To become a CFO, financial professionals may be required to earn a Certified Public Accountant (CPA) licensure or Certified Management Accountant (CMA) or Chartered Financial Analyst (CFA) licensure. CFOs have traditionally emerged from accounting ranks with reputations as masters of finance strategy and standards. But the role has changed to where accounting expertise is often not required. The three-level CA program is offered by the Institute of Chartered Accountants of India. The CPA Exam pass rate percentages average 45%-55%.
The most common first CEO job is Consultant, but the most common function is business development. A master’s degree in accounting is conferred by a university while a CPA license is issued by a state or territory. An MBA is better for management or consulting while a CPA is better for numbers crunching.
- Franchise royalties: range from a fraction of 1% to 50% depending on industry.
- Airbnb service fees: paid by guests while hosts pay a flat fee.
- Gym failure rates: high statistics show small gym failure rates.
Top firms recruit those with the highest expertise in business and finance which could lead to a CFO role. Working in Corporate Treasury also provides the accounting knowledge and financial strategy understanding needed to become a CFO. CFOs increasingly need more strategy focused skills over technical expertise.
CPAs have rigorous education, training, exams and ethics. Aspiring CPAs must earn a degree then take the Uniform CPA Exam. Those with higher qualifications like a PhD can progress further in their career.
In recent years, the number of Fortune 500 chief financial officers (CFOs) holding a CPA license has declined. A 2021 survey found that among Fortune 500 CFOs, 38% were CPAs while 57% did not have a CPA. CFOs are now more likely to be promoted internally and to have prior CFO experience if hired externally.
- Median CFO pay: increased 18.7% from 2011 to 2015.
- CFO bonus potential: often ranges 30-60% of base salary.
- Average total compensation for CFA charterholders: approximately $300,000 in the U.S.
Sixty-nine percent of Fortune 500 CFOs in 2016 were internal candidates, showing companies groom successors. With digitization, CPAs provide relevant safeguards across sectors.