What does a Chief Financial Officer (CFO) do?
A Chief Financial Officer (CFO) is the highest-ranking finance professional at a company, leading a team of accounting and finance personnel to ensure the business maintains a healthy financial performance. This may not always mean achieving the highest possible annual profit but managing the long-term financial viability and growth of the company. CFOs manage budgets, tax obligations, debt, risk and financial forecasts while reporting on profits and losses. CFOs may also obtain funding and recommend mergers and acquisitions. They advise and consult other senior leaders such as the Chief Executive Officer (CEO) to develop strategies to enhance future financial performance.
Chief Financial Officer (CFO) skills and qualifications
A Chief Financial Officer (CFO) requires exceptional leadership and management skills and strong financial acumen to be successful. Examples of the abilities and qualifications that will make a job candidate stand out are:
- strong financial forecasting, budgeting and analysis skills
- excellent verbal and written communication skills, with the ability to communicate across all levels of the company
- strategic decision-making skills and a forward-thinking approach to drive innovation
- a strong understanding of financial regulations
- time management, organisational skills and an ability to work under pressure.
Related: Assess Applicant Qualifications with Screening Questions on Indeed
Chief Financial Officer (CFO) experience requirements
As the Chief Financial Officer (CFO) is a senior leadership position, prior work experience is required. CFOs require at least 10 years’ experience in the financial field, working as accounting or finance professionals before moving into finance manager or accountant positions. You may also prefer candidates with a track record of successfully driving financial performance and implementing positive measures. Consider if previous industry experience is required to understand your company’s challenges and opportunities, or whether a candidate can transition high-level financial skills to your company without it.
Chief Financial Officer (CFO) education and training requirements
A bachelor degree in finance, accounting, business, economics or a related field is the starting qualification required for this role. On completion, candidates will need to obtain a Certified Practising Accountant (CPA), Chartered Accountant (CA) or Chartered Financial Analyst (CFA) qualification. A postgraduate qualification, such as a Master of Business Administration (MBA), may be a requirement if a broader business understanding beyond financial capability is necessary. You may also prefer candidates with other financial postgraduate qualifications such as a Master of Applied Finance to ensure they have high-level finance skills.
Chief Financial Officer (CFO) salary expectations
According to Indeed Salaries, the average salary for a Chief Financial Officer (CFO) is $173,881. However, the data reveals the salary may depend on location, with CFOs employed in Sydney and Melbourne as well as more remote cities such as Darwin reporting they receive higher salaries than those located in other parts of Australia.
Job description samples for similar positions
Other job descriptions that may be relevant if a Chief Financial Officer (CFO) is not exactly what is required for your business are:
Chief Financial Officer (CFO) job description FAQs
What qualities make a good Chief Financial Officer (CFO)?
A Chief Financial Officer (CFO) requires a blend of financial, management and strategic skills and experience to be successful in this role. Previous work experience in finance may indicate a candidate holds the strong technical skills required, but may not showcase their interpersonal skills and successful strategic thinking. Ensure all three elements are assessed when considering candidates.
What is the goal of the Chief Financial Officer (CFO)?
A Chief Financial Officer (CFO) will ensure the company’s financial operations run smoothly and effectively. They will ensure it meets revenue and profit targets but also set the future financial direction for the company to control expenses and increase its capacity to generate revenue.
Who does a Chief Financial Officer (CFO) report to?
The Chief Financial Officer (CFO) reports to the Chief Executive Officer (CEO). The CFO also may report to or work closely with the Board of Directors.
Related: Chief Financial Officer (CFO) Interview Questions
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