What does a CFO do?
CFOs typically work for corporations across various industries to provide financial direction that preserves the company’s future. They work closely with the CEO to review quarterly financial reports, identify investment opportunities and implement budgeting initiatives company-wide. These professionals use their experience in business development and financial planning to increase revenue and pay off liabilities. Those in the role of CFO are also responsible for writing the company’s annual financial report for shareholders and potential investors to review.
CFO skills and qualifications
CFOs use various skills and industry knowledge to effectively complete the duties for this role. These attributes typically include:
- Analytical skills: CFOs should be comfortable taking in data from diverse departments, from procurement and IT to marketing and logistics, to easily identify problems and find then implement solutions.
- Leadership skills: The ability to manage time wisely and inspire others to do the same, delegate tasks, motivate employees and make good decisions are all excellent attributes to place in your CFO job description when hiring for this position.
- Risk assessment skills: Companies need a CFO that identifies risk easily and finds ways to mitigate it before it reaches crisis levels. When crises are unavoidable, they work with various departments to contain and control them, including compliance, IT, security and human resources.
- Communication skills: CFOs must communicate with diverse stakeholders, from those who work on the factory floor to other executives and investors, both verbally and in writing. This means the candidate you hire needs excellent communication skills.
- Strategic skills: Profit is the name of the game for a good CFO, so they’re always looking for opportunities to increase it. This skill works in various ways, from suggesting cheaper vendors to the sales department to changing up processes after identifying costly bottlenecks by speaking with line workers.
- Strong ethics: Because CFOs sit at the top of your company’s hierarchy, you should hire someone for the position with a proven track record of honesty. These professionals are also always careful to avoid conflicts of interest to maintain the integrity of your business.
CFO salary expectations
A CFO makes an average of $148,548 per year based on data gleaned from 5.2K salaries reported to Indeed as of June 23, 2023. The salary expected by the candidate you hire varies, depending on their education, experience level and geographical location.
CFO salary expectations
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Common salary:
165328.13 YEARLY -
Typical salaries range from
41000.00 -372000.00 YEARLY - Find more information on Indeed Salaries
*Indeed data –
CFO education and training requirements
For this executive role, most employers expect candidates to have a bachelor’s degree in finance, accounting or a similar field. Many employers, however, prefer candidates with a Master of Business Administration (MBA). Training requirements for this position are usually obtained through a combination of formal education and work experience.
To be promoted to CFO, candidates should first hold a Senior Financial Manager position where they demonstrate extensive experience in this role. Although certifications aren’t typically a prerequisite to becoming a CFO, they provide evidence of knowledge in the field and personal ambition. Examples of helpful certifications include Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA).
CFO experience requirements
CFOs should demonstrate strong evidence of working in a financial leadership role. Candidates may work up to this level by starting out in an entry-level or associate position in a finance or accounting department, so look for these on their resumes. Example positions include a Financial Analyst or Junior Accountant.
Once experienced, candidates then move into a financial management position. CFO candidates should have extensive experience in a leadership role with a proven ability to manage large-scale projects and oversee the long-term goals of a company.
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Frequently asked questions about CFOs
These are some frequently asked questions that employers hiring for the position ask about the CFO job description.
What is the difference between a CFO and a Controller?
The difference between a CFO and a Controller is that CFOs have more seniority and a broader scope of job responsibilities. For example, CFOs oversee their company’s finances to determine short- and long-term strategies to increase cash flow and pay off debts. By contrast, a Controller is in charge of the accounting department and reviews financial statements and calculations to check for errors. These professionals may also help compile financial reports by using accounting data.
Where do CFOs fit in the corporate hierarchy?
As the head of all monetary matters in corporations, CFOs are the highest financial officer in companies and sit at the executive level. From a structural standpoint, however, CFOs rank three in the corporate hierarchy behind the Chief Executive Officer (CEO) and Chief Operating Officer (COO).
What are the daily duties of a CFO?
On an average day, CFOs start by checking their email and taking stock of their tasks for the day. They review financial data on balance sheets and income statements to determine accounts receivable and payable. Throughout the day, they meet with the CEO and other company officials to discuss the current financial status of the company and how to proceed.
During downtime in their offices, they write reports, check on stocks and strategize how to promote the company’s capital structure by liquidating assets and other methods. They also take this time to review the company budget and make adjustments based on the needs of specific departments.
What makes a good CFO?
Good CFOs use their financial expertise and analytic thinking to accurately evaluate a company’s financial health. They also have a creative mindset that helps them develop innovative solutions to capital structure and budgeting limitations. Good CFOs have excellent communication skills for writing reports, giving presentations and providing suggestions about company finances.
Because they have access to financial records and account information, CFOs exercise discretion when talking about work-related matters outside the office and with unauthorized personnel. This sense of confidentiality helps protect the company from fraudulent activities.
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