Certified Public Accountants (CPAs) seeking to advance to chief financial officer (CFO) roles must develop a broader range of skills beyond traditional financial reporting and compliance, according to a new report by the Pennsylvania Institute of Certified Public Accountants (PICPA), released on August 12, 2024.
The report, titled “2024 Corporate Finance Report: CPAs in the C-Suite”, surveyed 320 hiring managers, including chief executive officers, human resources officers, and executive recruiters. It found that while CPAs are still valued for CFO roles, they need to develop skills that include strategic planning, risk management, and technology oversight.
To meet the dynamic demands of today’s financial leadership roles, CFOs must possess forward-looking financial acumen, emphasizing capital management, financial forecasting, and cash flow management to strategize for future growth and stability. Effective CFOs must also excel in leadership and strategy, with strong leadership, strategic thinking, and team-building skills no longer considered ”soft skills” but essential competencies.
Further, emotional intelligence, although ranked lowest in priority, remains crucial for effective leadership, aiding in relationship building, team management, and balanced decision-making.
The PICPA report comes at a time when the accounting profession is undergoing significant changes, with technology and automation transforming the way finance teams work.
The report also highlighted the importance of industry-specific competencies, with different industries requiring unique skills from CFOs. For example, high-growth companies need financial management and risk mitigation strategies, while not-for-profits require expertise in managing unpredictable funding and limited resources.
To better prepare and differentiate themselves for CFO positions, the report recommends that CPAs pursue management roles, acquire industry experience, network, and practice critical thinking. It also suggests that CPAs take advantage of courses, build strategic skill sets, and volunteer as a CFO for a small business or not-for-profit organization to gain hands-on experience.
This article originally appeared in the August 15, 2024, edition of Accounting & Compliance Alert, available on Checkpoint.
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