How to become a CFO

A chief financial officer (CFO) is one of the most important members of the “C-suite," the top management team in a large company. They take responsibility for the organization's financial operations, reporting directly to the chief executive officer (CEO). This is a role with wide-ranging accountability and a challenge that some embrace.

Learn about the duties of a CFO and find out what steps you'll need to take to become one.

What does a CFO do?

The CFO needs to ensure that the company maintains strong revenue streams and carefully manages its expenditures. They should develop strategies for everyday funding and capital raising while keeping a close eye on risks.

The CFO will work closely with other members of the executive team on overall strategy and performance. They also need to be very financially astute, technologically competent, and an excellent manager of their accounting team. While they typically have a team of professionals and managers beneath them, the CFO takes responsibility for overall financial performance.

According to the Economic Research Institute (ERI), the average salary for a CFO in the United States is $300,941 as of November 2024.

Steps to become a CFO

You'll typically need a formal education to become a CFO and should consider following these common steps:

Step 1: Attain a bachelor's degree in finance, business, economics, or management

According to the ERI, 41% of CFOs have a bachelor's degree level of education. Earning a bachelor's degree can help you learn crucial skills relating to financial analysis, management, accounting, and information processing.

Step 2: Gain experience in a related field

Consider accumulating experience by starting in an entry-level role. These roles could include accounting, financial, or business administration duties within a large or growing organization. Such a role will typically include interaction with an existing company CFO, which will help you to understand the workings of a company and prepare you for the future position.

Almost all large private companies and publicly traded organizations have a CFO as part of the C-suite, spanning all industries. If you have previous experience in any particular sector, it may help to focus on that field. While the basics of accounting and finance apply across all areas, some sectors also have specific needs.

Step 3: Develop skills

As you gain experience in the field, focus on honing essential skills like strategic thinking, analytical expertise, and leadership. These abilities will be invaluable when you step into a C-suite role.

Step 4: Consider an advanced degree

According to the ERI, 51% of all CFOs today have a master's degree and 3% have a doctorate. Consider working on one of these additional qualifications, which could potentially grant you access to additional opportunities and higher compensation.

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