Steps to becoming a CFO (2024)

FAQs

What is the pathway for CFO? ›

Complete an accredited undergraduate degree in finance, accounting, economics or business. Complete a Master of Business Administration (MBA) or the Certified Public Accountant (CPA) examination. Work your way up in companies and gain extensive work experience in leadership roles within the financial departments.

Articulate Your Value Proposition: Be ready to explain how your experience and skills will benefit the company. Highlight your successes in cost reduction, revenue growth, and strategic investments that have positively impacted the bottom line.

Being a CFO is difficult but with education and experience, individuals in the role thrive. CFOs need discipline, initiative, dedication, and time-management skills as well.

Many organizations will require CFO candidates to have an MBA. This degree program in particular helps fully prepare students for leadership roles in the workplace.

The average age for CFOs at the top 1,000 U.S. companies by revenue is 54, which ties for the youngest role in the C-suite. There isn't much variance in the age of CFOs among industries, with an average age of 54 for all analyzed industries except the energy industry at an average age of 53.

Most commonly, someone will have 8-10 years of experience in a senior role at a company before getting promoted to CFO. This amount of work is usually required to prove that you have the right skills and knowledge you need to do the job.

Sixty-one percent of CFOs have an undergraduate degree in business. Of those, 47% are accounting majors—the highest percentage among business majors (including economics, finance, and business administration). And 51% of finance chiefs have MBAs, while 35% have the certified public accountant (CPA) credential.

Is CPA or MBA better for CFO? ›

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.

Strategic Outlook

Most CFOs find themselves implementing changes within their companies, whether on a financial or operational level. Having a strategic outlook is a leadership skill that will help CFOs uncover potential opportunities for growth and tackle existing challenges within the company.

An effective CFO should have the business acumen to take strategic initiatives for every department. They partner with the c-suite and board of directors to build the company's future. They act as change leaders.

Most commonly, someone will have 8-10 years of experience in a senior role at a company before getting promoted to CFO. This amount of work is usually required to prove that you have the right skills and knowledge you need to do the job.

Chief financial officers (CFOs) typically have a minimum of a bachelor's degree in finance, accounting, business administration, or economics. Many large companies require their CFOs to have a master's degree in business administration, economics, accounting, finance, or taxation.

The highest probability path to CFO success is still the classic route: 3-5 years in the Big 4 (audit initially then into an advisory service) Then move into industry in a reporting role at a great company working for a great CFO. Then move laterally into an FP&A role.

CFOs generally come up through the ranks, holding a variety of financial positions, such as VP of finance or controller, before rising to the C-level. Many also have deep business backgrounds, often hold dual degrees in business and finance and/or an MBA and have gained industry-specific expertise.