How to Become a CFO: Skills, Qualifications, and the Quickest Route to the C-Suite

Posted on August 7, 2025August 7, 2025 by Imarticus Learning

Reaching the top of the ladder that leads to the much-desired Chief Financial Officer (CFO) position is no simple task, but this is the dream of many finance professionals across India. If you have ever pictured yourself as a senior decision maker at the highest level impacting the future direction of an organisation with control of its finances, this blog will show you how to become a CFO.

The path to the CFO role does not merely involve number crunching in today’s competitive landscape. It involves great leadership & vision, as well as the right balance of technical skills, business skills & soft skills. No matter where you are in the process, whether as an aspiring finance leader, mid-career professional or starting to plan a pathway to CFO.. it is important to understand what skills to be able to develop, what qualifications you may require and what is the quickest route to the C-suite.

Table of Contents

What Does a CFO Do?
CFO Career Path: The Typical Journey
Skills Needed to Become a CFO
CFO Qualifications and Certifications You Need
Financial Leadership Positions Leading to the CFO Role
Executive Finance Training: Fast-Track Your Journey
Fastest Route to the C-Suite: Practical Advice
Key Takeaways
FAQs
Conclusion

What Does a CFO Do?

Before you strategize on how to become a CFO, it is important to know the extent of this lofty position. The CFO occupies the confluence of finance, strategy, and leadership, serving as the financial guardian and strategic guide to the CEO and board.

Now, CFOs are no longer just confined to crunching numbers. Now, they lead business growth, manage investments, handle risks, and lead digital transformations. Their function stretches far beyond financial reporting to creating company vision and performance.

Chief Responsibilities of a CFO:

Managing financial planning, budgeting, and forecasting

Managing capital structure and financial risk

Guiding M&A and strategic investment decisions

Ensuring compliance with regulations

Guiding the CEO and board on financial strategy

Driving operational efficiency and profitability

Explore global CFO trends from PwC

CFO Career Path: The Generic Journey

It takes time, experience, and wise decision-making to plot your CFO career path. There is no such thing as a one-size-fits-all plan, yet knowledge of the generic journey can facilitate planning.

Not everyone becomes a CFO overnight. Most CFOs gain experience in finance, accounting, operations, and leadership over a period of 15-20 years. Through focused planning and the right executive financial training, talented professionals can expedite this timeframe.

Typical Career Path:

Career Stage	Key Roles	Duration
Entry-Level	Financial Analyst, Accountant	2-4 Years
Mid-Level	Finance Manager, FP&A, Controller	4-7 Years
Senior-Level	Head of Finance, Director of Finance	5-8 Years
Executive-Level (C-Suite)	CFO	–

A few professionals can switch from audit, advisory, or corporate finance careers. Others might shift from top finance leadership jobs like Finance Director or VP of Finance.

Skills to Become a CFO

Learning how to be a CFO involves acquiring technical skills and leadership skills. Strategic thinkers, technologically savvy, and able communicators are today’s CFOs.

Technical knowledge is not enough. You will need to inspire teams, work with stakeholders, and address complicated business environments.

Key Skills for Future CFOs:

Financial Acumen: Strong finance statement, modeling, and forecasting expertise
Strategic Thinking: The ability to link finance with business objectives
Leadership: Directing teams and impacting at board level
Technology Awareness: Knowledge of digital tools, AI, and analytics
Risk Management: Finding and addressing financial risks
Communication: Communicating complex data to non-finance stakeholders
Adaptability: Managing change and uncertainty

It is said that according to Deloitte’s Global CFO Signals, CFOs nowadays are more likely required to lead innovation and organisational transformation.

Qualifications and certifications you require

Your professional and academic qualifications are instrumental in deciding how to become a CFO. Experience is important, yet qualifications reflect credibility and dedication towards your CFO career.

In India, a combination of core degrees, advanced certifications, and international exposure enhances your CFO prospects.

Typical CFO Qualifications and Certifications:

CA (Chartered Accountant): Extremely well-respected for finance skills
MBA (Finance/Strategy): Best suited for strategic leadership development
CFA (Chartered Financial Analyst): Enhances investment and finance knowledge
CPA (Certified Public Accountant): Reputed for international finance expertise
Executive Finance Training: Short-term programmes for leadership skills

Numerous successful Indian CFOs have augmented their skills through specialized executive finance training, like the Chief Financial Officer Programme by London Business School and Imarticus Learning.

Financial Leadership Positions Leading to CFO

Along the way to becoming a CFO, you will probably move through several financial leadership positions that lead you to the highest position. Each is developing your technical skills, business acumen, and leadership skills.

These jobs provide essential experience in strategic decision-making, managing teams, and communicating with stakeholders—pillars of CFO success.

Financial Leadership Positions:

Financial Controller
Head of FP&A (Financial Planning & Analysis)
Director of Finance
VP of Finance
Finance Business Partner
Head of Treasury or Risk Management

Numerous Indian CFOs also acquire global exposure or cross-functional experience in ops or strategy positions prior to arriving at the C-suite.

Executive Finance Training: Speeding Up Your Career

While a traditional CFO career path can be decades long, the right executive finance education can condense and expedite your career. These programs develops leadership capability, knowledge of global business, and strategic decision-making.

For Indian finance professionals seeking to speed up their career, such training offers:

Exposure to global finance trends
Access to world-class faculty and industry specialists
Leadership development in live business scenarios
Networking with senior finance colleagues

One such initiative is the exclusive Chief Financial Officer Programme by London Business School and Imarticus Learning, which helps prepare finance leaders for the C-suite.

Fastest Path to the C-Suite: Practical Tips

Face it—the CFO race is cutthroat. But with intentional decisions, ongoing learning, and conscious career strategies, you can speed your way to the top.

Here’s a pragmatic guide to speed-up becoming a CFO:

Guidelines to Make it to the C-Suite:

Secure recognized CFO certifications and qualifications early
Develop cross-functional skills (strategy, operations, technology)
Establish networks with mentors and senior executives
Stay current with new financial technologies
Enhance leadership, communication, and negotiation skills
Engage in high-impact projects that showcase strategic thinking
Consider executive finance training to enhance credibility

For insights on evolving CFO expectations, check out EY’s CFO Imperative Report.

Key Takeaways

The path to CFO requires technical expertise, leadership, and vision.
Mapping your CFO career path early boosts your chances.
Focus on building the skills required to be a CFO, including strategic thinking and technology awareness.
Acquiring respected CFO qualifications and certifications enhances credibility.
Strategic financial leadership roles build readiness for the C-suite.
Executive finance training accelerates your leadership journey.
With planning, ambition, and continuous learning, Indian professionals can reach CFO faster.

FAQs

1. How long to become a CFO?

Generally.. it takes 15-20 years of progressive experience, in finance & leadership positions to become a CFO. However -that timeline can move faster with the right qualifications and executive programs.

2. Do I need to be CA, or MBA to become a CFO?

While 99% of CFOs have a CA or MBA, it is possible become a CFO, without a CA or MBA, but with some other finance-related certifications, and extensive leadership experience, as long as global certifications and executive training are obtained.

3. Do I need to be CFA to be a CFO?

A CFA is not required but greatly appreciated for investment strategy, capital markets, and financial leadership positions at multinational corporations.

4. In which industries do CFOs get hired most frequently?

CFOs are recruited in all industries such as -BFSI, technology, manufacturing, healthcare & startups, where strategic growth is fueled by financial leadership.

5. Must I have international experience to be a CFO?

Though not necessary, international exposure greatly enhances your CFO opportunities, particularly in multinational firms or MNCs.

6. How significant is tech savvy for CFOs?

Very significant—today’s CFOs need to be familiar with financial technologies, data analysis, AI, and digitalization to guide successfully.

7. Can Indian professionals indulge in global CFO vacancies?

Yes. With good credentials, international experience and leadership potential, Indian professionals very often are offered CFO roles at multinational corporations.

8. What is the fastest route to becoming a CFO in India?

The fastest route being through pursuing the best CFO qualifications and investments, accumulating cross functional experience, engaging in strategy projects and studying top executive finance programs.

9. Is CFO a finance-only role?

No. Finance is a core role but the modern CFO is a strategic business partner who has influence over operations, technology, risk and the performance of the organisation as a whole.

10. What can I do today to start preparing for a CFO position?

Focus on technical knowledge and expertise, develop your leadership skills, develop your network, stay up to date with global finance developments and consider taking special programs such as the Chief Financial Officer Programme by London Business School and Imarticus Learning.

Conclusion

For aspiring finance professionals in India, learning how to become a CFO is the first step to a respected and influential leadership role. Becoming a CFO means not only developing technical skills, but also developing strategic thinking, and a serious commitment to learning.

By thoughtfully developing the skills to act as a CFO, earning reputable CFO qualifications and certifications, obtaining experience in necessary finance leadership roles along with a commitment to executive finance education, you can accelerate your journey to the C-Suite.

If you have invested time and effort into creating your CFO career pathway, you should consider applying the Chief Financial Officer Programme by London Business School and Imarticus Learning, an internationally-recognised hiring programme for finance leaders transitioning to the top spot.

The path may be challenging, but if you stay the course, the C-Suite is closer than you think.

How to Transition from Finance Manager to CFO: The Ultimate Career Roadmap?

Posted on March 28, 2025 by Imarticus Learning

As a result of years of training, you have learnt financial management techniques, bookkeeping and data assessment, and crucial decision-making skills. The title Chief Financial Officer (CFO) isn’t just a distant dream—it’s a natural progression for finance managers who aspire to lead at the top.

A chief financial officer represents a real possibility for finance managers who demonstrate their desire to guide organisations at the top level. Your experience as a finance manager does not suffice for the successful transition to the CFO position.

The path to becoming a CFO demands strategic leadership, financial expertise, and knowledge of specific industries that surpass basic number analysis ability. The first question to address is how individuals can successfully transition to this elevated position. So, how can you make this leap? And more importantly, how to become a CFO in India in today’s competitive corporate world?

Why do finance managers struggle to become CFOs?

Despite widespread dreams of becoming C-suite executives, a small selection of accounting professionals have achieved this career progression. Why?

29% of CFOs are delaying their investment decisions because of potential changes in tax policies.

Here are the common roadblocks:

Challenges	Why it Holds You Back?
Lack of Strategic Thinking	CFOs need to think beyond financial reporting and make high-level business decisions.
Limited Leadership Skills	Managing a finance team is different from leading an entire organisation.
Not Enough Industry Exposure	CFOs must navigate economic trends, risks, and investments at a macro level.
No Formal CFO Training	Many finance professionals lack CFO-specific skills like financial modelling and investment strategies.

The good news?

These challenges can be overcome with the right approach.

How to Become a CFO in India?

Step 1: Develop a CFO Mindset

The role of CFO exists beyond accounting procedures because it requires expertise in business direction. This requires a transformation of your financial executor role to strategic decision-making abilities.

Key Traits of a CFO:

Business growth emerges from CFOs who think beyond storing financial records because they truly direct organisational expansion.

Risk management skills allow effective anticipation of financial risks during the planning stage.
A strategic vision helps CFOs understand how financial choices within business goals create their impact.
The primary task requires you to move your mind above traditional financial reporting procedures.
Active involvement in strategic business discussions allows CFOs to work with other departments as they develop financial connections between accounting, operational marketing, and sales departments.

Step 2: Upgrade Your Financial Expertise

A CFO manages financial strategy along with risk management responsibilities and investments, whereas operation finance falls under the finance manager role.

The critical abilities every Chief Financial Officer must learn include:

Skill	Why It’s Important
Financial Forecasting	Helps predict revenue and plan business expansion.
Investment Strategies	CFOs must optimise capital allocation and financial planning.
Risk & Compliance	Strong knowledge of regulations like SEBI, RBI policies, and taxation is crucial.
Digital Finance	Understanding fintech, AI in finance, and blockchain is a game-changer.

Financial experts who grasp digital finance standards, including fintech, together with AI finance practices and blockchain, hold the advantage. To develop crucial CFO skills, you need to enrol in a CFO training programme to study actual business cases alongside financial modelling approaches and risk testing approaches.

Step 3: Get Certified

The key to securing the position of CFO in India requires proper certification training. CFO training represents a vital factor that determines why many professionals fail to advance to senior executive levels.

Top Certifications for CFO Aspirants:

The CFO course stands out as the best option for developing financial analysis abilities.
Certification demonstrates expertise in budgeting alongside cost management practices.
The CFO certification provides all the necessary training to fill the knowledge gaps.

People who want to become CFOs after completing their 12th grade should study for a B.Com or finance-related degree and finish their MBA in finance while earning CFO certifications.

Step 4: Build Leadership & Decision-Making Skills

Finance Managers vs CFOs – Leadership Difference

Aspect	Finance Manager	CFO
Scope	Departmental focus	Organisation-wide impact
Decision-Making	Budgeting & Cost Control	Growth Strategies & Investments
Leadership	Managing a small team	Driving company-wide financial strategy

CFOs are not ‘finance leaders’; they are ‘business leaders’.

They control finances that affect the company. They enable junior finance professionals to gain leadership experience. CFOs become masters of crisis management, managing financial downturns and strategic shifts.

Tip: Meet with senior finance executives. Attend CFO summits, workshops, and leadership programmes to gain exposure.

Step 5: Gain Industry Exposure & Build a Strong Network

Many aspiring CFOs lack industry connections, and their career growth is slow. A big professional network offers mentorship, jobs, and insider industry insights.

How to Build Your CFO Network?

CFO Communities: Finance forums, LinkedIn groups, and networking events.
Engage in thought leadership: Read articles on financial trends and investment strategies.
Find a Mentor: A CFO will mentor you on career planning and career decisions.

Fact: 80% of CFO hires come from professional networks, not through traditional applications.

Step 6: Master Digital Finance & Technological Trends

Today’s CFO is a tech leader. Companies demand CFOs who understand the following:

FinTech & AI in Finance
Blockchain & Cryptocurrency
Data Analytics for Financial Decision

Making a CFO role might be difficult to transition into if you are a finance manager without digital finance skills.

Tip: Get special courses on financial technology to remain ahead.

The transition from finance manager to CFO is challenging, but with the right skills, mindset, and strategic career moves, you can achieve this milestone.

Advance Your Finance Career with IIM Indore’s Emerging CFO Programme

The CFO course with IIM Indore helps finance professionals build key skills for top jobs. This 126-hour postgraduate certificate programme is best for those with five-plus years of work experience who want to learn more about finance and new technology.

Led by IIM Indore’s top team, this course will teach you how to plan funds, risk, cash flow, and technology in finance. You will learn what new CFOs must know and gain the sharp mind and tech skills you need to lead your firm.

The postgraduate certificate programme also fosters peer learning and networking, offering opportunities to connect with industry leaders, exchange insights with fellow professionals, and build valuable relationships. You will also learn from top CFOs, who will share tips from their jobs to help you see what it takes to lead.

Enrol now to accelerate your journey to becoming a CFO!

FAQ

What qualifications do I need to become a CFO in India?

A finance degree, an MBA in Finance, and CFO-specific qualifications.

How to become a CFO after the 12th?

You must have a financial degree (B.Com, CA, or CFA) and gain industry experience.

How long does it take to transition from finance manager to CFO?

Typically, 8-15 years of experience in finance and leadership positions.

Do I need an MBA to become a CFO?

While not required, an MBA in finance provides a competitive advantage.

What CFO course should I take to fast-track my career?

Enrol in a CFO course focusing on financial strategy, risk management, and leadership.

How important is networking in becoming a CFO?

A strong professional network helps in career advancement.

Transition from the Finance Manager’s Role to Becoming CFO

Posted on February 7, 2025February 7, 2025 by Imarticus Learning

Transitioning from a financial manager to a CFO is a great, exciting journey and a great opportunity for professional growth and development. If you have been traversing the world of finance and are ready to show yourself out there for more strategic responsibilities, you have come to the right place! In this blog, we will discuss how to become a CFO, from critical steps, skill development, and insights that would allow you to navigate this career leap.

Know the Role of a CFO

Being a CFO is not just a number game. It’s about leading the financial strategy of an organization. A CFO has a pivotal role in most decision-making, and he has a guiding hand on financial planning, risk management, and other business strategies.

How to Become a CFO: Key Steps

Pursue Appropriate Education:

To begin the journey of how to become a CFO, you need the basics. The most requisite educational qualification is completion of a bachelor’s in either finance, accounting, or business administration. In addition to the bachelor’s degree, many aspiring CFOs seek to have an MBA degree or specialized master’s degree in order to further strengthen their business acumen and develop leadership abilities.

Gain Diverse Experience:

Experience is the only way you will transition successfully from finance manager to CFO. Look for positions that expose you beyond the traditional accounting functions. Consider going into operations, developing strategy, or even IT management. The idea behind this is to roundly equip you for the multi-faceted burdens that a CFO undertakes.

Seek Leadership Positions:

As you advance in your career, seek leadership positions within your organization. This can include managing teams and leading projects that would require collaboration across departments. Strong leadership development is key as you build for high-level responsibility like being a CFO.

Consider Advanced Certifications:

Notwithstanding, professional certification in the areas of CPA and CMA might add a higher value to one’s qualifications. Certification will show evidence of professional intent and can even give an advantage in competitive environments.

Path to Becoming a CFO

Commonly, being a CFO often involves the following steps:

Obtain entry level finance positions: Lay down initial knowledge and competencies
Move on to management: Supervise the team and various projects.
Seek cross-functional experiences: Work in different departments to understand the business holistically.
Network within your industry: Build relationships that may lead to mentorship or job opportunities.

CFO Salary Expectations

This transition towards the position of a Chief Financial Officer (CFO) in India, of course, depends much on salary landscapes. The recent data points out that an average CFO’s salary is ₹34.5 lakhs annually; however, the major population ranges from ₹28 lakhs to ₹50 lakhs every year. It corresponds to the verified profile count of 1,154 with all diversified experience and qualification backgrounds.

When considering the factors that influence CFO salaries, experience is the most crucial. Normally, the finance and management professions’ experience yields greater payment. Moreover, sectors and locations also have a bearing on ranges of salary in a particular industry where larger corporates in metropolitan areas tend to pay greater packages.

Investing in further education through specialization courses can boost your qualifications dramatically:

CFO Training Programs: Strategic financial management and leadership are key areas of focus.
Executive Education Courses: Offered by the world’s best business schools, these courses provide insights into advanced financial strategies and leadership practices.

FAQs

What qualifications do I require to become a CFO?

Bachelor’s degree in finance or accounting is required. Many also obtain an MBA, or relevant certification such as CPA or CMA.

How many years does it take to be a CFO?

It usually takes 10 to 15 years of experience with various finance-related roles before the CFO position is reached.

Is networking important to becoming a CFO?

Yes, these relationships will definitely open doors to mentors and job openings.

What does a good CFO need to be?

Good analytical skills, leadership, strategic thinking, and strong communication.

How much money should I expect as a CFO?

₹28 to ₹50 LPA based on the company size and location.

Are there specific courses that I should take?

Search for programs that focus on financial management, strategic planning, and leadership development.

Can I transition directly from finance manager to CFO?

Yes, it is possible, but most candidates need to gain varied experiences in other roles before applying for the CFO position.

Which industries hire CFOs?

Almost all industries need a CFO, but some of the most prominent are technology, healthcare, and finance.

Do I need an MBA to become a CFO?

An MBA is not required, but it could boost your skills and knowledge regarding how businesses function.

How can I improve my leadership skills?

Get leadership roles at your company. You could take some leadership or management workshop courses.

Conclusion

Becoming a Chief Financial Officer from being a finance manager is ambitious yet possible with the right planning and dedication. Your education, experience in diverse environments, leadership roles, and your professional network are key to succeeding on this path. Besides being skilled in finance, a successful CFO needs to possess a strategic vision and strong leadership skills to lead the organization toward success.

By following the guidelines on how to become a cfo, you will make a good start on your way to one of the luxuries in the financial landscape of all.

The CFO Guidebook: Job Role, Skills Required and How to Become a CFO

Posted on September 28, 2023July 15, 2024 by Imarticus Learning

Chief Financial Officers (CFOs) hold the highest financial leadership positions within organisations, collaborating closely with other top-level executives to enhance financial operations and steer capital management.

Becoming a CFO includes cultivating a distinctive skill set, accumulating substantial professional experience, and attaining specific educational qualifications.

What Is a CFO?

The CFO is a linchpin in financial leadership, working closely with fellow C-suite executives under the CEO’s purview. Their role as stewards of a company’s financial well-being includes long and demanding days, from financial statement scrutiny to strategic planning sessions.

The specific responsibilities of a CFO are highly adaptable, depending on the dynamic needs of the business. Some everyday core responsibilities that unite most CFOs are:

Overseeing financial planning & analysis (FP&A)

Financial Planning & Analysis is a fundamental facet of financial management. It includes meticulously analysing a company’s financial data and the crafting of predictive reports based on historical figures.

This analytical process supports critical executive decisions. The CFO directly supervises the FP&A team, instrumental in formulating the organisation’s financial strategies for the future.

Managing investor relations

The CFO wields a unique blend of financial acumen, communication pgarowess, and marketing skills to shape and uphold stakeholder expectations. Cultivating transparent and enduring relationships with investors is pivotal for the company’s brand credibility.

CFOs play an integral role in fostering connections with the investor community, ensuring a solid foundation of trust.

Heading tax and compliance

Companies operate globally in an increasingly globalised business landscape, contending with a labyrinth of tax laws and regulatory mandates across diverse markets.

Proactive management of tax and compliance issues is important for governance and future-proofing the business. Strategic consideration of compliance is essential, enabling unhindered expansion on the global stage.

Raising capital and pitching strategic M&A

The maturation of a business necessitates adept fundraising. The CFO’s role extends beyond mere fundraising; it encompasses the strategic structuring of capital acquisition, whether through equity, debt, or other means.

Furthermore, the CFO assumes a central position in advising the CEO on strategic mergers and acquisitions that align with the company’s expansion plans.

Minimising financial risks and losses

Identifying financial risks lurking within operational processes is a critical task. The CFO’s panoramic perspective across the organisation equips them with the insight to pinpoint vulnerabilities and inefficiencies.

Effective risk management may involve process optimisation, automation of compliance protocols, and other proactive measures to avert costly mishaps.

Championing automation and financial technnologies

In a world marked by constant technological disruption, finance is no exception. CFOs must harness technology to expedite growth and navigate the competitive landscape of rapidly evolving businesses.

A robust technical arsenal fosters scalability and efficiency and mitigates friction and cost overruns. It is also extremely important to embrace fintech solutions that can help companies gain an edge over competition inside dynamic business environments.

Balancing budgets and expenses

Balancing budgets and judiciously allocating resources is a cornerstone of the CFO’s role. This task transcends cost-cutting and cash flow management; it entails identifying initiatives that harmonise with the organisation’s long-term vision, assessing potential returns, and ensuring precise funding allocation.

Importance of the CFO in an Organisation

The CFO plays a critical and diverse position in every organisation, serving as a cornerstone in directing the company’s financial health and strategic direction.

For several convincing reasons, the necessity of a CFO in an organisation cannot be overstated:

Resource allocation

CFOs bear the responsibility of efficiently distributing resources. They determine how funds are directed toward projects, technology advancements, and initiatives to optimise returns and realise the organisation’s strategic goals.

Technology integration and innovation

CFOs must wholeheartedly embrace technology and data analytics. They spearhead innovation within financial processes, facilitating data-centric insights that drive informed strategic choices.

Leadership and team oversight

CFOs provide leadership to finance teams and, in some instances, other departments. Effective leadership, mentorship, and talent cultivation ensure the finance function operates at peak performance.

Strategic capital management

Securing and supervising capital for the organisation is squarely in the scope of the CFO. They assess a spectrum of funding alternatives, encompassing debt, equity, and other innovative avenues. Their focus remains aligning financial resources with the organisation’s objectives while prudently managing financial risks.

Financial transparency and regulatory adherence

CFOs guarantee the precision and openness of financial reporting. They diligently supervise compliance with accounting standards and regulations, instilling confidence in shareholders and stakeholders regarding the organisation’s financial disclosures.

Expense oversight

Vigilant cost management is fundamental to sustaining profitability. CFOs craft cost-containment strategies, fine-tune operational efficiency, and pinpoint cost reduction opportunities while preserving quality and fostering growth.

Evolving Role of the CFO in Modern Business

The ever-growing interconnectedness of organisations and rapid technological advancements necessitate a transformative role for CFOs in staying competitive.

Their evolving responsibilities include:

Tech Integration: CFOs expand their financial expertise to integrate applications and software for in-depth data analysis.
Platform Proficiency: CFOs become experts in cloud-hosted ERPs and oversee infrastructure changes to enable technological integration.
Data-Driven Decisions: Data enables informed choices on cash flow, precise forecasts, and financial oversight, setting apart effective CFOs.
Data Visualisation: The ability to harness data and visualisation becomes a distinguishing trait and eventually a standard skill.
Competitor Analysis: CFOs research how competitors employ technology, deciding on valuable investments, even if they require substantial resources and learning curves.
Emerging Technologies: CFOs play pivotal roles in evaluating the relevance of emerging technologies like robotic process automation (RPA), artificial intelligence (AI), and machine learning, differentiating between potential growth and costly hype.

Key Skills and Qualities of a Successful CFO

Successful CFOs have unique abilities and attributes that allow them to flourish in their diverse responsibilities.

The following are significant characteristics and abilities frequently identified in successful CFOs:

Forward-thinking strategy

A crucial quality of an exceptional CFO is their ability to craft a forward-looking strategy. Unlike accountants and controllers who primarily deal with historical records, a CFO excels in devising strategies that propel the company toward its financial goals.

It is achieved through sophisticated forecasting, utilising historical data, industry trends, competitive analysis, and strategic modelling to create a roadmap for progress. Along with financial and business modelling, CFOs must also be great at deal structuring and valuation of projects. This is essential as CFOs must be able to evaluate if certain deals or projects are viable or worth the investment and if not, they should be able to suggest alternatives or modifications.

Strategic collaboration

Great CFOs go beyond mere financial reporting; they act as strategic partners. Their comprehensive understanding of the organisation spans sales, customer service, and R&D to vendor relationships. They optimise performance across all facets of the business and make strategic adjustments to drive growth and profitability.

For instance, they may conduct in-depth product line analyses, proposing changes in vendor agreements, pricing, or sales and marketing to enhance product performance.

Operational expertise

Distinguishing themselves from traditional financial professionals, accomplished CFOs possess real-world operational experience. Whether through a previous COO role or mentorship, this experience enables them to offer pragmatic strategic advice that transcends budgeting and cost-cutting.

Financial mastery

Many CFOs ascend from Controller roles, but the transition sometimes translates to increased expertise, coaching, or mentorship. Experienced CFOs have accumulated high-level financial insight over time.

In contrast, newer entrants or those promoted directly from Controller roles may need more experience.

In such cases, mentorship from a seasoned CFO is invaluable, or opting for a highly experienced part-time CFO may be the wiser choice.

Sophisticated financial tools

In addition to conventional financial tools like balance sheets and income statements, exceptional CFOs employ advanced modelling tools.

These include short-term, mid-term, and long-term forecasts and tools such as contribution margin analysis, break even analysis, product line analysis, revenue bridge analysis, and pro forma cap table & liquidation.

These tools enable the formulation of advanced financial strategies.

Networking process

Great CFOs boast a network of high-quality relationships, which can significantly impact a company’s success, from securing funding to improving vendor relationships and contracts. Recent events have demonstrated how such relationships can expedite resource access, making it a hallmark of an experienced CFO.

Leadership acumen

A top-tier CFO possesses not only financial expertise but also exceptional leadership skills. While finance professionals may be perceived as soft-spoken, a CFO should be capable of leading their financial team and guiding the operations team.

They are adept at making data-backed strategic suggestions and implementing them effectively. CFOs must be able to lead growth for their companies and be masters of financial leadership and strategic thinking.

Industry versatility

Although industry-specific experience is beneficial, it’s not mandatory. However, it does provide valuable context for comparing analytics and often grants access to industry contacts, competitive analysis, and benchmarks. This well-rounded industry insight is advantageous.

Skilled financial support

A great CFO doesn’t perform lower-level tasks like payroll or end-of-month close. Instead, they rely on an expert financial team to produce timely and accurate financial reports.

The CFO oversees this team, using their reports as the foundation for developing financial strategies, risk assessment, and advancing the company towards its goals.

Educational and Professional Requirements

Educational Background and Degrees

You must possess a bachelor’s degree to access entry-level roles. Subjects like economics, business management, accounting, or finance are pertinent. Many aspiring CFOs choose to pursue advanced degrees, which include:

Master of Public Administration
Master of Business Administration
Master of Accounting for Financial Analysts
Master of Accounting for Financial Managers
Master of Science in Accounting

Numerous universities extend opportunities for continuing education and workshops tailored to financial professionals. These non-degree programs span various areas, including peer networking, enhancing organisational communication skills, staying updated on market trends, navigating regulatory complexities, and implementing transparent accounting practices.

While several extension programs facilitate in-person interactions among business peers, there’s also a burgeoning array of online CFO training courses for CFO certification and MBA programs, designed to prepare individuals for certifications, providing distance learners with accessible educational pathways.

Relevant Certifications

For the role of CFO, although certification or licensure is not a strict requirement, many professionals opt to pursue these credentials to showcase their dedication and competence.

Below are several certification options to consider:

Certified Treasury Professional (CTP)

This certification, which focuses on treasury management expertise, underscores proficiency in cash processing, financial statement analysis, reconciliation, and more.

Certified Public Accountant (CPA)

Becoming a CPA involves fulfilling state-specific requirements, which includes 150 postsecondary semester hours, including graduate-level coursework. Candidates must pass a series of four exams within 18 months and maintain their CPA licence through ongoing education.

Chartered Financial Analyst (CFA) Certification

Offered by the CFA Institute, the CFA certification equips individuals with a comprehensive foundation in investment analysis and portfolio management, emphasising real-world applicability and adherence to professional standards.

These certifications exemplify a commitment to expertise and excellence in the finance field, providing CFOs with valuable skills and credentials to excel in their roles.

Experience and Career Progression

Professional experience

CFOs usually have extensive experience in finance and accounting roles. It often includes working their way up through the ranks, starting as financial analysts, accountants, or controllers. They gain valuable insights and skills in financial management, reporting, and strategic planning.

Public company experience

For CFOs of publicly traded companies, experience with regulatory compliance, financial reporting, and investor relations is vital. This experience ensures adherence to legal and reporting requirements.

Global experience (for Multinational companies)

CFOs in multinational corporations often have experience in international finance, understanding global financial markets, foreign exchange, and international tax regulations.

Proven Track Record

CFOs typically ascend to the role based on a proven track record of financial leadership, sound decision-making, and successful financial management.

The Path to Becoming a CFO

Entry-Level Finance Positions

Early career choices: Explore entry-level positions like financial analyst, accountant, or auditor to kickstart your finance career.
Building foundations: Focus on mastering economic fundamentals, data analysis, and accounting principles to lay a firm groundwork.
Continuous learning: Expand your knowledge and skills using training opportunities and certifications.

Mid-Career Advancement

Progressing to middle management: Transition to roles like finance manager or controller, where you’ll gain supervisory experience.
Leadership development: Develop leadership and management skills as you oversee financial operations and manage teams.
Strategic roles: Seek strategic financial planning, budgeting, and decision-making positions.

Tips for Aspiring CFOs

Cultivate a forward-thinking approach

CFOs are increasingly expected to bring strategic skills to the forefront. Develop a strategic mindset that allows you to consider opportunities alongside risks, and be willing to invest in endeavours that drive strategic growth.

Always represent

Recognise that you represent your company around the clock as CFO. Understand the significance of this role, as it goes beyond office hours.

Lead with humility

Effective CFOs ensure they have the right talent in key roles, emphasising teamwork and humility. Seek individuals who excel and surpass your abilities to build a strong team.

Invest in talent

Talent management will be a significant part of your CFO role. Dedicate substantial time and effort to nurturing and developing talent within your team.

Be the CEO’s confidante

CEOs benefit from a trusted confidante within the management team. As a CFO, your unique vantage point enables you to provide valuable insights and engage in candid discussions.

Partner with the business

Go beyond finance and offer actionable insights to improve performance. Understand the business thoroughly and build credibility by interacting directly with its operations.

Effective communication

Tailor your communication to various stakeholders, ensuring clarity, accuracy, and consistency. Work on your communication skills, especially public speaking, as they are increasingly critical in the evolving CFO role.

Specialisation

Acknowledge that you can only be an expert in some things. Focus on understanding the principles and emerging trends in tax and technology, and hire experts in those domains.

Uphold integrity

Maintain the highest levels of integrity. As the truth-teller for your organisation, convey authority and wisdom when addressing critical issues impacting stakeholders, from employees to regulators. Your words and actions are under constant scrutiny.

Challenges and Opportunities in the CFO Role

An adaptable CFO is integral in propelling your organisation forward in the current landscape.

CFOs achieve this by harmonising strategic objectives throughout the company, harnessing technology to enhance efficiency, leveraging data for informed decision-making, and contributing to future-oriented planning.

Here’s how a strategic CFO can be instrumental in driving your organisation’s growth:

Enhancing Interdepartmental Communication: A forward-looking CFO fosters collaboration across the organisation. They facilitate alignment among senior leaders, business units, and the finance department, offering a comprehensive perspective on the organisation’s performance and potential.

Crafting, Monitoring, and Assessing Strategic Blueprints: Amidst challenges like pandemics and economic uncertainties, today’s CFOs are central in steering the organisation. An adaptable CFO provides guidance and leadership in formulating and overseeing strategic plans while proactively preparing for an uncertain future.

Adopting Digital Solutions: Finance teams are increasingly embracing digital solutions. Modern CFOs leverage these technologies to drive efficiency, engage employees, and align strategic objectives company-wide. They recognise the transformative potential of digital tools in achieving organisational goals.

Industry-Specific Considerations

CFO Roles in Different Sectors

Healthcare sector: Exploring the unique financial challenges and opportunities in healthcare, including regulatory compliance, revenue cycle management, and healthcare finance strategies.
Technology sector: Understanding the economic dynamics of the tech industry, including managing R&D investments, handling rapid growth, and evaluating technology investments.
Finance sector: Exploring the CFO role within financial institutions, including banks and investment firms, focusing on risk management, asset allocation, and regulatory compliance.
Manufacturing and industrial sectors: Learning about CFO responsibilities in manufacturing and industrial companies, including supply chain finance, cost management, and capital allocation.
Consumer goods and retail: Understanding the financial intricacies of consumer goods and retail, such as inventory management, pricing strategies, and e-commerce finance.

Industry-Specific Skills and Knowledge

Healthcare finance: Acquiring knowledge of healthcare reimbursement models, healthcare accounting standards (e.g., GAAP and IFRS), and healthcare-specific financial metrics.
Tech finance: Developing expertise in managing tech company financials, understanding software revenue recognition, and evaluating technology investments and product development costs.
Financial services: Mastering financial regulations, risk management practices, and financial product knowledge within the industry.

Manufacturing and supply chain finance:

- Learning about lean financial practices.
- Inventory turnover ratios.
- Supply chain optimisation in the manufacturing sector.

Retail and consumer finance: Gaining insights into consumer behaviour analytics, pricing strategies, and omnichannel finance in the retail industry.
Energy and utilities finance: Understanding energy market dynamics, pricing, and sustainable finance practices in the energy and utilities sector.

Networking and Professional Development

Networking and continuous professional development are critical to a successful CFO’s career journey. These efforts help CFOs stay current, build valuable relationships, and enhance their leadership skills.

Follow these useful strategies for networking and professional development:

Building a solid finance network

Networking is a cornerstone of success in the finance industry. It involves connecting with peers, mentors, and industry leaders to foster professional relationships. Practical strategies for building a robust finance network include attending industry events, joining relevant professional organisations, and leveraging online platforms like LinkedIn.

Remember that the relationships you cultivate can provide valuable insights, career opportunities, and support throughout your finance journey.

Continuing education and skill improvement

Continuous learning and skill development are vital to achieve long-term financial success. Demonstrating a commitment to lifelong learning distinguishes you in this dynamic field. Consider earning certifications like CPA, CFA, or CMA to enhance your expertise.

Enrolling in executive education programs, attending workshops, or taking online courses helps you stay current with industry trends and best practices. Regularly reading finance journals, books, and industry publications deepens your knowledge and comprehension.

Mentoring and coaching for aspiring CFOs

Mentorship and coaching are invaluable resources for those aspiring to become CFOs. A mentor or coach can provide guidance, perspective, and support throughout your career journey. Finding the right mentor or coach involves identifying individuals with relevant experience and seeking advice.

Additionally, consider offering mentorship and guidance to those earlier in their finance careers. Peer support networks and mentorship programs can create a strong community of finance professionals who learn from and support each other.

Conclusion

Becoming a CFO is a dynamic journey combining education, experience, and ongoing professional development. Aspiring CFOs should pursue a solid educational foundation, gain diverse financial knowledge, and actively engage in networking and continuous learning opportunities.

Additionally, exploring specialised CFO certification programs and training courses, such as Imarticus Learning’s IIM Indore’s Postgraduate Certificate Programme for Emerging CFOs, can provide valuable insights and skills to excel in the CFO role.

Visit Imarticus Learning today to learn more about our CFO training courses.

How to become a CFO in this digital age

Posted on October 18, 2022March 26, 2024 by Imarticus Learning

How to become a CFO in this digital age

Have you ever, by chance, been to a business or accounting school wishing you could become a CFO? You are always told that it is a complicated job and you will have to learn a lot of things, right from accounting to finance. You need to crunch numbers all the time and know about all the taxation and allied subjects. After all, a CFO’s primary responsibility is to handle an organisation’s overall finances.

But these days, almost everything about being the CFO has changed. You do not need to balance the books all the time. CFOs these days are incorporating strategic intelligence from their experience and also from external sources to make business decisions.

There is data to back this. The AICPA (Association for International Certified Professional Accountants) and ICAI (Institute of Chartered Accountants of India) jointly released a report analysing the important qualities of the top financial honchos in the digital age. The organisations which had a digitally proficient finance team have had positive growth in their annual revenue returns.

So, read on to understand the process of becoming a CFO.

What Do You Need to Become A CFO In the Digital Age?

The requirement for becoming a CFO in the digital age applies to all financial professionals. If you want to be a part of the core financial team, be it the CFO or any other member of the team, it is important to shift from ERP software to cloud ERP as the first step.

The CFOs should therefore be experienced in using new technologies for computing data and insights quickly and efficiently to capitalise on the opportunity. It is all because of persisting competition which has been driving financial organisations to incorporate cutting-edge technologies with innovations like data visualisation dashboards which provide real-time analytics. Next-gen cloud ERP suites do not require the finance staff to have in-depth IT skills. At the same time, knowing how to use these digital ERP suites incorporates some small IT capabilities in the professional using it. This helps the finance team to accelerate and automatically execute certain tasks like generating an online report sharing and mailing it to the rest of the staff or vice versa.

Leading financial teams in an organisation have built their foundations on three pillars –

How well they are equipped to assist an organisation in overcoming financial hurdles during a crisis
Identifying new opportunities for investments for an organisation
Help an organisation grow and flourish while facing intense competition in the market

The role of the CFO has also evolved according to the changing role of the financial organisation. Apart from costing and accounting, finance must add value to the ever-expansive opportunities in the market.

A small use case in this regard will be leading restaurant chains like McDonald’s and Pizza Hut moving from a 20-year-old ERP system to lighter and cloud-enabled ERP suites. This strategic move helped them beat their competition, thanks to them going digital before their competition.

The move was rewarded in multiple ways. The company could reduce costs significantly because it could downsize its workforce. They could also streamline their operations by building intuitive dashboards for making faster decisions with the help of real-time analytics.

Upgrading Skills as a CFO Is Extremely Important

Cloud-based automation has been making the life of finance professionals quite easier these days. They help in automating most repetitive manual work. That is why financial professionals, CFOs, in particular, upgrade their skills to stay relevant in the job market. With the advent of data science and machine learning, IoT and blockchains, CFOs need to understand the basics along with next-level predictive analysis. The best CFOs prefer cloud applications with the incorporation of advanced fintech technologies that are already present in the market.

So, to become a CFO and attain success, you need to be well-versed with these new technologies.

Now, to help you traverse this road, you can opt for strategic CFO courses from leading management schools or other institutions that have such programs to help you improve your professional qualities.

In this regard, you can take admission for a chief financial officer course from leading educational institutions like Imarticus Learning. The best thing about this course has been developed in partnership with IIM Indore. So it is bound to be useful and effective.

You will be able to acquire skills that are relevant in the employment market in the given niche. This course is taught through an online mode, so you can study from any corner of the country.

To sum up, to become a CFO, you need a lot more than just technical knowledge. You need to be an analytical, quick thinker and, most importantly, stay calm even in the most pressure situations to find the appropriate solution. Hence, besides acquiring all the technical knowledge, work on yourself and develop these soft skills to shine as a professional.