8 Steps To Becoming A CFO

Becoming a Chief Financial Officer is one of the most ambitious undertakings in which a finance professional can engage. The CFO shoulders the responsibility for the financial health and integrity of a company. He or she is involved in a number of important day-to-day functions, including accounting and treasury duties, statutory reporting and investor relations. A modern CFO’s role is to work to extend finance’s influence across the organization by acting as an effective business advisor and preventing the loss of profits through operational cracks. There is no universal method for attaining the title of Chief Financial Officer, but following these steps will prepare aspiring CFOs to function as strategic leaders.

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Office of the CFO

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1The path to the Chief Financial Officer suite typically starts with a master’s

degree in accounting or finance, providing a solid knowledge base on which to build basic CFO skills. These include exploring, interpreting and auditing financial data, reconciling discrepancies, preparing reports and recommending financial policies.

But a CFO is more than the head accountant. You need to understand every facet of the business and display proficiency in a broad range of roles. It is also necessary to develop a firm grasp on each aspect of the operation, from sales, marketing and strategic planning, to procurement and distribution.

A study conducted by Ventana Research in 2014 found that companies are becoming increasingly cognizant of the importance of using technology to streamline finance department processes, so expanding your technology knowledge is another must for fledgling CFOs. Financial data requires highly complex IT systems to handle the massive amounts of information a company needs to function. You need to develop solid knowledge regarding enterprise technology and applications

Maximize yourfunctional skill set

Once you’ve established the proper business mindset, you need to hone your “soft” skills, also known as “people” or “interpersonal”

skills. You need to learn how to empathize and identify with other members of the organization to ensure successful communication and collaboration.

Similarly, with the recent push to bring corporate financial integrity to the forefront, CFOs are becoming increasingly public figures. This means you’ll have to cultivate your public relations skills to be successful in your pursuit of a Chief Financial Officer position.

Maximize your soft skills

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Being able to construct systematic processes and procedures is the

next step on the path to a CFO title. In this position, reliability is key. However, CFOs also have to know how to get things done without wasting company resources. Your approach toward obtaining, analyzing and reporting information not only needs to produce accurate, actionable conclusions, it must also be efficient. This means designing structured practices that allow you to reliably execute every task.

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Establish yourself as someone who can build strong teams and lead

collaboration effectively. CFOs rely on a lot of different people from all over the organization, so you must be able to use your people skills to discern an individual’s strengths and capabilities and assign them the proper function. As CFO, you’ll need to surround yourself with well-rounded people that have a deep understanding of their role in the company’s finance system, as well as a good grasp of the data that drives decisions.

You also need the ability to encourage consistent, high-level performance without becoming oppressive or overbearing. You also have to be able to let go of weak links and make substantial personnel changes when necessary.

You can then move toward applying your knowledge and building

the kind of experience you need to become a CFO. Many CFOs start off as licensed CPAs or other accounting professionals. However, you also need high-level corporate experience functioning in treasury or controller positions. Experience in venture capital, financial markets, taxation and statutory compliance are all crucial to success as a CFO. Taking part in IPOs or merger and acquisition projects also provides the type of experience you need to demonstrate your officer abilities. Without them, you cannot have the full breadth of knowledge needed to tackle the comprehensive nature of the role.

Research on the career profiles of Fortune 100 CFOs by corporate consulting firm Russell Reynolds Associates found that thirty-six percent of CFOs also have considerable operational leadership experience. This most often comes from working in a regional, divisional or general management capacity, and being responsible for corporate operations and development.

As the international business world continues to gain momentum, you also need to study the foreign markets and international business practices to get global business exposure.

Create effectiveteams

5 Create strongmethodologies

Build the rightexperience

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As a Chief Financial Officer, you need to have a bird’s-eye view of what going on, even more

so than other executives and departments. You will depend on data analytics to not only make decisions for the present, but to foresee challenges and triumphs on the horizon as well. Fostering your analytic insight ability enables you to perceive advantages and vulnerabilities, make accurate forecasts and allocate resources efficiently. But analytics alone can only do so much. As with any business process, there must be a stable system underlying the effort, as well as a competent leader, in order for it to be effective.

Understand ofthe importance ofanalytics

The CFO works very closely with other business leaders, so you must cultivate these relationships if you want a reasonable shot at the job. The research conducted by

Russell Reynolds Associates also showed that sixty-nine percent of CFOs are promoted from within, so making yourself known to the key decision-makers in your organization is of utmost importance. Get in front of the right people, such as the CEO and Board members, by volunteering for high-level teams and projects and speaking up during briefings and meetings. Let them know about your aspirations ̶ and then prove you deserve it.

You should also develop positive relationships with entities outside of the company. These connections are invaluable as you progress toward CFO status, and even more so once you get the job. Find opportunities to network with auditors and regulators, investors, accounting and law firms, and media outlets.

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Develop the rightrelationships

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To find out more about how modern finance professionals can equip themselves to be a strategic CFO, visit

8The final step you must take to be a CFO is also the

most interminable. Chief Financial Officers are held to some of the highest ethical standards of any individual in the company. They are viewed as the pillar of integrity in an organization, so you must demonstrate an impeccable history of credibility to earn a CFO position. This means making sure everything you do is ‘above board’ and on the record. Remember to maintain loyalty, even when changing positions or moving to a new company. Be straightforward and impartial with the truth when you’re creating reports or providing insights, even when the news isn’t pleasant. Stakeholders will appreciate your willingness to tell it like it is, and they’ll trust your judgment when you provide solutions.

Stay honest

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About Unit4Unit4 is a leading provider of enterprise applications empowering people in service organizations. With annual revenue north of 500M Euro and more than 4000 employees world-wide, Unit4 delivers ERP, industry-focused and best-in-class applications. Thousands of organizations from sectors including professional services, education, public services, not-for-profit, real estate, wholesale, and financial services benefit from Unit4 solutions. Unit4 is in business for people.

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