How To Become a Chief Financial Officer: Salary & Career Paths for 2025

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A recent survey by Egon Zehnder revealed that 82% of nearly 600 CFOs globally reported a significant expansion of their roles over the past five years, encompassing areas such as environmental, social, and governance (ESG) initiatives, mergers and acquisitions (M&A), corporate development, and broader strategic responsibilities.

This statistic underscores the evolving nature of the CFO position, highlighting the increasing demand for financial leaders to possess a diverse skill set that extends beyond traditional financial management. As organizations navigate complex global challenges and opportunities, the role of the CFO has become integral to steering strategic direction and ensuring sustainable growth.

Understanding this pathway is crucial for anyone aspiring to a high-level financial career, as it provides a roadmap for strategic career planning and highlights the importance of financial acumen in today's dynamic business environment.

Key Things You Should Know About Becoming a CFO

CFOs typically have 8–10 years of experience in finance-related positions.
Becoming a Chief Financial Officer (CFO) typically requires 15 to 20 years of professional experience, depending on the individual's career path and industry.
The average annual salary for a CFO is reported to range from approximately $228,510 to $261,533, depending on the source.
Financial managers, a category that includes CFOs, are projected to see a significant increase in employment opportunities, with a growth rate of 17% from 2023 to 2033.
In private companies, CFOs with $21 to $99 million in annual revenue earn an average base salary of around $237,983.

What is the role of a Chief Financial Officer (CFO)?
Why is the CFO position critical in organizations?
What educational qualifications are required to become a CFO?
How long does it typically take to become a CFO?
What are the essential skills for a CFO?
What challenges do CFOs face in their roles?
How important is continuous education in the CFO career path?
Should aspiring CFOs consider earning an online MBA?
How can CFOs enhance their leadership with project management expertise?
What is the average salary of a CFO in the United States?
What other career paths are available for CFOs?
What are the key milestones to becoming a CFO?
What are the future trends in the role of CFOs
Other Things You Should Know About How to Become a Chief Financial Officer

What is the role of a Chief Financial Officer (CFO)?

The Chief Financial Officer (CFO) is a senior executive who holds the top financial position within an organization, responsible for overseeing all financial activities and ensuring the fiscal health of the company. The CFO's role is multifaceted, encompassing the traditional duties of managing accounting and financial reporting and increasingly involving strategic planning, risk management, and providing insights to the CEO and board of directors on the company's financial direction and performance. They lead the finance and accounting teams, manage cash flow, oversee budgeting and forecasting, analyze financial data to identify strengths and weaknesses, and propose corrective actions when necessary.

Furthermore, the CFO plays a critical role in securing funding, managing investments, and ensuring regulatory compliance and often advises on significant financial decisions such as mergers and acquisitions. In essence, the CFO acts as a strategic partner to the CEO, providing financial leadership and contributing to the organization's overall business strategy and long-term sustainability.

Why is the CFO position critical in organizations?

The Chief Financial Officer (CFO) position is critical in organizations due to its multifaceted role in ensuring financial stability, driving strategic initiatives, and supporting overall business growth. Here are key reasons why the CFO is indispensable:

Financial Stewardship: The CFO is responsible for managing the fiscal health of the organization, including overseeing cash flow, budgeting, forecasting, and financial reporting. Accurate financial data enables stakeholders to make informed decisions and ensures compliance with regulatory requirements.
Strategic Partner: CFOs act as strategic advisors to the CEO and other C-suite executives. They shape long-term business strategies, assess risks, and guide major investment and financing decisions. This partnership helps align financial goals with broader organizational objectives.
Growth and Innovation: CFOs play a pivotal role in navigating companies through various growth stages, such as raising capital, expanding internationally, or pursuing mergers and acquisitions. Their expertise in financial planning and risk management ensures sustainable growth while mitigating potential pitfalls.
Risk Management: CFOs oversee risk assessment related to liquidity, debt, cybersecurity, and regulatory compliance. Their ability to identify vulnerabilities and implement safeguards protects organizations from financial instability or operational disruptions.
Leadership and Capability Building: CFOs lead finance teams and set policies that foster high performance. They also collaborate across departments to allocate resources effectively, ensuring operational efficiency without compromising quality or satisfaction.
Industry Expertise: Specialized knowledge allows CFOs to benchmark against competitors, define relevant KPIs, and adapt strategies based on market trends. This insight is particularly valuable for industries facing rapid change or unique challenges.

What educational qualifications are required to become a CFO?

To become a Chief Financial Officer (CFO), candidates typically need a combination of educational qualifications, certifications, and extensive professional experience. Students can start with what is the easiest associate's degree to get, but a bachelor’s degree in finance is more recommended. Here are the key requirements:

Educational Qualifications

Bachelor’s Degree: A bachelor’s degree in fields such as accounting, finance, business administration, or economics is essential. This provides foundational knowledge in financial management, strategic planning, and business operations. Programs include the cheapest accredited online accounting degree or a business degree.
Advanced Degrees (Optional but Preferred): Many CFOs pursue advanced degrees like a Master of Business Administration (MBA), often with a specialization in finance. An MBA equips candidates with leadership and strategic decision-making skills, which are critical for the role.

Professional Certifications

Certifications can enhance credibility and expertise:

Certified Public Accountant (CPA): Common among CFOs with an accounting background. Speaking of accounting, if you are wondering about the difference between bookkeeping and accounting, check out our article on the topic.
Certified Management Accountant (CMA): Focuses on financial management and strategy.
Chartered Financial Analyst (CFA): Ideal for CFOs involved in investment and financial analysis.
Certified Internal Auditor (CIA): Beneficial for those specializing in compliance and auditing.

Work Experience

Finance Roles: CFOs typically have 8–10 years of experience in finance-related positions such as financial analyst, accountant, or auditor. Many also gain experience in banking or consulting.
Leadership Roles: At least 5 years in senior leadership positions is often required to demonstrate management capabilities and strategic decision-making skills.

How long does it typically take to become a CFO?

Becoming a Chief Financial Officer (CFO) typically requires 15 to 20 years of professional experience, depending on the individual's career path and industry. This timeframe includes obtaining foundational education, such as a bachelor’s degree in accounting, finance, or business administration, and often pursuing advanced degrees like an MBA to enhance business acumen and leadership skills.

Students also need to consider the cost of online MBA or other finance programs. Early career roles usually involve positions such as financial analyst, accountant, or auditor, followed by progressive leadership roles like finance manager, controller, or finance director. These positions help aspiring CFOs develop technical expertise, strategic thinking, and leadership capabilities.

The journey may be shorter for those joining startups or smaller organizations, where candidates can ascend to the CFO role in as little as five to ten years by leveraging diverse skill sets and taking calculated risks. However, major corporations often require broader experience across multiple business units and geographies, which can extend the timeline. On average, it takes about 14 years for professionals to reach the CFO level, though this varies significantly based on individual circumstances and opportunities.

What are the essential skills for a CFO?

The role of a Chief Financial Officer (CFO) requires a diverse set of essential skills that combine technical expertise, strategic thinking, and leadership capabilities. Aspiring CFO can acquire these skills one year MBA programs online or through job experience. These skills enable CFOs to effectively manage financial operations, contribute to organizational strategy, and drive business success.

Key Skills for a CFO

Financial Expertise: A strong foundation in accounting, financial reporting, budgeting, and forecasting is critical. CFOs must interpret complex financial data and communicate it clearly to stakeholders to ensure sound decision-making.
Strategic Thinking: CFOs need the ability to align financial strategies with organizational goals. This includes long-term planning, market analysis, and identifying growth opportunities.
Risk Management: Identifying, assessing, and mitigating financial risks is a core responsibility. This includes managing cash flow, regulatory compliance, and investment strategies.
Leadership and Communication: CFOs lead finance teams and collaborate across departments. Strong communication skills are essential for explaining financial concepts to non-financial stakeholders and fostering alignment within the organization.
Technological Proficiency: Familiarity with financial technologies, such as AI-driven forecasting tools, ERP systems, and automated expense management, is increasingly important for driving efficiency and innovation.
Analytical and Decision-Making Skills: The ability to analyze data critically and make informed decisions underpins the CFO’s role in guiding the company’s financial health.
Emotional Intelligence: Understanding team dynamics and cultivating positive relationships enhances leadership effectiveness. Emotional intelligence also helps in navigating conflicts and motivating teams.

What challenges do CFOs face in their roles?

Chief Financial Officers (CFOs) face a wide range of challenges in their roles as they navigate an increasingly complex and dynamic business environment. These challenges stem from their expanded responsibilities, technological advancements, economic uncertainties, and the evolving expectations of stakeholders. Below are the key challenges CFOs encounter:

Adapting to Digital Transformation: CFOs must embrace emerging technologies such as artificial intelligence, cloud computing, and data analytics to enhance financial processes and decision-making. However, integrating these technologies into legacy systems and ensuring their effective use across the organization can be daunting.
Managing Economic Uncertainty: Volatile economic conditions, including inflation, fluctuating interest rates, and supply chain disruptions, require CFOs to develop agile financial strategies. They must balance short-term cost management with long-term growth investments while safeguarding liquidity.
Expanding Strategic Responsibilities: The CFO role has evolved from being a financial gatekeeper to a strategic partner. CFOs are now expected to contribute to overall business strategy, drive growth initiatives, and align financial goals with broader organizational objectives. Balancing these strategic duties with traditional financial responsibilities can stretch their capacity.
Ensuring Regulatory Compliance: As global regulations become more stringent and complex, CFOs must ensure compliance while managing risks effectively. This includes navigating tax laws, financial reporting standards, and industry-specific regulations.
Optimizing Financial Performance: CFOs are under constant pressure to improve operational efficiency and optimize cash flow. They must identify cost-saving opportunities while maintaining quality and ensuring that resources are allocated effectively to support business priorities.

How important is continuous education in the CFO career path?

Continuous education plays a pivotal role in fortifying the skill set required for today’s dynamic financial leadership. CFOs must stay ahead of evolving financial technologies, regulatory shifts, and market disruptions by engaging in ongoing learning opportunities. Many seasoned professionals enhance their strategic and analytical capabilities through targeted coursework and advanced degrees, which also foster innovation and adaptive leadership. For individuals weighing further education, exploring the cheapest online masters in finance offers an effective way to blend affordability with career advancement.

Should aspiring CFOs consider earning an online MBA?

An online MBA can serve as a catalyst for both skill enhancement and strategic networking. It equips professionals with advanced business management techniques and offers exposure to innovative financial practices. Digital learning environments also foster connections with industry peers and mentors who provide real-world insights and guidance. Exploring the fastest MBA programs online may offer modern coursework aligned with current market demands, ultimately positioning aspiring CFOs to meet evolving leadership challenges.

How can CFOs enhance their leadership with project management expertise?

CFOs are increasingly expected to drive complex, cross-functional initiatives that extend beyond traditional finance. Integrating advanced project management methodologies enables financial leaders to streamline operations, manage multifaceted projects, and effectively align strategic objectives with execution. Developing these skills can be accomplished through targeted professional development and academic programs. For example, enrolling in a fast track online degree project management program provides structured learning, practical frameworks, and tools that directly support the dynamic responsibilities of modern CFOs.

What is the average salary of a CFO in the United States?

The average salary for a Chief Financial Officer is higher compared to a CPA accountant salary. The average salary of a CFO is reported to range from approximately $228,510 to $261,533, depending on the source. For instance, Built In lists the average salary at $228,510, while ZipRecruiter reports it at $261,533 per year. In public companies, the median base salary is notably higher, typically around $362,030, with total compensation packages reaching about $506,386.

Salaries also vary by location, with cities like San Francisco offering higher compensation due to the cost of living. In private companies, CFOs with $21 to $99 million in annual revenue earn an average base salary of around $237,983. Overall, the CFO's salary reflects the complexity of the role and the organization's financial scale and operational environment.

What other career paths are available for CFOs?

Chief Financial Officers have a wide array of career paths available beyond their traditional roles in financial management. Their expertise in corporate finance, strategic planning, and operational leadership makes them well-suited for various high-impact positions across industries and sectors. Many CFOs transition into executive leadership roles such as Chief Executive Officer (CEO) or Chief Operating Officer (COO), leveraging their financial acumen to oversee broader organizational operations and drive strategic initiatives. Others pursue opportunities in corporate advisory services, where they guide companies through mergers, acquisitions, and financial restructuring.

CFOs can also explore careers in venture capitalism, using their deep understanding of financial markets to identify and invest in promising startups. Entrepreneurship is another viable path, allowing CFOs to apply their business expertise to create and grow their ventures. Additionally, some CFOs move into educational leadership or public service roles, contributing their skills to nonprofit organizations, universities, or government agencies. Philanthropy is another option for those looking to make a social impact by managing charitable foundations or initiatives.

Switching industries is also common among CFOs seeking fresh challenges and diverse perspectives. Transitioning to sectors such as technology, healthcare, or manufacturing provides opportunities to adapt their skills to new environments while broadening their professional experience. Overall, the versatility of the CFO role opens doors to numerous career paths that align with their strategic mindset and leadership capabilities.

What are the key milestones to becoming a CFO?

Becoming a Chief Financial Officer (CFO) involves achieving several key milestones that reflect the progression of skills, experience, and leadership capabilities necessary for this high-level role. This can be slightly different from how to become a CPA. The journey typically begins with foundational education, such as a bachelor’s degree in finance, accounting, or business administration, followed by advanced certifications or degrees like an MBA or CPA to enhance technical expertise and strategic thinking. Early career roles often include positions such as financial analyst, accountant, or auditor, where individuals develop core financial skills and gain exposure to corporate operations.

The next milestone involves transitioning into mid-level management roles such as controller, finance director, head of financial planning and analysis (FP&A), and accounting manager. Learn how to become an accounting manager if that is your next career goal. These positions allow aspiring CFOs to refine their leadership abilities, oversee teams, and manage complex financial processes like budgeting, forecasting, and compliance. Building experience across multiple areas of finance—such as treasury management, mergers and acquisitions (M&A), and investor relations—is also crucial during this stage.

You can also advance to CFO from a role as investment manager. Check out investment manager salary to be able to compare the earning potentials of these two positions.

Finally, many CFOs achieve their role after decades of leadership experience in finance and business. The ability to demonstrate a track record of success in driving profitability, managing risks, and fostering organizational growth is essential for reaching this pinnacle position. Beyond technical expertise, modern CFOs are expected to embody traits like adaptability, cultural leadership, and innovation to thrive in an evolving business landscape.

What are the future trends in the role of CFOs?

The role of Chief Financial Officers (CFOs) is undergoing significant transformation, driven by technological advancements, regulatory changes, and evolving business priorities. Financial managers, a category that includes CFOs, are projected to see a significant increase in employment opportunities, with a growth rate of 17% from 2023 to 2033.

Integration of AI and Automation: AI and automation are revolutionizing finance functions by streamlining routine tasks such as invoicing, compliance management, and financial reporting. CFOs are leveraging AI for advanced financial forecasting, risk management, and decision-making, enabling them to analyze vast amounts of data with greater accuracy and efficiency. Generative AI is also emerging as a tool for transforming finance processes and enhancing strategic insights.
Focus on ESG and Sustainable Finance: Environmental, social, and governance (ESG) factors are becoming central to financial planning and reporting. CFOs are tasked with embedding sustainability into corporate finance strategies, including managing carbon footprints, ethical supply chains, and green financing options like sustainability-linked loans. This shift aligns with investor demands for transparency and regulatory requirements such as the
Digital Transformation: CFOs are leading digital transformation initiatives to modernize finance operations. This includes adopting cloud-based technologies, enhancing cybersecurity measures, and integrating data analytics tools to improve forecasting, cash management, and organizational decision-making. Digital transformation is critical for driving efficiency while maintaining agility in an unpredictable economic environment. You may need an IT or cloud consultant to help implement your digital transformation efforts. On a related note, check out our article on cloud consultant requirements.
Expanded Strategic Role: The CFO role expands beyond traditional financial management to include broader responsibilities in strategy development, risk management, and talent leadership. CFOs are increasingly involved in mergers and acquisitions (M&A), business model reinvention, and navigating geopolitical challenges to ensure financial resilience.
Workforce Transformation: As automation reduces manual tasks, CFOs must build teams with advanced technical expertise in data analytics, AI proficiency, and strategic thinking. Upskilling initiatives and flexible work models are becoming essential for attracting and retaining top talent in a competitive job market.

Here’s What Chief Financial Officers Have to Say About Their Careers

Studying finance gave me a deep understanding of how businesses truly operate, from the inside out. Climbing the ladder to become a CFO has been both challenging and incredibly rewarding—there’s no greater feeling than guiding a company through strategic decisions that shape its future. – Daniel

The journey to becoming a CFO taught me more than just numbers; it sharpened my leadership, resilience, and long-term thinking. Finance opened doors I never imagined and allowed me to influence meaningful change at the highest level of an organization. – Patricia

Mastering financial principles early on gave me the confidence to tackle complex business issues head-on. Reaching the CFO role wasn’t just a career milestone—it was a personal achievement that affirmed my ability to lead with both insight and integrity. – Marcus

Other Things You Should Know About How to Become a Chief Financial Officer

Is it hard being a CFO?

Being a Chief Financial Officer (CFO) is undeniably challenging due to the multifaceted nature of the role and the immense responsibility it entails. CFOs are tasked with overseeing the financial health of an organization, which includes managing budgets, ensuring compliance with regulations, and making strategic decisions to drive growth. This requires not only technical expertise in finance and accounting but also strong leadership skills to manage large teams and collaborate with other executives, including CEOs and boards of directors

Which fields of study are most relevant for aspiring CFOs?

For aspiring Chief Financial Officers, certain fields of study are particularly relevant as they provide the foundational knowledge and skills required for the role. Accounting is one of the most common and essential fields, as it equips individuals with expertise in financial reporting, auditing, and compliance—key responsibilities for any CFO. Finance is another critical area, offering insights into financial planning, investment strategies, and risk management. Business Administration degrees, including a Bachelor of Business Administration (BBA) or a Master of Business Administration (MBA), are also highly valuable, as they provide a broader understanding of business operations, leadership, and strategic decision-making.

Is it possible to become a CFO by working in industries outside finance?

Yes, it is possible to become a CFO by working in industries outside finance, as the role increasingly emphasizes strategic leadership and business acumen alongside financial expertise. While traditional pathways often involve roles within finance departments, many successful CFOs have gained valuable experience in operations, sales, marketing, or technology before transitioning into financial leadership. These non-finance roles help aspiring CFOs develop a broader understanding of business functions, build cross-departmental relationships, and acquire the strategic insights necessary for enterprise-wide decision-making

Are there specific leadership training programs tailored for CFOs?

Yes, there are specific leadership training programs tailored for CFOs, designed to enhance their strategic, financial, and leadership capabilities. Deloitte offers the Finance Leadership Program™, which focuses on developing communication, decision-making, and leadership skills for finance executives. This program provides insights from subject-matter experts on topics such as mergers and acquisitions (M&A), technology, tax, and talent management.

References:

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IBISWorld (2023, January 31). Finance and Insurance in the US Market Size 20042029. IBISWorld.
Insider Intelligence (2023, January 13). Financial Services Industry Overview in 2023: Trends, Statistics & Analysis. Insider Intelligence.
Ren, S. (2022, January 20). Optimization of Enterprise Financial Management and Decision-Making Systems Based on Big Data. Journal of Mathematics, vol. 2022, 1-11. Hindawi.
U.S. Bureau of Labor Statistics (2022, September 8). Business and Financial Occupations. BLS.