Accounting Blog for Business
Posted by D&V Accounting Services
Aug 5, 2014 9:38:00 AM
Chief financial officers supervise the overall financial risks of an organization. They are essential to the success of the organization because it is their job to look for positive business ventures for the company, prepare financial reports and communicate with other executives to ensure that they are on the right track.
The requirements to become a CFO are different based upon the type of organization where the position is sought. However, there are common standards for these organizations—generally; the CFO must have at least a Bachelor or Masters degree in Business Administration, finance or economics. Aside from this, a CFO must also have a set of skills that are unique to him because this is a position with big shoes to fill.
Let’s take a look at the skills that a CFO must possess to ensure the growth of the organization.
Problem Solving Abilities
A CFO needs to make small and big decisions everyday that will affect the future of the company; a good CFO looks for “win-win” solutions rather than just trying to get a “good deal” to solve a quandary. He must also be knowledgeable of the company, its resources and data so that he can create a plan that will ensure the company’s growth and success.
Leadership Skills and Strategic Vision
A good CFO must always look at a problem objectively so that he can formulate a strategic solution. He must also be proactive in creating and executing plans to demonstrate his leadership skills. A CFO can’t totally be just a “numbers guy”—he must also go out once in a while to have experience in the field.
Cash Management, Financial Accounting and Corporate Finance Competence
In addition to what’s mentioned above, a CFO must also possess cash management skills and the ability to supervise the financial function. An Accounting degree is definitely a plus, but is not necessary; as long as he understands how the numbers are generated and can effectively communicate these to other managers, and then he will be an effective CFO.
Strong Work Ethic
The job of the CFO is not contained in a 9-5 room. He must be willing to work long hours, but at the same time, churning out results with the correct details. A CFO goes beyond the four corners of the office when it comes to work—it is necessary that he must socialize with other managers and clients to gain their trust and camaraderie.
A Good CFO Must be Reliable
There’s a lot of pressure on a CFO and one of the skills he must possess is how to work under pressure reliably. He must produce timely and correct information and should be willing to do the necessary steps to bring out valuable results. An effective CFO is open-minded and is willing to accept change, but at the same time, knows how to get the ball rolling.
To become a good CFO, one need not only be numbers guy, but as well as an operations person so that he’ll know the ins and outs of the organization that he is handling. Not everyone can become a CFO, but when you have strong academic foundations coupled with these skills, you might be on your way on becoming one.