More than the shiny titles, C-level executives carry such a massive onus to steer their company to success.
They juggle a multitude of tasks and duties, spending most of their days planning, strategizing, and networking, while dealing with pressure from both the company and the industry at the same time.
Among all the top positions, most people know about the chief executive officer or the CEO, which, generally, is a highly coveted role. However, there are other key players in the C-level that deserve as much of the spotlight as the CEO.
One of these C-suite roles is the CFO, or the chief financial officer.
The CFO position is a high-ranking role that relates to the fields of accounting and finance.
In this blog, we’ll be focusing on what a chief financial officer (CFO) is and what they do, how much they typically make, and the steps you can take to become a CFO.
What is a Chief Financial Officer?
The chief financial officer is the one making sure that the company’s money is being put to good use. Holding the highest role in finance, the CFO is considered the top expert in handling, managing, and taking care of the company’s budget.
The CFO is considered a budget tracker, reporter, analyst, number cruncher, and decision maker rolled into one — among a laundry list of related roles and duties. But note that these CFO roles depend on the job scope, company size, and service or product range.
What Does a Chief Financial Officer Do?
A chief financial officer tracks where the company’s money goes, allots money to areas in the business that need to be prioritized, and makes sure the company pays off its liabilities within the agreed timeframes and deadlines to avoid penalties or legal repercussions.
Taking on tasks like financial planning and financial analysis, they also closely watch the status of the economy, keeping current on stock market updates, regulatory changes in GAAP/SOX and/or IFRS, industry trends like AI, and general business news.
CFOs also typically assess where and when to spend the company’s money according to current needs — whether it’s on the marketing department or on talent, or when prices are most stable.
Also involved in financial forecasting, CFOs evaluate how the business performed in the past, as well as study current business trends and how they directly (or indirectly) impact the company’s finances.
CFO Duties
As the one in charge of the company’s “wallet,” CFOs are responsible for tracking spending, including monitoring both inbound and outbound cash flows.
Another duty of the CFO is listing down the company’s assets and liabilities in the balance sheet.
On top of this, the CFO also makes sure that the summaries of the company’s monthly and/or yearly financial performance are accurate, in the form of income statements.
CFO Responsibilities
The responsibilities of a CFO are ensuring that the company makes the best strategies for investing (to speed up the ROI), selects the least risky options when spending (risk management), and estimates costs and plans resources accurately (cost management).
They handle regulatory compliance to the GAAP/SOX/IFRS for compliance and quality control, and optimally utilizes bonds and stocks to finance the business as well, which is better known as capital structure management.
Many CFOs are also directly involved in strategizing and decision making, working closely with other C-level executives. For instance, if the company is currently low on sales, the CFO can coordinate with other C-level executives like the chief human resources manager (CHRM) to strategize and plan the company budget accordingly: So, it’s either they absorb more salespersons or invest in better sales strategies (or both).
But the CFO’s tasks don’t stop within the business — they’re also responsible for building and maintaining investor relations. CFOs network and communicate with shareholders, analysts, and other stakeholders, exchanging crucial financial data for business planning and strategizing.
Additionally, CFOs are also ideally involved in initiatives like environmental, social, and governance (ESG) investing and corporate social responsibility (CSR).
Overall, CFOs are expected to wear many hats, primarily to shape your company’s financial future while also making crucial and purposeful contributions to other departments.
How Much Does a Chief Financial Officer Make?
Depending on educational background, years of experience, company type, company size, and other factors, the average annual salary for a CFO in the US could range from $249,741 to $455,756.
How Do You Become a Chief Financial Officer?
CFO Skills
- Basic Accounting Skills
- Financial Management Skills
- Risk Management Skills
- Financial Reporting Skills
- Investment Management Skills
- Data Analysis Skills
- Proficiency in Financial Software
- Negotiation Skills
- Leadership Skills
- Strategic Thinking Skills
- Communication Skills
- Problem-Solving Skills
- Time Management Skills
- Adaptability
- Attention to Detail
CFO Qualifications
Many CFOs have a background in accounting or finance, but there are some CFOs with a business degree as well.
For those looking to climb the corporate ladder, it’s ideal to pursue graduate studies and/or obtain a professional certification.
You can either get a master of science in finance (MSF) or a master of business administration (MBA) with a concentration in accounting or finance if they’re aiming for a relevant graduate degree.
If you want alternatives to a finance/accounting-related graduate degree, then you can opt to be a chartered financial analyst or CFA.
How These Can Help You
These additions to your existing credentials not only help fast-track your climb through the ranks — obtaining a specialized graduate degree or a professional certification enhances your current skillset, opens you up to a brand new network of peers who are on the same track, and connects you with possible business partners and/or advisors in the future.
Overall, the two keys to reaching your goal are specialized expertise and considerable experience in accounting/finance, which are generally favored over other types of undergraduate degrees, graduate degrees, and/or professional certifications.
Where the Road to Being a CFO Starts
In the industry, your expertise in effective and strategic financial management and your forward-oriented vision will make you a force to be reckoned with.
But acquiring these specialized skill sets starts with knowing the ins and outs of the daily operations in an accounting firm.
Most would agree that the industry is unpredictable. With increasing production costs, limited scalability among firms, and a shrinking local talent pool, the best step to take for any forward-thinking CFO is working closely with global accounting talent — elite teams who can carry out day-to-day tasks and challenges is the way to go right now.
What’s even better? Some staffing solutions providers also fractional CFO services, offering high-level financial guidance minus the full-time cost!
Executive Assistant: A CFO’s Strategic Partner
Like most C-level executives, the most important commodity for CFOs is their time. As financial stewards of an organization, CFOs are responsible for high-level decision-making, strategic planning, and ensuring financial stability.
However, administrative tasks, scheduling conflicts, and information management can consume valuable hours that should be spent on forecasting, risk management, and driving business growth.
That’s where an executive assistant (EA) can make a world of difference. They act as a force multiplier, handling operational burdens so CFOs can focus on their strategic priorities.
Having an EA is not a luxury—it’s a necessity for CFOs who need to maximize efficiency. From managing schedules to coordinating cross-departmental communications, an EA ensures that the CFO stays organized and informed.
Curious to know how an EA impacts C-suite roles and an organization, as a whole?
