Climbing the Ladder: Key Steps from Finance Professional to CFO

CFOs are central to driving business transformation and creating long-term value. They help companies navigate complex market dynamics. Additionally, their involvement in risk management and sustainability initiatives ensures that companies are resilient and aligned with stakeholder expectations.

The finance industry is dynamic, requiring continuous learning and adaptation to stay updated with the latest trends, technologies and regulations. This post will explore the role of CFO and how you can grow your career through comprehensive career development to become a successful finance professional as you work your way to the C-suite.

Understanding the CFO Role

The role of the CFO is multifaceted. Modern CFOs have become strategic leaders involved in shaping the company’s strategic direction. The rise of digital transformation has further expanded the CFO’s role. Leveraging data and analytics, CFOs provide actionable insights from financial statements that inform strategic decisions and improve financial performance.¹ This role is grounded in financial stewardship: CFOs manage the books, minimize risk and create an efficient and effective finance operation.

CFOs are responsible for maintaining the financial health and integrity of their organizations. Their main focus is profitability. With this focus, CFOs must identify inefficiencies and create strategies that will uncover growth opportunities for their company. These strategies must help minimize risk, allowing the company to thrive and become profitable.²

Educational Background and Professional Qualifications

To begin your path to a CFO position, you must first achieve a bachelor’s degree in finance, accounting, business administration, economics or a related field. Strong foundational knowledge in these areas is crucial. Many aspiring CFOs pursue a master of business administration (MBA) with a focus on finance, a master of science in accountancy or a master’s in finance, which often includes essential corporate finance courses. These degrees impart advanced knowledge and can help enhance leadership skills.

Having certifications is a prerequisite for senior financial roles like CFO. Employers often prioritize candidates with certifications because they demonstrate a commitment to professional development and a high standard of practice. Certification adds credibility and demonstrates that the CFO has met rigorous standards of education, experience and ethics, which are critical for handling sensitive financial matters.³ Understanding the corporate finance career path is also important, as it encompasses various roles and opportunities such as financial planning and analysis, controllership and treasury.

Common certifications to pursue include:

• Certified Public Accountant (CPA): A CPA certification ensures that a CFO has a strong foundation in accounting principles³
• Chartered Financial Analyst (CFA): A CFA is beneficial for those focusing on investment management and financial analysis³
• Certified Management Accountant (CMA): This certification focuses on financial management and strategic management skills that are essential for making informed decisions that drive organizational growth and sustainability⁴

Climbing the Financial Career Ladder

Aspiring CFOs typically start their careers in entry-level positions that provide foundational knowledge and experience in finance and accounting. Career progression in these roles is crucial for employee development and motivation. Here are some common entry-level positions that can serve as steps toward a CFO role:

• Financial Analyst
• Staff Accountant
• Auditor
• Budget Analyst
• Financial Planner

As aspiring CFOs gain experience in these entry-level roles, they typically progress through mid-level management positions that broaden their responsibilities and leadership capabilities.³ It is important to seek opportunities to lead projects, manage teams and demonstrate strong interpersonal and communication skills. Gaining diverse experience can help advance you to senior executive roles within finance and ultimately achieve the goal of becoming a chief financial officer.

• Accounting Manager: An accounting manager oversees accounting operations at a day-to-day level. They manage a team of accountants by assigning tasks, hiring and firing staff and conducting performance reviews. This role ensures the efficiency of the accounting department⁵
• Finance Manager: Finance managers focus on financial planning and forecasting for the organization. They analyze financial data to provide insights into how a company can achieve their financial goals⁵
• Director of Finance: Directors of finance typically lead the finance department, overseeing a company’s financial strategy, planning and budgeting processes. They work closely with executive leadership and play a key role in driving organizational growth⁶

Networking and Mentorship

Networking is crucial to growing your career in finance and eventually becoming a CFO. Networking with industry leaders is essential for continuous learning and professional development. Find industry events or professional organizations to join that will allow you to meet others with similar goals and career interests.³ Focus on building genuine connections. Building and maintaining these relationships can provide career opportunities and advice and be a source of support.

Working with others in the industry exposes you to a wealth of knowledge and continuous learning you can use to move up in your career. Over time, you are bound to hit some roadblocks and make mistakes along the way. Having a network that you can turn to during these times will give you the support you need to keep going and maintain a healthy well-being.⁷

The Strategic Importance of Experience

Organizations typically seek CFO candidates with a diverse and robust set of experiences to ensure they are well-prepared to handle the role’s complex financial responsibilities, making a corporate finance career an essential pathway.

Climbing the corporate finance ladder offers numerous opportunities to advance within the sector, providing a clear pathway for professionals aiming to influence a company’s financial management and success.

Here are the key types of experience that are highly valued:

Financial Management and Compliance

Experience in budgeting, forecasting and financial modeling is key. CFOs must have a strong background in accounting practices and the ability to analyze financial data to guide strategic decisions. An in-depth understanding of regulatory requirements and compliance issues relevant to the industry is also required. This includes experience in dealing with regulatory bodies and staying updated on changes in financial regulations.⁸

Strategic Leadership and Management Skills

Aspiring CFOs must be able to prove they can lead and develop finance teams. This includes mentoring staff, fostering a collaborative environment and managing performance. The ability to work effectively with other departments to support business objectives and drive growth is a skill all CFOs need to have.

CFOs have some involvement in the development and implementation of long-term business strategies. They are expected to work alongside the CEO, so they must have the leadership skills that can help guide the organization. Also, experience in evaluating, negotiating and integrating mergers, acquisitions and divestitures is critical for companies looking to grow through strategic acquisitions.⁹

Technology

Today, CFOs must be tech-savvy. Technology allows for the automation of routine financial tasks, which improves efficiency and reduces errors. With advancements in technology happening every day, understanding how technology impacts the organization is crucial for CFOs. Real-time reporting enhances transparency and accuracy in financial disclosures, allowing CFOs to simulate various business scenarios and their financial impacts.¹⁰

Risk Management

CFOs play a crucial role in risk management. They must identify financial risks and implement strategies to mitigate them. The economy is facing more unique challenges every day, so even the smallest risks require CFOs to think innovatively and adapt quickly. It is imperative that CFOs have the knowledge and experience to tackle these new challenges and maintain financial stability.⁹

Start Your Journey on the Path to the CFO Role

Are you ready to embark on the journey to become a chief financial officer? Even if a C-suite role is not on your list of goals, finance and accounting roles are in demand. The role of financial manager, for example, is expected to grow by 16% from 2022 to 2032.¹¹

DePaul’s online Master of Science in Accountancy (MSA) program focuses on the skills finance professionals and aspiring CFOs need to be successful in the real world. Balance your studies with professional and personal commitments through this flexible and efficient program, which allows you to earn your MSA in as little as 12 months. The comprehensive curriculum covers preparation for the CPA exam, the opportunity to take certain elective courses in person and networking through DePaul’s active and engaged DePaul Blue Demon alumni network to boost your career opportunities.

Want to know more? Discover how DePaul’s MSA program can help advance your career.