The CFO vs Controller vs Accountant vs Tax Expert is a rapidly growing topic of discussion amongst seasoned investors, CEOs, and entrepreneurs who have a track record – success and failure.
Let us make a bold statement – there is a drastic difference and it could mean the difference between success and failure in the early stages of growth.
Jim Schleckser, CEO, Inc. CEO Project, explains the importance of knowing the difference as the CEO or Founder very well in his recent article on Inc.
“The truth is that the skills needed to be a good controller are vastly different than that required of a great CFO–which is something that a lot of entrepreneurs miss, particularly if their gift isn’t finance.” – Jim
Think of it this way: if any external set of eyes is going to look into your number story (investors, banks or lenders, mentors, merger and acquisition experts, etc), would you risk such an important step on the idea your bookkeeper or accountant can figure it out with you. Harsh, I know, but success is built on a series of small yet important milestones each making it much harder or easier for reaching the next level in your growth journey.
Below is a good quick summary of the difference (if you want to see Jim’s full article on Inc. – read more here)
Controller Skills: Make sure your books are in order, accurate, and closed timely to understand current cash flow status. When something is off, they perform analysis to get back on track so accuracy is key. The Analysis of this workflow and process is what separates a controller from an accountant.
Growth CFO Skills: Guide the CEO and lead the financial story reporting and understanding as the CEO requires. CFO can explain why profits are up or down, analysis assets and liabilities, negotiate and engage with investors, banks, etc. The CFO is also focused on the long-term finances of the company in terms of forecasting as well as how the business might fund, say, an acquisition by borrowing or other means.
Having total clarity and confidence around your companies number story as the CEO is crucial to reach the next stage, no matter how small or large.