Chief Financial Officer (CFO) Career and Salary Profile
Chief financial officers (CFOs) are vital to the long-term success of public and private organizations. Accounting professionals, who aspire to become a chief financial officer, need up-to-date training and advanced knowledge of complex corporate finances – from investments, to risk management, to mergers and acquisitions. If your goals include rising to the top of the accounting profession as a CFO, enrolling in an MBA program with a specialization in Accounting and Finance can help position you to achieve your objective.
Job Outlook for Chief Financial Officers
The U.S. Bureau of Labor Statistics (BLS) predicts employment in the accounting profession will grow much faster than other occupations. Growth will occur as more complex financial reporting requirements spur demand for qualified CFOs who can plan and implement an organization’s financial strategy. Jobs at the executive level will see keen competition; Certified Public Accountants (CPAs) and professionals with advanced degrees should have the best prospects for senior-level accounting careers.
Job Duties
An organization’s chief financial officer is typically responsible for planning, directing and controlling its financial activities. This often includes direct control of all accounting, finance, job costing, forecasting, strategic planning, and regulatory and legal compliance. Depending on organizational structure, CFOs provide vital planning information to the president, chief executive officer or board of directors.
As a key member of the executive management team, the CFO continuously evaluates short- and long-term strategic financial objectives. These professionals develop tools and systems for reporting and making recommendations on strategy and operations. They also ensure departmental credibility by verifying accuracy of financial trends and forecasts, and by overseeing budget planning and analysis. CFOs may also lead development, implementation and maintenance of an organization’s job cost system.
Interfacing with an organization’s president and other senior executives allows the CFO to identify business needs and develop effective solutions. They also provide consulting services and advise executives on cost management and financial implications of business activities. The chief financial officer may supervise a small staff, or one or more departments, depending on the organization.
The CFO usually works in a comfortable office environment. Travel could be required, particularly in large national or international firms. At fiscal year end or tax time, accounting personnel, including chief financial officers, may be required to put in extra hours to meet deadlines.
Chief Financial Officer Salary Potential
According to national salary data on PayScale.com, as of December 2010, chief financial officers had a median total income of about $130,197 per year, with those in the 25th to 75th percentile earning between $85,923 and $174,472 in total pay.
PayScale.com data also indicated that CFOs with a master’s degree can earn significantly more than those with only a bachelor’s degree. In fact, based on 75th percentile salary figures, graduates with an MBA earned $165,326 per year, while those with a BA in Accounting earned $145,414 per year – a differential of nearly 14%.
The data shows top salaries generally go to those with solid experience and the advanced education employers need to remain competitive in a changing global business environment.
Education and Training
Qualifying for most chief financial officer positions will require a combination of education, industry credentials and experience. For CFO positions with leading companies, preference is often given to candidates with an MBA and management experience, as well as CPA status.
Accounting professionals with the desire to advance their careers to the C-suite level can boost their ability to compete for top jobs by enrolling in an MBA program with a specialization in Accounting and Finance. Coursework typically includes investment management, managerial accounting, organizational behavior and strategic cost management.
Employers can be confident that professionals who have earned an MBA with a specialization in Accounting and Finance are able to:
- Use modern theories of leadership, management and negotiation to solve real-world business challenges.
- Manage financial risk through use of statistics and economic data.
- Communicate complex financial data and projections clearly and effectively.
- Integrate financial, personnel and operations initiatives to lead with success.
- Leverage advanced knowledge and skills to succeed as a chief financial officer.
Do You Aspire to Become a Chief Financial Officer?
If you have strong accounting, managerial and leadership skills, solid computer experience and the ability to maintain cooperative working relationships with co-workers and supervisors, then setting your sights on a CFO position could be a lucrative career move. An MBA with a specialization in Accounting and Finance can give you the foundation of knowledge and high-demand skills that will distinguish you from the competition and help you land a rewarding chief financial officer position.
