In this episode of Cherry Bekaert’s Government Contracting podcast, host Jonathan Reid, Director, is joined by Mike Cippel, Managing Director, to discuss the job differences between accounting managers, controllers and chief financial officers (CFO).
Tune in to learn more about:
- The definition of an accounting manager, controller and CFO
- Key differences between the three roles
- Responsibilities expected in these roles
- Requirement to hold the positions
- What type of work environment to expect
- Skills needed to succeed in each role
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HOST: JONATHAN REID: Hello. Welcome to Cherry Bekaert's Government Contractors Podcast, where we discuss current government contracting trends, compliance matters, and best practices to guide federal contractors forward.
HOST: JONATHAN REID: My name is Jonathan Reid. I'm a director in our Government Contract Finance and Accounting Outsourcing (FAO) service line, and with me today is Mike Cippel, Managing Director in our FAO service line.
MIKE CIPPEL: Thank you for having me, Jonathan. I think we have a topic people will be excited to learn more about.
HOST: JONATHAN REID: Absolutely. Today we are talking about the differences between three very important positions: the accounting manager, controller, and CFO. Mike, thank you for joining me.
MIKE CIPPEL: Great to be here.
HOST: JONATHAN REID: These positions are all involved in the accounting and finance department of a business. My first question is how do you go about attaining one of these positions? What are the educational and experience requirements, and what skills do you need?
MIKE CIPPEL: To become an accounting manager or controller, you typically need a bachelor's degree in accounting, finance, or a related field. A master's degree can be beneficial for higher positions but is not always required. Continuing education is important.
MIKE CIPPEL: Common certifications include a CPA license and the CFA designation, which stands for Chartered Financial Analyst. These certifications are not mandatory but offer growth opportunities and additional experience.
MIKE CIPPEL: Experience usually begins in roles such as staff accountant or senior accountant and progresses from there. Attention to detail, strong Excel skills, and accuracy are important to excel in the field.
MIKE CIPPEL: Accounting managers and controllers often have similar backgrounds, but their duties differ. The CFO role tends to be less technical and more strategic. It often requires 15 to 20 years of experience in similar roles and leans heavily on reputation.
MIKE CIPPEL: A CFO may also hold an MBA, CPA, CFA, or CFM designation. The required mix of education, certification, and experience varies by role.
HOST: JONATHAN REID: A common misconception is that the most important skill is the strongest math ability. I agree that math is important, but the key is what you do with the numbers — the analytical skills and the ability to derive insights and make decisions from data.
MIKE CIPPEL: When you're an accounting manager, the role is responsible for day-to-day operations and the accuracy of the numbers. You ensure correctness by looking for trends and analyzing data because decisions will be made based on that information.
HOST: JONATHAN REID: Do all businesses have all three positions?
MIKE CIPPEL: It depends on the size of the company. At smaller companies, you may have one or two positions filled, sometimes with one person wearing multiple hats. At very small firms, a CEO or partner might perform CFO duties.
MIKE CIPPEL: For larger companies, you will typically have an accounting manager, a controller, and a CFO. It depends on the needs of the business and the cost of staffing those roles.
HOST: JONATHAN REID: Let's focus on the differences. When I say accounting manager, what are the primary duties?
MIKE CIPPEL: An accounting manager manages the team that performs daily financial tasks. Invoices must go out, vendors must be paid, payroll must be processed, and transactions must be recorded in the general ledger responsibly so records and reports are accurate.
MIKE CIPPEL: The accounting manager analyzes financial data to ensure it makes sense and that nothing is omitted, such as benefit payments, or duplicated, such as paying an invoice more than once. Attention to detail and a facility with numbers are essential.
HOST: JONATHAN REID: The accounting manager role is largely transactional, but they must also interpret what transactions mean for the general ledger and financial reports. Do accounting managers have a role in planning, strategy, tax, or audit?
MIKE CIPPEL: They often participate in planning and strategy at a tactical level and support tax and audit processes. Tax and audit are often outsourced, and accounting managers provide data, reports, and analysis to consultants.
HOST: JONATHAN REID: Moving to the controller role, I think of a controller as a financial guardian who creates repeatable procedures and manages internal controls to ensure transactions are auditable and maintain high standards.
MIKE CIPPEL: Exactly. The controller is overall responsible for compliance. Solid internal controls are critical for audits, due diligence, or a potential sale. The controller oversees accounting, creates reports, manages investments, and assesses risks.
MIKE CIPPEL: The controller ensures rules and procedures are followed and that the books comply with GAAP. In not-for-profit organizations, controllers must follow applicable circulars, and in the government space they must monitor FAR requirements.
HOST: JONATHAN REID: Controllers are also involved in strategy, planning, maintaining budgets, and tracking metrics. They ensure the accounting manager adheres to procedures to produce reliable financial reports.
HOST: JONATHAN REID: Now for the CFO. In smaller organizations, a CEO might act as CFO, but how would you define the CFO role?
MIKE CIPPEL: The CFO is the strategic financial leader of the organization. They collaborate with executives, investors, and the finance team to manage risk, select investments, and make strategic decisions.
MIKE CIPPEL: The CFO maintains relationships with executives and investors and provides oversight of the company's financial health. They look to the future and advise on decisions needed now to position the company for success.
MIKE CIPPEL: Responsibilities include capital strategy, MD&A, interpreting forecasts for investors and executives, and communicating with C-suite leadership and external parties for investments, mergers, and other transactions.
MIKE CIPPEL: The CFO requires a broader skill set and typically brings years of experience and valuable relationships that facilitate strategic decision-making.
HOST: JONATHAN REID: All three roles require a strong educational background and appropriate experience to support the accounting function. Do you have any final thoughts, Mike?
MIKE CIPPEL: Whether a company is small, medium, or large, there is no one-size-fits-all structure. All three roles play crucial parts in managing a company's finances, whether those responsibilities are covered by one person or a team.
MIKE CIPPEL: Proper oversight and guidance are essential to ensure accounting is done correctly, timely, and that the data is used to guide the company forward. For those pursuing careers as accounting managers, controllers, or CFOs, with time and experience candidates can progress through those levels.
HOST: JONATHAN REID: That is all the time we have today. If you have questions, please reach out to Mike Cippel or myself, Jonathan Reid. Thank you for tuning in, and please follow us wherever you get your podcasts.
MIKE CIPPEL: Thank you.
