First, you get a lot more study time with relevant concepts and skills. Second, you are building a network of faculty members and peers who are on the same track, possibly in the same industry. These two aspects can prove invaluable when you hit the job hunting phase of your journey. Most people who are really serious about getting to the top of the accounting field and becoming a CFO do either graduate studies, a professional certification, or both. While it isn’t required, having a Master’s of Business Administration (MBA) with a concentration in accounting/finance or a Master’s of Science in Finance (MSF) has numerous benefits. Like any professional journey, becoming a CFO has a series of requirements and hoops to jump through.
CFOs work closely with other C-suite leaders and report to the Chief Executive Officer (CEO). The CFO holds in their hands the financial well-being of the entire company. Their days can be long and hard, full of everything from financial statements to strategic planning sessions. According to a Mckinsey report, CFOs spend 41% of their time on non-finance activities. If you want to finally join your dream company’s board of directors as CFO, it’s crucial to be aware of the changing landscape and set sail according to the new tides.
Risk assessment skills
In the IMA’s annual salary report, professionals who have both certifications report higher job satisfaction and significantly higher salaries. Globally, CMAs earn a median total compensation that is 58% higher than non-CMAs. An attractive CFO degree is going to be in accounting or finance. It can be general, but needs to be in the right universe if you hope to work your way up the ladder one day.
Is it hard to become a CFO?
Becoming a CFO is a critical and difficult position in business. To be successful in this position, you need to have strong financial skills, knowledge of company operations, and the ability to lead a team.
All CFOs will encounter problems as they manage their team, understand the finances, and engage with other executives. One of the main responsibilities of an executive is to create strategies that will lead the business to success. Strategic thinking also means factoring in the needs of every part of the company to prepare plans that will benefit the whole organization.
Complete a Master of Business Administration (MBA)
The career path to CFO is not as easy as taking a few courses and polishing your CV. Some steps to achieving the career goal of CFO are detailed below. Other factors like company size and the type of industry your business works in may also affect the salary you are How to Become a CFO in 7 Steps offered. Salaries and other bonuses for this position differ regionally and are often higher in metropolitan areas and developed countries. Salaries are affected by the person’s education, additional skills, certifications, and years of experience in the role.
A CFO in a large company typically earns a higher salary than a CFO in a small company. This is because larger companies typically have more complex financial operations, which require a higher level of expertise and experience to manage effectively. Bureau of Labor Statistics, financial https://accounting-services.net/how-to-define-accounts-receivable-terms-examples/ managers at every level have experienced a 16 percent growth rate in their job outlook since 2018, with that rate projected to stay steady through 2028. That’s four times the national average of similar careers, such as sales managers (5 percent) or even other executive roles (6 percent).