Chief Financial Officer (CFO)

CFO Career Overview

Chief financial officers (CFO's) direct an organization's financial goals, objectives, and budgets. They supervise the investment of funds by managing the associated risks. CFOs oversee cash management activities, all the accounting practices of the organization, and deal with mergers and acquisitions. One of the most important roles of a CFO is to execute capital-raising strategies to support their organization's expansion. The CFO is largely responsible for presenting and reporting accurate and timely historical financial information for his or her company. The stakeholders in the company - including shareholders, analysts, creditors, employees and other members of management- rely on the accuracy and timeliness of this information.

In addition to this, the CFO oversees the capital structure of the company by addressing the issues that surround it. Not only is a CFO responsible for a company's past and present financial situation, he or she is also an integral part of a company's financial future. A CFO must be able to identify and report all the financial aspects of a company and advise how the company can capitalize on its currently available resources. Other major responsibilities of a CFO include studying, analyzing, and reporting on trends, opportunities for expansion, and projection of future company growth. The CFO typically reports to the chief executive officer, and is usually a member of the board of directors.

CFO Training and Education

The first step towards becoming a CFO is to obtain a bachelor's degree in finance from an accredited college or university. Even though a master's in finance is not mandatory, it is highly encouraged to pursue a master's degree in business administration (MBA) with a specialization in finance. This degree will introduce you to the business concepts and management skills which are equally important to becoming a successful CFO.

Taking introductory financial management, accounting, and business management classes during high school prepares you to perform well in future. Network with people who are in the financial domain and undergo counseling to decide which financial program and university would be the best for your bachelor's degree.

Aim to become a certified public accountant (CPA). Research the minimum educational and experience requirements in your state to become a licensed CPA by getting in touch with your state's board of accountancy. Gain experience by working in the finance department of a corporation. Make a conscious effort to develop strong communication, leadership, and management skills. Develop an in-depth understanding of business strategy, trends, and operations. In today's dynamic environment, it is critical to consistently pursue professional education as you progress in your career.

CFO Career and Salary Outlook

CFO's are considered as a part of the top executives of an organization. According to the Bureau of Labor Statistics, the employment of top executives is expected to grow by 2% from 2006 to 2016. Employment of top executives is not as sensitive to growth in business as employment in other occupations. The duties and responsibilities of top executives cannot be automated and are less likely to be off shored. As a result, the top executives are critical for any organization. The employment growth of top executives varies according to the type of industry.

Top executives are among the highest paid workers in the U.S. economy. However, salary levels depend on factors like managerial responsibility, length and type of service, and size and location of the organization. In addition to salaries, total compensation for top executives includes stock options, performance bonuses, personal benefits, and amenities.

According to a salary survey conducted by PayScale in April 2009, the median annual salary is $99,045.

Characteristics of Successful CFOs

Even though the General Overview section summarizes the commonly accepted responsibilities of a CFO, in reality, a CFO has to wear many hats. To become a CFO, you need to be a business strategist whose focus extends beyond finance and accounting. It is important to have a vision for the big picture and understand all the aspects of business. Though accounting professionals are suitable for a CFO role, along with an expertise in the field of finance, you need to have a strong business and decision-making sense. In addition to having excellent leadership and people skills, you also need to have extensive technical knowledge and keep pace with emerging technologies. Breadth of vision, an innovative mind, credibility, and impressive technical skills are hallmarks of a successful CFO.

Diversifying your professional portfolio and gaining experience in various fields is of paramount importance in building your career towards becoming a CFO. It is important to be proactive about your goal in climbing up the corporate ladder. Becoming a CFO involves several years of experience, determination to succeed, and a burning desire of developing a well-rounded skill set that will be instrumental in leading an organization. Though this might sound intimidating, it should not be considered something which is unattainable if you have definite career goals.

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