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Understanding the Different Finance Roles in Your Organization

Hey there, fellow business owners! Have you ever wondered about the differences between bookkeepers, financial controllers, and chief financial officers (CFOs)? Well, you're in luck, because this blog post is here to clear things up and help you figure out when to hire for each of these essential finance roles.



Let's start with the Bookkeeper. These are the folks who are responsible for recording and organizing all of your company's day-to-day financial transactions, like invoices, receipts, and payments. Their main gig is to keep your books in tip-top shape by:


  • Maintaining accurate records of all those financial transactions

  • Reconciling your bank statements and accounts

  • Generating basic financial reports like income statements and balance sheets

  • Taking care of payroll and tax filings


Bookkeepers should be engaged as soon as there are financial transactions to manage (early stage of the business).  


The average cost for a full-time bookkeeper is usually between $40,000 - 50,000 USD per year, with an average being close to $45,000 USD per year. Additional costs like benefits would range based on location. 


Next up, we've got the Financial Controller. These guys play a more strategic role in the organization compared to the bookkeeper. Their responsibilities include:


  • Overseeing the entire accounting function, including the bookkeeping team

  • Analyzing all that financial data to provide insights and recommendations to management

  • Making sure you're in compliance with all the relevant laws, regulations, and accounting standards

  • Preparing comprehensive financial reports and forecasts

  • Managing your company's cash flow and working capital


A controller should be brought in when financial operations become more complex and require detailed oversight (growth stage).


The average cost for a full-time financial controller ranges significantly based on the source.  Data pulled from indeed.com states the average base salary for a controller is $111,835 USD per year. With the range being from $75,000 - $165,000 USD. 


And last but not least, we've got – the Chief Financial Officer (CFO). This is the senior-most finance executive in your company, and they're responsible for the overall financial strategy and health of your organization. Their key duties include:


  • Developing and implementing long-term financial plans and budgets

  • Overseeing all financial operations, including accounting, treasury, and tax

  • Providing strategic advice to the CEO and board of directors

  • Securing financing and managing investor relations

  • Ensuring your company's compliance with financial regulations


Bringing in a CFO is most beneficial when reaching a stage in your business of strategic and long-term planning - which are critical for continued growth / stability (mature stage).


The average cost for a full-time CFO can range from $90,000 to $260,000 USD with an average of $155,000 USD a year, also including average profit sharing of $22,500 USD. 


So, when should you hire for each of these roles? Here's a quick rundown:


  • Bookkeeper: When you first start your business and need to keep those financial records in order.

  • Financial Controller: When your business has grown to the point where you need more sophisticated financial reporting, analysis, and strategy.

  • CFO: When your company has reached a certain size and complexity, and you need a senior finance executive to oversee the overall financial health and direction of your organization.


Remember, these finance roles can overlap, and the specific duties may vary depending on the size and needs of your business. The key is to understand the distinct value that each position can bring and hire accordingly to ensure the financial success of your company.


Happy hiring, my fellow business owners! 




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