The terms “controller” and “comptroller,” as well as the positions they define, may seem strikingly similar. Indeed, the word “comptroller” is believed to stem from a 15th Century misspelling of “controller.” However, despite the similarity in titles and functions, there are some significant differences between the duties of a controller and a comptroller.
Some organizations use the terms Controller and Comptroller interchangeably or assign other titles to the roles. For the purposes of this article, we will use the titles in their traditional sense to describe the roles they generally encompass.
What Is the Difference Between a Controller and a Comptroller?
One of the biggest differences in comptrollers vs controllers is the types of organizations where they work. A finance controller generally works at a for-profit corporation, while a fianance comptroller is usually found in a government agency or a nonprofit business. A controller typically reports to the CFO of a company, whereas a comptroller tends to have a more senior role as head of the financial department, possibly at a county, state, or national level. The comptroller often acts as both CFO and controller within a public body.
While a controller is answerable to company management and shareholders, a comptroller is answerable to government officials and taxpayers. As a member of the private sector, the controller is likely to have a higher salary than the comptroller. However, the comptroller often receives government benefits and perks that compensate for the difference in pay.
A controller’s primary concerns are cost controls and corporate profitability. A comptroller, on the other hand, is more concerned with budgeting and fund accounting.
What Controllers and Comptrollers Have in Common
Both controllers and comptrollers are senior-level officers of financial departments. Usually, they manage the accounting staff and have responsibility for all accounting transactions and financial records within the organization. They maintain the general ledger and chart of accounts. They assist auditors in performing external and internal financial examinations.
Controllers and comptrollers are financial professionals who generally hold degrees in accounting and have a strong understanding of the principles of business and industries in which they work. Many have CPA certifications, MBA degrees, and other certifications. They are directly involved at the highest level with the financial affairs of an organization. They ensure the accuracy of financial reports and provide data to top executives. They enforce accounting standards, company policies and internal controls, and legal requirements.
What is the finance Controller’s Role?
A controller heads the financial organization within a company and is responsible to care for the overall financial picture of the enterprise. The controller typically manages accounting operations such as accounts receivable, accounts payable, billing, revenue recognition, cost accounting, risk assessment, inventory accounting, and tax filing.
The controller prepares, verifies, and publishes financial reports and assures compliance with federal, state, and local regulations. The controller’s primary concern is the company’s bottom line. Working with top management, the controller develops financial forecasts, budgets, policies, procedures, and internal controls. Simply put, the controller helps guide a company’s strategic financial decisions and is crucial in overseeing and reporting on the overall financial health of a company.
Controllers focus mainly on the company’s bottom line: the company’s net income after all expenses are taken into account.
What is the finanance Comptroller’s Role?
A comptroller is a senior executive who oversees an organization’s accounting and financial reporting processes. Typically, the comptroller is the head of the accounting department and is responsible to ensure the accuracy of financial reports such as income statements and balance sheets with the government equivalent statements are known as Statement of Activities and Statement of Net Assets respectively. Budgeting, fund accounting, and financial controls are big parts of the comptroller’s job.
Most comptrollers work in government agencies or nonprofit enterprises that are highly regulated by law. The comptroller, therefore, has a high degree of responsibility for legal compliance and public reporting. Comptrollers must also manage financial contributions such as donations and grants.
Comptrollers focus primarily on accomplishing the organization’s mission and keeping expenditures within budget, to satisfy the ever-present scrutiny of lawmakers and taxpayers.
Controller Versus Comptroller:
A Side-by-Side Comparison
Controller | Comptroller |
| Reports to: Company CFO | Reports to: Executive management |
| Also answerable to: Executives and shareholders | Also answerable to: Taxpayers and government |
| Manages: All accounting operations | Manages: Accounting department |
| Primary Responsibility: Corporate profitability and financial well-being | Primary Responsibility: Budgets and financial controls |
Other Duties:
| Other Duties:
|
| Type of Organization: Private or public company | Type of Organization: Government agency or nonprofit enterprise |
Typical Qualifications:
| Typical Qualifications:
|
Final Thoughts
Controllers and comptrollers perform similar but not always identical functions in different organizations. A controller is typically found in a for-profit company and works to improve net revenue. A comptroller usually works for the government or a nonprofit company and ensures that expenditures stay within allotted budgets. Understanding the differences can help determine your company’s financial focus.
About the Author
Jill Tavey
CFO
Jill Tavey is an experienced outsourced CFO with over a decade of high-level financial expertise and experience. Her ability to negotiate, make and maintain key relationships, and shape strategic direction has helped propel multiple companies through significant growth.
You may also be interested in...
Life Hacks from Clayton Christensen
In the business that so many of us are caught up in on a day to day basis, it’s difficult to regularly take a step back and remind ourselves what matters most and why we do everything that we do. Clayton Christensen insightfully discusses this need in his book How...
Choosing a Retirement Plan that Attracts Talent
Choosing a retirement plan for your small business can be intimidating, requiring you to choose an IRS structure, an administrating recordkeeper, and investment options. Step 1 Choosing an IRS structure is the first step, and you likely already have one selected. If...
Making Money Part 4: Cash Flow Statements
This is the fourth of four articles on Making Money. Making Money Part One: Don’t Let Work Get in the Way argued that ‘Cost of Goods Sold’ activities should come first. Making Money Part Two: Net Profit described ways use income statements to make more money. Making...
5 (Legal) Tax Shelters, by Forbes’ William Baldwin
William Baldwin outlines 401(K), 529, Municipal Bonds, Master limited partnerships, and The Loss Harvest. Click Here --> 5 (Legal) Tax Shelters, by Forbes' William Baldwin
Making Money Part 3: Balance Sheets
This is the third of four articles on Making Money. Making Money Part One: Don’t Let Work Get in the Way argued that ‘Cost of Goods Sold’ activities should come first. Making Money Part Two: Net Profit described ways to use income statements to make more money....
Energy Management is the New Time Management
Time management is a good way to gain control of your activities. Energy management is even better. Both types of management attempt to build self-control. Measuring time allows us to measure ourselves, and that’s an essential activity. In the words of Peter Drucker,...
3 Easy Steps to Evaluate Your Pricing Strategy
A friend of mine was once asked in a job interview to develop a value of a particular chair in the room. My friend proceeded to use different financial valuation techniques, including sum of parts, trying to account for the price of the materials used to make it....
Making Money Part 2
This is the second of four articles on Making Money. Making Money Part One: Don’t Let Work Get in the Way argued that ‘Cost of Goods Sold’ activities should come first. This article will explore how you can use your income statement to make more money. The following...
Brand Valuations & Building Brand Value
Finance and marketing don’t always play well together, but sometimes they’re inseparable. One of those inseparable moments is brand valuation - assigning a dollar value to the identity of a company, business unit, or product line. Placing a dollar amount on a brand is...
“Don’t Let Work Get in the Way of Making Money” – Make Money, Part 1
Eliyahu M. Goldratt was an Israeli physicist who studied business management and manufacturing operations. He built his reputation as a manager on the importance of identifying and adapting to the operational bottleneck, which he described using the auspicious name...
Financial Officer Functions – Knowing When to Call in the Big Guns
One obstacle to asking for help is knowing that one needs to. This article outlines the functions and competencies of a CFO, allowing you to measure the effectiveness of your current approach. If you find holes in your approach, a smart next step is to ask for help...
12 Questions to Improve Employee Retention
In the current business environment, we see more employee mobility than ever before. It seems that professionals jump from one job, or even career, to another before they can even get their 401K set up. This may seem like an exaggeration, but everyone reading this...
