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Are you searching for career prospects that come along with commerce studies? A finance and accounting student can aim for numerous prestigious professions to make a successful livelihood. One such job is that of a CFO (expanded as Chief Financial Officer).
With finance as their expertise, CFOs are the professionals business organizations seek. With increasing prominence among all sizes of firms, holding the title of CFO stands strong as a career that provides good earnings, among other benefits.
Organizations have different positions for the variety of benefits that these experts can bring to maintain the financial well-being of the business. Firms often require such experts to manage their finances and help their businesses grow. CFOs are perfectly capable of handling such responsibilities at a company.
In the recent past, the economic crises experienced by most businesses due to the global pandemic have left many companies considering investing in the position of a CFO.
Curious to know about this job title? This article is meant to provide you with all details you need to know about becoming a CFO.
The full form of CFO is Chief Financial Officer, a respected title among various professions in finance and accounting. Holding the responsibility of managing a business’s fiscal health, a chief financial advisor is a high-ranking professional in finance-related job positions in an organization.
In simple terms, the Chief Financial Officer’s job description includes:
With a visionary mindset, CFOs make great leaders of an organization’s finance team and are known to make strategic moves solely aimed toward the betterment of the business.
A CFO reports directly and works closely with the main leadership of a company, that is, with the CEO and the board of directors. They usually lead a team focusing on finance and accounting, consisting of other senior leaders such as the Vice Presidents of finance and the operational staff, i.e., bookkeepers, accountants, data analysts, etc.
A firm’s finances are one of its most crucial aspects, and CFOs are entrusted with handling this aspect to the best of their ability. The role of a CFO is two-fold; while they look over the firm’s finances and the team members working on them, they also serve as financial advisors to the CEO and other board members.
As a chief financial officer, one’s responsibilities include, but are not limited to,
Other areas where CFOs need to look after the company include:
The Chief Financial Officer guides the path toward improving and maintaining the financial health of an organization. The experts are hired to oversee the accounts and finances so that the CEO can focus on other aspects of the company.
Hiring a CFO becomes essential when crucial financial tasks are not being accomplished successfully. As we mentioned before, hiring a CFO is more like an investment than it is an expense.
Two major functions that should be performed under the supervision of a CFO include the proper evaluation of the company’s cash flow, profits, and losses, along with a well-planned and properly executed financial strategy.
Along with various central roles and responsibilities that can benefit the company, there are other skills that an experienced and valued Chief Financial Officer can bring to the table.
Some of the skills that are most looked for by employers when hiring a CFO include:
There are three major points to keep in mind if you wish to see yourself as a chief financial officer in your professional future. These three factors are the right qualifications, adequate experience, and the right connections.
While a bachelor’s degree in the related field (B.Com, etc.) is the first step, there are three other professional certificate courses one can pursue to become better qualified for the position of CFO. These certifications include CMA, CPA, and MBA.
For pursuing any of the professional certificate courses mentioned above, one must have some experience in the relevant fields. Some experts have said that becoming a well-established CFO may take up to 10 years of experience. So, plan your journey with adequate time dedicated to gaining work experience that can push you toward becoming a Chief Financial Officer.
Your work environment and acquaintances go a long way in helping you move ahead in the professional aspect of your life. A mentor can greatly help you from the beginning of your career. Not only this, but another aspect of strong networking skills is that it helps you grow relationships in your field that can open new opportunities at any point in your future as a CFO.
Once you have appropriately gathered these three factors, another step in this journey of becoming a CFO includes your decision to start your own practice or join a firm.
The average chief financial officer salary in India falls between INR 8 Lakhs to INR 102 Lakhs. The average annual salary is believed to be INR 40 Lakhs.
A CFO reports to the CEO of the company. A Chief Executive Officer (CEO) is responsible for taking care of the entire company, while a CFO oversees mainly the company’s finance department. Thus, a CEO is higher in rank than a CFO.
CFO stands for Chief Financial Officer, a professional responsible for overseeing the finance and accounts of a company/business.
There are no compulsory qualifications for being a CFO, but since the position requires one to have at least 8-10 years of experience in the field, one can upskill their bachelor’s degree into CMA, CPA, or MBA.
Becoming a Chief Financial Officer may be a long journey, but we can make one step of it easier for you! If you wish to upgrade your qualifications with the CMA USA certificate course, NorthStar Academy is the right place for you!
The US Certified Management Accountant (CMA) certification is meant to provide aspirants with great strategic knowledge about management accounting that can help them achieve better CFO job opportunities as well!
Curious to know more about pursuing CMA USA recognized by IMA? Reach out to NorthStar Academy to learn more from the experts today to kickstart your successful CFO journey! Call us at +91 8147470707 or contact us here.