CFO or Controller: Which is Right for Your Cannabis Business?

If your cannabis operation has grown significantly, you may need to level up your financial team with executive-level leadership to support better financial planning and strategy. But what’s more important – having a CFO or a Controller?

The two roles overlap somewhat but are distinct in many ways. Both oversee the company’s finances, but the Controller is more involved in the day-to-day, whereas a CFO is tasked with long-term financial planning and strategy.

Some large companies may have both, working together to ensure the organization stays on solid ground. Smaller businesses may choose one over the other. Ultimately, both roles have high salaries attached to them, so it may be more financially viable to have a controller and outsource fractional CFO services to support them through times of scale or significant change.

So, do you need a CFO? Or is a Controller more appropriate? Today, we’ll explore the two roles and drill down on what you need to know to make the best decision for your business.

What is a Controller?

Controllers, sometimes called Comptrollers, are typically CPAs acting as a company’s lead accountant or at least a senior manager in the finance department. The person in this role supervises bookkeepers and other accountants in the department and may report either to the CFO or the company’s CEO.

The average salary for a Financial Controller in the US can be anywhere between $110,000 to $340,000 annually, depending on the company and the scope of the work.

Typical duties for a Controller include the following:

·      Approving and overseeing day-to-day financial operations to ensure compliance and adherence to policy.

·      Reviewing daily and monthly financial reports, including balance sheets, profit and loss statements, etc.

·      Supervise and direct the accounting team.

·      Report to the CFO (if applicable) or the company’s CEO.

What is a CFO?

The Chief Financial Officer (CFO) is part of a company’s executive leadership team. They report to the CEO and are responsible for planning and implementing long-range financial strategy.

Typical annual salary ranges for a CFO in 2025 are anywhere from $335,000 to over $600,000.

CFOs do not concern themselves with day-to-day financials; they are more concerned with planning, forecasting, overall strategy, and being responsible for the company’s financial health.

Here are some of the things a CFO does:

·      Creates detailed budgets to ensure the business stays on track to achieve its financial goals.

·      Planning, projections, and forecasting. CFOs are forward-looking and able to visualize the big picture. Their vision helps to inform the timing for growth, scale, and investment.

·      Oversees financial performance management, tailoring and adjusting processes to align with long-term goals.

·      Analyze financial data to identify opportunities and areas of improvement.

·      Use their deep industry knowledge to uncover potential new revenue streams and strategic partnerships.

·      Provides high-level leadership and vision to the finance department.

CFO vs. Controller: Differences

The most significant difference between a Controller and a CFO is their mandate. Whereas a Controller looks backward into finances and oversees the day-to-day, the CFO is forward-looking and responsible for planning, budgeting, and financial innovation.

In the past, a CFO was solely concerned with financials. Today’s most powerful CFOs are multi-faceted and are often responsible for taking companies in new and exciting directions, which could be advantageous if your company is considering a merger or expecting to scale.

But if you’re in the market for a financial professional, which should you hire?

Most financial professionals agree that if you don’t already have a Controller, you don’t need a CFO.

Some financially savvy business owners may feel comfortable handling CFO duties, such as procuring and implementing an ERP, hiring accounting staff, and translating company financial data into actionable insights. If you already do all of the above and have time to do so, you can consider yourself the CFO. In that case, hiring a Controller may be the way to go.

Do I Need a CFO?

Perhaps you already have a Controller and are considering hiring a CFO. If your financial needs are becoming too complex for you and your team to handle comfortably, a CFO might help.

Alternatively, you might anticipate a significant shift in your business and feel an urgency for financial leadership to get you through the change. In that case, a fractional CFO, also known as a virtual CFO, might be the solution you need.

Fractional CFOs are outsourced executives hired on a contract basis for strategic planning, decision-making, forecasting and budgeting, financial analysis, change management, and to support negotiations during exits.

At a high level, they can help you present to investors and boards, assist with mergers and acquisitions, and help you prepare for an IPO.

Hiring a fractional CFO may be more cost-effective than recruiting and hiring a full-time executive, especially if you only need their services for a project or part-time basis. Comparatively, a fractional CFO can run you about $1000 monthly (depending on the provider), which is far less than a six-figure salary and all the liabilities that go with it.

Ultimately, the choice is yours. You may need a CFO, but maybe not.

…Or Should I Hire a Controller?

If you’re at the stage where you’re asking these questions and don’t yet have a controller, hiring a Controller might be a good place to start.

Ideally, the Controller you hire should be well-versed in cannabis operations and your market position. You want them to be able to hit the ground running and understand your challenges, as that’s where the value is.

Be aware, also, that even though a Controller typically focuses on historical financial data, they need to have a grasp of the big picture and understand where you’re headed. Thinking outside the box is essential, especially in an industry so inordinately challenged by taxation, regulation, and compliance.

The Bottom Line

As your company grows, sound financial leadership is essential. If you cannot fulfill this role, hiring a Controller or CFO might be the next step. Speak to the experts at Growise today about our fractional services. We’d love to show you how we can help.