Become a Chief Financial Officer: CFO Skills, Experience, and Responsibilities

Written by CFI Team

Reviewed by Jeff Schmidt

Read Time 4 minutes

What Does a CFO Do?

The Chief Financial Officer (CFO) is the key executive leader responsible for overseeing a company’s financial strategy and ensuring long-term financial health. They lead finance and accounting departments, oversee financial strategy, and guide high-level corporate financial decision making.

If becoming a CFO is one of your career goals, understanding the key skills, qualifications, and career path will help you map out your journey to the C-suite.

How to Become a CFO: Skills and Qualifications

To become a CFO, you need a mix of financial expertise, leadership abilities, and strategic thinking. Key skills include:

Financial Expertise: Advanced knowledge of corporate finance, financial modeling, and accounting principles (GAAP, IFRS).
Corporate & Business Strategy: The ability to align financial planning with business goals and long-term growth strategies.
Leadership & Communication: CFOs manage finance team leaders, such as accounting and FP&A, collaborate with other executives, and present financial results to investors.
Technology & Data Analytics: Working knowledge of AI, automation, and advanced financial software (ERP systems, business intelligence tools) to drive efficiency.
Compliance and Risk Management: Understanding tax laws, compliance requirements, and industry regulations to effectively manage risk.

Education and Certifications

While there’s no single path to becoming a CFO, most professionals follow a structured career progression.

Bachelor’s Degree: Typically in finance, accounting, economics, or business administration.
Advanced Degrees: An MBA or master’s degree in finance can accelerate career growth, offering leadership training and strategic finance insights.
Professional Certifications: Credentials like CPA (Certified Public Accountant), CFA (Chartered Financial Analyst), and CFI’s Financial Modeling & Valuation Analyst (FMVA®) Certification enhance credibility and expertise.

CFO Responsibilities

CFOs typically manage a team of finance and accounting leaders like Controllers and Heads of Financial Planning and Analysis (FP&A). They also work closely with CEOs and boards, helping companies navigate challenges such as economic downturns, expansions or restructures, M&A, financial technology initiatives, and sustainability practices.

A CFO’s job spans multiple areas, but their top responsibilities include:

1. Long-Term Financial Planning and Strategy

CFOs develop long-term financial plans that align with corporate objectives, advising CEOs and board members on capital allocation, revenue and profitability growth, and expense management.

2. Executive Oversight of Corporate Finance Department

CFOs lead and manage the finance organization, maintaining strong financial controls, accurate reporting, and effective financial planning. While they are responsible for financial performance, much of the day-to-day work is carried out by key finance leaders:

Controller: Oversees accounting, treasury, and internal controls.
Head of FP&A: Manages budgeting, forecasting, and financial analysis.
Treasurer (if applicable): Handles capital markets, liquidity management, and cash flow strategy.

CFOs rely on these leaders to provide accurate financial data and strategic insights, enabling them to focus on high-level decision-making and corporate strategy.

3. Financial Reporting & Compliance

CFOs provide executive oversight of financial reporting and compliance, verifying that Controllers and accounting teams follow regulatory and industry standards for accounting, tax reporting, and audit readiness. The CFO also confirms that internal controls and risk management policies are effectively implemented.

4. Financial Planning, Budgeting, & Forecasting

CFOs oversee that budgeting and forecasting processes are well-structured and aligned with business goals. These functions are typically led by the Head of FP&A or Finance VP, who reports key insights and projections to the CFO.

5. Capital Allocation & Investment Decisions

CFOs manage the company’s capital allocation, determining the best mix of debt vs. equity financing. They oversee corporate finance functions related to mergers and acquisitions (M&A) and major capital investments, making certain that financial resources are efficiently deployed for growth and long-term value creation.

6. Treasury & Cash Flow Management

CFOs work with Controllers or Treasury Directors to drive strong liquidity, effective cash flow management, and optimal capital structure.

7. Investor Relations & Board Communication

In publicly traded companies, CFOs act as the company’s financial spokesperson in earnings calls, investor meetings, and financial reporting. They build relationships with other external stakeholders like banks and regulators to secure funding and maintain transparency in financial performance.

CFO Career Path: The Steps to Becoming a CFO

If you’re planning to become a CFO, here’s a typical career progression:

Career Stage	Typical Roles	Key Responsibilities
Entry-Level (0-5 Years)	Financial Analyst, Accountant	Financial reporting, data analysis, modeling
Mid-Career (5-10 Years)	FP&A Manager, Controller, Treasurer	Budgeting, risk management, financial planning
Senior-Level (10-15 Years)	VP of Finance, Director of FP&A	Overseeing financial strategy, managing teams
CFO (15+ Years)	Chief Financial Officer	Driving corporate strategy, managing investor relations, and overall financial health

To reach the CFO level, finance professionals often gain experience in financial planning & analysis (FP&A), corporate finance, and treasury management. Taking on leadership roles and developing a strategic mindset are crucial milestones in your journey.

Take the Next Step in Your Journey to CFO Today

If your goal is to become a CFO, the journey starts with developing practical skills in accounting, Excel, financial modeling, and forecasting. With strong technical skills, you are ready to build management skills and expertise in strategy, risk management, and new approaches, such as AI-driven financial analysis.

CFI offers numerous online courses and certifications that equip you with real-world finance and accounting skills, giving you a strong foundation to advance your career and become a CFO.

Interested in earning an industry-recognized certification? Explore CFI’s Financial Modeling & Valuation Analyst (FMVA®) Certification, a comprehensive program to learn practical financial modeling and analysis skills along with overall competency in accounting and finance. You can also specialize in FP&A or Accounting for Financial Analysts!

Earn Your Certification!