In the following article we are going to delve into two of the most important figures in business management: CFO or Controller Office and the Financial Controller.
But first we will delve into its basic characteristics and actions within the organization.
The Chief Financial Officer or CFO
The Chief financial officer or CFO whose acronym comes from the Chief Financial Officer nomenclature, would be the individual who is in charge of the management of a business.
Although the function of this figure is not limited only to this work. One of its main functions is to control the accounting and tax aspects that affect the organization.
One of the main objectives of its performance is to add value to the company. He will be in charge of providing specialized knowledge of the financial, accounting and tax areas. Achieving in this way to obtain an EIN number and overview of the business that helps to comply with the legal provisions to which it is subject in its activity.
Some of the specific actions that the CFO takes within the organization are:
- Strategic decisions.
- Business relationships.
- Supervision of accounting and taxation
- Efficiency in business activity.
The Financial Controller
On the other hand, the financial controller is the person who is in charge of managing and controlling the financial economic direction of the company.
For this, they are based on strategic plans for the company that guides their line of action. These plans have the objective of making a comparison between the company’s results and the previously established budgets.
This is very useful, opening new avenues for improvement in your processes and management.
Some of the functions it has within the organization are:
- The design of new accounting systems that help decision-making.
- Create the applicable information system in the organization.
- Keep the systems used updated.
- Ensure the profitability of the business.
- Budget coordination
- Training of dashboards.
- Investment control.
CFO VS Financial Controller
In this aspect and in general terms, the main difference between a CFO and a controller is that the CFO would be the right hand of the businessman , the one who helps him in making decisions that derive from the business.
While the controller is in charge of the control and financial and fiscal management that derive from the daily operations of the company.
To fully understand the relationship between both individuals, we must observe that the financial controller focuses on the financial aspects of the organization. Through his accounting and financial management, he manages to have a perspective on the economic progress of the organization.
The CFO services in India competence in this case are broader. It will take into account this information from the financial statements and other information of interest, both tax and business in general. With this information you will try to improve the future performance of the company. Although this is being modified due to the automation of the accounting process, more and more CFOs come from a financial or banking environment.
In conclusion, it is vitally important that there is a correct symbiosis between the financial controller and the CFO that through the management and information provided by the controller, the CFO can make the best decision and set the direction of the organization.