Do I Need a Controller or a CFO?
There are really only three types of organizations when it comes to financial leadership:
Organizations in need of a turnaround — They’re in crisis, bleeding cash, and need a strategic overhaul to survive.
Organizations doing just fine with the status quo — They’re stable, solvent, and not looking to make any big moves.
Organizations that wish to grow — They’re healthy but have ambitions for something bigger, whether that’s scaling operations, expanding impact, or increasing revenue.
The key question is: Which type of organization are you? Because that answer determines whether you need a Controller or a Chief Financial Officer (CFO) in charge of your finance department.
The Case for a Controller
If your organization is in that second category — doing just fine with the status quo — you probably don’t need a CFO. What you need is a really, really strong Controller leading the finance function (let’s call this person your “chief financial officer,” with a lowercase c).
A great Controller is a master of the past and present. They can make your financials sing, ensuring accuracy, compliance, and efficiency. They’ll close the books like clockwork, optimize reporting, and keep auditors happy. They are absolutely essential for an organization that values stability and precision but isn’t looking to make big strategic moves.
Example: A Mid-Sized Nonprofit with a Predictable Budget
Take, for example, a nonprofit that operates on a steady $10 million annual budget, funded primarily by a mix of multiyear grants, contracts, and recurring donations. The model is working. Revenue and expenses are predictable. No major risks on the horizon.
This nonprofit doesn’t need a high-priced CFO to rethink its entire financial strategy. A top-notch Controller can keep things running smoothly, ensuring compliance, financial reporting, and operational efficiency — without the extra expense of a CFO.
The Case for a CFO
But what if your organization isn’t in that middle category?
If you’re struggling to survive (category 1) or eager to grow (category 3), a Controller leading the finance function is a mistake.
A Controller can take you from the past to the present, but only a CFO can take you from the present to the future.
Turnarounds Need CFOs
In a turnaround situation, survival isn’t about accurate financial reporting at all. Rather, it’s about restructuring, renegotiating debt, finding new revenue streams, and making strategic financial decisions that will save the organization. A Controller, even an excellent one, will be out of their depth here. They’re trained to manage stability, not lead a financial rescue.
If you throw a Controller into a CFO role at an organization in distress, the organization will collapse. It’s like putting a meticulous risk inspector in charge of a sinking ship — they’ll keep recording every leak with precision, but they won’t know how to plug the holes.
Growth Requires CFOs
On the other hand, if you’re in a healthy organization that wants to scale, expand, or innovate, you also need a CFO. And that’s because growth is all about making the right investments, managing financial risk, and securing funding for the future.
A Controller leading the finance department in a growth-minded organization will keep things running smoothly, but that growth won’t happen. They’ll maintain the present, not build the future. It’s like expecting an elite race car mechanic to drive in the Indy 500. They’ll keep the car in perfect condition, but they won’t be the one winning races.
The Bottom Line
If you’re stable and not looking to grow, save the money. Hire a world-class Controller.
If you need a turnaround or a path to growth, don’t settle for a Controller in a CFO’s seat. You need strategic financial leadership to take you where you want to go.
Ask yourself: Are we trying to survive? Stay the same? Or grow?
The answer will tell you who you need at the helm of your finance function.
