How To Become A Chief Finance And Operating Officer: What It Is and Career Path - Zippia (2024)

FAQs

How To Become A Chief Finance And Operating Officer: What It Is and Career Path - Zippia? ›

The educational requirements for a chief finance and operating officer are a bachelor's or master's degree in a relevant field such as accounting, business, finance, economics, or management. According to the data, 56% of chief finance and operating officers hold a bachelor's degree, while 36% have a master's degree.

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.

While there is no single track to becoming a COO, a few common career paths often lead to this position. Many COOs come from a business, finance, or law background and begin their careers as project managers or in executive roles such as vice president. Some COOs may start their career as managers of small teams.

They are not necessarily required to have a master's degree, but some do bring advanced degrees. Professional accounting and finance experience is most important, with a minimum 10 years on the job usually required. CFOs also commonly bring certifications in accounting, auditing or financial management.

An MBA or a degree in Business Administration is one of the most common and beneficial degrees for a Chief Operating Officer. This degree provides a comprehensive understanding of business operations, financial management, and strategic planning.

Becoming a certified public accountant (CPA) is the most common path to becoming a CFO. In fact, 45% of CFOs are CPAs.

Many organizations will require CFO candidates to have an MBA. This degree program in particular helps fully prepare students for leadership roles in the workplace.

Becoming a COO could take up to 15 years. By earning your master's degree, you'll stand out among your peers and gain the skills and knowledge necessary to be an effective COO. An MBA or a master's degree in management and leadership could be crucial as you prepare to move forward in your career.

In the US, COOs are predominantly male (76.6%) with an average age of 51 years old. The majority (89%) of these COOs are older than 40 years old, while the further 11% are between 30 and 40 years old.

They oversee day-to-day operations, implement strategic plans, and manage internal functions, working in harmony with the CEO. While the CEO sets the company's vision, culture, and brand identity, the COO ensures the practical realization of this vision, fostering a cohesive business culture.

Can you be a CFO without a CFA? ›

A CFO does not need to have a CPA, CFA, or MBA designation. But of the three, having a CPA designation does help dramatically . I've passed the CPA, and I can say that it is the most important designation to have if you're considering being a startup CFO.

At the age of 26, Watson became the youngest ever CFO of a NYSE-listed company. As a CFO, Watson says, it helps to be impatient. “If something needs to get done, I make sure it gets done, period—no excuses. A lot of people think patience is a good quality, but I would describe myself as a relatively impatient person.

But the CFO role is more an MBA job than a CPA job. Not that it would hurt, but a CPA is not a requirement.

The COO will usually carry out any communication required by the CEO. They are usually in charge of the internal affairs of the company. The CFO's liaising is only finance related. They are in charge of developing and maintaining relationships with investors, banks, and other financial institutions.

Chief operating officers are executives who manage and oversee the daily activities of their business. This role requires leadership, time management and problem-solving skills.

First finance roles

The data shows that most CFOs' careers began in similar sectors before evolving. An almost equal number of professionals got their start in accounting, corporate finance, and investment banking. It was less common for CFOs to have started their career in consulting.

Average age for CFOs in the US is 51 years old.

Advanced degree

MBAs (Master of Business Administration) are the most common Master's degrees among CFOs. MBAs are so popular (and useful!) precisely because the CFO role has expanded far beyond just accounting and reporting.