Does a CFO need to have his CPA or CFA? (2024)

FAQs

Does a CFO need to have his CPA or CFA? ›

A CFO does not need to have a CPA, CFA, or MBA designation. But of the three, having a CPA designation does help dramatically . I've passed the CPA, and I can say that it is the most important designation to have if you're considering being a startup CFO.

While having a CPA designation can be beneficial in some cases, it's not a prerequisite for the role of a Chief Financial Officer. A strong background in finance, combined with strategic thinking and leadership skills, is typically more important for a CFO than a specific accounting certification.

In those cases, an MBA is usually the better choice since they can “sell” the company to potential investors and steady the operations for future growth. However, a CPA is generally the better option for the CFO role if the CEO oversees a public company.

38.5% of sitting CFOs in 2023 were CPAs, up from 34.5% the previous year; 52.5% of sitting CFOs had MBAs.

Many CFOs of large listed companies, especially internationally, do not come from an accounting background. Although becoming a CA and then a few years later becoming a CFO is a well-trodden path. For the CFO(SA) designation, you don't need to come from an accounting background.

The CPA is great if you want to rise up the finance department at a corporate business and ultimately become the CFO, or if you want to rise up the ranks at a public accounting firm. The CFA credential, by contrast, is great if you want to work at a bank and, in particular, in investment management or equity research.

“The CFO is no longer considered just the finance guy or gal.” Accounting experience is less vital: In years past, Branthover said, clients would insist that CFOs have a public background and hold CPA licenses or CFA certifications. Now, she said, the role is “much more business-focused than accounting-focused.”

CFOs have traditionally emerged from the accounting ranks, with reputations as masters of cost management, corporate finance strategy, accounting standards and reporting requirements. But the role has morphed to the point that accounting expertise is often no longer required.

There still remains some controversy whether a background in accounting is absolutely necessary for a CFO. It is not unheard of for a CFO to have an undergraduate degree in something unrelated to finance, as long as their Bachelor's degree is supplemented with a Master's degree or certification.

Generally, no, a CFO is not the same as an accountant. Accountants handle bookkeeping tasks and tax filings. Meanwhile, a CFO focuses on the company's financial future, creating forecasts.

What degree do most CFOs have? ›

To become a CFO, you need a degree in a field like accounting, or something related to finance/accounting. Some people get a degree in business and then an MBA, but it is recommended to get education and experience in accounting/finance. After all, that is what a CFO role is all about.

This lucrative salary makes sense, because a CFO has such an impact on the financial success of the company, and requires a lot of education, experience, and dedication.

CFO is a high-level job position. As the highest-ranking financial employee, you'll report directly to the chief executive officer (CEO). Depending on how your company structures upper management, you might also spend a lot of time interacting with a board of directors.

To become a CFO, you must start with a strong finance, accounting, or business background. A bachelor's degree in any of these programs will teach you management fundamentals, including marketing and strategic thinking skills. Next, it is crucial to gain work experience as a financial analyst, accountant, or similar.

Holding the designation of CFA (Chartered Financial Analyst) is definitely advantageous to become a CFO. Although being a CFA does not guarantee that you will definitely land a CFO's position.

While 43% of chief financial officers (CFOs) in these companies come from accounting backgrounds; the number of CAs in these top designations dropped to 36 in 2022 from 58 four years ago, The Ken has learnt.