Financial Controller vs. Finance Manager: What Are the Differences?

A financial controller and finance manager are both responsible for the financial wellbeing of a company. Though their job duties may overlap, there are several key differences between these two positions. In this article, we discuss the responsibilities of a financial controller and finance manager, and we explain the key differences between these two roles.

What is a Financial Controller?

A Financial Controller is a senior-level position responsible for the financial health of an organization. They produce financial reports, direct investment activities and develop strategies to improve profitability. Financial Controllers also establish and maintain financial policies, procedures and controls. They work closely with other members of the executive team to develop long-term business plans and make recommendations on how to improve the financial performance of the company. Financial Controllers typically have a bachelor’s degree in accounting or finance and several years of experience working in accounting or financial management.

What is a Finance Manager?

Finance Managers are responsible for the financial health of their organization. They produce financial reports, direct investment activities and develop strategies to ensure the long-term financial security of their company. Finance Managers also create financial models to forecast future business trends. They work with accounting staff to ensure that all financial reporting is accurate and compliant with regulations. Finance Managers typically have a bachelor’s degree in accounting or finance, and many have a certified public accountant (CPA) designation.

Financial Controller vs. Finance Manager

Here are the main differences between a financial controller and a finance manager.

Job Duties

A finance manager oversees the financial aspects of a company on a large scale, while a financial controller manages specific financial tasks and departments. This means that a finance manager typically performs duties that affect the entire company’s finances, like setting financial goals, creating budgets and evaluating financial reports. Financial controllers are more hands-on, performing duties like managing accounting functions, ensuring accurate bookkeeping and overseeing specific departments that require financial expertise, such as procurement and budgeting.

Another way to think about the job duties of a financial controller and a finance manager is that the finance manager often works toward increasing the overall profitability of the company, while the financial controller ensures that all financial operations run smoothly.

Job Requirements

The job requirements for financial controllers and finance managers vary depending on the size of the company they work for. In small businesses, a finance manager or controller might only need a bachelor’s degree in accounting or business administration. However, in larger companies, these professionals typically need a master’s degree in business administration, finance or another related field. Additionally, many finance managers and controllers are certified public accountants (CPAs). To become a CPA, candidates must pass an exam administered by the American Institute of Certified Public Accountants (AICPA).

Work Environment

A financial controller typically works in an office setting, often with other members of the finance department. They may also travel to visit clients or vendors and attend meetings. Financial controllers usually work full time during regular business hours, but they may occasionally work overtime if there’s a project that needs extra attention.

A finance manager typically works in an office environment as well, although their job duties can require them to travel more than a financial controller. A finance manager may need to meet with clients or vendors at different locations throughout the week. They may also have additional responsibilities outside of the office, such as attending networking events or conferences.

Skills

Both financial controllers and finance managers use accounting skills to perform their jobs. This includes bookkeeping, auditing and tax preparation. They also both need to have excellent math skills to be able to calculate complex financial data and prepare accurate reports.

Financial controllers typically benefit from having strong analytical skills. They use these skills to examine financial data, identify trends and make recommendations to improve a company’s financial health. They also need to have excellent problem-solving skills to be able to find solutions to the challenges facing a company’s finances.

Finance managers also need to have strong analytical skills to be able to understand financial data and make recommendations. However, they also need to have excellent communication skills. This is because they often present their findings and recommendations to upper management or shareholders. They also may need to negotiate with vendors or lenders on behalf of their company.

Salary

The average salary for a financial controller is $124,139 per year, while the average salary for a finance manager is $107,233 per year. Both of these positions may see their salaries vary depending on the size of the company, the industry in which they work and their level of experience.