Are you in the market for a new CFO? Recent findings reveal that hiring managers are seeking more than just financial expertise when evaluating CFO candidates. According to executive recruiting firm Crist Kolder, only 38.5% of CFOs at Fortune 500 and S&P 500 companies were licensed CPAs in 2023. So, what additional skills are essential for this critical role?
Financial Expertise: A Starting Point
The Pennsylvania Institute of Certified Public Accountants recently surveyed over 320 hiring executives to determine the key skills needed for CFO candidates. The “2024 Corporate Finance Report: CPAs in the C-Suite” highlights that effective financial management remains a crucial requirement.
Key financial skills identified in the survey include:
- Capital management and strategy
- Financial forecasting
- Operations and financial reporting
- Critical thinking
- Financial reporting compliance
- Strategy creation
- Industry/product forecasting
- Tax compliance
- Accounts receivable
- Networking and industry relationships
The survey underscores two important insights. First, aspiring CFOs must extend their expertise beyond traditional accounting to include strategic planning, risk management, and technology oversight. Second, today’s CFOs need to focus on driving growth and stability rather than merely reporting historical data.
Essential Non-Financial Skills
Modern hiring managers are seeking CFO candidates with a broad set of competencies beyond financial and accounting skills. The most valued general competencies are:
- Leadership and Strategic Aptitude: Ability to build high-performing teams and set strategic goals.
- Compliance and Regulatory Expertise: Knowledge to ensure adherence to laws, regulations, and internal policies.
- Technology and Analytical Proficiency: Capability to leverage data-driven insights and advanced tools.
- Industry-Specific Knowledge: Understanding of market conditions and their impact on the organization.
- Communication Skills: Proficiency in fostering relationships with internal and external stakeholders to align with corporate strategy.
Additionally, candidates should demonstrate strong “general business acumen” and “emotional intelligence.” While these traits are often assumed to be present, they are nonetheless critical for a successful CFO.
Finding the Right Fit
Choosing the right CFO for your company’s finance and accounting department can be daunting, especially in a competitive job market. The CFO’s role involves providing timely and relevant financial data to various departments—such as IT, operations, sales, and supply chain—and garnering cross-departmental support for major initiatives. Therefore, it’s crucial to select a candidate who is not only skilled but also a team player.
If needed, consider outsourcing the search to a professional. Contact us to assist in your CFO needs. Our CFO experts offer the right blend of skills and experience for your organization.
