What Is a Chief Financial Officer (CFO)?

A CFO, Chief Financial Officer, is a C-level executive position responsible for managing and overseeing a company’s financial operations.

A chief financial officer, or CFO, is the highest-ranking financial position  in a company. CFO is a member of the C-suite that includes the chief executive officer (CEO), the chief operating officer (COO), and the chief information officer (CIO).

Traditionally, a CFO is responsible for overseeing the financial health of the company and handles the company’s finances and any related financial activities.

Recently, a CFO is viewed as a key-driving force in maximizing value creation and guiding a company toward sustainable expansion and success.

CFO Main Duties and Responsibilities

CFO duties and responsibilities have expanded significantly in recent years. With continued globalization and technology innovations, the CFO role has changed over the years that extends beyond the accounting and financial operation of the company.

The overall duties and responsibilities of the CFO are:

1- Leads and oversees the finance department

2- Support company’s strategy with financial resources

3- Evaluate financial risks and gains

4- Accountable for financial planning and reporting

5- Monitor profitability and the financial health of the company

6- Liase with stakeholders such as banks and investors

7- Oversee digital initiatives

8- Evaluate acquisitions to grow the business

CFO Education, Degrees, and Certifications

To become a CFO, a college degree is almost always required. A bachelor’s degree in finance, accounting, economics, auditing, and business administration are the most common.

An advanced degree or graduate degree such as an MBA (Master of Business Administration) is helpful in getting CFO position.

Certifications is also a big plus for CFOs candidates. Certifications such as CPA (Certified Public Accountant), CMA (Certified Management Accountant), CFA (Certified Financial Analyst), and CIA (Certified Internal Auditor) are greatly helpful in giving big boost for a CFO.

CFO Skills and Qualifications

A CFO also possess certain types of skills and qualifications in addition to education, degrees, and certifications. The following soft skills should enable a CFO to demonstrate competence and navigate the position positively and effectively.

1- Strong leadership, management, and communication skills

2- Strategic, analytical thinking, and tech-savvy

3- Decision-making, time management, and multitasking

CFO Career Path

Aspiring future CFOs may consider starting their career as a staff accountant, financial analyst, auditor, or budget analyst to get an up-close look at how companies manage their financial books and reporting requirements to master the necessary technical skills.

After gaining some years of experience, future CFOs then look for opportunities that enhance their chances of becoming a CFO, such work opportunities include:

1- Finance Manager

2- Accounting Manager

3- General Manager

4- Operation Manager

CFO Conclusion

The new image of modern CFO is one who facilitates growth, create value, and understands the business model.