As a fresh graduate, you often find yourself asking questions about what career paths are available to you. If you have an interest in finance and a knack for numbers, becoming a Chief Financial Officer (CFO) may be the perfect role for you.
This Guide to Becoming a CFO: Career Path, Education, and Upskilling article will provide you with valuable information on how to pursue this rewarding career path.
Role of a CFO
A CFO is an executive-level position responsible for managing a company's finances, implementing financial strategies, and ensuring long-term financial stability.
In India, the role of the CFO is highly valued in the business world due to its importance in driving growth and profitability. With many companies looking to expand their operations and increase revenue streams, the demand for qualified CFOs is on the rise.
Career path and job opportunities
Starting your career as an accountant or analyst is a typical path towards becoming a CFO. As you progress in your career, you can advance to senior management roles like financial controller or director of finance.
With years of experience and advanced qualifications like an MBA or CPA (Certified Public Accountant), the chances of becoming a CFO increase significantly.
CFOs are integral parts of any organisation across industries such as banking, healthcare, technology, retail, etc., providing tremendous job opportunities for finance professionals looking for growth opportunities.
Salaries and benefits of CFOs
CFOs are some of the highest-paid professionals in India.
- At entry-level positions, aspiring CFOs can expect to earn an average of ₹10-15 lakhs per year.
- Mid-level professionals with several years of experience can earn anywhere from ₹25-50 lakhs annually.
- Senior-level executives can earn upwards of ₹1 crore per year.
CFO salary structures are largely influenced by the sector they work in. Here's an overview of the average salaries of CFOs across sectors:
- Banking: ₹60 lakh to ₹2 crore per annum
- Tech: ₹50 lakh to ₹3 crore per annum
- Manufacturing: ₹30 lakh to ₹1.5 crore per annum
- Retail: ₹20 lakh to ₹80 lakh per annum
Specialisations within the CFO role
As you progress towards becoming a CFO, specialising in different areas such as risk management, treasury management, or regulatory compliance can provide additional opportunities for career growth.
Different industries have varying demands for specialised CFOs. For instance, healthcare may need more expertise in managing regulations than other sectors.
Having specialised skills can differentiate you from other candidates and make you more desirable to potential employers.
Education and certification options
To become a CFO, you'll need to have a strong educational background in finance or accounting.
Some bachelor's degree options include finance or accounting degrees. However, having a master's degree, such as an MBA or MSc Finance, can set you apart from other candidates.
There are also several certification courses like CA (Chartered Accountant) or ACCA (Association of Chartered Certified Accountants) that can help you gain valuable skills and knowledge in finance.
Upskilling opportunities
There are various upskilling opportunities available for those looking to advance their careers as CFOs. Here are some options:
- Chartered Financial Analyst (CFA) Certification
- Certified Management Accountant (CMA)
- Executive Education Programmes
- Networking through professional associations, like Institute of Management Accountants (IMA) or the Association of Finance Professionals (AFP).
- Online Courses
Conclusion: The Road Ahead
By investing in further education and training, you can gain the skills and knowledge needed to advance your career as a CFO and increase your earning potential.
At WIZR, we understand the importance of staying up-to-date with industry trends and acquiring new skills. That's why we offer financing options for young professionals seeking career-focused upskilling and certification programmes. Visit our platform today to explore our offerings and take your career to new heights.
FAQs
1. Can I become a CFO without working in finance first?
While it is possible to become a CFO without prior experience in finance, most companies prefer candidates who have worked their way up through the ranks of the finance department and have relevant experience.
2. What are some top companies that hire CFOs in India?
Some top companies that hire CFOs in India include Tata Group, Reliance Industries, Hindustan Unilever, Bharti Airtel, and Larsen & Toubro Infotech.
3. How long does it take to become a CFO?
It usually takes around 10–15 years of experience in finance-related roles before one becomes eligible to take on the role of a CFO.
4. How can I assess my skills as an aspiring CFO?
You can assess your skills as an aspiring CFO by taking online skill assessments or consulting with a career counsellor who specialises in finance careers.
5. What are the most sought-after skills that employers look for when hiring a CFO?
Employers usually look for skills such as strategic thinking, leadership, financial management, risk management, and communication skills when hiring a CFO.
