Chief financial officer#Qualification

The appointment of a CFO or FD may be mandated by law. For example, in India, per the provisions of Section 203 of Companies Act 2013 every publicly listed firm having a paid up share capital of Rs. 10 Crores, requires a full time CFO. In the government sector this may be specified also: The US Chief Financial Officers Act, enacted in 1990, created a CFO in each of 23 federal agencies. (See also Office of Management and Budget and Office of Federal Financial Management.)

The chief financial officer was traditionally viewed as a financial "gatekeeper".

Over time, the position has become one of an advisor and strategic partner to the CEO.{{Cite web|url=https://techcrunch.com/2015/04/14/cfo-role-shifts-from-number-cruncher-to-business-leader/|title=CFO Role Shifts From Number Cruncher To Business Leader – TechCrunch|website=techcrunch.com|date=15 April 2015 |language=en-US|access-date=2018-05-01}}{{Cite news|url=https://www.forbes.com/sites/forbestechcouncil/2018/03/26/with-ai-cfos-are-poised-to-evolve-their-role-within-organizations/#62b12a4e5175|title=With AI, CFOs Are Poised To Evolve Their Role Within Organizations|last=Harris|first=Aaron|work=Forbes|access-date=2018-05-01|language=en}}

According to one source, "The CFO of tomorrow should be a big-picture thinker, rather than detail-oriented, outspoken rather than reserved, prefer to delegate rather than be hands-on, emphasize what gets done rather than how things are done, and make collaborative rather than unilateral decisions".{{Cite news|url=https://www.entrepreneur.com/article/272476|title=Good Chief Financial Officers Focus on Much More Than Finance|last=Zwilling|first=Martin|date=2016-03-18|work=Entrepreneur|access-date=2018-05-01|language=en}}

The duties of a modern CFO, therefore, now straddle the traditional areas of financial stewardship, as well as the more progressive areas of strategic- and business leadership, with increasingly direct responsibility and oversight of operations.{{cite web|url=https://www.forbes.com/sites/jeffthomson/2016/01/14/why-cfos-need-to-be-chief-future-officers/|title=Why CFOs Need To Be Chief Future Officers|first=Jeff|last=Thomson|website=Forbes.com|access-date=21 November 2017}}

This significant role-based transformation is best-evidenced by the "CEO-in-Waiting" status that many CFOs now hold.

Here, CEOs increasingly expect their CFOs to be active participants in shaping the strategy of their organizations, including challenging the current strategy.

{{cite web|title=McKinsey on Finance. No. 27, Spring 2008|url=http://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/corporate%20finance/mof/pdf%20issues/mof_issue_27_spring%2008.ashx|work=McKinsey.com|access-date=1 June 2016}}

CFOs thus play a critical role in shaping their company's strategies today, especially in light of the highly uncertain macroeconomic environments,{{Cite web|url=https://techcrunch.com/2014/10/22/1071706/|title=When Should Startups Hire A CFO? – TechCrunch|website=techcrunch.com|date=22 October 2014 |language=en-US|access-date=2018-05-01}} where managing financial volatilities is a centerpiece for many companies' strategies.{{cite web|url=http://www.claridenglobal.com/clariden_leadership_programs.php|title=Clariden Global|website=Claridenglobal.com|access-date=21 November 2017}}

Indeed, the 1990s saw the rise of the strategic CFO, and many companies have created a chief strategy officer (CSO) position.

{{Cite news|date=2016-01-11|title=Who's Better at Strategy: CFOs or CSOs?|work=Harvard Business Review|url=https://hbr.org/2016/01/whos-better-at-strategy-cfos-or-csos|access-date=2021-05-09|issn=0017-8012}}

See also Strategic financial management.

The CFO is then as much a part of governance and oversight as the CEO, playing a fundamental role in the development and critique of strategic choices.

Relatedly The CFO is expected to be a key player in stockholder education{{cite web|url=http://www.slideshare.net/MaureenOConnell/how-cfos-can-turn-stakeholders-into-allies-by-maureen-oconnell-40809275?related=1|title=How CFO's Can Turn Stakeholders Into Allies - By Maureen O'Connell|last=Maureen O'Connell, Scholastic Inc.|date=28 October 2014|website=Slideshare.net|access-date=21 November 2017}} and communication and is clearly seen as a leader and team builder who sets the financial agenda for the organization, supports the CEO directly and provides timely advice to the board of directors."{{cite web|title=What Board expects from CFO|url=http://www.topfinanceprofessionals.com/white-papers/what-board-expects-from-cfo|work=TopFinanceProfessionals.com|access-date=7 December 2013|archive-url=https://web.archive.org/web/20131213080755/http://www.topfinanceprofessionals.com/white-papers/what-board-expects-from-cfo|archive-date=13 December 2013|url-status=dead}}

The rise of digital technologies and focus on data analytics to support decision-making, places more pressure on CFOs to meet the expectations of their C-Suite colleagues.{{Cite news|url=https://beebole.com/blog/technology-trends-for-cfos/|title=6 Technology Trends for CFOs in 2018: We asked the experts.|date=2018-01-08|work=The Management Blog by BeeBole Timesheet|access-date=2018-05-01|language=en-US}}

Here, many organizations have created a Finance function based on four pillars:

1. the accounting organization as a shared service
2. an FP&A organization responsible for driving financial planning processes as well as increased insight into financial and non financial KPIs to boost business performance
3. a finance business partnering organization based on leadership of divisions, regions and performance improvement
4. expertise centers specializing in Tax, Treasury, Internal Audit, Investor Relations, etc.

CFOs are increasingly being relied upon as the owners of business information, reporting and financial data within organizations - thereby also assisting in decision support operations to enable the company to operate more effectively and efficiently.

The CFO must then serve as the financial authority in the organization,{{Cite web|date=2021-05-06|title=What Does a Finance Director Do?|url=https://www.fdcapital.co.uk/what-does-a-finance-director-do/|access-date=2021-06-17|website=FD Capital Recruitment|language=en-GB}} ensuring the integrity of data, and modeling transparency and accountability.

CFOs have then become more focused on financial reporting, although (as of 2016) a majority still spend much of their time in traditional accounting tasks such as transaction reporting.{{cite web|title=Future of the Finance Function Survey 2016|url=http://www.fsn.co.uk/channel_enterprise_financials/fsn_future_of_the_finance_function_survey_2016_reveals_cfos_role_is_overhyped|work=FSN Research|access-date=25 May 2016|archive-url=https://web.archive.org/web/20160529110046/http://www.fsn.co.uk/channel_enterprise_financials/fsn_future_of_the_finance_function_survey_2016_reveals_cfos_role_is_overhyped|archive-date=29 May 2016|url-status=dead}}

Additionally, many CFOs have made the realization that an operating environment that values cash, profit margins, and risk mitigation is one that plays to the primary skills and capabilities of a procurement organization; CFO's have been encouraged to appoint a chief procurement officer (CPO) where this post does not exist, ensure the post-holder is accountable for procurement success, and to become increasingly involved (directly via oversight or indirectly through improved collaboration) with the procurement function according to several research reports which have looked at the CFO's relationship with the procurement function and the CPO.Aberdeen Group, [https://www.sipm.com/Procurement-Academy/Articles/Finance/cfo_view_procurement.pdf The CFO’s View of Procurement: Getting More to the Bottom Line], published September 2005, accessed 23 January 2024Aberdeen Group, [https://www.globenewswire.com/en/news-release/2009/12/09/994013/0/en/The-CFO-S-View-of-Procurement.html The CFO’s View of Procurement: Work in Progress], published November 2009{{cite web|url=http://ardentpartners.com/research/index.php?main_page=product_info&cPath=4_12&products_id=1|title=The CFO and the CPO: One World, Two Worldviews Chief Financial Officer (CFO) and Chief Procurement Officer (CPO)|website=Ardentpartners.com|access-date=21 November 2017|archive-date=24 September 2011|archive-url=https://web.archive.org/web/20110924045005/http://ardentpartners.com/research/index.php?main_page=product_info&cPath=4_12&products_id=1|url-status=dead}} Due to their importance, CFO departures—whether due to retirement, dismissal, or new opportunities—can significantly affect a company’s direction and stability, especially given the CFO’s growing role as a strategic partner to the CEO.{{Cite journal |last=Zhang |first=Ziheng |last2=Mount |first2=Matthew P. |last3=Zhang |first3=Stephen X. |date=2025 |title=A database of chief financial officer turnover and dismissal in S&P 1500 firms, 2000–2022 |url=https://sms.onlinelibrary.wiley.com/doi/pdf/10.1002/smj.3693 |journal=Strategic Management Journal |language=en |volume=46 |issue=5 |pages=1293–1321 |doi=10.1002/smj.3693 |issn=1097-0266|doi-access=free }}

{{see also|Financial analyst#Qualification|Outline of finance#Education}}

CFOs and FDs often hold a professional accounting qualification - the CPA, CA, CMA, or CIMA - along with its requisite bachelors and/or masters in accounting. The certification is specified given that responsibilities extend to tax and financial reporting.CollegeGrad LLC, [https://collegegrad.com/careers/top-executives Top Executives] Similarly, financial managers are often qualified accountants.{{cn|date=November 2023}}

In large companies,{{citation needed|date=May 2021}} CFOs and FDs may hold additional postgraduate qualifications,Hugh Arnold and Ross Woledge (ND). [https://www.rotman.utoronto.ca/ProfessionalDevelopment/Executive-Programs/FeaturedArticles/aspiringCFOs Want to be CFO one day? You need to take control of your career] such as a Master of Business Administration,[https://openstax.org/books/principles-finance/pages/1-4-careers-in-finance Careers in Finance]. §1.4 in {{cite book |title=Principles of Finance |date=2022 |isbn=9781951693541 |first1=Julie |last1=Dahlquist |first2=Rainford |last2=Knight |first3=Alan S. |last3=Adams |publisher=OpenStax, Rice University |url=https://open.umn.edu/opentextbooks/textbooks/principles-of-finance }}

or Master of Science in Finance;[https://www.usnews.com/education/best-graduate-schools/top-business-schools/articles/2015/02/09/determine-if-a-masters-in-finance-is-the-right-move Determine If a Master's in Finance Is the Right Move], usnews.com, Feb. 9, 2015. the Chartered Financial Analyst is also common. These complement the accounting perspective with more general strategic, leadership and financial market considerations, and give exposure to broader financial and operational issues.

• Auditor general
• Comptroller
• Treasurer
• Virtual CFO
• Financial manager

{{Reflist}}

• {{Commons category-inline|Chief financial officers}}

{{corporate titles}}

{{Authority control}}

Category:Corporate titles

Category:Management occupations

Category:Corporate executives

Category:Finance occupations