How to Become a CFO in 7 Steps

How to Become a CFO in 7 StepsHow to Become a CFO in 7 StepsIf youre an accounting or finance professional with your eye on the C-suite, specifically the job of chief financial officer, you should take a moment to make sure you know how to become a CFO.The right CFO career path can take you to the top job of leading a companys financial operations and overall development, with responsibilities that can range from identifying growth targets to preparing the organization for a sale or even salvaging an underperforming business.Its a role that can be rewarding, as this post describes CFO Salaries Just One Reason to Aspire to the Top Job. Its also a role that involves risk, strategy, analytics, people management and technology.How to become a CFOBusiness experts say you need to actively manage your career if you want to reach this pinnacle of achievement. You also may need to step outside your current company to move to this level.A range of skills is required, as well as a broad focus o f your business, advanced education and credentials, and corporate experience. You need to know not only the numbers but also your companys operations, products and services, customers, vendors, employees and shareholders.Here are seven steps to acquire just what you need to carry you on the CFO career path1. Gain broad financial experienceTo be the CFO, youll need a firm grasp of the fundamentals of budgeting, analysis, compliance, risk management and other accounting principals.As a CFO, your job will be to ensure that the CEO and boards decisions are financially sound, both in regard to resources available and regulatory compliance. Having solid financial experience makes you more apt to make these judgments. Sometimes, especially at small companies, the saatkorn person serves as chief executive officer and chief financial officer, making this financial expertise even more crucial.SEARCH FOR JOBSSEND US YOUR RESUME2. Expand your business and operational experienceGaining a deep u nderstanding of the business is critical on the CFO career path. As a CFO, youll regularly meet with the board and collaborate with managers. For this reason, you need a broader understanding of the business and operational sides of a company.The insight and support of an experienced mentor can be effective at this stage, as can cross training and job shadowing. Taking a leadership position at a nonprofit or industry association also can offer valuable training for future CFOs by providing exposure to a broad range of business processes and challenges.3. Widen your customer service experienceBe sure to develop relationships with people at all levels of the company, both within and outside your department. Improve your communication and presentation skills. standort yourself as a team builder.Not only as CFO will you be responsible to the board regarding the financial status of a company, but youll also speak with investors. Youll serve as a conduit between what they want to see from the company and the board. These corporate communications will be frequent, as investors are key stakeholders of the business.4. Broaden your understanding of technologyWith more number-crunching in the cloud, Software as a Service, big data analysis, cybersecurity and other innovations permeating the finance industry, part of the CFO career path is understanding the benefits and risks associated with technology.More companies are finding they need big data experts, and they can get them by building technical competence from within their finance and accounting departments. While you may not become an expert in this realm, it wouldnt hurt to familiarize yourself with data retrieval, interpretation and analysis.5. Earn a CPA or MBAAlthough CFOs come from various backgrounds, certain certifications and advanced degrees tend to make transitioning into the position easier. CPA licenses are often the fruchtwein suited for the role given their wide-reaching skills they represent, includin g forensic accounting and compliance knowledge. A masters in business administration is often useful in conjunction with the CPA. Earning an MBA can help you increase your business and operational understanding.Read All You Need to Know About the CPA - and Then Some.6. Consider controller and treasury positionsLike certifications, certain job titles have been held previously by todays CFOs. Some have held positions of increasing responsibility within an accounting department, such as internal audit manager, director of finance or controller. Getting broad corporate experience in a treasury function, as an example, can increase your experience with funding and strategy execution, both of which are essential for CFO duties.7. Prepare to take on expanded rolesThe influence of CFOs within their organizations continues to expand. At many companies, the roles have expanded outside of traditional accounting and finance, to human resources and information technology.Leading a business is a lso getting harder, recent research has shown. In a Robert Half survey, 66 percent of CFOs said it is more challenging to be a company leader today than it was five years ago.Between new roles and continuing education, it may take some time to get there, but many who have taken the time to learn just how to become a CFO and follow that path find its worth the journey. Start now to position yourself for success.landsee what employers are looking forCFOs are in demand across the United States, including these locations - and your own cityCFO jobs in St. LouisCFO jobs in Palm Springs, Calif.CFO jobs in Indianapolis, Ind.CFO jobs in Portland, Ore.CFO jobs in PittsburghEditors note This post was updated recently to reflect current information.