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June 3, 2024
Those with a head for numbers and the drive for success might consider working their way to the top of an organisation as the chief finance officer. This role will enable you to shape the key financial decisions and investments made by a company to help put them on a track for success.
This role comes with incredible rewards, as you’ll be leading the charge for all of the financial decisions, supporting the chief executive officer in their day-to-day decision making. It goes without saying that only the top dogs get to take home the CFO crown.
Even within startups where young and inexperienced founders take on roles in the C suite, the chief financial officer role is nearly always outsourced to someone more experienced to help guide the ship.
In this blog, we’re looking at what it takes to become a chief financial officer and what groundwork to put down now if you’d like the aim for this role in your career.
The chief financial officer is the financial decision maker in the C suite. They are the highest ranking member of the executive board with a specific focus on the financial operations of a company. They drive strategic growth by managing things like investment, funding and day-to-day finances.
They will advise the chief executive officer (CEO) and work alongside other C suite executives such as the chief marketing officer and chief technology officer to make strategic decisions about spending and budgets. It is a very senior role with a lot of responsibility.
There aren’t many CFO roles available, and not everyone who works in finance is suited to this type of position. Alongside sound financial decision making, the candidate also needs to be highly persuasive. They need to be able to gather support for a company and convince investors that they can expect to see a return on their investment.
As this is such an important role, companies will spend a long time looking for the right fit. It’s not just about having good financial judgement, you also need to have incredible enthusiasm, you need to be trustworthy, and you need to be able to convince others that your ideas have weight.
Most chief financial officers will have a degree in business, finance or accounting. They might also have completed an MBA programme. It’s also common for CFOs to have a professional accounting qualification, such as an ACCA qualification.
While university education and accreditation is important, your experience, personality and work ethic may be just as important when it comes to carving your path into the C suite.
Many CFOs start their career as accountants. This will give them the foundational knowledge to understand what it takes to run a large organisation. From here, they might work their way up to the director of finance role. This is commonly the last stop in your career before you start to think about applying for a CFO role.
Most CFOs have extensive experience at the head of an organisation before they start applying for CFO roles. You might be working as the director of finance for a company for 10-15 years before you have the knowledge and experience to be able to go after the top position.
The CFO role is one that values experience, so it makes sense to get a few years under your belt before you start applying for these roles. This will allow you to gain valuable knowledge about the decision making process that goes into operating and scaling a successful business.
Getting in on the ground floor of an exciting startup is a great way to accelerate your career, but don’t be surprised if you are demoted as the company grows. There may come a time where the company is no longer a plucky startup and they set their sights on considerable growth.
In this situation, you might move from the CFO founder role and into a director of finance role. Your experience at the head of the organisation will help to pave the way for you to enter the C suite of a larger organisation in the future.
The chief financial officer role is highly valued within an organisation. It is high risk and high reward, as the success of the company rests squarely on your shoulders. If you perform well in your role, your reputation will be bolstered and you could significantly increase your earning potential.
The salary range for a typical CFO is between £120,000 and £160,000 per year. You might also enjoy considerable benefits and shares in the company, allowing you to greatly increase your earning potential.
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