Financial Analyst vs. Controller: What Are the Differences?

A career in finance can be both challenging and rewarding. Two common positions in this field are financial analyst and controller. Though both roles are important in managing finances, there are several key differences between them.

In this article, we discuss the differences between a financial analyst and a controller, and we provide additional finance-related professions you may be interested in pursuing.

What is a Financial Analyst?

A Financial Analyst is a professional who performs financial analysis, which is a type of work that is concerned with forecasting financial performance and managing financial risks. Financial Analysts are employed in a variety of industries, including banking, insurance, accounting, and investment. They typically have a bachelor’s degree in finance, accounting, economics, or a related field. Financial Analysts use their skills in mathematical modeling, statistical analysis, and financial software to identify trends, assess opportunities, and make recommendations to their clients or employers.

What is a Controller?

Controllers are responsible for the financial health of their organization. They produce financial reports, direct investment activities and develop strategies to reduce costs. Controllers also develop financial models to forecast future revenue and expenses. They work with the accounting team to ensure that all financial transactions are properly recorded and that the financial statements are accurate. Controllers also work with auditors to ensure that the organization’s financial statements comply with all regulatory requirements.

Financial Analyst vs. Controller

Here are the main differences between a financial analyst and a controller.

Job Duties

Financial analysts conduct financial research to help companies make business decisions. They evaluate market conditions and company performance, then develop strategies for improvement. These professionals also prepare reports for executives and managers, including financial statements and other data that’s useful in decision-making.

Controllers are responsible for ensuring that a company’s financial records are accurate. They monitor all aspects of accounting, including bookkeeping, revenue reporting, budgeting and financial forecasting. Controllers ensure that the company is following accounting regulations and can advise leadership on financial matters.

Job Requirements

To become a financial analyst or controller, you need a bachelor’s degree in accounting, finance, statistics, economics, business administration or a related field. For consideration in more advanced positions, it may help to pursue a master’s degree, but it is not a prerequisite for either position.

In addition to college, both professions may continue education through additional certifications. A CPA license, which teaches accountants how to file taxes, is accredited through the American Institute of Certified Public Accountants and offered as a national exam. A CFA license allows financial analysts to advise clients through decision-making in investment opportunities. Certifications are not mandatory in either position but allow for more growth opportunities and can be an outlet for gaining more experience in the financial field through extensive training hours.

Work Environment

Financial analysts typically work in an office setting, but they may also travel to meet with clients and attend conferences. They spend most of their time sitting at a desk or table and using computers to complete reports and analyze data.

Controllers usually work in an office environment, but they may also visit different locations within the company to ensure that employees are following proper procedures. They often travel between offices and departments to monitor operations and ensure that all employees are working efficiently.

Skills

Both financial analysts and controllers use analytical skills to examine data and make recommendations or decisions based on their findings. They also both need to have excellent math skills to perform calculations related to their work. Financial analysts may use more complex mathematical skills when they are working with derivatives or performing statistical analysis.

Both of these professionals need to be able to communicate effectively, whether they are writing reports or presenting their findings to colleagues or clients. However, controllers may need to use more persuasive communication skills when they are convincing upper management to adopt their recommendations.

Organizational skills are important for both financial analysts and controllers, as they often need to keep track of multiple projects at one time. Financial analysts may need to be especially organized when they are managing portfolios, as they need to be able to quickly access information about the investments they are overseeing. Controllers need to be well-organized to ensure they are meeting deadlines and staying within budget.

Salary

Financial analysts earn an average salary of $71,352 per year, while controllers earn an average salary of $127,160 per year. The average salary for both positions may vary depending on the size of the company, the location of the job and the level of experience the employee has prior to taking the position.