Is your organization planning to hire a new chief financial officer (CFO)? According to a recent survey, hiring managers look for more than financial expertise when vetting CFO candidates. In fact, only 38.5% of CFOs at Fortune 500 and S&P 500 companies were licensed CPAs in 2023, according to executive recruiting firm Crist Kolder. What other skills may be needed to fill these shoes?
Financial Know-How Opens Doors
The Pennsylvania Institute of Certified Public Accountants recently surveyed over 320 hiring executives about what skills matter most for the CFO role. Not surprisingly, “2024 Corporate Finance Report: CPAs in the C-Suite” found that the top must-have for CFO candidates is the ability to manage the organization’s finances effectively.
The top 10 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 forecast and outlook
- Tax compliance
- Accounts receivable
- Networking and industry relationships
The survey draws two key findings. First, CPAs who aspire to become CFOs will need to expand their skill sets beyond traditional accounting to include strategic planning, risk management, and technology oversight. Second, today’s CFOs must “strategize for growth and stability, not just report past results.”
Nonfinancial Skills Seal The Deal
Today’s hiring managers are looking for more than finance and accounting skills when filling CFO positions. They prefer candidates with the following general competencies, listed in order of importance:
- Leadership/strategic aptitude to develop high-performing teams and strategic goals
- Compliance and regulatory expertise to ensure organizational adherence to laws, regulations, and internal policies
- Technology and analytical proficiency to make data-driven decisions and use cutting-edge tools
- Industry-specific knowledge to understand market conditions and how they influence the organization
- Communication skills to build effective relationships with internal and external stakeholders to maintain alignment with corporate strategy
In addition, respondents emphasized the need for CFO candidates to possess “general business insight” and “emotional intelligence.” However, the survey cautions that most hiring managers assume candidates who apply for executive positions have already mastered these general skills.
What’s The Right Fit For Your Executive Team?
Finding the right person to head up your organization’s finance and accounting department can be challenging in today’s tight labor market. The CFO’s main responsibility is to provide timely, relevant financial data to other departments — including information technology, operations, sales, and supply chain logistics — to help improve how the organization operates. They also must be able to drum up cross-departmental support for major initiatives. So, it’s important that you choose a candidate who’s a team player. You might even want to outsource the position to a skilled professional. Contact us for help evaluating CFO candidates to find the right mix of skills and experience for your organization’s finance and accounting department.