How To Become Chief Financial Officer

Planning, implementing, administering, and overseeing all financial activities of a firm fall within the purview of the chief financial officer (CFO). They monitor cash flow and financial planning, evaluate the company's financial strengths and weaknesses, and suggest remedial measures to help the company become efficient with its finances.

Students can enrol in management courses like BBA and MBA or finance courses at the undergraduate and graduate levels to become a CFO. Many prominent management colleges, including the IIMs and other prestigious schools like MDI Gurgaon, JIMS Rohini, Xavier Institute of Management, IMT Ghaziabad, Amity University, etc., provide these courses. The majority of the time, management entrance exams like the IPU CET, DU JAT, and NMIMS NPAT are used to determine admission to these colleges for undergraduate and postgraduate programmes, respectively.

Who is a CFO?

Chief financial officers (CFOs) are top executives in charge of managing a business's finances. They are typically in charge of handling the business's finances, determining its financial strengths and weaknesses, ensuring that the business remains financially secure and improving the business’s financial position. Examining the financial performance and position of the business and making recommendations for improvement are the most critical tasks for the Chief Financial Officer. Monitoring cash flow and creating a budget for the business are additional duties. The duties of a chief financial officer are similar to those of a controller or treasurer in that they are responsible for managing the accounting and finance divisions and ensuring that the company's financial reporting is accurate and executed efficiently.

CFO Course Highlights

Steps To Become CFO

To get admitted to a finance or accounting course, a candidate must complete the following steps:

Role of CFO

People with careers as chief financial officers supervise a team of financial controllers and analysts and make sure that the company's rules are upheld. The duties of the chief financial officer also include planning for firm fundraising and monitoring and evaluating the capital structure. The chief financial officer's duties also include managing all finance personnel and ensuring that the organisation's activities have an adequate cash flow. A team of financial controllers and analysts are under the direction of the chief financial officer, who also makes sure that the law and the company's regulations are upheld. The chief financial officer's job description calls for accurate current and forecasting reports, as well as the setup and management of the business's financial IT system.

• Reporting

The Chief Financial Officer offers daily reports throughout the fiscal year to help businesses assess the goods and services offered in a particular sector. The data in reports, which includes marketing strategies, financial and accounting assistance, and strategic analysis, can be used to assess prospective courses of action.

• Plan strategically

A strategy is a plan of action designed to promote the priorities and objectives of an organisation. To plan strategically all these facotrs need to be taken into account; financial reporting, market dynamics and stakeholder demands. The chief financial officer who participates in strategic planning should set goals, determine the activities that employees need to do, and inspire the company to achieve those goals.

How To Become Chief Financial Officer in India

In India, becoming a CFO is a fairly simple process, but it also requires a lot of merit and commitment. Since becoming a CFO demands a lot of focus and concentration, they need mentally prepare for the position.

Skills Required For Chief Financial Officer

Chief Financial Officer Job Outlook

Experienced and skilled chief financial officers are in high demand among banking institutions. With India emerging as a substantial global market and witnessing a surge in global activities like innovations, partnerships, and acquisitions, the requirement for these professionals remains substantial. The competitive landscape for chief financial officer positions is expected to intensify due to the increasing significance of these roles. Those candidates boasting exceptional academic achievements, noteworthy professional histories, and distinct aptitudes will stand a better chance of securing these coveted positions.

Frequently Asked Questions

Question: What does a chief financial officer do?
Ans: An executive with senior status who is in charge of managing a company's financial operations is known as the chief financial officer (CFO). A company's chief financial officer (CFO) often occupies the third-highest position and is crucial to its organisational plans.

Question: Who has more authority, the CEO or the CFO?
Ans: The Chief Financial Officer, or CFO, is in control of the business's budgeting, financial reporting, and financial operations, making him or her the person with the highest-ranking financial position in any organisation. The CEO, however, is in charge and at the top of the hierarchy. The CEO is directly responsible for the CFO and other staff members.

Question: A Chief Financial Officer is an accountant, right?
Ans: Yes, a Chief Financial Officer (CFO) is often associated with accounting since they are responsible for overseeing an organization's financial operations and strategy. However, the role of a CFO goes beyond just accounting. They play a crucial role in financial planning, analysis, risk management, and strategic decision-making. CFOs are responsible for managing a company's financial health, ensuring accurate financial reporting, optimizing financial resources, and providing insights to drive business growth. While a strong background in accounting is valuable for a CFO, their responsibilities encompass a broader range of financial and business functions.

Disclaimer: This content was authored by the content team of ET Spotlight team. The news and editorial staff of ET had no role in the creation of this article.