Within an accounting department, there are distinct job titles and responsibilities with a Chief Financial Officer (CFO), Controller, Accounting Manager and Staff Accountant. Controllers and Accounting Managers are supervisors within the department and are responsible for ensuring that financial tasks are completed accurately and on-time. Because the roles work closely together, the difference between Accounting Manager and Controller often comes down to where each person focuses. The Accounting Manager is closer to the accounting process itself, while the Controller provides broader oversight and helps management understand what the financial information means for the business.
At TGG, the distinctions between Accounting Manager vs Controller are based on how the roles function within our own accounting teams. We support our clients with a four-person team comprised of a CFO, Controller, Accounting Manager, and Staff Accountant, which gives each level of financial work a clear owner.
Key Takeaways:
- The main job responsibility of a Controller is to ensure the accuracy of the financial statements, interpret the results, communicate the financial results in a manner that management and non-accountants can understand.
- The main job responsibility of an Accounting Manager is to be the financial accounting expert and deliver complete and accurate financial accounting statements to the Controller.
- At TGG, our Consulting Controllers lead the engagement with our clients. They are often the Client Lead which requires much more focus on preserving the relationship with the client.
- Our Accounting Managers are the bridge between TGG and the client as they assist with implementing processes, addressing the needs of their client(s) and relaying that information back to the TGG team.
What Is the Difference Between an Accounting Manager and a Controller?
The main difference between an Accounting Manager and a Controller is the level and scope of responsibility. An Accounting Manager focuses more closely on accounting operations and the accuracy of the underlying financial information, while a Controller provides broader oversight, reviews that information, and helps management use it to understand business performance.
| Area | Accounting Manager | Controller |
| Primary focus | Accounting operations | Financial oversight |
| Financial statements | Oversees preparation and accuracy | Reviews and interprets results |
| Team responsibility | Oversees accounting processes and staff | Leads the accounting function and mentors the team |
| Budgeting and forecasting | May support | Typically leads or oversees |
| Internal controls | Helps implement processes | Oversees controls and financial accountability |
| Management communication | Focuses on accounting execution | Explains financial results and business implications |
| Typical seniority | Management | Senior financial leadership |
The exact division of responsibilities can vary by company size and structure, but Controllers generally operate at a higher level of financial oversight.
What Is an Accounting Controller?
The main job responsibility of a Controller is to ensure the accuracy of the financial statements, interpret the results and communicate the financial results in a manner that management and non-accountants can understand. Controllers will also make suggestions on how to improve the business in order to drive results and achieve goals that have been set. At TGG, our Consulting Controllers lead the engagement with our clients. They are often the Client Lead which requires much more focus on preserving the relationship with the client. Controllers will also spend a more of their time improving processes, reviewing financial performance, and making sure the accounting team is operating efficiently.
A Controller may also oversee budgeting, forecasting, internal controls, variance analysis, and other areas that help ownership understand where the business stands financially and what needs attention next.
What Is an Accounting Manager?
The main job responsibility of an Accounting Manager is to be the financial accounting expert. They deliver complete and accurate financial accounting statements to the Controller. At TGG, our Accounting Managers are the bridge between TGG and the client as they assist with implementing processes, addressing the needs of their client(s) and relaying that information back to the TGG team.
If you are wondering what does an Accounting Manager do on a practical level, the role commonly includes overseeing the monthly close, reconciliations, financial statement preparation, accounting procedures, and the work of Staff Accountants. The Accounting Manager helps make sure the financial information the Controller receives is reliable, timely, and supported by consistent processes.
How Do Accounting Managers and Controllers Work Together?
As previously mentioned, Accounting Managers deliver 100% complete and accurate financial accounting statements to the Controller. They have an in-depth understanding of financial accounting including all accounting requirements, GAAP rules, accrual accounting, etc. They oversee and review the work of the Staff Accountant, implement operational efficiencies and document standardized procedures. Not only do the financial statements the Accounting Manager delivers to the Controller need to be complete and accurate, but they must also be delivered timely according to the company’s reporting schedule.
Once the Controller receives the financial statements from the Accounting Manager, they review and share them with management or ownership of the business. Their job is to translate the story that’s being told in the financials by the numbers. This includes being responsible for forecasting, budgeting and benchmarking. The Controller will communicate metrics and Key Performance Indicators (KPIs) through charts, graphs and trend analysis.
The Controllers heavily rely on the Accounting Managers to provide accurate information because they are making decisions based on the financial data that they’ve been presented with.
How Do These Roles Change as a Company Grows?
Accounting Manager vs Controller responsibilities often become more distinct as a company grows and its financial needs become more complex. In a smaller business, one person may handle responsibilities for both roles, while growing companies often need a clearer separation between accounting execution and financial oversight.
A business may first need stronger accounting manager support when transaction volume, monthly close procedures, reconciliations, and financial reporting become difficult to manage consistently. Controller-level support becomes more important when leadership also needs forecasting, budgeting, internal controls, variance analysis, and someone who can turn financial reporting into useful management insight.
That distinction is one reason TGG structures its outsourced accounting model across multiple levels rather than expecting one person to handle every financial responsibility.
What Qualifications and Skills Does Each Role Need?
When it comes to an accounting manager vs controller, both are both senior-level positions that require a great deal of specialized knowledge in the field of accounting. Both roles involve managing financial operations, but there are some distinct differences between a Controller vs Accounting Manager in terms of educational requirements for each position.
Employers commonly look for a bachelor’s degree in accounting, finance, or a related field for both roles, although exact requirements vary by organization. Controllers generally need more progressive accounting and leadership experience, and some employers may prefer professional credentials such as a CPA or CMA or advanced education such as an MBA.
The specific educational requirements of Controller vs Accounting Manager positions will depend on the company, but those with higher degrees and certifications may be more attractive to employers. Additionally, depending on the size of the organization, controllers may need to have a deeper knowledge in different areas such as taxation or auditing than accounting managers. To gain this knowledge, controllers may need to have additional certifications and/or coursework.
Overall, both accounting managers and controllers require a great deal of specialized knowledge that is best acquired through years of experience in the field and higher education. Those with extra qualifications, such as a CPA certification or an MBA degree, may strengthen a candidate’s qualifications depending on the employer and role.
Accounting Manager vs Controller Salary
When comparing an Accounting Manager vs Controller salary, the difference in earnings reflects the varying levels of responsibility and expertise required for each role.
Controllers generally earn more than Accounting Managers because the role usually carries broader financial oversight, leadership, and decision-making responsibility. Actual compensation can vary significantly based on location, company size, industry, experience, and credentials.
Both roles offer competitive compensation that aligns with the complexity of their duties and the value they bring to an organization. Additionally, those with advanced certifications like a CPA or CMA may qualify for roles with greater responsibility and compensation, depending on the employer.
The skills required for Controllers and Accounting Managers have some overlap but also key differences that align with their responsibilities.
Accounting Managers must possess deep expertise in financial accounting, including a thorough understanding of GAAP rules, accrual accounting, and compliance requirements. Strong organizational skills and attention to detail are essential as they oversee financial processes, implement operational efficiencies, and ensure accurate financial statements.
Controllers, on the other hand, require strong leadership and communication skills. In addition to reviewing financial data, they interpret and present it to management in a way that drives business decisions. Controllers excel in strategic thinking, forecasting, and budgeting while also mentoring and guiding their teams to succeed.
Where Does an Assistant Controller Fit?
In an Assistant Controller vs Accounting Manager comparison, the Assistant Controller generally sits closer to the Controller in terms of financial oversight. Like Controllers, Assistant Controllers may take on analytical responsibilities and support financial planning, reporting, internal controls, and forecasting.
An accounting manager typically stays more focused on accounting operations, including close procedures, reconciliations, financial statement preparation, and supervising accounting staff. Titles and reporting structures vary by company, but an assistant controller often serves as a bridge between the accounting manager and controller and may be preparing for broader financial leadership responsibilities.
A common progression in a structured accounting department may look like Staff Accountant, Accounting Manager, Assistant Controller, Controller, and CFO, although companies do not always use every title.
Do You Need an Accounting Manager or a Controller?
The right role depends less on a specific company size and more on the financial problems the business needs to solve
An Accounting Manager may be the right level of support when the main challenge is getting the accounting operation under control. That can include improving the monthly close, keeping reconciliations current, supervising Staff Accountants, documenting processes, and producing reliable financial statements.
A Controller may be needed when the accounting work is getting done, but leadership still needs stronger oversight. This can include budgeting, forecasting, internal controls, variance analysis, management reporting, and someone who can explain what the financial results mean for the business.
Growing companies may need both roles because they solve different problems. TGG’s outsourced accounting model combines Accounting Manager and Controller support so the underlying accounting work and the higher-level financial oversight can be handled at the appropriate level.
Businesses that need stronger financial oversight without hiring a full internal finance department can also explore TGG’s outsourced controller services at https://tgg-accounting.com/our-services/outsourced-controller/.
Summary: Key Differences Between Controller and Accounting Manager
While both controllers and accounting managers play critical roles in an accounting department, their responsibilities and focus areas differ.
- Accounting Managers are responsible for the day-to-day management of accounting operations, including supervising staff, ensuring compliance, and delivering accurate financial statements. They act as financial accounting experts within the team.
- Controllers, on the other hand, operate at a more strategic level. They review the financial statements prepared by accounting managers, interpret the data, and present insights to management. Controllers focus on forecasting, budgeting, and guiding the financial strategy of the organization.
In essence, Accounting Managers are detail-oriented executors, while Controllers are strategic leaders who use financial data to drive decision-making. Both roles are vital for the success of any organization, working together to ensure accurate reporting and informed business decisions.
FAQs About Accounting Manager vs Controller
What qualifications are needed to become an Accounting Manager or controller?
Both roles typically require at least a bachelor’s degree in accounting, finance, or a related field. Some employers may prefer credentials such as a CPA or CMA, while Controller positions generally require more extensive accounting, leadership and financial reporting experience. Strong leadership, analytical skills, and technical skills are essential for both positions.
How do Accounting Managers vs Controllers differ in their interactions with the CFO?
Accounting Managers and Controllers may both work with the CFO, although reporting structures vary by company. Accounting Managers focus on delivering accurate and timely financial statements, ensuring compliance, and managing the accounting team. Controllers, however, act as a bridge between the CFO and the accounting team, interpreting financial data and assisting the CFO with strategic decisions, budgeting, and forecasting.
Can an Accounting Manager be promoted to a Controller?
Yes, an Accounting Manager can be promoted to a Controller role, but it requires additional skills and experience. Controllers need a deeper understanding of financial strategy, forecasting, and decision-making at the executive level. Obtaining certifications like a CPA or an advanced degree can help Accounting Managers move up to this role.
What are the biggest challenges for Accounting Managers vs Controllers?
Accounting Managers often face challenges related to maintaining compliance with accounting standards, managing team productivity, and meeting tight deadlines for financial reporting. However, Controllers are challenged with interpreting financial data for non-financial stakeholders, creating accurate forecasts in uncertain markets, and ensuring the organization’s financial health aligns with its strategic goals.
How does the size of a company impact the roles of Accounting Managers and Controllers?
In smaller companies, the roles of Accounting Manager and Controller may overlap, with one person taking on responsibilities from both positions. In larger organizations, these roles are more distinct. Accounting Managers focus on day-to-day financial operations, while Controllers concentrate on higher-level financial strategy, analysis, and reporting to the executive team.
What tools and software are commonly used by Accounting Managers vs Controllers?
Accounting Managers and Controllers rely on software like QuickBooks, NetSuite, SAP, and Microsoft Dynamics for day-to-day accounting and financial management. Controllers often use additional tools for forecasting, budgeting, and data visualization, such as Power BI, Tableau, or Adaptive Insights.
What is the hierarchy of accounting positions?
Accounting hierarchies vary by organization, but a structured finance team may progress from Staff Accountant to Accounting Manager, Assistant Controller, Controller, and CFO. At TGG, our core client team includes a Staff Accountant, Accounting Manager, Controller, and CFO, with each role responsible for a different level of accounting and financial oversight.
What are the 3 pillars of managerial accounting?
The three main pillars of managerial accounting are cost management, financial planning and analysis (FP&A), and performance measurement. Cost management focuses on understanding and controlling expenses, FP&A supports budgeting and forecasting, and performance measurement uses financial metrics and KPIs to track progress and support better decisions.
Do I need an accounting manager or a controller for my business?
It depends on the level of support your finance function needs. An Accounting Manager is typically focused on day-to-day accounting operations, staff oversight, close processes, and accurate financial reporting, while a Controller provides broader financial oversight, including budgeting, forecasting, internal controls, and financial analysis. Some growing businesses may need both roles as their accounting and reporting needs become more complex.
Sources:
- https://www.investopedia.com/articles/professionals/100115/career-advice-accountant-vs-controller.asp
- https://bestaccreditedcolleges.org/articles/controller-vs-accounting-manager.html
- https://www.bls.gov/ooh/management/financial-managers.htm
- https://tgg-accounting.com/wp-content/uploads/2022/01/2022-TGG-Benefits.pdf
- https://tgg-accounting.com/about-us/open-positions/
- https://tgg-accounting.com/what-are-key-performance-indicators-kpis-and-why-are-they-important/
This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.
This post contains trusted sources. All references are hyperlinked at the end of the article to take readers directly to the source.
Read More >>>
Matt Garrett is the Founder and Chief Executive Officer of TGG. He is a regular speaker across the country on behalf of Vistage educating business owners on the need for sound financial practices, and is Vice President of the Board of Directors of FINACA. Under Matt’s leadership, TGG has received the following recognition: INC. 5000 top companies in the U.S. five years in a row; one of “San Diego’s Fastest Growing Companies” the past four years; and is among San Diego’s “Best Places to Work.”