For CPAs who want to position themselves as future CFO candidates, is the window of opportunity narrowing?
After all, in 2012, 55% of finance chiefs at S&P 500 companies were licensed CPAs. By 2022, that pool had dwindled to 43%.
The Pennsylvania Institute of Certified Public Accountants (PICPA) set out to discover what it could as to whether the skills and training of a CPA are still valued in a potential CFO. The short answer: Yes, but they’re far from enough in today’s world.
PICPA surveyed 320-plus executives in roles that have input into hiring a CFO. Almost half of them were CEOs, while talent and HR officers, COOs, presidents, vice presidents and CFOs themselves also provided their opinions.
A major portion of the exercise involved ranking the relative desirability of eight broad CFO competencies. Topping the findings was “financial acumen — the ability to manage the company’s finances effectively.”
Respondents at C corporations, S corporations, LLCs, sole proprietorships and nonprofits all identified financial acumen as most important when hiring a CFO. Only those at limited partnership were out of step, ranking it third.
Within each broad competency area, PICPA listed several sub-competencies, also in order of desirability. For financial acumen, the top sub-competency was capital management/strategy. That, in fact, was ranked first among the 79 sub-competencies measured across the eight broad competencies.
The next-most important sub-competencies within financial acumen included other core CPA responsibilities such as financial forecasting (which was ranked No. 2 among the 79 sub-competencies), operations/financial reporting, and accounts receivable.
PICPA noted that both of the top two sub-competencies among the 79 are future-focused. That provides a strong clue for aspiring CFOs: “What got you to your CPA may not get you to CFO.”
“Success in public accounting often comes from years of hard work, technical accounting knowledge and skills, and a careful compliance and attention to detail mindset,” PICPA wrote in its survey report. “These competencies may have cleared the path to corporate finance leadership once. Not anymore.”
To stand out, PICPA said, CFO candidates must build comprehensive skill sets that position them to drive strategy, plan for growth, and provide enterprise leadership.
Indeed, a key finding of the research was that leadership and strategy are not “soft skills.” In fact, “leadership/strategy — the development of high-performing teams and strategic goals” was ranked second among the eight broad CFO competency areas.
The top sub-competency there was critical thinking, which ranked fourth among the 79 sub-categories. “Critical thinking is a leadership and strategy skill that requires questioning, analyzing, self-reflecting, evaluating, and synthesizing,” PICPA wrote.
Interestingly, the lowest rank among the broad CFO competencies was assigned to “emotional intelligence — the individual skills of effective self-management.”
But do not let that deceive you, PICPA advised. Hiring managers may assume executive-level candidates have already mastered these skills.
