What Is the Difference Between a Controller and a CFO?

Owners often ask if they need a Controller or a CFO. The short answer: a Controller delivers accurate, timely financials and controls; a CFO turns those numbers into decisions and strategy. At Henriquez Accounting & Tax Services, we offer both—paired with monthly bookkeeping—so you get clean data and confident decisions. Explore Bookkeeping, Outsourced Controller/CFO, and Tax Preparation.

Controller vs. CFO (Simple Definitions)

• Controller: Owns the monthly close, reconciliations, P&L, Balance Sheet, Cash Flow, policies, and internal controls. Ensures accuracy and compliance.
• CFO: Owns forward-looking planning—forecasting, pricing & margins, capital & banking, KPIs, and strategy. Communicates with lenders, investors, and the board.

Time Horizon & Outputs

Controller (0–60 days)

• Close the books & lock prior periods.
• AR/AP aging work; sales tax & payroll tie-outs.
• Policies: COA hygiene, approvals, documentation.
• Deliver audit-ready statements & workpapers.

CFO (3–18 months)

• 12–18 month FP&A model + 13-week cash forecast.
• Pricing, discounts, and unit economics by SKU/service.
• KPI dashboard: margins, DSO/DPO/DIO, runway/DSCR.
• Capital planning, lender packages, covenant monitoring.

Who Owns What?

• Books & Close: Controller
• Internal Controls & Policies: Controller
• Forecasting & Budget: CFO (with Controller inputs)
• Pricing/Margins & Strategy: CFO
• Banking/Lenders/Investors: CFO
• Taxes & Filings: Our EA/CPA team, coordinated with both

When to Hire Each Role

• Controller first when you have growing volume/complexity, inventory, or missed deadlines—and you need clean, timely statements.
• Add CFO when decisions get bigger: multi-location, hiring plans, debt/investors, pricing pressure, or cash variability that needs forecasting.
• Fractional makes sense before full-time: defined cadence, deliverables, and KPIs without overhead.

Our Engagement Models

• Bookkeeping + Controller: monthly close, reconciliations, statements, sales/payroll tax, checklists, and controls.
• Controller + CFO: add forecasting, pricing/margins, KPI dashboards, lender packs, and quarterly strategy.
• Projects: financial model, bank package, cleanup/migration, pricing overhaul.

What We Do (Month–Quarter–Year)

Monthly

• Controller: close the books, reconcile accounts, clear suspense, deliver statements.
• CFO: update 13-week cash, review KPIs, call out risks/opportunities, action list.

Quarterly

• Controller: controls audit, payroll/sales tax review, 1099 readiness.
• CFO: scenario planning, pricing review, lender/investor updates, tax estimates with the EA/CPA.

Annually

• Controller: fixed-asset roll-forward, inventory procedures, audit/diligence support.
• CFO: operating budget, compensation & incentives, strategic plan and capital roadmap.

Common Misunderstandings

• Expecting a Controller to own strategy or fundraising—that’s CFO territory.
• Expecting a CFO to “fix the books”—that’s a Controller responsibility.
• Running without either role—leads to messy data and reactive decisions.

Rule of Thumb: Controller = accuracy & process. CFO = direction & decisions. Most growing firms benefit from both—often fractionally—before hiring in-house.

What You’ll Get When You Work With Us

• Clean, on-time monthly close with audit-ready statements.
• 13-week cash forecast, 12–18 month model, and KPI dashboard.
• Pricing/margin analysis and clear action items.
• Lender/board-ready reporting and covenant tracking.
• Quarterly tax projections and year-end planning with our EA/CPA team.

 Book a 30-Minute Consultation

FAQs

Do I need both a Controller and a CFO?

If you want accurate books and strategic decisions, yes—often fractionally. Start with Controller to stabilize the close, then add CFO as decisions get bigger.

Can one person do both jobs?

In small firms, one senior professional can cover both, but expect tradeoffs. We often split responsibilities to keep accuracy high and decisions proactive.

What’s the difference in day-to-day work?

Controllers spend more time in the GL, reconciliations, and policies. CFOs spend more time on forecasts, pricing, strategy, and stakeholder communication.

How does tax fit in?

Our EA/CPA team prepares returns and projections. Controllers ensure books tie to tax; CFOs use tax insights in planning (entity, comp, timing).

What cadence should we expect?

Monthly close & dashboard review; weekly or biweekly cash review during ramp-up; quarterly strategy with pricing and KPI targets.

Ready to get clean books and better decisions?

We’ll pair Controller discipline with CFO strategy so your financials drive results—not surprises. Talk to an Enrolled Agent today. Schedule Consultation