Accountant Vs. Controller: What's the difference?

Structuring your accounting infrastructure can be daunting, no matter how big or successful your company is. Companies often ask about the differences between accountants and controllers. Although accountants and controllers are closely related roles, the most significant difference is the level at which they provide oversight to their respective organizations. Although the roles are different, they are integral to any accounting team.

Accountant Vs. Controller

Controllers and accountants often share the same responsibilities and roles. A controller, however, is the more senior position responsible for managing accounting-related activities within the company. Most controllers have at least five years of experience and several professional certifications. Moreover, controllers often start as public accountants before moving up to corporate environments and gaining the trust required to perform controller duties.

What is an accountant?

Non-controller accountants generally perform more straightforward accounting tasks than controllers. These responsibilities include internal reports, cost accounting, tax auditing, and cost accounting. Each CPA can also manage other bookkeepers and understand how to complete their bookkeeping tasks. In addition, they are responsible for preventing fraud and maintaining the accuracy of financial reports for investors, creditors, regulators, and co-workers.

What is a Controller?

Controllers manage the accounting system of organizations. Controllers are responsible for setting up an efficient accounting infrastructure in smaller businesses and are an overseer for larger companies. They are crucial in organizing and executing accounting actions to ensure everything runs smoothly.

Financial data analysis skills are also required for controllers. Although they have fewer forecasting responsibilities than CFOs, controllers still have some tax management and forecasting responsibilities. CFOs may also ask them for their views on investments, creditor relations, and corporate governance.

A controller hierarchy might be used to describe a company's controller structure. For example, the head controller may have two or three controllers below him who can issue directions and create directives. On the other hand, assistant controllers need to be more skilled and spend more time on day-to-day bookkeeping tasks such as data collection, regulatory reporting, and statutory reporting.

Education and Skills: Key Differences

Anyone can do bookkeeping with a finance, statistics, or mathematics background.

Candidates must hold a CPA license to be eligible for higher-ranking accountant positions. In addition, they must be certified as a management accountant (CMA), chartered financial analyst(CFA), or have other accounting certifications. An average of three to six-year experience is required for senior-level positions. However, junior auditors and tax accountants only need one to three years of experience.

Financial Expertise

Controllers have more experience than accountants. Experience is the best teacher. Both positions are familiar with accounting principles, but controllers can see the practical implications and make profit-making decisions for their organizations. Controllers should have the same knowledge accountants have, but they must use it better.

Generalist or Expert

Accountants have the chance to improve their skills and choose their specialties. Controllers need to be proficient in many accounting principles. You are responsible for analyzing the entire accounting function of an organization. Controllers can focus on one process, while accountants can do the same.

Data vs. Information

Controllers have a background in business and accounting to contribute to financial strategy and forecasting. However, accounting professionals need to gain the skills to analyze financial data. Therefore, accountants still emphasize accuracy, compliance, reporting, and reporting financial data.

The controller interprets the data, creates something more practical, and provides guidance. For example, the controller may use the data to develop and maintain a financial forecast that includes cash flow projections and sustainable economic growth models.

Controllers can use data to identify inefficiencies and establish internal controls to improve or modify the financial model.

Bookkeeping Vs. Accounting Vs. Advisory

It is easier to see the accounting hierarchy by separating the roles into three categories: advisory, bookkeeping, and accounting.

Bookkeeping: 

Bookkeepers are responsible for entering data into company books and keeping current financial records. In addition, they keep track of all income and expenses, pay invoices and respond to outstanding bills.

Accountant:

In smaller-to-medium-sized businesses, the accountant might perform some of the bookkeeping responsibilities. However, accounting professionals with more experience and in-depth procedures are required in larger firms. Accounting professionals typically supervise bookkeepers, manage billing, handle more extensive ledger entries, and review accounts payable activity. They also operate payroll smoothly.

Controller:

Controllers manage all accounting operations. They oversee the accounting functions, facilitate month-end close processes, and perform essential financial reporting functions.

The controller is the first in an organization's financial advisory hierarchy. The CFO, however, is a higher-ranking advisory position.

CFO:

What does the chief financial officer do? First, the chief financial officer (CFO) projects the organization's long-term financial picture. Then, based on their analysis, they help companies thrive and supervise the controller in fulfilling their responsibilities.

The CFO also manages the business's capital procurement, and investment processes, analyzes the company's equity and debt ratios and assesses the company's strengths and weaknesses. CFOs must understand the company's financial position within the larger context of the industry.

Are you looking for an accountant or a controller?

Businesses only need an accountant and controller in some cases. However, they need a team focused on financial sustainability and building a solid accounting infrastructure.

An accounting team can give credibility to your numbers. The help of controllers enhances the credibility of your numbers. Finally, the team implements and executes a financial plan that will bring continued success to your company.

Conclusion - What is the difference between a controller and an accountant?

A controller provides more oversight than accountants, which makes the difference between an accountant and a controller. Controllers ensure that the organization's accounting processes run smoothly and without interruption. Accountants focus more on one aspect of a business's financial operations and ensure proper reporting and compliance.

Basis 365's full-service accounting team will provide the infrastructure and support you need to maintain financial performance and predict future results. Our accountants will not only monitor your accounting infrastructure but also ensure compliance. In addition, we offer future planning and strategy based on your organization's needs.