How to Become a Chief Financial Officer?

To become a CFO, one requires a strong educational base and extensive experience in the related fields. Read the article below to know the latest Chief Financial Officer (CFO) salary trends in India. Explore average pay, equity, and what factors influence CFO compensation in 2025.

Becoming a CFO requires a strong foundation in finance or accounting, coupled with a strong education and extensive experience in finance and accounting leadership roles. The Chief Financial Officer or CFO, is an important executive leader who oversees an organisation’s financial operations and develops financial strategies to ensure the company’s long-term financial health. It is the CFO’s responsibility to decide how an organization can best allocate resources to gain and maximize profits.

In other words, the CFO has complete control over the company’s financial operations and business strategy. CFO is a top-level position in an organization who works alongside CEO and other executives. In the article below, we have discussed how to become a Chief Financial Officer and their roles, key skills, qualifications, salary, career path, etc.

What Does A CFO Do?

CFOs are responsible for overseeing fiscal activities, and business and financial strategies and making informed decisions to manage capital structure and optimise operations alongside the CEO and other C-suite executives. Chief Financial Officers are professionals who develop and forecast long-term plans for an organization’s profitability, create financial plans and reports, and manage every aspect of the financial decision-making of the organization. Simply, the following are the major responsibilities of the CFO in a company:

• Making informed financial decisions
• Developing and verifying financial reports
• Monitoring cash flow
• Assessing markets and planning financial forecasts
• Managing the investment portfolio of the company
• Developing long term investment plans and budget
• Oversee fiscal activities including audit, reporting and budgeting

CFO vs CEO: Know the Difference

Take a look at the table below to clearly understand the difference between the roles and responsibilities of a CEO and a CFO in an organization:

Chief Financial Officer Qualifications: Education and Certifications for Becoming a CFO

Individuals should follow a structured career path if they aspire to become a CFO. This can be:

• Bachelor’s degree: Students should pursue a bachelors degree preferably in fields such as finance, accounting, economics or business administration. They should know that scoring well in the bachelor’s degree will set the path right to becoming a CFO. Students can opt for degrees such as BCom and BBA with specializations in finance and accounting, economics or business administration.
• Advanced Degrees: To accelerate career growth, a masters degree in finance or MBA in Finance can be a crucial stepping stone in the journey to become a CFO. Advanced degrees such as an MBA in Finance, can offer leadership training and strategic financial insights.
• Professional Certifications: Globally recognized credentials such as Chartered Financial Analyst (CFA), Certified Public Accountant (CPA), and Certified Management Accountant (CMA) will enhance strategic management and financial planning skills of the students, thence preparing them for the role of a Chief Financial Officer.

In a survey by Russell Reynolds of Fortune 100 CFOs, it has been revealed that 54% pursued an MBA, and only 12% of the CFOs acquired pursued a UG degree from a top-tier university.  Therefore, while education is an important factor in the CFO journey, quality work experience and professional track record is a strong indicator of a potential CFO.

CFO Career Path

Take a look at the table below to know a typical career path for CFO:

How to Become a CFO

To become a CFO, students need to have a professional background and specific skill sets. Some organizations prefer certain degrees or financial certifications as well. Students can follow the below mentioned steps and understand how to become a CFO:

# 1: Completing Education

It is important for the students to pursue a relevant education when embarking upon the journey of becoming a CFO. Many organizations require the candidates to hold a bachelor’s degree in relevant finance-related field.

Students can consider pursuing BBA, BCom, BSc in Finance, Accounting, Economics, or other business fields. They can also opt for short-term finance courses to further refine their skills and have a deeper knowledge of budgeting, analysis, compliance and risk management, as they gain experience.

# 2: Acquiring Experience

Acquiring industry experience is crucial as it will help the students build expertise in the industry after they graduate. An internship during graduation or post-graduation will also add another feature to the aspirants’ hats.

After graduation, students can search for entry-level positions in companies which have potential professional growth options and help build important skill sets to kickstart their career.  Take a look at the table below to know best entry-level jobs for finance graduates:

*salary data taken from ambitionbox.com

# 3: Pursuing Leadership Opportunities

Having outstanding leadership skills is one of the remarkable qualities of the CFOs. Hence, having strong leadership skills is important as CFOs hold position of high authority. This will also the students to have a hands on experience in team building skills and people management.

# 4: Considering Advanced Education

Pursuing advanced education after gaining some leadership experience can make the career path towards becoming a CFO a stronger one. Students can opt for pursuing postgraduation such as MBA in Finance, or certifications such as CFA, CMA, CA, CPA, etc. Pursuing such degrees will open up more opportunities and growth areas for such individuals. This will also help them in developing business and financial management skills and apply knowledge in practical ways.

# 5: Networking

Networking is a very strong in every profession including CFO. As one gains professional experience, building a professional network within the industry can be very beneficial in becoming a company’s financial leader.

Individuals can network at industry events or by joining professional organizations which help meet fellow professionals and industry leaders and big shots. This will aid the student’s professional development and open doors to professional development, thus helping them improve their career.  

Members of the CFO’s Team

A CFO is a C-suite executive and works with the top executives of the company. The following are the core members of the CFO’s team:

• Controller: A controller often holds a CPA certification or an MBA and runs day to day accounting and financial operations. They create financial reports, account payables and receivables, and payroll.
• Treasurer: The treasurer in a company is responsible for liquidity of funds, debt and assets. They may include financial investments, physical assets, etc.

Chief Financial Officer Salary

The track record of an individual speaks for itself when it comes to salary of a professional. If a person’s goal is becoming a CFO, then they must know how to build their career and network. Moving to the C-suite executive level position takes years. An average age of the CFO is 50 years and above. The average salary of chief financial officer in a month in India is approximately between INR 1.3 lakh to INR 1.5 lakh. Annually, the salary range is between INR 22 LPA to INR 101 LPA.

Top Recruiters for CFO in India

Given below is the list of top recruiters in India for CFOs:

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