How do you become a chief financial officer?

Becoming a Chief Financial Officer (CFO) with a solid foundation requires a strategic career path and a commitment to continuous learning and development. Start by obtaining a strong educational background in finance or accounting, ideally with advanced degrees such as an MBA or CPA certification. Gain practical experience in various financial roles, progressively moving up the corporate ladder, and seek opportunities to lead financial teams or projects.

I started my career in a small Bank, and I was in Accounting. The CFO noticed that I was doing well and decided to learn how a bank operates in Operations and the Trading room. I started to move up the ranks, and ultimately, I became the SVP - Controller and Head of Operations. I had over 185 people reporting to me. The Bank was eventually sold, and I went on to develop software via my own company. I developed a product for submitting a Federal Reserve, FDIC, and State Banking Department. At that time, there was no product like it, and we did very well selling into small banks up to the top Tier Banks. Today, it is still used in the USA. Today, my company works with many banks, and I sit on the Board of a Bank.

A CFO should have atleast below : 1. In-depth knowledge of the business the company is in. 2. Strong educational background and experience in the field. 3. Ability to analyze and provide a glance to the business owners in order for them to focus and identify the productive functions to grow. 4. Leadership skills to drive the team and organization. 5. Fund management skill to ensure that the organization is financially stable.

Primeramente, contar con buenos fundamentos financieros. En países como México - donde estoy - es habitual que el contador público sea considerado también como financiero, pero nada más alejado de la realidad. Ser financiero requiere un tipo de preparación especifica y puntual. También se requiere de una habilidad para entender el funcionamiento del negocio y como relacionarte con otras áreas para tener un visión clara de lo que representa un numero.

Becoming a CFO requires continuous learning and a strong foundation in finance, such as an MSc, MBA, or CFA. This role challenges you daily, demanding adaptability and fostering personal development. A successful CFO must understand the company as a whole to optimize its potential, possessing excellent communication and interpersonal skills for effective collaboration with executives and departments. Additionally, understanding market trends, regulatory environments, and technological advancements is crucial for making informed decisions. Strategic thinking and the ability to foresee financial risks and opportunities are vital, as a CFO guides the company towards sustainable growth and financial stability.

It is a journey to becoming a CFO. There are multiple routes but you have to gain skills in accounting, FP&A, systems, investor relations, strategic finance, M&A/corp dev, treasury, procurement and tax. You don't necessarily need to be an expert in all but have a strong understanding in each and be able to gauge if something is right or not. Plus most of these functional areas work so closely together that you need to understand when and who to bring together to solve problems so you get work done efficiently. Having a diverse background in multiple industries is a plus as you see different business models and opportunities.

Becoming a CFO is not just a goal, it is a journey. Every project and role are a step in stone to build the skills to climb the ladder. Be bold enough to take the role others may shy away from and embrace the challenges of the “big” opportunities. They are character-building, craft resilience, honing relationship skills and enhance your personal brand. All of this elements are essential to the multi-faceted CFO role.6

I feel you need to genuinely enjoy communicating financial information is ways that intelligent but not financial experts can understand and apply. To be curious about how the organisation works to give financial decisions context and relevance. Lastly to be a good coach and people leader to bring out the best in your accounting team.

Different dimensions of the financial functions, eg financial reporting, revenue management etc But also immersion for various periods in the business itself. So you understand how 'the tire hits the ground' Mentorship by experience culture or former CFOs

In addition to a solid foundation in finance and management, it is also important to know the business that you are working in. You need to have developed a certain intuition for expected returns on investment and assets for your business.

Developing the right leadership skills is a career-long journey that starts from before your first analyst role and continues throughout your career. What everyone is saying about the technical foundation (accounting, MBA, finance) is required BUT so also is a broad based liberal arts education, don't narrowly focus on business (Charlie Munger, Henry Kissinger would say same). Once you are in the job, always be thinking about your leadership style and make sure it matches the situation. Take leadership classes, seek leadership mentors, get feedback and form relationships with senior people. Remember this task is never "done", you always have to reassess where your skills are up to the task and where you need to grow to stay ahead.

Leadership is the key element for a successful development of an organization and personal development. No matter how good your personal skills are, it is all about the team and leading the team. Give direction but also give freedom. Trust your team but be not afraid of having intense (content driven) discussions. Find the best team around you and you will get the best results…not to forget do not take yourself to seriously

developing leadership skills is paramount for every leader, moreover, a C-level executive that must transmit knowledge and confidence to every member of the team, colleagues and peers. There are a lot of good literature where everyone could leverage to identify the skills required according to every stage in your profesional carrer. Get training to develop your skills is paramount.

Start in finance roles, such as a Financial Analyst, and progress to more strategic positions like Finance Manager or Director. For example, leading a team on a major budget overhaul project can develop crucial leadership abilities. As you advance, focus on honing skills in team management, strategic decision-making, and cross-departmental collaboration. Undertaking leadership training or an MBA can further enhance these skills. A successful CFO not only manages the finance department but also provides strategic financial guidance at the executive level, making strong leadership abilities indispensable.

People and communication management is 60% of the job and one has to be an effective leader to deliver as a successful CFO … have a clear balance for task as well as people orientation and understanding of people’s mindset’s in other functions like sales, marketing and operations will go a long way in helping the business as well as creating an impact for yourself as a leader !

Once the person’s gained substantial experience in finance leadership roles, you can actively pursue CFO positions. This may involve networking with executive recruiters, leveraging your professional connections, and demonstrating your qualifications and achievements in the finance field.

I have always appreciated CFOs: - With a good understanding for the business. - That is well aware that behind the numbers are customers. - That creates systems that supports the business not the opposite.

Build relationships is key for your sucess. Expanding your network with peers and colleagues in the industry is paramount. Always try to identify the top voices to get a clear vision about future of the industry, markets and customers behaviour, last trends. If you appreciate getting insight from different perspectives, you must attend all fairs, meetings, expositions, or massive events where competitors showcase last products or services. An excelent network must work with insiders and outsiders.

To effectively network and advance toward becoming a CFO, consider the following strategies: 1. Attend Industry Events: Participate in conferences and workshops to meet influential professionals. 2. Join Professional Associations: Engage with groups like the Financial Executive International (FEI) for networking opportunities. 3. Seek Mentorship: Connect with experienced professionals who can offer guidance and introduce you to key contacts. 4. Utilize Alumni Networks: Stay in touch with your business school alumni for support and opportunities. 5. Leverage Social Media: Use platforms like LinkedIn to showcase your achievements and engage with industry content.

I think apart from being the best CFO out there, one has to be truly committed with the company and be an ambassador of the brand he represents as if he were a partner. Networking is key to get to the role but not only, one has to keep networking to help his company, talk about the products or services they offer and work as if was yours. Not only by doing this can you stay in the role but also be offered something better because of the passion and commitment you show towards your company.

In the world we are living right now, esp post COVID world, the role of CFO is beyond imagination! CFO needs to be much more than just managing the financials KPIs. Two big areas a CFO need to tackle: Sustainability and Technology. Hence to be a CFO, one must have deep understanding on these two areas and I think everything else is than just basic!

An essential part of a CFO's job is to seek opportunities everywhere. In particular, financial executives need to demonstrate where they are adding value for the company or they could be seen as an expense. Finance must be a partner for growth and the CFO is responsible for supporting new initiatives. Strategic thinking is the most valuable skills that a CFO have to bring to the table.

Think in business cases, not only in short term € impact but mainly in mid term value creation. This will set the base for a successful and sustainable future and not only short term success

Good preparation is essential. Anyone wishing to become a CFO must invest in developing appropriate levels of skill which includes strong technical knowledge, a sound interest in and understanding of how businesses and business models function, excellent communication skills and confident leadership skills. This requires energy, commitment, patience and ambition along with an ability to build positive relationships with a wide variety of people.

Easier said than done bet set some aggressive goals for yourself and extend yourself to your executive team to train them on best practices. Its a tough challenge for some depending on your personality but get out on the skinny branches. One thing I learned from a mentor was to reach out and talk to competitors at the same level, of course there are boundaries, but if you can connect with them one or twice a year and just chat challenges you probably will realize your challenges are theirs also. If you don't hit it off no problem but either way they have your contact information. Stay on the safe of sharing information first.

You also need to be able to read financial statements over several quarters or years, and derive the story they tell; be able to draw conclusions, that are actionable for the CEO. Is there a negative trend somewhere that you need to nip in the bud … or is there a positive trend that your company needs to allocate more resources towards to exploit the momentum? Outstanding CFOs can sometimes identify fraud or detrimental trends just by the financial statements without ever needing to visit the factory or business lines.

Finance is a scientific art: the science of predicting and the art of knowing when to act. The best finance leaders, in my experience, are able to: 1. ruthlessly declutter and simplify 2. demonstrate highest level of candor - they always say the complete truth (and not half truth’s) 3. always manage to do more with less 4. avoid attention (they are always in the engine room) 5. import perspectives and ideas from other un-related industries with almost zero correlation 6. read patterns and make predictions (on people, business and society) with razor sharp accuracy 7. avoid the temptation of the CEO or other C-suite roles and still consciously build a solid foundation to be great in such roles.

In my experience in becoming a Chief Financial Officer, besides the obvious technical skills, the most critical aspect to excel at the CFO post is the soft skills that the individual must have. Has to be a leader, and be able to instill in the team he/she commands a sense of purpose, commitment, and a strong team spirit, not only among the finance community but across the entire organization. The ability of the finance organization to network and team up with other teams it more and more critical to achieve sustainable results. The soft skills to insert finance into the spider web of the organization networking and collaborating across different teams, it is a must-to-have skill

The CFO role has evolved from being a scorekeeper to becoming a business partner. In the last 5 years, companies are hiring more commercially savvy CFOs.

If you wish as a cfo to be central in the governance of your company, make sure you have a robust set of documented controls (close the Books and beyond), gain solid corporate Law and business affairs knowledge, also bring in a large capacity to adapt and excellent resilience.