilities across multiple archetypes. While others chase innovation headlines, Financial CFOs ensure organizational stability. They represent the essential foundation upon which ambitious strategies can actually succeed. These CFOs transform complex data into compelling business narratives. Far beyond traditional spreadsheet management, they leverage sophisticated analytics to uncover patterns others miss entirely.
What Size Companies Bring in CFOs?
- Outsourced CFOs bring a wealth of experience and strategic insight, helping businesses navigate complex financial landscapes and make informed decisions.
- If strategic financial leadership is required to grow and scale, a fractional CFO will offer the necessary guidance.
- At the same time, your tax and compliance needs are becoming increasingly complex.
- A successful CFO ensures the business is performing and growing in the right direction.
- According to a study by The Association of Accountants and Financial Professionals in Business, the role of a Financial Controller has become increasingly strategic and essential in the last ten years.
Consider the example of an e-commerce startup that initially hired a Controller. With a focus on daily operations, the Controller ensured accurate bookkeeping and compliance. However, as the company expanded rapidly, they found themselves needing a strategic partner to attract investment for growth.
This requires a solid understanding of how everything works – and whether it’s a success or not. They identify inefficiencies everywhere and compulsively improve them. While other archetypes focus on high-level strategy or major financial decisions, Operational CFOs work systematically through business processes. An outsourced SaaS CFO service is a flexible, cost-effective way to expand your F&A capabilities with a right-sized solution. A team-led approach means you’ll have a deep bench of expertise that includes SaaS accountants, controllers, and SaaS CFOs to support your SaaS business.
When financial decisions slow down growth or investor confidence declines, evaluating the financial controller vs CFO roles is crucial. While hiring a controller strengthens internal accuracy, long-term planning may still require executive vision. As a result, businesses must eventually evaluate by comparing a financial controller vs CFO. If cash flow tracking is inconsistent or reports lack depth, a controller can restore financial structure.
The controller focuses on overseeing internal accounting processes, while the CFO is responsible for guiding broader financial decisions. At Beyond, we offer outsourced bookkeeping, controller services, and advisory services, giving you the expertise you need at a fraction of the cost of hiring for these roles in-house. Visit our Services page, explore our services, and find the right financial support for your business. If you’re still unsure when to hire a controller vs. CFO, consider your current challenges.
But should you hire a chief financial officer (CFO) or bring on a financial controller? While these two financial leadership roles often collaborate closely, they serve distinct functions within your organization. Additionally, they strengthen internal financial systems without shifting focus from daily business goals. Hence, small business financial roles benefit significantly from dedicated financial leadership like experienced financial controllers. A CFO vs financial controller demonstrates the shift from tactical accounting to strategic financial leadership.
The first suggests that a company should onboard a CFO only when it reaches a certain revenue threshold. According to various studies, this revenue threshold typically falls between $40 million and $100 million. Let’s dive deeper into the roles, responsibilities, and evolving expectations for a CFO vs Controller. Depending on the size and budget of your company, you can decide whether to bring in an in-house expert or look into outsourcing firms. Technology lets people think more, not just do more and AI drives analysis and decision-making, while RPA takes over rule-based work.
If your business needs high-level financial leadership, a CFO will play a vital role. Business owners might be able to handlelower-level activities such as reporting (getting insight on CAC, Churn,Payback period etc) on their own. However, they might not have the expertise toengage in forecasting to help them identify the cash impact of a new featurethey add to their product. StrategIQ delivers expert support through fractional services tailored to your business needs. In a financial controller vs CFO comparison, the fractional controller primarily handles operational finance.