A controller runs the accounting: they close the books every month and make sure the numbers are right. A CFO uses those numbers to plan ahead: cash, financing, growth and risk. A bookkeeper records the day-to-day transactions that both of them depend on. Most growing contractors need a strong controller before they need a CFO.
The titles get mixed up all the time. Job ads ask for a bookkeeper and then describe CFO work, or the other way around. This guide covers what each role does, how they differ at a construction company, what each one costs, and which one you need first.
Bookkeeper, controller and CFO at a glance
| Bookkeeper | Controller | CFO | |
|---|---|---|---|
| Main job | Records transactions | Closes the books and produces reports | Plans cash, financing and growth |
| Looks at | Today and this week | Last month and this year to date | The next quarter and the next few years |
| At a construction company | Enters bills, payroll and deposits, and codes costs to jobs | Keeps the WIP schedule and job cost reports accurate and tied to the financials | Works with the bank and surety, plans cash and bonding, and decides which work to chase |
| Reports to | The controller or the owner | The CFO or the owner | The owner or the board |
What a bookkeeper does
- Enters and pays bills
- Sends invoices and records deposits
- Processes payroll
- Reconciles bank and credit card accounts
- Codes every cost to the right job and cost code
In construction, that last one matters most. If costs land on the wrong job, every job report after that is wrong. Bookkeeping is the recording. Accounting is everything after it: reviewing, adjusting, closing the books and reporting. That’s where the controller comes in.
What a controller does
- Closes the books every month, on a set schedule
- Produces the balance sheet, income statement and cash flow statement
- Keeps the WIP schedule and over and under billings current
- Reviews job cost reports and profit by job
- Supervises the bookkeeper and reviews their work
- Sets up internal controls, like who can approve bills and sign checks
- Works with your outside CPA at year-end
The controller answers one question: what happened last month, and can we trust the numbers?
What a CFO does
- Cash flow forecasting, including a 13-week forecast
- Budgets and forecasts
- Bank lines of credit, covenants and surety relationships
- Bonding capacity: what it takes to bid bigger work
- Overhead and pricing: what each job has to carry
- Growth, financing, and buying or selling a company
The CFO answers a different question: what happens next, and are we ready for it?
One underbilled job, three roles
We’ve seen this at clients: the WIP schedule shows a job underbilled, which means the work done is ahead of what’s been billed. Each role takes a piece of it. The bookkeeper makes sure every cost on that job was entered and coded correctly. The controller checks the WIP math and finds the cause: a missed billing, a change order nobody has billed, or a cost overrun that hasn’t been recognized. The CFO decides what it means for cash next month and what to tell the surety.
What each one costs
| Role | Full-time, New York market | Part-time |
|---|---|---|
| Controller | $175,000 to $200,000 a year | A flat monthly fee for the days you need |
| CFO | $200,000 to $250,000 a year | A flat monthly fee for the days you need |
Many contractors don’t have 40 hours a week of controller or CFO work. A part-time controller or CFO covers it for a flat monthly fee. See pricing.
Which one do you need first?
- A good bookkeeper once there are more transactions than you can keep up with yourself.
- A controller when the books close late, the WIP doesn’t tie to the financials, or your bank or surety starts asking for reports.
- A CFO when the questions shift from “are the numbers right?” to “can we afford this job, this hire, this loan?”
In smaller companies one person often does part of each job. That works until the company grows past them. A common sign: your bookkeeper is doing a controller’s job, and nobody is looking ahead. Read signs you’ve outgrown your bookkeeper.
Can one person do both jobs?
In a smaller company, yes, for a while. A controller with a strong construction background can cover some CFO work. But closing the books and planning ahead pull in different directions, and when the close runs late, planning is the first thing to slip. Some companies keep a fractional CFO alongside a full-time controller, as an advisor and a second set of eyes.
CFO vs CPA: where your CPA firm fits
Your outside CPA firm and your controller or CFO do different jobs, and most contractors need both. The CPA firm looks back, usually once a year: it prepares your tax returns, plans your taxes, and issues the compiled, reviewed or audited financial statements your bank and surety ask for. Sureties often want reviewed or audited statements for larger bond programs. A controller and CFO work inside your company every month: closing the books, keeping the WIP schedule current, and planning cash, financing and bonding.
| Outside CPA firm | Controller and CFO | |
|---|---|---|
| How often | Year-end, sometimes quarterly | Every month |
| Looks at | Last year: taxes and the year-end statements | Last month, and the next quarter and year |
| Main work | Tax returns and planning; compiled, reviewed or audited financial statements | Monthly close, WIP and job cost reports, cash forecast, budget, bank and surety relationships |
| Role | An outside firm; in a review or audit, it reports on your statements independently | Part of your team, working for you |
They stay separate for a reason. When a CPA firm reviews or audits your statements, professional independence rules don’t let it take on management’s responsibilities for your company, so it can’t run your accounting and also report on it independently. The day-to-day decisions have to sit with someone on your side.
The two work best together. When the books are reconciled every month and the WIP schedule ties to the financial statements, your CPA has less to fix at year-end. We work alongside your CPA firm; we don’t audit or review financial statements.
How we help
We’re part-time controllers and CFOs for contractors. See our outsourced controller services, our fractional CFO services, or all our construction accounting services. For help deciding, read how to hire a CFO.
FAQs
What’s the difference between a CFO and a controller?
A controller runs the accounting and makes sure the numbers are right. A CFO uses those numbers to plan cash, financing and growth.
Is a controller above or below a CFO?
Below. In most companies the controller reports to the CFO. In smaller companies without a CFO, the controller reports to the owner.
What’s the difference between a bookkeeper and a controller?
A bookkeeper records the day-to-day transactions. A controller supervises the bookkeeper, closes the books each month and produces the financial and job reports.
Does a construction company need a controller or a CFO first?
Usually a controller. Most contractors need accurate monthly numbers and a WIP schedule they can trust before they need long-range planning.
How much does a controller cost compared with a CFO?
In the New York market, a full-time controller costs about $175,000 to $200,000 a year and a full-time CFO about $200,000 to $250,000. Part-time help costs a flat monthly fee for the days you need.
Can a controller grow into a CFO?
Often, yes. Many CFOs started as controllers. The step up is from making sure the numbers are right to using them to plan cash, financing and growth, and working with banks and sureties.
What’s the difference between a CPA and a CFO?
CPA is a license. Your outside CPA firm prepares your tax returns and the compiled, reviewed or audited statements your bank and surety rely on, mostly at year-end. A CFO is a role: someone who plans cash, financing and growth with you every month. Many CFOs are CPAs, and most contractors need both.
Do we still need a CPA firm if we have a fractional CFO?
Yes. Your CPA firm handles the tax returns and the reviewed or audited statements. A fractional CFO or controller runs the monthly numbers and the planning, and clean monthly books make the CPA’s year-end work go faster.
