Controllers spend a sizable portion of their time gathering data to report on current and past results—everything from cost-volume-profit analysis to balancing the books. The controller’s main focus is the daily management of the company’s financial records and accounting. CAOs, on the other hand, simultaneously https://www.bookstime.com/ keep an eye on the past, present, and future. Like the controller, CAOs need to know the numbers inside and out, but CAOs are watching out for potential threats and opportunities that will impact the business. This is most clearly reflected in the CAO’s role in ESG reporting and risk management.
Differences between chief accountant and controller duties and responsibilities
Let our team of on-demand CPAs handle your accounting and technology, so you have more time to focus on what you are best at – running and growing your company. When you outsource, you get the right level of expertise when you need it without the high cost. You don’t take on the responsibility of another employee, their benefits, and overhead. Keep in mind these figures don’t include benefits, bonuses, payroll taxes, and other costs of hiring a full-time employee.
- Almost all controllers start out as public accountants or work in corporate settings before moving up.
- Many become Certified Public Accountants (CPAs) and are held to a strict code of professional ethics, not unlike those in the medical industry.
- It is part of their job to respond to the accounting questions from time management.
- To prepare for a management position as a controller or CAO, it can also be helpful to get an education, certifications, leadership and management skills, and professional development.
What does a CFO do?
Asking the same questions about a chief financial officer (CFO) might get you some reasonably accurate guesses, but the fact remains that most people have no idea how the roles differ nor why they are so important. It doesn’t take years of direct accounting experience to become a controller, but it helps. Controllers, especially those for larger companies, have a wider focus than simply accounting protocol. Many have a Master of Business Administration (MBA) or another advanced degree in finance. Life as an accountant isn’t particularly glamorous, but few career paths match its combination of solid pay, low stress, job security, and opportunity for advancement.
Who Reports to the Controller?
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. As every company will require different qualifications, there is no single career path to becoming a controller. However, many controllers get their start by working in the accounting field, often in public accounting.
Preparing for a Management Position
However, individuals must possess their CPA license to apply for more senior-level accounting employment. So, a controller has more of an overall financial management role, and the CAO is more focused on the accounting function. To prepare for a management position as a controller or CAO, it can also be helpful to get an education, certifications, leadership and management skills, and professional development. If you are interested in the overall financial management chief accounting officer vs controller of a company, enjoy working with numbers, and have an analytical mindset, a career as a controller might be a good fit for you. If you want to ensure that financial information is correct and honest and have a good eye for details, you might be better off as a CAO. It is important to note that while qualifications and experience are necessary, soft skills such as communication, problem-solving, and teamwork are also highly valued in management positions.
For a small business without complex accounting needs, the first step is often hiring a bookkeeper to handle recording day-to-day transactions. As your business grows, you may need a Controller to handle overall financial management, financial reporting, and compliance. An experienced controller can be invaluable as your company grows and needs better cash flow management, timely data for making financial decisions, and help ensuring compliance with various financial regulations. The accounting department may be missing critical opportunities if there is no one in the role of controller. Not only that, but the CFO may be working overtime to get all the information they need to make accurate decisions.
Controllers typically have a great deal of accounting and business forecasting experience, particularly as it pertains to tax management. A controller may also be called on to lend his or her expertise on investments, creditor relationships, corporate governance, or other areas. The controller is considered a member of the executive staff and typically plays a critical role in organizing and (for lack of a better term) controlling the accounting personnel in the company. In conclusion, whether to pursue a management position as a controller or a chief accounting officer (CAO) depends on your interests, skills, and career goals. Both of these jobs are important for the organization’s financial health and success.