When it comes to the most valued certifications or degrees when hiring a CFO, masters of business administration are ranked higher than CPAs, according to a
On a scale of zero to 100 (zero meaning "not important," and 100 meaning "extremely important"), the CPA certification ranked third at 75.3, trailing behind bachelor's degree in a related major (78.1) and master of business administration (76.8). Following the CPA credential was certified management accountant (73.7), chartered financial analyst (71.8) and master of science in finance (71.6).
PICPA collected responses from over 320 hiring executives, including CEOs, chief human resource officers and executive recruiters across a variety of industries at companies with annual revenue of $5 million to over $500 million. The most important general competencies according to respondents, in order of importance, are as follows:
- Financial acumen: The expertise to manage the company's finances effectively;
- Leadership/strategy: The development of high-performing teams and strategic goals;
- Compliance and regulatory knowledge: Ensuring organizational adherence to laws, regulations and internal policies;
- Technology and analytics: Data-driven decision making and cutting-edge technology proficiency;
- Industry-specific knowledge: A deep understanding of market conditions and how they influence the company;
- Communication: Engaging in effective relationships with both internal and external stakeholders to maintain alignment with corporate strategy;
- Business acumen: An understanding of the business landscape to lead the company effectively; and
- Emotional intelligence: The individual skills of effective self-management.
While CPAs are still highly valued for CFO roles — strong in the top-cited competency, financial acumen — it is not enough for CPAs to just know how to report past results. The ability to forecast and manage future finances is also paramount for CFO candidates, including expertise in capital management, financial forecasting and cashflow management. CPAs must also expand their skill sets beyond traditional accounting to include mastery of strategic planning, risk management and technology oversight.
CPAs shouldn't overlook the soft skills, either, despite their lower ranking in priority. The ideal CFO candidate excels in leadership, strategic thinking and team-building, and supplements these vital abilities with emotional intelligence.
