Career Path to become CFO (Chief Financial Officer)
Role / Profile
Who can become ?
Who is a CFO?
The CFO (Chief Financial Officer) is a senior executive who is responsible for handling the financial actions of an organisation. In the finance division, it is the highest-ranking position and is usually, the third-highest position in a company.
What are the roles and responsibilities of a CFO?
The CFO is the financial gatekeeper of an organisation and plays an important role in areas related to finance. Some of the prominent roles and responsibilities are:
• Managing the capital requests and budgeting processes.
• Establishing accounting policies and procedures for credit and collections, purchasing, payment of bills, and other financial obligations.
• Supporting the company’s accounting and financial functions.
• Maintaining relationships with external auditors and investigating their findings and recommendations.
• Reporting of financial results to the board of directors.
• Overseeing the financial operations of any subsidiary companies and overseas operations.
What are the skills required for a CFO’s role?
If you want to have a successful career as a CFO, you should have the following skills:
• High-level financial planning & analysis, budgeting and forecasting skills.
• Good understanding of risk management and ability to navigate through various financial risks.
• Highly adaptable to different technology and changing industry rules and policies.
• Excellent people management and communication (verbal and non-verbal) skills.
• Advanced strategy-making and problem-solving skills.
What are the career outcomes with experience as a CFO?
• COO (Chief Operating Officer)
• CEO (Chief Executive Officer)
What is the average salary of a CFO?
The average salary of a CFO varies according to the organisation, industry and the experience. Usually, on an average, the CFO earns around ₹ 30 Lacs per annum.
Which profiles can go for a CFO role?
• Finance/Senior Finance Managers – As a finance manager, you will already have the requisite knowledge of handling financial responsibilities. However, if you have other skills like people management and have industry knowledge, you can move further up. Also, with a certification, it will be easier for you to acquire many technical skills that can help you in fulfilling your wish of becoming a CFO.
• VP, Finance/Director of Finance – VPs in Finance or Directors of Finance can easily move to a CFO role considering you have the right amount of experience and skills. You can also acquire the requisite skills with the help of a professional certification course in finance.
Naukri Learning offers a plethora of professional courses in finance which can help candidates to boost your career, get better jobs and receive a higher salary.
What is the eligibility for a CFO position?
There is no fixed eligibility to become a CFO. As the role is a senior executive one, the eligibility depends on the experience and advanced level skills. Usually, they are from a finance background or have a degree in management and should have a good understanding of business and financial processes.
Who can become a CFO?
• Non-experienced professionals – Professionals who are not from finance background or do not have the right amount of experience to become a CFO can enhance their skills through professional courses in business management, finance and other related areas.
• Experienced professionals – Most experienced professionals who can become a CFO are expected to have advanced level skills in managing financial responsibilities of an organisation. The person should also be able to oversee all financial operations that are expected of a CFO.
What do recruiters look for in the candidature of a CFO?
Recruiters generally look for the following areas while hiring a CFO:
• Prior experience – A CFO is expected to have decent experience in handling financial operations of a company or have acted in a role where he has managed some of those responsibilities. Apart from that, it is good to have other transferable skills like excellent communication, people management, risk management and problem-solving skills.
• Key Skills – Financial analysis, budgeting, financial operations management, financial planning, taxation, financial auditing, client relationship management and financial risk management.
Who are the top recruiters that hire CFO?
A CFO is one of the top executives of a company and thus, organisations look to hire only the best professionals in the industry. Nearly all organisations need a CFO to keep their financial operations running in the right direction. Some of the top companies are Addeco, Baker Tilly, Macquarie Group, Infosys, Berger Paints, Flipkart, Wipro, etc.