A chief financial officer, or CFO, is required to have secured a unique blend of academic qualifications and business experience to take a company\u2019s financial standing from survival to thriving. Here\u2019s what you need to know before pursing this career path.<\/p>\n
Take on the CFO job<\/a>, and you\u2019ll be the individual at a company who oversees everything financial \u2013 both from an operations and a strategy perspective. Not to blow your own trumpet, but certainly worth being fully aware of, is that once you\u2019ve been hired into this position, you\u2019ll be second only to the CEO in terms of corporate seniority.<\/p>\n Qualifications, earnings \u2013 take a look!<\/strong><\/p>\n If this is your favoured career pinnacle, you should ideally begin with a bachelor\u2019s degree in an accounting- or finance-related field (such as a BBusSc Finance and Accounting, for example), to provide your base knowledge.<\/p>\n A highly recommended second step is to take on a Master\u2019s Degree in Business Administration (MBA), which will offer you the leadership insight and alert you to the management responsibilities that lie ahead. This is a fairly demanding study path, especially if you\u2019re working at the same time \u2013 but one that will enhance your expertise and help you make the best possible business decisions when the time comes and you are required to do so.<\/p>\n Then, it\u2019s worth noting that more than 75 percent of CFOs at listed companies in South African hold a chartered accountant \u2013 CA(SA) \u2013 designation, according to a study undertaken by the South African Institute of Chartered Accountants (SAICA). If you thought medical students had a long path to follow to earn the \u201cdoctor\u201d title, qualifying as a chartered accountant usually takes a minimum of seven years \u2013 a three-year degree, a one-year honours and three years of internship. This, of course, is provided you are able to complete the undergraduate qualification, post-graduate qualification and board exams in double-quick time. Read more, here.<\/p>\n According to Getsmarter, an online learning platform with over 10 years experience in developing high-quality short courses that are offered at the world\u2019s leading universities, your earnings at the entry level, in the middle of your career, and after gaining 15 years of experience as a CFO will differ as follows according to country:<\/p>\n Table 1: CFO earnings across your career, in SA, the UK and the USA<\/p>\n Entry Level<\/strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Mid Career<\/strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 15 Years\u2019 Experience<\/strong> Source: https:\/\/www.getsmarter.com\/<\/a> Evolution of the role<\/strong><\/p>\n If you have a retired family member who was a CFO at the pinnacle of their career, you may like to discuss with them how the role appears to be shifting from that of the good old days. Back in the day, according to the report \u201cFour Faces of the CFO\u201d (Deloitte), the CFO was required to:<\/p>\n \u2022 preserve a company\u2019s assets by minimising risk and managing the books with aplomb; Your now-retired family member probably didn\u2019t do more than quality control, compliance, and the production\/analysis of financial statements.<\/p>\n Today, however, societal matters such as economic uncertainty and rapid technological advances have brought about a shift in CFO jobs<\/a> \u2013 so that the individual in this role is more outwards facing towards potential opportunities; may be required to get their strategist hat on to enhance business performance, when required; and should, ideally, act as a trusted confident of, and advisor to, the CEO when its cones to shaping their organisation\u2019s corporate direction.<\/p>\n More than just maintaining the in-house financial viability against the backdrop of an uncertain external marketplace, so too the CFO must be adept at communicating the extent of this financial viability to everyone from customers, vendors and stakeholders, to bankers and even junior staff members.<\/p>\n Ideal CFO traits<\/strong><\/p>\n According to TechTarget, a network of tech-specific websites that offer readers access to industry experts, independent content and astute analysis, a CFO is required to think ahead and implement business plans, with a corporation\u2019s long-term goals firmly in mind.<\/p>\n This role\u2019s management studies (especially the insights gained from completing an MBA), will mean he or she is equipped to see how each of the company\u2019s main departments are working in tandem or not \u2013 and, thus, where guidance is required to kickstart improvement.<\/p>\n If you like to be very hands-on with the spreadsheets and calculator, this is the time to take a step back and develop your leadership skills so that you can hire the best-possible finance team, and thereafter delegate to them while overseeing their work, as and when this is required.<\/p>\n Your no-guts-no-glory trait, similar to that of your CEO, will facilitate your impetus to try new things and take calculated risks, with a view to enhancing the overall financial picture that you\u2019ve inherited from your CFO predecessor.<\/p>\n How tech can ease the way<\/strong><\/p>\n Another way in which the CFO role has changed from your parents\u2019 day, is the way in which this person \u2013 as owner of the corporate budget \u2013 is required to collaborate with other departments, from IT and sales, to marketing and public relations, to ensure that the right digital tools are put in place to boost the company\u2019s overall efficiency.<\/p>\n While a white paper, \u201cEquipping CFOs For A Successful Enterprise Transformation\u201d (SAP), is a highly recommended read [access the paper here], it could help to know by means of four short, precise tips the way tech could transform your enterprise and also make your life easier:<\/p>\n 1) Tech can assist CFOs to turn data into useful customer and compliance-related insights; What to expect in an interview<\/strong><\/p>\n Are you nervous for an upcoming CFO interview? The experts at Forbes share three secrets, to alert you to what HR managers and executive search teams are likely to have top of mind:<\/p>\n \u2022 Will you be a good culture fit, and get on like a house on fire with the current CEO? PS: Don\u2019t be taken aback by the thorough background\/due diligence check that may be carried out on you. If this is done when hiring you, it was likely have been done for other senior staff members too \u2013 and this should mean that you\u2019re poised to be working with a highly reputable and straight-laced bunch.<\/p>\n What to know about fraud<\/strong><\/p>\n Once you\u2019re happily embedded in the CFO role, an important thing to keep aware of throughout your dealings is fraud. This is because almost half of all organisations \u00ac\u2013 46 percent, according to the PwC Global Economic Crime and Fraud Survey 2022 \u2013 have reported at least one instance of fraud, corruption or another type of economic crime, over the past year alone. It\u2019s all about making the most astute investments (in your systems and knowledge) to remain ahead of what the fraudsters are up to.<\/p>\n While you may at first find this area of your job description keeping you up at night, there are a few important things that you can do to rest easier.<\/p>\n \u2022 Put fraud protection insurance in place; By using such a service, often referred to as software as a service (SaaS), you will be alerted to potentially dodgy payment details at the point of entering the details \u2013 but, fortunately, before the funds have left the company\u2019s business account.<\/p>\n Remember, as you set about meeting with software companies to choose the best and most secure options on offer, that integrated systems tend to cut down on the steps in any given business process. They improve a finance department\u2019s efficiency, provide enhanced security, and boost the company\u2019s bottom line as staff members are freed up to focus on what really needs their attention. You and the CEO will also experience greater peace of mind, allowing for more innovation and less worry in your day-to-day duties.<\/p>\n Moving on up\u2026<\/strong><\/p>\n While CFO may represent a career pinnacle for some people, others will continue to push and strive until they find themselves another notch up the career ladder \u2013 i.e. in the role of CEO. [See article: \u201cSo you want to be a CEO?<\/a>\u201d] But an article from Korn Ferry suggests that those in the head financial position at a company \u2013 as well as other C-level leaders \u2013 will be required to close various gaps in their skillsets to be effective as a CEO.<\/p>\n While the choice to remain a CFO would simply see you perfecting your financial, business strategy and management competencies, the 36 percent of global CFOs with an ardent desire to move on into the CEO role will be required to showcase something called\u201d learning agility\u201d.<\/p>\n This skillset (i.e. learning agility), reveals the article \u201cCFO to CEO: The right-brain leadership gap\u201d (Korn Ferry), can be separated into:<\/p>\n \u2022 self-awareness; As CFO, the latter point is probably your strongest \u2013 i.e. you will happily achieve results via your financial acumen. When preparing for the CEO role, however, the third bullet will be most critical \u2013 i.e. developing the social leadership ability to \u201cinfluence, engage and inspire others\u201d. Making the transition requires rising above the technical left-brain skills that have been critical within your previous position, and growing those skills that revolve around people and relationships.<\/p>\n Yes, there is an all-encompassing intensity to the CEO role in which your \u201ctone, attitude and energy\u201d can require great levels of reflection in order to get the best out of others. While you won\u2019t be able to succeed without the left-brain skills of strategic thinking and financial clout, the right-brain competencies and, in fact, overall approach to life that will be required \u2013 being courageous, optimistic, influential, and inspirational \u2013 cannot be taught during a business course.<\/p>\n A life coach or mentor could, however, assist you to shift your mindset into CEO gear \u2013 by sharing reading material, case studies, and their experiences and learnings gleaned from working with other CFOs who want to be a CEO.<\/p>\n Fact fact 1: Short-course clout<\/p>\n Because CFOs are tasked with managing a very wide variety of demands within their company of choice, it can help for them to know at least an entry-level amount about many different areas of business. If you\u2019re currently working within a finance department, and have your eyes on the CFO job<\/a>, or are an entry-level CFO and feel a bit out of your depth regarding all matters outside money management \u2013 here are a couple of short courses you can take after hours (either online or in person):<\/p>\n \u2022 Import and export management; Fast fact 2: Length of time it takes to reach CFO Fast fact 3: Top CFO Priorities \u2022 Allow in-year resource flexibility, so that you are able to predict and respond to change as rapidly as possible; All sources list: A chief financial officer, or CFO, is required to have secured a unique blend of academic qualifications and business experience to take a company\u2019s financial standing from survival to thriving. Here\u2019s what you need to know before pursing this career path. Take on the CFO job, and you\u2019ll be the individual at a company who […]<\/p>\n","protected":false},"author":1,"featured_media":341,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\n Welcome to WordPress. This is your first post. 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SA R828 000\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 R945 000\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 R1 212 000
UK \u00a374 000\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a385 000\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a3112 000
\u00a0 \u00a0 \u00a0 (R1 606 764)\u00a0 \u00a0 \u00a0 \u00a0 (R1 845 607)\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 (R2 432 417)
USA $94 000\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$112 000\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $144 000
\u00a0 \u00a0 \u00a0 (R1 693 348)\u00a0 \u00a0 \u00a0 \u00a0(R2 017 607)\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 (R2 594 066)\u00a0\u00a0<\/p>\n
Note: Exchange rates correct at time of going to publication<\/p>\n
and
\u2022 operate an altogether slick financial department.<\/p>\n
2) Leveraging artificial intelligence (AI) and machine-learning can pinpoint emerging security risks, before they take hold;
3) Well-chosen digital tools can help solve business problems, by automating rote tasks and implementing analytics systems that anticipate a recession, for example \u2013 thereby allowing a CFO to put the required financial cushioning in place; and
4) Putting an enterprise-wide system in place will give a CFO a line of sight across all departments and functions, so that it is possible to collaborate with, and challenge your CEO on, emerging business models and potential areas for growth.<\/p>\n
\u2022 Will your industry experience be able to guide, in a strategic fashion, where the company is moving?
\u2022 Is your background steeped in integrity and an ethical approach to your work?<\/p>\n
\u2022 Because it is easier to hack \u2013 or scam \u2013 a person than a machine, make sure your staff members receive regular cyber-crime-related training;
\u2022 Fight digital threats with digital solutions, because permitting just one manual step into an otherwise automated process (such as receiving some documents via email, when onboarding clients or suppliers is otherwise accomplished online) can prove a recipe for a malicious attack; and
\u2022 Invest, where you can, in integrated systems \u2013 that streamline processes across enterprise resource planning, accounting systems, sales and even customer relationship management systems.<\/p>\n
\u2022 mental agility;
\u2022 people agility;
\u2022 change agility;
and
\u2022 results agility.<\/p>\n
\u2022 Commercial and contract law;
\u2022 Tax law;
\u2022 Human resources management;
and
\u2022 Business risk management.
Source: https:\/\/www.getsmarter.com\/blog\/career-advice\/become-chief-financial-officer-cfo\/<\/p>\n
\u2022 typically, 10 to 15 years<\/p>\n
What should CFOs focus their attention on as we transition beyond the years of the pandemic into a work space where accelerating investment must be made in digital transformation? Gartner shares these three tips:<\/p>\n
\u2022 Adopt digital technologies such that your employees\u2019 daily tasks are increasingly streamlined and efficient;
and
\u2022 Prioritise the release of funding for technology that enhances customer growth and financial outcomes.<\/p>\n
https:\/\/www.techtarget.com\/searchcio\/definition\/CFO<\/a>
https:\/\/www.myggsa.co.za\/how-to-become-a-chief-financial-officer-in-south-africa\/<\/a>
https:\/\/www.getsmarter.com\/blog\/career-advice\/become-chief-financial-officer-cfo\/<\/a>
https:\/\/www.forbes.com\/sites\/sap\/2020\/03\/18\/the-cfo-role-is-changing-how-technology-can-help\/?sh=51457d0d5276<\/a>
https:\/\/www.sap.com\/documents\/2020\/03\/2a53efb1-907d-0010-87a3-c30de2ffd8ff.html<\/a>
https:\/\/www.forbes.com\/sites\/theyec\/2019\/10\/30\/what-to-look-for-in-a-cfo\/?sh=2c65edfb12ab<\/a>
https:\/\/www.accountancysa.org.za\/feature-fraud-trends-every-cfo-should-know\/<\/a>
https:\/\/www.kornferry.com\/insights\/this-week-in-leadership\/cfo-ceo-right-brain-leadership-gap<\/a>
https:\/\/www.gartner.com\/en\/articles\/these-are-the-top-cfo-priorities-for-2022<\/a>
https:\/\/www.jsemagazine.co.za\/company-profiles\/board\/#:~:text=A%202016%20survey%20by%20the,CA(SA)%20%E2%80%93%20designation<\/a>.
https:\/\/jn.co.za\/chartered-accountant-sa\/#:~:text=Qualify%20as%20a%20Chartered%20Accountant,exams%20in%20the%20minimum%20time<\/a>.<\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n\n\n","protected":false},"excerpt":{"rendered":"