what is a chief finance officer (CFO)?
As a chief finance officer, you manage a company's finances. It is an upper management role, where you are in charge of almost every financial decision a business makes. In addition, you keep track of expenses and profits and create the company's entire financial strategy. The decisions you make affect everything from product creation to marketing.
CFO is a high-level job position. As the highest-ranking financial employee, you report directly to the chief executive officer (CEO). Depending on how your company structures upper management, you might spend a lot of time interacting with the board of directors.
Being a CFO typically means managing an entire team of finance employees. Accountants, financial managers and others in the financial department report to you. Your job is to guide the finance team on accounting standards and the company's financial reporting policies. You review financial reports and statements to ensure they are in line with financial reporting standards. You also formulate internal controls, overseeing internal and external auditors to ensure integrity.
As the head of the finance department, you manage strategic relationships with investors and investment institutions. You also identify business risks and insurance requirements.
Would working as a chief finance officer suit your financial acumen and strategic thinking skills? Then read on to find out what competencies and qualifications you need to thrive in a CFO role.
chief finance officer jobsaverage chief finance officer salary
According to Job Bank, the average salary of a chief finance officer is $131,422 per year. This translates to an hourly rate of $67.40. When you are just joining the position, you start with a lower salary of $112,481 per year. CFOs with extensive experience often take home over $267,803 per year.
what factors affect the salary of a chief finance officer?
One of the main factors affecting your salary as a chief finance officer is the industry and size of your company. If you work in giant tech companies or financial institutions, you are likely to earn a higher salary compared to CFOs in smaller companies. Big companies have complex financial structures, and you lead a large finance department, which demands a higher salary.
The economic health and profitability also affect your earnings as a chief finance officer. Most publicly traded companies offer bonuses and stock options as part of the salary package for CFOs. Hence, a profitable company increases your earnings significantly.
Salary levels and the cost of living vary in different locations and influence your earnings. Cities with a high demand for CFOs have competitive salary packages.
types of chief finance officers
Here are some of the common types of chief finance officers:
- startup CFOs: as a startup CFO, you work for small companies that are just starting. You focus on fundraising and may choose to get compensation in stock options.
- growth CFOs: as a growth CFO, you work at established, mid-sized companies to help them expand the company. You develop growth strategies and identify investors to boost company growth.
- turnaround CFOs: as a turnaround CFO, you help struggling companies with things like filing for bankruptcy or drastic budget cuts. Your job is to make strategic changes that improve the cash flow of the company.
- acquisition CFOs: as an acquisition CFO, you help companies through mergers and sales. You specialize in handling transactions and easing transitions during mergers or acquisitions.
- public company CFOs: as a CFO of a publicly traded company, you handle massive businesses and are responsible for vast sums of money.
working as a chief finance officer
If you want to become the chief finance officer, read on to discover the specific duties, responsibilities and work environments.
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what does a chief finance officer do?
Chief finance officers have the following typical duties:
- managing finance departments: as a chief finance officer, you oversee a finance team. Your duties as the head of finance include assigning tasks, checking work and hiring new employees. You hire finance managers, finance business partners and other senior employees in the department.
- financing projects: if the company needs more funds, you strategize ways to get them. That involves acquiring loans from banks or seeking out new investors. You also determine the expansion projects with good returns.
- deciding on financial strategies: you work alongside other C-suite executives to find achievable financial goals for the company. This involves setting achievable metrics and suggesting ways the company can reach these goals. When collaborating with executives to set realistic financial benchmarks, you create metrics and initiatives that help lead to success.
- preparing reports: as the CFO, you put together detailed reports covering strategies and the company’s financial status. These could be annual or periodic analyses and forecasts based on key financial indicators. Executives use your reports to help make sound financial decisions.
- stakeholder management: effectively managing stakeholders is a major part of your role as a CFO. Building positive relationships with investors, financial institutions, and other stakeholders is important. To garner trust and ensure stability, you use your communication abilities to explain strategies, address issues, and align stakeholders with the company’s vision.
- ensuring regulatory compliance: it's your responsibility to make sure the business follows all guidelines set by the regulatory bodies. You also ensure the company pays taxes on time.
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work environment of a chief finance officer
For the most part, you will work in an office environment and spend lots of time reviewing data, reports, and more on a computer. Expect to attend regular meetings, often via video calls. While being on-site at the office is often required, the trend for remote work has also opened up some opportunities for CFOs to work from home.
Being a CFO involves a lot of networking, so you can expect to travel outside the office periodically. CFOs often visit banks or go to other businesses to discuss financial matters with investors or partners.
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who are your colleagues?
As a chief finance officer, you collaborate with various professionals to execute your responsibilities. You work alongside finance managers, financial analysts and financial controllers. You collaborate with accounting managers and business analysts. You also interact with data analysts, CEOs and chief operating officers (COOs).
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chief finance officer's work schedule
Since this position has so much responsibility, it usually demands a busy work schedule. On average, you work around 50 hours to 60 hours a week. During busy times, such as the end of the quarter or when travelling to attend meetings with investors, you can expect to work even more.
CFOs have fairly non-traditional work hours. For instance, you work at the office during the day on weekdays and also work nights and weekends. Even if you aren't in the office during these times, you answer business calls or go to business dinners. If you work for a company that does business globally, expect occasional early or late-night conference calls to accommodate different time zones.
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career opportunities as a chief finance officer
The need for highly qualified CFOs is very high. In addition to all the exciting job opportunities, the CFO field is also very promising because it offers excellent promotional opportunities. Having such an impressive leadership role in a company lets you network with others and gain more executive experience. CFOs often become CEOs or COOs eventually. Some choose to launch their own business or become the chairman or president of a company.
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advantages of finding a job as a chief finance officer through randstad
Working with Randstad offers you a range of benefits:
- always a contact person you can fall back on and ask for help from
- many training opportunities
- a range of jobs in your area
chief finance officer skills and education
The educational requirements for becoming a CFO include:
- bachelor’s degree: the first step to being a chief finance officer is pursuing a degree in finance, accounting or business administration. You can also join the role with any degree, provided you complete a master's in business administration.
- experience and certifications: most CFOs start out as accountants and move up the career ladder as they gain experience. Some companies promote CFOs from financial controllers to finance director positions. You have better chances of becoming a CFO if you have the required certifications, like Chartered Financial Analyst (CFA) or Chartered Professional Accountant (CPA). You should also be registered with relevant professional institutions in your province, such as CPA Alberta.
competencies and characteristics of chief finance officers
To do well as a CFO, you need these essential soft skills:
- interpersonal communication: as a CFO, you should be a persuasive and effective communicator. Your communication skills help you share information accurately and clearly with internal and external stakeholders.
- leadership: the best CFOs are comfortable taking on leadership positions. You use your leadership qualities as you delegate to others and motivate the team to get the best work out of them.
- proficiency in accounting: being proficient in creating and managing budgets is essential to forecasting your company’s financial future. You also use your financial acumen as you analyze data trends, develop strategies, and make decisions.
- business acumen: it's crucial to understand how a business works. You often use your expertise in business economic trends as you create budgets and develop strategies to reach financial goals.
- ethical judgment: when creating financial reports and strategies, ethical decision-making is as important as your understanding of accounting principles. You should stay up to date on laws and regulations to ensure compliance with financial and legal requirements.
- strategic thinking: for a CFO, strategic thinking comes into play daily as you seek to achieve long-term financial goals. You strategically think when analyzing key performance indicators (KPIs), negotiating with vendors, identifying ways to lower risk, and more.
FAQs about chief finance officer jobs
Here, you will find the answers to the most frequently asked questions about the profession of a chief finance officer.
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what is the role of a chief finance officer?
As a CFO, you are in charge of all the financial operations of the company. You supervise financial planning and forecasting and oversee the activities of the finance teams. Your duties include tracking cash flow and contributing to the company's growth.
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what is the salary of a CFO in Canada?
Your average salary as a chief finance officer is $131,422 per year. Entry-level salaries in the role start at $112,481 annually, while the most experienced CFOs take home over $267,803 per year. The earnings fluctuate based on experience and educational qualifications.
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what skills do you need to be a chief financial officer?
As a CFO, you need strong leadership skills to head the finance department. Decision-making skills also help you make strategic decisions that promote the company's growth.
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how do you become a CFO?
To become a CFO in Canada, you need a degree in finance, business administration, or accounting. You should also complete an MBA to improve your leadership skills. Most employers expect professional certifications like CPA or CFA.
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does a CFO need to be an accountant?
While it is not compulsory to have accounting qualifications, you require a background in finance and accounting. Hence, it is important to have experience in accounting.
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how do I find a job as a chief finance officer?
Finding a job near you as a chief finance officer is easy. Search our job offers. Have you found what you're looking for? Then submit your application using the ‘Apply’ button top right on the page. No jobs available right now? Send us your resume and we'll pass it on to a recruiter who will contact you if an opportunity opens up for you.
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