How to become a CFO

The path to becoming a Chief Financial Officer (CFO) is an exciting one that requires a combination of education, experience, and strategic planning. In this article, we’ll outline a comprehensive roadmap in seven simple steps, shedding light on the responsibilities of a CFO and providing information on the average salary in this prestigious position.

 

What does a CFO do?

As a C-suite executive, a CFO plays an essential role in steering a company’s financial ship toward stability and success. Their duties include monitoring daily financial operations, resource allocation, and capital and profit management. A CFO’s responsibilities include collaborating with various departments, troubleshooting financial issues, and presenting detailed financial reports to company leadership. Here are some of their primary responsibilities:

• • Meeting with direct reports and departments

• • Troubleshooting accounting and finance issues

• • Conducting cash-flow management and planning

• • Overseeing financial department recommendations

• • Identifying investment opportunities

• • Collaborating on budget creation and management

• • Preparing tax filings and attending board meetings

How to become a CFO

1. Complete relevant education:

 

a. Bachelor’s Degree:

Field of Study: A bachelor’s degree in finance, accounting, or a closely related field is typically pursued by aspiring CFOs. These programs give students a strong foundation in financial principles, accounting practices, and business operations.

Recommended Degrees:

• • Bachelor of Science in Finance

• • Bachelor of Science in Accounting

• • Bachelor of Business Administration (BBA) with a focus on finance or accounting

b. Online Courses:

Supplemental Learning: 

While a bachelor’s degree is required, online courses can supplement your education and provide specialized knowledge in key areas. Consider taking courses in:

• • Business Risk Management: Learn how to identify, assess, and manage risks in business operations. Risk assessment methodologies, mitigation strategies, and compliance frameworks are examples of possible topics.

• • Compliance Management: Investigate the regulatory environment that affects businesses. Learn about compliance frameworks, ethical considerations, and legal requirements for financial operations.

• • Strategic Business Management: Improve your strategic thinking, decision-making, and planning abilities. Learn how to align financial strategies with overall business objectives.

Platforms and Providers:

• • Coursera: Courses are available from top universities and institutions around the world.

• • edX: Provides courses from universities and industry experts.

• • LinkedIn Learning: Provides a variety of business and finance courses.

c. Continuous Learning:

• • Stay Informed: The financial landscape is ever-changing. Engage in continuous learning to keep your knowledge up to date. To stay up to date on the latest trends and developments, subscribe to industry publications, attend webinars, and participate in forums.

• • Professional Certifications: Pursuing professional certifications (step 5) is another form of continuous education that improves your skills and marketability that is not covered in this section.

d. Networking Opportunities:

• • Connect with Peers: Join finance and accounting-related online forums or social media groups. Engaging with experts in your field can provide you with valuable insights, advice, and potential collaboration opportunities.

• • Industry Events: Attend finance and business management conferences, seminars, and workshops. Attending these events and networking can lead to mentorship and career opportunities.

You’ll be well-equipped to navigate the complexities of the financial world on your path to becoming a CFO by combining a strong academic foundation with targeted online courses and continuous learning.

 

2. Acquire industry experience:

Internships:

Timing and Importance:

• • Undertaken during studies for hands-on experience.

• • Apply classroom knowledge in real-world settings.

Types of Internships:

• • Seek opportunities with reputable companies or financial institutions.

• • Specialized roles (auditing, taxation) provide focused expertise.

Networking:

• • Build relationships with industry professionals.

• • Networking can lead to mentorship and job opportunities.

Entry-Level Roles:

Accounting Assistant:

• • Involves basic accounting tasks like processing invoices and reconciling accounts.

• • Builds foundational understanding of accounting principles.

Financial Analyst:

• • Analyzes financial data and prepares reports.

• • Exposure to budgeting, forecasting, and financial planning.

Strategies for Success:

• • Proactive learning and contribution.

• • Continuous professional development (certifications like CPA).

• • Develop strong communication skills.

• • Adaptability to a dynamic financial landscape.

• • Network actively for potential job opportunities and mentorship.

Gaining experience in these roles not only provides a solid foundation but also positions you for success on the journey to becoming a CFO. Embrace opportunities with enthusiasm and a proactive mindset.

 

3. Pursue leadership opportunities:

Controller:

• • Responsibilities: Oversee daily financial operations, manage reporting, and ensure compliance.

• • Leadership: Lead the accounting team, contribute to strategic decisions, and develop analytical skills.

Finance Manager:

• • Responsibilities: Create financial strategies, analyze data, and lead budgeting processes.

• • Leadership: Mentor financial teams, engage in strategic planning, and enhance decision-making abilities.

Director of Finance:

• • Responsibilities: Oversee all financial activities, develop policies, and align strategies with organizational goals.

• • Leadership: Coordinate financial teams, represent finance in executive meetings, and master strategic planning.

Transitioning through these roles builds essential leadership, strategic, and decision-making skills, paving the way for a successful journey to becoming a CFO.

 

4. Consider advanced education:

 

Master of Business Administration (MBA):

• • Duration: 1-2 years.

• • Curriculum: Holistic business education with finance electives.

• • Benefits: Broad skill set, leadership focus.

• • Career Impact: Opens diverse leadership roles, including CFO.

Master’s Degree in Finance/Accounting:

• • Duration: 1-2 years.

• • Curriculum: Specialized in finance/accounting.

• • Benefits: Expertise in financial areas.

• • Career Impact: Ideal for CFO or Director of Finance roles.

Considerations:

• • Personal Goals: Align the program with career aspirations.

• • Experience Level: Some MBA programs prefer work experience.

• • Networking: Evaluate industry connections and alumni networks.

• • Cost/Location: Consider ROI, study preferences.

Choosing between MBA and a specialized master’s depends on career goals, interests, and desired skills. Research thoroughly to make an informed decision.

 

5. Earn professional certifications:

 

Certified Public Accountant (CPA):

• • Focus: Accounting and financial expertise

• • Issued by: American Institute of Certified Public Accountants

• • Requirements: Education, CPA exam, professional experience

• • Benefits: Proficiency in accounting, credibility in financial reporting and auditing.

Certified Treasury Professional (CTP):

• • Focus: Treasury and financial management

• • Issued by: Association for Financial Professionals

• • Requirements: Education, CTP exam, relevant experience

• • Benefits: Specialization in treasury and financial management.

Chartered Financial Analyst (CFA):

• • Focus: Investment analysis and portfolio management

• • Issued by: CFA Institute

• • Requirements: Education, three levels of CFA exam, work experience

• • Benefits: Advanced skills in investment analysis, globally recognized.

Considerations:

• • Career Goals: Choose based on your specific career interests.

• • Professional Recognition: Research the reputation within your industry.

• • Time and Cost: Assess the commitment and financial investment.

Each certification offers unique advantages, so select the one aligning with your career aspirations and industry demands.

 

6. Network in your industry:

 

Networking is essential for career growth. Here’s a quick guide:

 

1. Attend Events: Join industry conferences, seminars, and networking mixers.

2. Professional Organizations: Become a member and engage in online communities.

3. Utilize Alumni Networks: Attend alumni events and connect with graduates.

4. Online Presence: Optimize your LinkedIn profile and contribute to industry discussions.

5. Informational Interviews: Request coffee meetings for insights and advice.

6. Workshops and Training: Attend skill-building events for networking opportunities.

7. Be Proactive: Initiate conversations, follow up, and express genuine interest.

8. Mentorship Programs: Join formal programs for guidance from experienced mentors.

Building a strong network opens doors to opportunities and mentorship in your industry.

 

 

7. Create a comprehensive resume:

 

Professional Summary:

• • Craft a concise summary outlining your unique value proposition and career goals.

Tailor for the Role:

• • Customize your resume for each CFO position, emphasizing relevant experiences and skills.

Experience:

• • Detail work history with quantifiable achievements, showcasing career progression.

Education and Certifications:

• • Clearly list degrees, institutions, and certifications (e.g., CPA, CFA).

Skills:

• • Include a skills section with both technical (financial modeling, risk management) and soft skills (leadership, communication).

Achievements:

• • Highlight specific accomplishments and any awards received.

Professional Affiliations:

• • Mention memberships in finance organizations or industry affiliations.

Training:

• • Include relevant workshops, seminars, or additional training.

References:

• • Optionally, state that references are available upon request.

Formatting:

• • Keep the design clean and professional for easy readability.

Proofread:

• • Eliminate errors and seek feedback for a polished final version.

Remember, brevity is key—keep your resume focused, impactful, and tailored to showcase how your skills and experiences align with the CFO role you’re pursuing.

 

The average salary for a CFO

Certainly! The average salary for a Chief Financial Officer (CFO) is a crucial benchmark for professionals in the finance industry. Here’s a more in-depth breakdown of the factors that influence CFO salaries:

 

1. Company Size:

• • Large Corporations: CFOs in large, multinational corporations often command higher salaries due to the complexity and scale of their responsibilities.

• • Small to Medium Enterprises (SMEs): In smaller companies, CFOs may have a broader range of duties but might have a comparatively lower salary.

2. Location:

• • Geographic Variation: Salaries vary significantly based on the cost of living in different regions. CFOs in metropolitan areas or financial hubs may receive higher compensation.

3. Industry:

• • Industry Sector: The nature of the industry can impact salaries. For instance, CFOs in sectors like finance, technology, or healthcare might receive higher compensation due to industry-specific demands and complexities.

4. Education:

• • Level of Education: CFOs with advanced degrees such as MBAs, master’s degrees in finance, or other relevant qualifications may command higher salaries. Continuing education and certifications can also contribute to salary growth.

5. Experience:

• • Years of Experience: The level of experience is a critical factor. CFOs with extensive experience in finance, accounting, and leadership roles are likely to receive higher compensation.

6. Certifications:

• • Relevant Certifications: Holding certifications such as Certified Public Accountant (CPA), Certified Treasury Professional (CTP), or Chartered Financial Analyst (CFA) can positively impact salary levels by showcasing expertise and commitment to professional development.

7. Performance and Achievements:

• • Individual Performance: Exceptional performance, successful financial strategies, and achievements in previous roles may lead to higher compensation packages.

8. Economic Conditions:

• • Market Conditions: The overall economic conditions and market trends can influence executive compensation, including CFO salaries.

9. Negotiation Skills:

• • Negotiation Ability: CFOs who are skilled negotiators may secure higher compensation packages during hiring or contract renewal negotiations.

10. Company Performance:

• • Organizational Success: CFOs contributing to a company’s financial success and growth are likely to be rewarded with competitive compensation.

It’s essential to consider these factors collectively, as they interplay in determining the salary for CFOs. Professionals aspiring to become CFOs should strategically position themselves by gaining relevant experience, obtaining necessary certifications, and continuously enhancing their skills to maximize their earning potential in this high-profile role.

 

With these strategic steps, you can start your journey to CFO success and position yourself for a rewarding and impactful career in finance. SuccessEdge will be with you every step of the way.