Blog

September 27, 2023

Jose Soto SCA

Controller or CFO? Which is Best for Your Growth Strategy?

In financial management, controllers and Chief Financial Officers (CFOs) play different roles in steering companies toward success. We sat down with David Prieto, senior financial consultant at Surfside Capital Advisors LLC, to delve into the differences between each role and the pros and cons an outsourcing solution brings.

Q: What’s the difference between a controller and a CFO?

A: A controller’s role typically centers around the day-to-day financial operations, focusing on accounting, reporting, and compliance. CFOs offer a higher-level strategic approach, providing a broader scope that includes long-term financial planning and strategic decision-making. Their expertise is a must-have to raise capital and interact with investors successfully.

CFOs offer strategic guidance that spans growth strategies, risk management and capital allocation. Their involvement optimizes cash flow, enhances management information and fosters better decision-making, ensuring the company’s financial strategy seamlessly aligns with its overall business trajectory.

Hiring a controller can provide immediate on-site support for routine financial tasks and smooth operations. They ensure that the books and records are high-quality and focus on proper accounting and historical reporting. Conversely, CFOs are forward-looking and bring diverse capital markets and industry expertise. This expertise translates into driving growth, enhancing operational efficiency and providing expert insights.

Q: Does outsourcing CFO functions save money?

A: Outsourced CFOs offer a cost-effective solution by providing top-tier financial expertise without the overhead cost of an in-house executive. Their presence can streamline financial processes, identify opportunities for cost optimization and implement strategic financial plans that closely align with the company’s overarching goals.

Companies should carefully consider whether it makes sense to retain an in-house financial team or embrace an outsourced CFO solution by evaluating your current financial needs, long-term objectives and the specific expertise required.

Q: Why is it an excellent time to consider outsourcing the CFO functions?

A: Companies must have flexible and dynamic financial management in today’s rapidly evolving business landscape. Embracing outsourced CFO services offers the ability to tap into adaptable expertise that can swiftly respond to market shifts. It’s a proactive measure to stay competitive and resilient.

We worked with a manufacturing company grappling with cost management challenges. By engaging an outsourced CFO, we identified operational inefficiencies, renegotiated contracts and executed cost-saving strategies. The result? A notable increase in profit margins.

Q: What are the benefits of transitioning to an outsourced CFO model for companies with well-established in-house financial teams?

A: In-house teams benefit from fresh perspectives and unbiased viewpoints. Outsourced CFOs bring diverse industry experiences, best practices and innovative strategies, ultimately enhancing risk management, strategic planning and financial stability.

The transition to outsourced CFO services has its challenges. Change management and team integration can pose obstacles. Effective communication, precise role definitions, and a well-structured transition plan can help companies navigate these challenges, ensuring seamless integration.

Topline takeaways:

Prieto offered these topline takeaways for large companies embarking on outsourcing CFO services: