Both financial controller and finance manager are important roles in an organization’s finance department. While there are some similarities between the two positions, there are also key differences that make each role unique. Understanding these differences can help determine which role may be better suited for certain individuals and situations.
Key Responsibilities
The core responsibilities of a financial controller include:
- Overseeing the accounting department and managing accounting staff
- Preparing and analyzing financial statements
- Ensuring accuracy of financial records and reporting
- Managing the accounting system and internal controls
- Overseeing budgeting, forecasting, and financial planning
- Managing cash flows and assessing liquidity
- Leading the preparation of regulatory reporting
- Developing and enforcing financial policies and procedures
Meanwhile, typical duties of a finance manager include:
- Preparing budgets and financial plans
- Analyzing costs, revenues, financial commitments and obligations
- Reviewing financial reports and highlighting areas of concern
- Providing recommendations to reduce costs and enhance revenues
- Managing day-to-day accounting operations and supervision of finance staff
- Ensuring compliance with financial regulations and guidelines
- Assessing and recommending improvements to financial systems and processes
- Leading specific finance-related projects and initiatives
While both roles involve financial management duties, the controller takes on more leadership and oversight responsibilities while the finance manager deals more with day-to-day operations and analysis.
Qualifications
Here are typical qualifications for each role:
Financial Controller
- Bachelor’s degree in accounting, finance or related field
- CPA designation
- 5+ years experience in accounting or audit role
- Expertise in GAAP and financial reporting standards
- Leadership and management skills
- Attention to detail and accuracy
- Strong analytical and problem-solving abilities
Finance Manager
- Bachelor’s degree in accounting, finance or related field
- Certification like CMA or CFM helpful
- 3+ years experience in a finance analyst or accountant role
- Expertise in financial analysis, budgeting and forecasting
- Strong math, analytical and critical thinking skills
- Advanced Excel modeling skills
- Ability to translate numbers into insights
The controller role generally requires more formal education, credentials, and experience. The finance manager role values strong analytical capabilities.
Salary Differences
Due to differences in qualifications and responsibilities, financial controllers tend to be paid more than finance managers. According to PayScale data:
Job Title | Average Base Salary |
---|---|
Financial Controller | $97,059 |
Finance Manager | $79,974 |
Of course, salaries can vary significantly based on factors like company size, industry, location and individual experience level.
Career Advancement
The controller role is viewed as higher level than the finance manager role. Controllers may advance to chief financial officer or other executive positions. Finance managers may have opportunities to be promoted to controller given the right experience and credentials.
Some common next steps in career progression include:
- Financial Controller: Chief Financial Officer, VP of Finance, VP of Accounting, Treasurer
- Finance Manager: Senior Finance Manager, Finance Controller, Director of Finance
Key Differences
In summary, the key differences between financial controllers and finance managers include:
Financial Controller | Finance Manager |
---|---|
Higher level management role | Mid-level analytical role |
Oversees accounting department and entire financial function | Manages discrete finance areas and teams |
Leads financial reporting and compliance | Supports financial planning and analysis |
Requires CPA credential | CMA or CFM credentials helpful |
5+ years accounting experience required | 3+ years finance experience preferred |
Higher average salary ($97K) | Lower average salary ($80K) |
Career path leads to CFO/VP roles | Career path leads to controller roles |
Which is Better?
Determining which role is “better” depends on an individual’s skills, interests and career aspirations. Those who enjoy detail-oriented accounting work may find the controller role more appealing. Individuals who prefer data analysis and want to advance to leadership roles may find the finance manager path better suits them.
Some key questions to ask:
- Do you want to oversee the big picture finances or be hands-on with analysis?
- Are you interested in managing teams and finance departments?
- Is obtaining your CPA important for your career goals?
- Do you aspire to senior executive leadership positions?
The controller role provides higher status and pay but also requires advanced credentials and experience. The finance manager role offers strong growth potential from an analytical standpoint. Assessing your skills, interests and goals can help determine which option may be a better long-term career fit.
Conclusion
In summary, while both provide critical support for organizational financial health, financial controllers and finance managers perform different functions and follow different career paths. Controllers take on more oversight and leadership with higher pay but also more formal requirements. Finance managers analyze and guide financials from an intimate operational level and can advance to controller roles in time. Understanding these key differences allows both finance professionals and hiring managers to determine which role is better suited based on individual capabilities and aspirations.