What's the Difference Between a Controller and a CFO?

By Martin · Updated 2026-02-02

A controller manages historical financial accuracy — closing books, producing statements, ensuring compliance. A CFO focuses on forward-looking financial strategy — cash forecasting, risk management, and guiding business decisions. The controller tells you what happened; the CFO tells you what's going to happen and what to do about it.

Why This Matters for Contractors

Most contractors under $50M in revenue don't have both a controller and a CFO. They have a bookkeeper, maybe an accountant, and they handle the rest themselves. That works — until it doesn't.

The distinction matters because the skills are fundamentally different:

A Controller focuses on accuracy:

Month-end close and financial statements
Accounts payable/receivable management
Tax compliance and audit preparation
Cost coding and job cost reporting
Historical data integrity

A CFO focuses on strategy:

Cash flow forecasting and management
WIP analysis and project profitability trends
Bonding capacity optimization
Banking relationships and debt structure
Growth planning and risk management
M&A evaluation and business valuation

The Real-World Impact

Here's what this looks like in practice:

Your controller tells you: "Last month we had $2.1M in revenue, $1.8M in costs, and our gross margin was 14.3%."

Your CFO tells you: "Three of your jobs are trending toward margin fade. If we don't address the labor overruns on the Municipal Center project, you'll burn through your line of credit by Q3. Here's what I recommend."

Both roles are essential. But they solve different problems.

When Do You Need a CFO?

Most contractors realize they need CFO-level thinking when they hit one of these inflection points:

Revenue crosses $10M — Complexity outpaces gut instinct
Bonding requirements increase — Sureties want to see sophisticated financial management
Cash flow gets unpredictable — Growth is consuming cash faster than profits generate it
You're considering acquisition or succession — Strategic decisions need strategic financial analysis

The good news: you don't need a full-time CFO to get CFO-level insight. A fractional CFO or the right tools can close the gap.

Common Mistakes

Expecting your controller to be your CFO — They're different skill sets. A great controller may have zero interest in strategy.
Expecting your CFO to close books — That's not where their value lies. Let the controller handle accuracy; let the CFO handle direction.
Hiring neither — Many contractors try to do both roles themselves. This works until the business outgrows the owner's bandwidth.

The Bottom Line

If your financial team only tells you what happened last month, you have a controller (or a bookkeeper). If someone is telling you what's going to happen and what to do about it, you have a CFO.

Most contractors need both perspectives. The question is how you get them — a full-time hire, a fractional CFO, or tools that provide CFO-level analysis automatically.