Becoming a Chief Financial Officer (CFO)
A Chief Financial Officer (CFO) is a senior executive responsible for managing a company’s financial strategy, reporting, and long-term growth. As part of the C-suite, the CFO oversees accounting, budgeting, investments, and risk management to ensure financial health and compliance. Beyond tracking numbers, the role involves advising the CEO and board on business decisions, funding strategies, and market opportunities. CFOs also lead finance teams, optimize cash flow, and support mergers, acquisitions, or expansions. In short, the CFO acts as both financial steward and strategic partner, aligning resources with the company’s goals.
What is the role of the CFO ?
As a cornerstone of business management, the Chief Financial Officer (CFO) plays a vital strategic role within the leadership team. The core of a CFO’s responsibilities lies in financial leadership overseeing accounting, budgeting, investments, and risk management to safeguard the company’s financial health. Beyond financial management, the CFO collaborates closely with other executives to align resources with long-term business objectives, support decision-making, and ensure regulatory compliance. They also monitor tax obligations, manage client-related financial disputes, and provide guidance on workforce planning in coordination with HR. By balancing operational needs with strategic vision, the CFO ensures the organization maintains financial stability while driving sustainable growth.
Main activities of a chief financial officer
Within the company, CFOs are responsible for managing financial activities such as accounting, budgeting, forecasting, financial statements, financial reporting, and risk management. Their strategic role includes ensuring regulatory compliance, safeguarding the company’s financial health, and providing accurate and timely reports to support decision-making by the executive suite and board of directors.
They ensure compliance with laws and monitor regulatory developments, analyze the financial situation, and prepare tax strategies aligned with business objectives, guaranteeing proper reporting of financial matters. CFOs also oversee internal controls, coordinate with all departments, and manage client-related financial disputes. In addition, they supervise negotiations with banks, investors, and both public and private agencies, while supporting the company’s administrative functions.
Required skills for a CFO
Personal and interpersonal skills are necessary to carry out the role of CFO on a daily basis. Among the most essential soft skills are communication abilities, which are crucial for negotiating, reporting to senior management, and managing teams. A good sense of negotiation is also indispensable. Beyond interpersonal competencies, the CFO must demonstrate strong strategic thinking to guide financial planning and support long-term business goals. They must also have a perfect command of financial, tax, and accounting techniques, including knowledge of internal control requirements and financial forecasting. For example, they need to know how to use digital tools for company management, including online financial management systems. A good command of professional English is also a significant asset for effective communication with banks, investors, clients, and other stakeholders, including federal government bodies.
Studies to become a chief financial officer
A degree, at least at the master's level (Bac +5), in finance, financial engineering, or business administration is necessary to enter the private equity sector and excel in the investment role. The more prestigious the school from which your degree is obtained, the more likely you are to impress recruiters from the most attractive companies, including major federal agencies.
- The Master in Finance offered by emlyon business school aims to develop a solid and in-depth expertise that will enable you to fully understand the challenges and demands of finance, including the analysis of complex financial data. This program offers a common core followed by a specialization in corporate finance or market finance, thus providing a comprehensive view of financial aspects, including cost-benefit analysis and strategic financial planning.
Brochure of the Master in Finance
- For those seeking a more generalist program, the Master in Management-Grande École program from emlyon, which awards a master's degree, is also a pathway that prepares students for careers in finance. It aims for excellence in general management with progressive and tailor-made specialization, including modules on financial systems, cash management, and fiscal planning. Elective courses and specialization tracks allow students to build their careers in market finance and corporate finance.
Brochure of the Master in Management
- The Master in Management, Finance & Tech is a triple degree offered by emlyon business school, Bayes Business School, and POLIMI Graduate School of Management. This innovative program combines management skills, strong financial knowledge, and technological expertise, preparing you to become a fintech leader in an ever-evolving financial landscape. Over two years, you will study in three European cities (Lyon, London, and Milan) and gain practical experience through a six-month internship in the dynamic financial sector, including roles in government and private investment planning.
Brochure of the Master in Management, Finance & Tech
- The MSc in Financial & Business Performance is a two-year programme designed to train experts capable of mastering management control and finance tools to drive corporate performance. Faced with strategic challenges and the evolution of digital technologies, you will develop essential analytical skills to collect, analyze, and interpret financial and operational data, which are crucial for strategic decision-making. This immersive programme includes group projects, academic and professional challenges, as well as two internships, providing you with hands-on experience and international exposure.
What is the average salary of a CFO?
In France, the median compensation of a Chief Financial Officer (CFO) depends on several factors, including experience, company size, industry, geographic location, and the complexity of the financial operations they oversee. A CFO’s salary also reflects their educational background, as many hold advanced degrees such as an MBA or certifications like Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA).
In established firms or fast-growing businesses undergoing digital transformation, CFOs are not only responsible for analyzing financial data and producing accurate financial reports, but also for driving financial performance through strategic planning, capital structure optimization, and mergers and acquisitions. They act as trusted advisors to the executive team and board, aligning resources with long-term objectives.
Here is the median gross annual salary range based on level of experience:
- Junior CFO salary: €50,000, typically early in their career, with responsibilities focused on accounting processes, reporting, and supporting budgeting tasks.
- Experienced CFO: €71,000, responsible for leading financial initiatives, improving internal controls, and advising on financial strategies.
- Senior CFO: €84,000, in charge of comprehensive financial governance, long-term strategic planning, treasury functions, and investor relations, with a strong influence on the organization’s overall direction and performance.
As CFOs advance, they must demonstrate strong leadership, sharp business acumen, and the ability to design efficient financial processes that enhance cash flow, reduce costs, and support sustainable growth.
Career progression for a CFO
A CFO has a promising career progression trajectory, often progressing to senior executive roles within the organization, such as CEO, Sales Director, Chief Operating Officer, or Marketing Director. They can also become a partner in a consulting firm, manage fiscal strategy, or start their own business. Opportunities also exist within federal government and agencies focused on economic growth and financial management.
Conclusion
Becoming a Chief Financial Officer (CFO) is a highly strategic and rewarding career, combining financial expertise, leadership skills, and stewardship across an entire organization. CFOs are responsible for overseeing activities, managing operations, preparing financial statements and reports, conducting financial analysis, and ensuring compliance with company policies and regulations. They advise the chief executive officer, board, and departments on budget, funds, and asset management, aligning resources with long-term strategic direction and improving financial performance.
The role increasingly requires technology proficiency, management accounting knowledge, and the ability to implement initiatives that enhance operations and liquidity. CFOs coordinate with financial controllers, finance departments, and other teams, ensuring reliable reports and insights for decision-making.