State CPA societies spotlight top competencies for CFOs

The Massachusetts Society of CPAs, in partnership with the Indiana Society of CPAs, the Tennessee Society of CPAs and CPA Crossings, released a report Wednesday highlighting the skills and competencies deemed essential for aspiring CFOs to succeed in today’s competitive business landscape, amid a decline in the percentage of S&P 1000 CFOs who are licensed CPAs. 

The 2024 Corporate Finance Report, “CPAs in the C-Suite: Most Wanted Competencies for Finance Leaders,” is based on a survey of more than 320 hiring executives, including CEOs, chief human resource officers and executive recruiters. The survey assessed eight major skill categories and over 80 specific subcompetencies, offering a detailed view of what hiring managers value most in CFO candidates.

Some of the main findings involved:

• Evolving CPA roles: While CPAs remain highly valued for CFO positions, there’s increasing demand for candidates with a broader range of skills beyond traditional accounting. Successful CFOs must now excel in strategic planning, risk management, and technology oversight.
• Future-focused financial acumen: Effective financial forecasting and capital management are crucial. CFOs need to proactively strategize for growth and stability, instead of simply reporting historical financial data. 
• Leadership and strategic excellence: Exceptional leadership, strategic thinking, and team-building capabilities are essential for driving organizational success and securing a top leadership position.
• Emotional intelligence: Emotional intelligence remains a key leadership trait, supporting effective relationship-building, team management, and balanced decision-making.
• Industry-specific expertise: CFOs must tailor their expertise to the specific needs of their industry. High-growth sectors require advanced financial management and risk strategies, while nonprofits need skills in managing fluctuating funding and resource constraints.

“The landscape for CFO roles has evolved significantly in recent years,” said MassCPAs president and CEO Zach Donah in a statement Wednesday. “Our report provides valuable insights for CPAs who are aspiring to take on top leadership positions. By understanding the key competencies that hiring managers are seeking, CPAs can better position themselves for success.”

CPAs can still “get a seat at the table” in a CFO position, but the report noted what got them where they are now might not get them to the CFO position. More skills are likely needed. Beyond financial reporting, modern CPAs must build comprehensive skill sets that position CPAs to drive strategy, plan for growth and provide enterprise leadership. 

“While CPA credentials provide a strong foundation, aspiring CFOs must cultivate a diverse set of competencies to meet the dynamic demands of today’s financial leadership roles,” said the report. “Strategic planning, advanced financial acumen, leadership and adaptability are critical for those looking to secure a seat at the executive table.”

For a copy of the report, visit masscpas.org/financereport.