Growing Your Business? Here’s Who to Hire: Controller vs. Fractional CFO

If you own a business, you know that your accounting needs can reach a point where professional knowledge is required to sort everything out and prepare your finances for audits, taxes, payroll, and even just getting things organized to see how much income you are really earning. The world of accounting goes a lot deeper than it may seem at first glance, so who can you hire to help you?

Luckily, West to East Business Solutions offers both controller and CFO services. But what exactly are those? What do they do? What is the difference between them, and how do you figure out which one you need? Don’t worry—we’re here to help determine which services you need to fill in the gaps.

Fractional CFO

A Chief Financial Officer, or CFO, is a senior-level executive who manages the financial actions of a company. This includes overseeing your company's financial planning and cash flow. They analyze everything for potential weaknesses and propose corrective actions to either fix a problem or strengthen a weak spot. They also ensure that your financial reporting is compliant with current laws and regulations. CFOs often work closely with other senior leaders, especially the CEO and COO, to shape the company's strategic direction and to ensure that financial goals align with overall business objectives. 

Not only does a CFO work internally to ensure financial health, but they also communicate with any external stakeholders (investors, analysts, regulatory bodies, etc.). This includes organizing the information so that they can present the financial reports, earnings, statements, and investor briefings accurately. While your company grows and navigates complex markets, the CFO may also oversee fundraising activities, mergers and acquisitions, risk management, and capital structure security. They bring a deep understanding of finance, paired with leadership and decision-making skills, to help your company grow. 

Now that you understand what a CFO is, let's explore their specific roles more thoroughly.

Duties of a CFO

1. Develop and execute the company’s financial strategy in alignment with overall business goals, advising the CEO and board on strategic decisions and long-term planning.

2. Lead budgeting, forecasting, and financial analysis to evaluate performance, support business decisions, and drive operational efficiency. 

3. Oversee accurate and timely financial reporting including income statements, balance sheets, and cash flow statements, ensuring compliance with accounting standards like GAAP or IFRS.

4. Manage cash flow, working capital, and liquidity to maintain financial health and ensure the organization can meet its obligations and growth needs.

5. Identify and mitigate financial risks through strong internal controls, audit oversight, and compliance with financial regulations and legal requirements.

6. Guide capital structure and investment strategies by evaluating debt and equity financing options, managing relationships with lenders and investors, and securing funding for growth.

7. Drive value through mergers, acquisitions, and strategic initiatives, leading financial due diligence and integration planning.

8. Serve as the primary liaison with external stakeholders including investors, analysts, auditors, and regulatory bodies, ensuring transparency and confidence in financial performance.

9. Champion the adoption of financial systems and technologies that improve reporting accuracy, scalability, and data-driven decision-making.

10. Lead and develop the finance and accounting teams, fostering a high-performance culture focused on accountability, integrity, and continuous improvement.

What is the difference between a fractional and full-time CFO 

WEBS offers a fractional CFO who provides CFO-level expertise on a part-time basis. At the same time, a full-time CFO is a permanent member of a company's executive team. The main difference is the amount of time put in. A full-time CFO focuses on only your company. They have a higher influence in executive leadership decisions and typically manage an in-house finance team. A fractional CFO, on the other hand, only works as many hours as needed to complete the tasks your company requires. Their hours may change as your financial needs fluctuate, and you only pay for the hours they work. Hiring a fractional CFO is a great cost-effective option for companies that don't have the need for or don't yet require a full-time CFO and in-house finance team. Our outsourced fractional CFO gives you precisely what you need to grow and advises you on the steps you need to take to help your company grow toward your goals.   

Controller

Working underneath and reporting to the CFO is a controller. A controller is another senior-level professional, but a controller mainly focuses on managing a company’s accounting operations and ensuring the accuracy and integrity of its financial records. They usually report to the CFO, but can also report directly to the CEO in smaller companies. While not typically as involved in high-level strategic planning as a CFO, the controller serves as the backbone of financial reporting and compliance, overseeing processes such as general ledger maintenance, financial statement preparation, and internal controls. They are the ones supplying the appropriate information to thoroughly inform the executives on the company’s current economic health before making decisions.

In most companies, the controller is the bridge between the finance team and executive leadership. They use their professional-level education to ensure that accounting infrastructure runs smoothly and that the company complies with all laws and regulations. As organizations scale, the controller's responsibilities often expand to include oversight of payroll, accounts payable and receivable, tax filings, and audits, laying the financial groundwork that enables sound growth and operational control.

Duties of a Controller

1. Oversee all accounting operations, including general ledger maintenance, month-end and year-end closing processes, and journal entries to ensure accurate financial records. 

2. Prepare timely and accurate financial statements in compliance with GAAP, IFRS, or other relevant accounting standards.

3. Manage internal controls and financial compliance to reduce risk and ensure integrity across all financial processes and reporting.

4. Supervise accounts payable, accounts receivable, payroll, and fixed assets, ensuring proper documentation, timely processing, and compliance with company policies.

5. Coordinate and support internal and external audits, including audit preparation, documentation, and resolution of any identified issues.

6. Maintain and improve accounting systems and tools to enhance efficiency, reporting accuracy, and scalability as the business grows.

7. Support budgeting and forecasting processes by providing historical data, variance analysis, and insights into financial trends and anomalies.

8. Ensure compliance with tax laws and regulatory filings, including sales tax, income tax, and other statutory requirements.

9. Manage and develop the accounting team, providing mentorship, training, and performance oversight to ensure consistent and accurate financial operations.

10. Collaborate with cross-functional teams to provide financial data, support decision-making, and align accounting practices with overall business operations.

What’s the difference between a CFO and a controller? 

The CFO is responsible for the overall financial direction of the business. They manage planning and forecasting, aligning the company's financial goals with its growth. The controller, on the other hand, is more operational and focuses on the company's accounting functions. They manage financial reporting and internal controls. In short, while the controller provides the accurate numbers , the CFO uses those numbers to make big-picture decisions.

Do I need both?

Not always! Some companies, especially smaller businesses, only need one or the other to handle all their finances. With West to East Business Solutions, we will delegate your tasks to the appropriate professional for the job. When you hire our company, our professionals will take care of your finances without giving you the extra stress of choosing who you need to hire for specific tasks. If you have a smaller company and all you need is bookkeeping, we can take care of that! Have a large company that is outgrowing your current financial team? We can take care of that, too! No matter what tasks you need completed, we are here to help. 

What steps do I need to take to hire a CFO or Controller? 

Contact us! The first step to working with our team is to set up a Zoom meeting with us, often meeting directly with our CEO, who can analyze your company and assign the appropriate accountants to handle your finances. It’s as simple as sending a quick email or making a quick phone call to us, and we will take care of the rest. 

Controller and CFO level accounting can be stressful and time-consuming, but don’t worry, we are here to help. Our team will stay in contact with you throughout our partnership to ensure that you are updated on your company’s financial health and have all the tools you need to make informed decisions about the future of your company, creating a simple path to achieving your goals. No matter where you are located, contact us today to set up an online consultation and learn more about how West to East Business Solutions can help you!