Yes, it is possible to become a CFO as a tax accountant, though it requires transitioning from technical tax compliance to strategic financial leadership. While tax skills are valuable, the role requires shifting focus toward GAAP reporting, financial planning and analysis (FP&A), and corporate strategy.
Accountants become CFOs through a combination of hard work, dedication, and the long-term pursuit of their career goals. To even be considered for the position, they must have experience in financial management and analysis, as well as professional certifications in the field.
While traditional accounting qualifications are valuable, they are not mandatory for becoming a successful CFO. The modern CFO job requirements demand a broader skill set—one rooted in leadership, commercial insight, and strategic thinking. Focus on developing those, and the role is well within your reach.
Generally speaking, future CFOs begin their careers either by pursuing accreditation as accountants or by assuming a series of operational finance roles (typically without going on to obtain a CPA or equivalent designation).
Yes, a CFO (Chief Financial Officer) is a higher-level executive role than a CPA (Certified Public Accountant), as a CFO focuses on overall financial strategy and leadership, while a CPA is a licensed professional specializing in accounting, auditing, and compliance; many CFOs are CPAs, but they add business strategy and operations to their accounting expertise, making the CFO position a more senior, big-picture role.
While the professionals we analyzed took various paths to reach CFO, the data says that the most straightforward path to the CFO seat is: Go to a top 100 school, get a bachelor's degree in finance, and then get an MBA.
The share of US CFOs with an accountancy background is also decreasing. In 2012, 55% of S&P 2000 CFOs were licensed Certified Public Accountants (CPA), but by 2022 that number had dropped to 43%, according to data by recruitment agency Russel Reynolds.
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.
While both credentials offer specialized expertise, the best fit for a CFO position typically depends on your company's needs: a CPA brings a strong foundation in accounting and compliance, while a CFA delivers deep insights about investment management and financial strategy.
The CFO role demands a strong strategic mindset, a quality that is not typically associated with accountants. While accountants excel at analysing data and ensuring regulatory compliance, they may need to develop their strategic thinking abilities to succeed as a CFO.
Their survey found 52.5% of CFOs had MBAs, while 38.5% were CPAs. The percentage of CFOs without either credential was 21.5%.
The U.S. Bureau of Labor Statistics (BLS) lists multiple professional certifications and licenses relevant to financial managers. Examples include chartered financial analyst, certified corporate financial planning analysis professional, and certified public accountant (CPA) credentials.
Entry-level CFO Salary: An entry-level CFO has around 0-5 years of experience and can expect a salary range between ₹12 – ₹25 lakhs per year. Mid-level CFO Salary: With an experience of 5-15 years, mid-level CFOs can expect between ₹25 – ₹75 lakhs per year.
Work Qualifications to Become a CFO
Most commonly, someone will have 8-10 years of experience in a senior role at a company before getting promoted to CFO. This amount of work is usually required to prove that you have the right skills and knowledge you need to do the job.
From Junior Accountant to CFO: How to Grow Your Career
In 2023, 42% of new CFOs at FTSE 100 companies didn't have an accounting qualification. In the US, CPA-certified CFOs dropped from 55% in 2012 to 43% in 2022. The trend is clear: Perfect credentials are overrated. Take Eric Kutcher, CFO of McKinsey & Company.
It is difficult to determine which of these careers offers a higher salary, as the salary of a CA or CPA can differ based on several factors. However, generally, CAs tend to earn more than CPAs in India.
Let's take a look at the breakdown of the factors that affect how much of a mortgage you can manage. A $300,000 annual income could allow you to afford a home priced around $925,000, but factors like debt levels may affect budget. Making a large down payment might allow some buyers to afford a home of $1,000,000.