The Financial Management Team Every Organization Needs

Every organization needs three distinct financial capabilities:

• Someone to process transactions
• Someone to ensure financial integrity
• Someone to help leadership make sound financial decisions

These don’t always require three separate people. In my own work, roughly 80% of my time is spent at the controller level, with the remaining 20% focused on planning and CFO-level responsibilities, though that balance shifts by client. You may have a senior accountant who handles day-to-day bookkeeping and shares some controller duties, while your chief executive, drawing on a finance background, fills the planning role. What matters is that all three capabilities are covered.

Here’s a closer look at each.

1. Transactions

This is the operational foundation of your finance function. Bookkeepers and staff accountants manage accounts payable and accounts receivable, payroll, invoicing, and accounting system entries. Their work must be accurate and timely because every financial decision your organization makes depends on reliable data.

2. Controls

Controls are what transform accurate bookkeeping into reliable financial information. This is where you ensure transactions are occurring in an approved manner and in compliance with relevant requirements. Audit structures, approval workflows, reconciliation reviews, and financial reporting all live here. Without strong controls, financial statements become less reliable, and leaders lose confidence in the information they’re using to make decisions. Controllers, accounting managers, and senior accountants typically operate at this layer.

3. Planning

Planning is where finance becomes a strategic tool. Instead of simply reporting what happened, financial leaders help management understand what is likely to happen next, and what decisions should be made today to improve tomorrow’s results. Executive leaders and experienced controllers use data gathered through transactions and validated through effective controls to inform cash flow forecasting, capital allocation, budgeting, variance analysis, and risk management. This also includes operating reserves, board reporting, and cash flow management. This level ensures the organization is moving in the right direction, not just documenting where it’s been.

How do you know if your current setup is working?

The right question isn’t whether you have a specific role. It’s whether you have the right capabilities at each level. A few scenarios I hear often:

Do I need a controller? Ask yourself a simple question: are your financial results what you expect them to be? Most experienced executives have a sense of whether the organization’s performance matches reality. When the numbers consistently surprise you, or margins steadily shrink without a clear explanation, that often signals the need for stronger financial oversight. A controller can identify where costs are leaking, implement the policies to address it, and give you confidence that the numbers you’re seeing are accurate. For nonprofits, this might mean ensuring restricted funds are being spent according to grant requirements or that program costs are being tracked accurately against your budget.

Do I need a finance director or CFO? The clearest sign is a chief executive who doesn’t have a reliable read on how the organization is performing. Beyond that, watch for major financial decisions being made without solid forecasting, increasing financial complexity, or an approaching inflection point such as a capital campaign, an ownership transition, or significant growth. Any of these may call for more advanced financial leadership than you currently have in place.

I don’t have the budget for a controller, let alone a CFO. Many organizations assume they can’t afford experienced financial leadership. In reality, they often don’t need a full-time controller or CFO. A fractional finance leader can provide the expertise needed for better decisions at a fraction of the cost of a full-time executive. In many engagements, I work fewer than two days a week: enough to take what a capable bookkeeper has captured and make it genuinely useful for decision-making.

The Bottom Line

The organizations that weather uncertainty best aren’t necessarily the ones with the most resources. They’re the ones who know their numbers. A review of the financial skillset in your team isn’t a sign that something is wrong. It’s what good management looks like. When you can understand your financial position clearly, across transactions, controls, and planning, you’re better equipped to make decisions that hold up when it matters.

Strong financial management isn’t measured by the number of accountants on your team. It’s measured by the confidence your leadership has in the numbers and the decisions those numbers support. Whether your organization needs reassurance that everything is working well or guidance on strengthening its finance function, an outside perspective can help identify opportunities before they become problems.