Does a CFO need to have his CPA or CFA? (2024)

FAQs

Does a CFO need to have his CPA or CFA? ›

A CFO does not need to have a CPA, CFA, or MBA designation.

While having a CPA designation can be beneficial in some cases, it's not a prerequisite for the role of a Chief Financial Officer. A strong background in finance, combined with strategic thinking and leadership skills, is typically more important for a CFO than a specific accounting certification.

“The CFO is no longer considered just the finance guy or gal.” Accounting experience is less vital: In years past, Branthover said, clients would insist that CFOs have a public background and hold CPA licenses or CFA certifications. Now, she said, the role is “much more business-focused than accounting-focused.”

There are many roles in corporate finance that a CFA helps prepare a candidate for, including research analysts, equity analysts, portfolio managers, chief financial officers, and corporate financial analysts.

You can increase your chances of becoming a CFO with or without a CPA license by having the well-rounded experience and skills that most companies now look for in that role.

38.5% of sitting CFOs in 2023 were CPAs, up from 34.5% the previous year; 52.5% of sitting CFOs had MBAs. The percentage of CFOs without either CPA or MBA credentials stood at 21.5% in 2023, markedly down from 30.2% in 2017.

To become a CFO, you must start with a strong finance, accounting, or business background. A bachelor's degree in any of these programs will teach you management fundamentals, including marketing and strategic thinking skills. Next, it is crucial to gain work experience as a financial analyst, accountant, or similar.

To become a CFO, you need a degree in a field like accounting, or something related to finance/accounting. Some people get a degree in business and then an MBA, but it is recommended to get education and experience in accounting/finance. After all, that is what a CFO role is all about.

In those cases, an MBA is usually the better choice since they can “sell” the company to potential investors and steady the operations for future growth. However, a CPA is generally the better option for the CFO role if the CEO oversees a public company.

High Salary

In a C-suite executive role, the chief financial officer is the second most important person after the chief executive officer and a business partner with the CEO. One of the primary benefits of becoming a chief financial officer is that they are well compensated and have stock options.

Is CFA harder than CPA? ›

CFA vs CPA Exam difficulty

Both are challenging and require gaining skills and knowledge in complex topics. However, the CPA Exam generally requires less studying - around 80 to 120 hours per section compared to 300 hours per section of the CFA Exam, and the CPA Exam also has a higher pass rate.

CFA Charterholder vs. CPA Salary. Salaries can vary widely for both CFAs and CPAs based on location, experience level, and company size. That being said, according to Payscale the average salary for a CFA is $102,000 and the average salary for a CPA is $94,000.

In India, the average salary paid to a CFA is approximately Rs. 9, 00,000/-. Freshers are paid Rs. 50000/- per month in commercial cities like Gurgaon and Mumbai.

There are fewer CFOs today who began their careers at the Big Four accounting firms such as Ernst & Young, KPMG, Deloitte and PricewaterhouseCoopers, while the number of CFOs who hold CPA certifications has shrunk as well. In 2012, 55% of S&P 2000 CFOs had CPA designations. By 2022, that figure was down to 43%.

Generally, no, a CFO is not the same as an accountant. Accountants handle bookkeeping tasks and tax filings. Meanwhile, a CFO focuses on the company's financial future, creating forecasts.

Most CFOs have an MBA with a focus on finance or administration of business. As most of them come from the accounting stream, they usually have the CPA certification, and some have the Chartered Financial Analyst certification.

In 2012, 55% of S&P 2000 CFOs had CPA designations. By 2022, that figure was down to 43%. The bad news: You don't have an accounting degree.

Both the CPA and CFA are prestigious designations that show skill and competency. The primary difference between the CPA and CFA is that the CPA is an accounting credential, while the CFA is for financial analysis. While they are related in many ways, accounting and finance are ultimately separate fields.

The most common professions for those who hold the CFA designation are portfolio managers and research analysts, followed by a smaller percentage who work as chief executives and consultants.

A CPA is more likely to work as a consultant, IRS agent, internal or external auditor, tax accountant, and public accountant. A CMA is more likely to work as a management accountant, corporate controller, consultant, chief financial officer (CFO), and cost accountant.