What is a CFO? Everything you need to know
What is a CFO?
A Chief Financial Officer (CFO) is the most senior financial leader in a business. Sitting at the C-suite level and reporting directly to the CEO, the CFO is responsible for the overall financial health, strategy, and stability of an organisation. From setting budgets and overseeing financial reporting to managing investor relations, the CFO plays a critical role in guiding business growth.
At Marks Sattin, we have over 30 years’ experience connecting high-calibre CFOs and finance executives with ambitious businesses. That is one of the reasons we are a trusted to source the highest quality and experienced CFOs and Financial Directors for investor-led businesses, usually going through change.
We work with a wide range of private equity-backed and privately owned businesses across all sectors and locations. So if you are on the search for a CFO or interested in landing your next CFO job, Marks Sattin is here to help.
What does a CFO do?
A CFO’s responsibilities are diverse and critical to the financial health and success of a business. Everything they do and every decision they make is with the company’s overall objectives and goals in mind.
Here are some key responsibilities of a CFO:
- Financial strategy - they set the company’s financial direction and long-term vision, this includes budgets, capital management, forecasting, and more.
- Financial analysis - they analyse financial data to inform business decisions and ensure that resources are allocated appropriately.
- Risk management - they identify, assess, and manage financial risks that could affect the organisation’s stability or profitability. This allows them to plan ahead and avoid such issues and stay on track.
- Financial reporting - they oversee that all financial reports are transparent and accurate as they are shared with stakeholders and important for corporate governance.
- Stakeholder management - they manage financial expectations within the C-suite and help to make informed decisions to support the overall strategy. CFOs also interact with external stakeholders such as investors, the board of directors, and regulators.
- Managing finance teams - they are the head of finance so manage employees such as accountants, payroll, and budget staff.
What qualifications does a CFO need?
CFOs need extensive experience in their field as well as in leadership positions. On average, CFOs have 8 or more years of experience.
The qualifications needed depend on the industry, company size, and the requirements of the company. However, there are some general requirements that are expected from CFOs:
- A bachelor’s degree in finance, accounting, business administration, economics, or a related field is usually a minimum requirement.
- Advanced degrees, such as a Master of Business Administration (MBA) or a Master's in Finance (MSF), are a bonus as they enhance core skills and knowledge.
- In terms of prior experience, common roles include accounting, financial controller, financial director, or director of operations. It is important to remember that there are many paths you can take to get to this career destination.
- Often CFOs seek to enhance their credentials by adding more certifications to their CV. For example, the Certified Public Accountant (CPA), the Chartered Global Management Accountant (CGMA), or the Certified Treasury Professional (CTP).
Marks Sattin’s specialist consultants work closely with professionals to align their skills and career aspirations with the right CFO opportunities.
How do you succeed as a CFO?
To succeed in the role, CFOs must balance technical knowledge with the ability to act as a strategic partner to the CEO. They must keep pace with evolving regulations, digital transformation, and investor expectations, all while driving long-term business value.
Many CFOs succeed by leveraging diverse career experiences — from audit and operations to private equity and investment banking — which gives them the breadth of knowledge needed to make an impact.
What skills do you need to be a CFO?
The most successful CFOs bring together technical expertise with strong leadership and communication skills. Key CFO skills include:
- Leadership - to guide the finance team and collaborate with other teams and departments.
- Crisis management - to navigate financial challenges and find effective solutions.
- Interpersonal skills - to build relationships and collaborate effectively with board members, investors, and other stakeholders.
- Technological proficiency - to leverage financial software such as data analytics tools or payroll software to streamline processes.
- Ethical integrity - to maintain an unwavering commitment to ethical conducts in reporting and decision making.
Partner with Marks Sattin for CFO jobs
Marks Sattin is trusted by private equity-backed and privately owned businesses across the UK and Ireland to source the best finance leaders. Our Investor-led CFO & Finance Executive Search team, led by Tracey Alper, specialises in recruiting CFOs, finance directors, and senior finance executives for businesses undergoing growth or change.
Whether you’re a business seeking an experienced CFO or a professional ready for your next leadership challenge, we’re here to help.
Learn more about how we can help you to recruit and be hired as a CFO.
