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Which one do you need

Bookkeeper, controller or CFO — which one do you actually need?

Updated

Sellers use these three titles interchangeably, but each owns a different question, and buying the wrong one means overpaying or still missing what you needed.

EverStone CPA is a sole practitioner Chartered Professional Accountant firm working remotely with owner-managed businesses across BC.

Quick answer: A bookkeeper records what happened. A controller makes sure it is right and turns it into a report you can act on. A CFO decides what to do about it. Most owner-managed businesses under about five million dollars of revenue need the first two, and need the second one long before they think they do.

On this page
  1. Bookkeeper, controller or CFO: the one-line difference
  2. What each one is responsible for
  3. The three mistakes owners make here
  4. What each one costs
  5. Other fractional cfo or controller work
  6. Common questions about the three roles

Bookkeeper, controller or CFO: the one-line difference

A useful test is to ask which question the person is accountable for answering. If you are asking what is the difference between a bookkeeper, a controller, and a CFO, the answer starts with that one question.

  • Bookkeeper: “What happened?” — the transactions are entered, coded, reconciled and filed.
  • Controller: “Is that right, and where do we stand?” — the close is complete, the balances are supported, and the report is one a lender would accept.
  • CFO: “What should we do about it?” — pricing, capital, hiring, whether to take the contract, when to buy the building.

They fail differently. Bad bookkeeping gives wrong numbers; no controller, right but useless numbers; no CFO, good numbers nobody acts on.

What each one is responsible for

Responsibilities of a bookkeeper, a controller and a CFO Responsibilities of a bookkeeper, a controller and a CFO
 BookkeeperControllerCFO
Transactions and codingOwns itReviews it—
Bank and account reconciliationsBankEvery balance sheet account—
Payroll and sales tax filingsOwns itReviews it—
Month-end close—Owns it—
Management reporting pack—Owns itReads and acts on it
Budget and forecast—Builds and maintainsSets the assumptions
Cash forecasting—Owns itDecides what to do about it
Audit or review readinessSupplies documentsOwns it—
Pricing, capital, major decisions—Supplies the numbersOwns it
Lender and investor relationships—Supplies the reportingOwns it

Read down the controller column and you see why many businesses sense something missing without naming it: nobody is doing that column.

The three mistakes owners make here

Expecting a bookkeeper to become a controller. They are different skills, and a good bookkeeper is not made better by being asked to do a job they were not hired for. This is the most common version, and it usually surfaces at year end when the adjusting entries turn out to be large. Buying a CFO to fix a reporting problem. If the month-end close does not happen, a CFO’s first three months are spent building one. That is controller work bought at CFO rates, and it is the most expensive way to arrive at a reporting pack. Waiting for a crisis. The trigger is usually a lender asking for something, a year end going badly, or a finance person resigning. All three are more expensive to solve under time pressure than they would have been six months earlier.

What each one costs

Prices on this site are published. That makes a fractional controller vs CFO vs bookkeeper comparison a matter of reading the published fees below.

A full-time controller in British Columbia is a salaried hire with employer costs on top, and the fractional version exists because most businesses in this range need perhaps a quarter of that person.

Common questions about the three roles

Can one person be all three?+
Often, in a small business, and that is fine if the hats are clear and the review is real. The risk is the checker also did the work, which is no review. Ask us →
We are about $3M in revenue. Which do we need?+
Almost certainly bookkeeping plus a controller, probably not a CFO yet. The usual problem at that size is late, untrusted numbers, a controller problem. A CFO pays off once wrong decisions get costly.
Our accountant does the year end. Is that not a controller?+
No. A year-end engagement looks back once a year; a controller works monthly and forward. One firm can do both, but a year end will not tell you where you stand in July.
Do we still need a year-end accountant if we have a controller?+
Yes, and having one makes the year end cheaper and faster, because the file arrives closed rather than needing to be reconstructed. If we do both, that is one engagement and no handover.

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If the question is about designations rather than roles, bookkeeper, accountant or CPA explains what each is actually licensed to do.