This is another interesting dynamic. In smaller finance teams, the controller and CFO may even be the same person.The CFO is both the leader of the finance team and a member of the executive leadership. On the one hand, they have to ensure that the finance team is well run and that everyone has all the detailed work done. On the other, they have to make strategic decisions to help the company achieve its potential. This can include working hand-in-hand with the CEO and presenting reports to the board.
For this reason, the CFO isn’t necessarily an expert in accounting. They may have come from a consulting or entrepreneurial background and be more adept at matters of efficiency or financial planning.
But the financial controller needs to be an expert in the books. If they can’t quickly spot tax or balance issues in a ledger, they’re not going to be effective in the role. More importantly, they need to be able to identify the right technicians to do the majority of this work for them.
This quote from an EY report sums up the relationship well:
“The difference between the CFO and the FC is that the financial controller is more like the financial operating officer. They make sure everything is running well, there are no surprises, and the audits are good. The CFO keeps on top of the numbers, but has a big external focus in positioning the company with our investors.”
