Running a small business in the US today means juggling growth, compliance, and profitability while keeping a close eye on financial operations. Many small business owners eventually find themselves asking: should I hire a controller or an accounting manager? At first glance, the roles may seem similar, but their responsibilities, priorities, and impact on a business are quite different. This guide explains the differences between a controller vs accounting manager in 2025, focusing on what US small businesses should know before making the right hiring choice.

Why Small Businesses Need Financial Leadership

As your company grows, bookkeeping alone is not enough. Accurate financial reporting, compliance with tax laws, and strategic insights are essential for sustainable success. Hiring financial leadership—whether in the form of an accounting manager or controller—ensures that your numbers are not only accurate but also meaningful for decision-making. But the question remains: who should you hire first, and what role best fits your business stage?

Controller vs Accounting Manager: Defining the Roles

What Does an Accounting Manager Do?

An accounting manager is primarily responsible for day-to-day accounting operations. Their focus is on accuracy, consistency, and efficiency in handling financial transactions. Key responsibilities include:

• Overseeing accounts payable (AP) and accounts receivable (AR).

• Managing reconciliations and month-end closings.

• Supervising junior accountants or bookkeepers.

• Ensuring payroll and expense tracking are accurate.

• Preparing basic financial reports for leadership.

For small businesses, an accounting manager acts as the operational backbone of finance, making sure everything runs smoothly behind the scenes.

What Does a Controller Do?

A controller, on the other hand, works at a higher level. They oversee the accounting function while also focusing on financial strategy, compliance, and reporting accuracy. Their responsibilities often include:

• Designing and maintaining internal financial controls.

• Preparing for audits and ensuring compliance with GAAP and IRS regulations.

• Analyzing financial performance and identifying risks.

• Supporting budgeting and forecasting for growth.

• Advising business owners and CFOs (if applicable) on financial decisions.

In short, the controller connects financial operations to strategy—something especially valuable as small businesses grow into mid-sized firms.

Controller vs Accounting Manager: What’s the Key Difference?

The main difference lies in scope and focus.

• The accounting manager ensures that daily financial operations are accurate and on time.

• The controller ensures that financial reporting is reliable, compliant, and aligned with long-term goals.

For small businesses, this distinction is critical. If your priority is keeping operations organized, an accounting manager may be the right choice. If you need oversight, compliance, and forecasting, a controller will add more value.

Time Management and Priorities in Small Business Finance

In 2025, time is one of the scarcest resources for small business finance teams. Here’s how priorities typically differ between the two roles:

• Accounting Manager Priorities:

  • Meet payroll deadlines.

  • Ensure invoices are processed correctly.

  • Reconcile accounts quickly.

  • Maintain accurate records for tax preparation.

• Controller Priorities:

  • Ensure compliance with new regulations.

  • Review financial reports for errors or inconsistencies.

  • Forecast future cash flow needs.

  • Provide insights for cost savings or investment opportunities.

Both roles are vital, but they manage time differently—one in operations, the other in oversight.

Do Small Businesses Need Both Roles?

Not always. Many small businesses start by hiring an accounting manager or outsourcing accounting services. A controller typically enters the picture when:

• The business grows beyond $5–10 million in annual revenue.

• Audit or regulatory requirements become more complex.

• Owners need deeper insights for scaling operations.

In fact, some small businesses choose outsourced controllers or accounting managers to get the expertise they need without committing to full-time salaries.

Benefits of Hiring an Accounting Manager First

For small businesses under $5 million in revenue, an accounting manager is often the more practical first hire. Benefits include:

• Improved accuracy in financial transactions.

• Timely reporting for tax purposes.

• Relief for business owners from day-to-day bookkeeping.

• Stronger oversight of AP/AR and payroll processes.

Benefits of Hiring a Controller

For growing businesses or those entering new markets, a controller can provide:

• Compliance assurance as regulations evolve.

• Better internal controls to prevent fraud or errors.

• Insights into cost management and profitability.

• Long-term financial planning support.

In 2025, as tax codes and financial reporting rules in the US continue to evolve, a controller offers peace of mind and strategic advantage.

Real-World Scenario for Small Businesses

Consider a US-based e-commerce company scaling from $3 million to $8 million in annual revenue. At first, the owner relies on an accounting manager to handle invoices, reconciliations, and payroll. As the business grows, however, financial complexity increases—sales tax compliance across states, vendor negotiations, and profitability forecasting become critical.

At this stage, the company benefits from hiring a controller who can oversee compliance, design internal controls, and guide strategic decisions based on accurate financial data.

Tips for Choosing the Right Role in 2025

If you’re deciding between hiring a controller vs accounting manager for your small business, consider these questions:

1. What stage is your business in?

   • Early-stage firms often need accounting managers.

   • Growth-stage firms benefit from controllers.

2. What’s your biggest challenge?

   • Struggling with daily transactions? Hire an accounting manager.

   • Struggling with compliance or forecasting? Hire a controller.

3. Do you have budget constraints?

   • Outsourcing financial leadership can give you access to both roles at a lower cost.

Final Thoughts

The debate of controller vs accounting manager is not about which role is better—it’s about which role fits your business stage and goals. In 2025, US small businesses must strike a balance between operational efficiency and financial strategy.

• If you need day-to-day financial accuracy, start with an accounting manager.

• If you need oversight, compliance, and forecasting, consider a controller.

• If you want the best of both worlds without hiring full-time, explore outsourced financial services.

By understanding the differences and making the right choice, small businesses can build strong financial foundations, stay compliant, and position themselves for sustainable growth in the years ahead.