Financial Controller vs Finance Director – Roles, Skills & Focus

A business’s finance function manages its money and works to ensure financial stability and growth. It covers all things finance within the business, including budgeting, forecasting, reporting and compliance. There are some key roles that underpin a finance function, and some of these roles can be unclear to those without a finance background.

Two of the most important roles within a finance function are the Finance Director and Financial Controller.

So, what’s the difference between them? In this blog I’ll explain.

The key differences between a Financial Controller and a Finance Director

A Financial Controller and Finance Director are distinct roles with separate duties. The Financial Controller usually manages daily finances, ensuring accuracy and compliance, whereas a Finance Director focuses on strategic planning and long-term growth.

In other words, the Financial Controller is an operational role, while the Finance Director is more strategic.

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Feature	Financial (Finance Director)	Finance Director
Areas of focus	Ensures accurate reporting of the company's financial performance, risk management, cash balance, governance and compliance. Could also know about tax, pensions, audit and receipts.	Primarily strategic planning and implementation. Could also be responsible for financial planning, forecasting, reporting and performance monitoring. Could also have input into operational and commercial decisions.
Time horizon	Focus is usually on short-term financial performance, reporting and compliance.	Long-term strategic planning and implementation.
Who they report to	Typically reports to the CFO.	Typically reports to the CEO.
Main responsibilities	Financial reporting, compliance, governance, risk management, and audit.	Strategic planning, investment strategy, and long-term profitability.

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These roles can occasionally overlap

While the Financial Controller and Finance Director are separate roles, their duties can sometimes overlap. This is quite common in smaller businesses with fewer team members.

Many start-ups or smaller SMEs will have a single individual managing their finance function, which means they will take on the responsibilities of both roles.
Points of focus can often overlap too, such as risk management, budget preparations and financial planning.

…and collaborate

Crucially, the Financial Controller (FC) and FD will often work together on projects. Close collaboration is essential because the FD relies upon the accurate data the FC provides, while the FC’s duties are defined in part by the overall financial strategy devised by the FD.

Which do you need?

Whether you need an FC or an FD to join your team depends on a few factors. Both are invaluable team members for the right business, but not every business needs them on a full-time basis.

A dedicated Financial Controller and Finance Director are best suited for businesses with complex financial operations and the need for detailed financial oversight and robust internal controls. They may also be rapidly expanding or diversifying into risky new markets, requiring on-hand expertise to manage all the financial implications.

When outsourcing is an option

In-house FCs and FDs are often best suited to large businesses with higher revenue streams, due to the cost of recruitment and retention. For smaller businesses, this may not be practical or cost effective.

Many of these businesses outsource their FC and FD roles to dedicated teams of accountants, who provide all the expertise of an experienced FC/FD, without the long-term cost and inflexibility.

This is something that Gravitate can help your business with if needed. Try our new interactive quiz to see if an Outsourced FD or FC is right for you.