Controller vs Chief Accounting Officer: Which Is Best?
Content
Nevertheless, several states still name as General Comptroller Office their audit and oversight institutions. Namely, Mexico City has the Secretariat of the General Comptroller of Mexico City and Jalisco has the Comptroller General Office of the State of Jalisco. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more law firm bookkeeping than 25 years. I’ve met some CFOs whose title is CFO and they’ve said “I’m in the controller and we have an issue with etc etc etc” in the midst of casual conversation. Get the latest creative news and ideas from onEntrepreneur about business, finance, marketing and more. OnEntrepreneur is an online magazine centered on business, finance, marketing, technology and more.
She realized her most loved being able to communicate complex, abstract ideas which made her return to her love of numbers and data. Heidi brings an equally creative and analytical mind to the task of analyzing and communicating client data and statistics. Continue reading to learn about the differences between an accountant and a controller.
What are the Daily Responsibilities of a Controller?
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. In business management, the comptroller is closer to a chief audit executive, holding a senior role in internal audit functions. Generally, the title encompasses a variety of responsibilities, from overseeing accounting and monitoring internal controls to countersigning on expenses and commitments. A company’s controller is considered to be the chief accounting officer and the head of the accounting department. We saw a lot of controllers being elevated to CAO post-Sarbanes because of the increased emphasis on compliance and the board’s mandated responsibility to oversee management’s accounting decisions and disclosures. Some organizations, however, still have only a controller, choosing to limit the C-suite titles to more traditional roles like CEO and CFO.
- The controller may take on additional roles such as human resources, IT, and even office management.
- Typically, the controller is a senior manager, with a sharp acumen for numbers and formal training in accounting.
- 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.
- In many cases, they must also be a certified management accountant (CMA), a chartered financial analyst (CFA), or hold different accounting certifications.
- The controller, also referred to as a comptroller in government and nonprofit businesses, is responsible for maintaining accurate books and records and for running the day-to-day activities of the accounting department.
- Professional training certificates, which include the certified public accountant license are typically preferred.
- Above all, we have a CFO/VP Finance taking overall Finance and Accounting.
Deloitte’s Executive Perspectives dives deeper into critical business issues to deliver timely and actionable content to help support decision-making and build careers. That lack of upward career mobility also makes it difficult to develop CAO successors. If you’re VP of SEC reporting, head of shared services, or assistant controller, you know that unless the CAO is nearing retirement or leaves, you will likely have to go elsewhere for your next promotion. The second challenge is that many companies looking to upgrade the CAO’s role are often surprised at the going rate for a high-level CAO. Many balk at paying so much, or try to find someone who is, frankly, not qualified to fulfill their expectations for the position. And because there are a limited number of CAO candidates who meet the criteria, that hesitation often results in the candidate going elsewhere, leading the company back to square one.
Do You Need an Accountant or a Controller?
You get access to our consistent team of experts — priced by the hour, so you only pay for what you need. We’re collaborative, explaining what the numbers mean, rather than just emailing reports. CFOshare provides your business with a team of financial experts at a significantly lower cost than a full-time employee. We will work with your existing financial team to bolster and supplement their capabilities, fill any gaps, and all for less than the cost of full-time equivalents. Outsourcing all or part of your company’s controller needs is the perfect solution for small and medium-sized businesses that require a high-powered back office but can’t afford to fill the high-level jobs in-house.
Another driving force behind hiring a controller occurs when company expansion — either in terms of transactions or employees — requires implementation and monitoring of internal controls. Financial controllers are the keepers of policies and procedures that protect a company’s assets. Often, the controller has one or two assistant controllers at their disposal.
Bookkeeping Vs. Accounting Vs. Advisory
They understand national and international accounting laws and best practices. They ensure that their company adheres to the most efficient accounting policy and explain complex financial rules to senior-level management. They must have excellent leadership skills because they often lead teams of over 100 employees. Chief accounting officers work in an office setting and typically for large corporations.
The CFO is the right person in the organization to set financial policy and they are predominantly responsible for managing government funds. CFO should have a good reputation in cost management, corporate finance strategy, accounting standards, and reporting requirements. They are in fact in charge of Human Resources (HR), Information Technology(IT), and Enterprise Risk Management(ERM). As an outsourced finance department provider, we recruit controllers quite often.
In a larger organization, a controller will oversee payroll processing and financial reporting, and they might help the CFO to prepare operating budgets. Far less training time is needed when you use outsourced controller services. 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.
