July 30, 2025 • Articles / Resources

Controller vs. CFO: Why Your Growing Business Needs Both Accounting and Finance Functions

ScaleCreation Series, Part 2: One of the biggest misconceptions founders have is that accounting and finance are the same thing.

They’re not—and knowing the difference could be the key to scaling your business more efficiently and strategically.

As your company grows, so does financial complexity. New revenue streams, higher expenses, and bigger decisions demand more than just someone to “do the books.” You need both an accounting function to manage your financial health today and a finance function to help plan for tomorrow.

The Controller: Bringing Order to Chaos

Your Controller (or accounting lead) is your first financial hire for a reason. They’re focused on the past and present, making sure your numbers are accurate, your reports are on time, and your business stays compliant.

What a Controller Does:

• Maintains accurate financial records, like balancing the checkbook
• Manages accounts payable and receivable, often also including payroll, benefits, and leases
• Oversees tax filings and compliance
• Closes the books monthly
• Produces financial reports you can trust

What Makes a Good Controller:

• Extremely detail-oriented
• Process-driven and organized
• Grounded in historical data
• Comfortable with compliance and deadlines

In early-stage companies, the Controller helps tame the mess. They bring structure to finances, implement repeatable processes and controls, and ensure you know where your money is going.

The CFO: Thinking Ahead

Once the basics are under control, you’ll inevitably ask bigger questions:

• What should our budget be next year?
• How do we improve margins?
• Should we raise money? If so, how much?
• What’s our cash runway?

That’s when it’s time to bring in a CFO (Chief Financial Officer).

In addition to helping you understand the current numbers, like a Controller, your CFO is also forward-looking, helping you plan for growth, manage risk, and make strategic decisions.

What a CFO Does:

• Builds and manages your financial model
• Creates annual budgets and forecasts
• Develops long-term financial strategies
• Supports pricing, hiring, and investment decisions
• Oversees capital raises, investor relations, or M&A activities

What Makes a Good CFO:

• Strategic and analytical
• Experienced in growth-stage finance
• Skilled in scenario planning and forecasting
• A true business partner to the CEO

When Is It Time to Hire a CFO?

Here’s the short answer: Not right away.

Your business doesn’t need a CFO on day one. In fact, hiring one too early may add cost without much value. What you do need first is a rock-solid accounting function—led by a Controller—who can:

• Close the books monthly
• Deliver timely, accurate reports
• Track cash flow and expenses
• Bring consistency to the chaos

Once that’s in place, and you’re starting to think strategically, consider adding a CFO function.

Signs You Might Be Ready for a CFO:

• You’re planning a capital raise
• You need forecasting for hiring, expansion, or R&D
• You’re considering a new product line or market
• You need help making high-stakes business decisions

You can start with a fractional CFO to support major milestones, then grow into a full-time role as complexity increases.

Final Thoughts

Don’t fall into the trap of thinking accounting and finance are interchangeable.

• Accounting (Controller) keeps the past and present organized.
• Finance (CFO) helps plan and build the future.

As a founder, getting the timing right, and knowing the distinct value of each role, will help you build a smarter, more scalable business.

Don’t miss the next installment in our five-part series, where we break down each of the key focus areas from our Codex that drive value and minimize risk during rapid growth.