Financial Controller vs Finance Manager: Which One Does Your SME Need?

If you’re running a growing business, chances are your finances have become more complicated than they used to be. Maybe your cash flow forecasting is still done in Excel, or your monthly reporting is more reactive than reliable. You’re making it work but it's not exactly scalable.

That inefficiency adds up, costing SMEs an estimated £61,000 a year in lost revenue (about 12.5% of income). It’s no surprise, then, that 93% of mid-sized businesses have already brought in dedicated finance professionals, compared to just 37% of micro-businesses.

As your small and medium-sized enterprises (SME) moves into its next chapter, you might be asking: do we need a Finance Manager or a Financial Controller?

Both roles play a crucial part in helping a business scale sustainably. But they’re not interchangeable, and choosing the right one can make a measurable difference in your profitability, planning, and peace of mind..

In this article, we’ll unpack the core differences between these two roles, explore when each makes sense, and help you figure out which one is the best fit for your current stage of growth.

What Does a Finance Manager Do?

A Finance Manager is usually the first senior finance hire for a growing SME. Their role is hands-on and practical as they’re the ones making sure your budgets are realistic, your books are accurate, and your cash flow is under control.
Think of them as the engine room of your finance function. They’re responsible for:

• Budgeting and Forecasting: Creating budgets aligned to business goals and revising them as needed.
• Management Reporting: Preparing monthly or quarterly financial reports and analysis.
• Cash Flow Management: Monitoring cash position, managing working capital, and negotiating supplier terms.
• Team Oversight: Managing junior finance staff such as bookkeepers or accounts assistants.
• Financial Compliance: Ensuring accurate VAT submissions, payroll compliance, and preparing for audits.

Most Finance Managers are qualified or part-qualified accountants with solid experience in producing management accounts and handling operational finance.

As for salary, UK Finance Managers usually earn between £55,000 and £75,000, depending on the sector, size of business, and level of responsibility.

What Does a Financial Controller Do?

If a Finance Manager keeps the day-to-day running smoothly, a Financial Controller steps in to bring structure, oversight, and strategic direction to your entire finance function.

This is a more senior role, one that often acts as head of finance in a growing SME. Controllers aren’t just concerned with what’s happening now; they’re thinking ahead, building systems that will support your business at scale, and ensuring everything you do financially stands up to scrutiny.

Here’s what that typically involves:

• Financial Reporting & Compliance: Producing statutory accounts and ensuring regulatory compliance, a growing concern for UK SMEs facing an estimated £25 billion and 280 million hours of compliance burden each year.
• Internal Controls: Designing approval workflows, risk management frameworks, and fraud prevention systems.
• Strategic Planning & Scenario Analysis: Running “what-if” models to assess the financial impact of future plans.
• Finance Team Leadership: In a larger SME, a Financial Controller supervises Finance Managers or accountants. In a smaller company, the controller might also directly handle tasks like high-level accounts payable/receivable approvals, signing off payroll and payments, and liaising with auditors or banks.
• KPI Monitoring: Tracking business performance and flagging financial risks before they escalate.

In the UK, Controllers typically earn between £65,000 to £80,000, reflecting the added responsibility. For SMEs hitting a growth phase or navigating more complex structures, multiple revenue streams, investor reporting, cross-border operations, a Controller often becomes essential.

Finance Manager vs. Financial Controller: Key Differences

While there’s some overlap, the distinctions between the two roles become clear when comparing:

• Scope of Responsibility: Finance Managers manage operations. Controllers own compliance, controls, and strategic finance.
• Seniority: Controllers are more senior and typically report to the CEO or Board. Managers may report to a Controller.
• Regulatory Focus: Financial Controllers are deeply involved in tax, audits, and compliance. Finance Managers are more focused on reporting and execution.
• Strategic Input: Controllers provide higher-level financial insight and scenario planning. Finance Managers may focus on departmental budgeting or cost optimisation.
• Salary and ROI: Controllers cost more but bring strategic oversight.

Which Role Does Your SME Need?

So, how do you decide which role is right for your business? There’s no one-size-fits-all answer, but there are a few clear signs that can point you in the right direction.

If your business is scaling quickly, preparing for outside investment, or facing more complex compliance requirements, a Financial Controller will bring the structure and strategic oversight you need to grow with confidence.

On the other hand, if you’re still getting a handle on your numbers, struggling with inconsistent reporting, tight cash flow, or general financial visibility, a Finance Manager might be the more practical first step.

Whichever path you take, the data speaks for itself: a 2024 study found that SMEs using professional accounting support, whether in-house or outsourced, achieved 11.5% higher revenue than those who didn’t.

The Case for Outsourcing

If you’re not ready to hire full-time or want flexibility, consider outsourcing your finance function. Many UK SMEs are now doing this—tapping into virtual Finance Managers or remote Financial Controllers to fill key gaps without long-term commitments.

Outsourcing provides:

• On-demand access to qualified professionals
• Scalable support as your business grows
• A cost-effective alternative to permanent hires
• Peace of mind. 80% of SMEs report reduced stress after working with finance experts.

How Sanay Can Help

At Sanay, we work with growing SMEs that have outgrown DIY accounting but aren’t ready to build a full in-house finance team.

Our team integrates seamlessly with yours, handling everything from budgeting and cash flow to reporting, forecasting, and compliance. You get the insight and oversight you need, without the overhead of hiring full-time.

Need the strategic direction of a Financial Controller or want to strengthen your finance function without the stress of building it from scratch? Let’s talk. We’ll help you find the right setup, so you can get back to focusing on what you do best.