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To better understand this executive position within a larger context, it’s important to consider this inquiry: What is a CFO’s historical place in the evolution of corporate America?

At the beginning of the 20th century, financial concerns were quite a bit looser at American corporations, and the above-mentioned concept of a financial strategist didn’t really exist. However, there typically was a financial department, although its function was mostly centered on basic accounting and proper bookkeeping.

The main person in this role was hence called a financial manager (or a finance director or just a chief accountant, depending on the size of the organization) rather than a CFO with a strategic mindset. It can be easy to see why: Back then, there weren’t heaps of valuable data available to guide financial strategy. Only technological advances would usher in that era. Progressing from traditional number-crunchers to the C-suite would indeed take a few decades.

Following several years of routine internal bookkeeping (and very little, if any, strategic planning), the role of finance heads grew in complexity and loomed larger as corporations did as well in the mid-20th century. Plus, adhering to regulatory requirements became a bigger priority with the Securities Exchange Act of 1934. By this point, workers in these positions were deemed “controllers” (and often referred to as such, or “comptrollers” within governmental or nonprofit entities).

It was really in the 1960s that the title of chief financial officer — and the CFO job description — began to materialize and flourish. By 1978, the financial regulatory environment had become complicated enough to necessitate a more intensive role in the form of a full-on finance executive at most midsize to large organizations. By around this time, the CFO had evolved far beyond a bean-counter role at the turn of the century into an exec who’s holistically engaged with their organization’s operations.

In 1990, the significance of the CFO was established within the federal government with the Chief Financial Officers Act, which set out to refine aspects of financial management, accountability and disclosure at the governmental level by creating CFO positions within all major federal agencies.

Today, CFOs are typically known to be bona fide organizational leaders, with abilities to adapt to changes in business or nonprofit landscapes, while addressing relevant breakthroughs in technology and shifts in societal and environmental issues. There are CFOs who won’t hold back from learning new skills and aligning C-suite and board members on financial resources and feasibility while remaining sharply aware of the ESG (environmental/social/governance) climate and even fielding “ad hoc requests that they get from the other parts of the business,” as pointed out by global consulting firm .

You may realize by now that there’s no simple answer to What is a CFO?. Still, there are certain educational paths you can take to help prepare you for a chief financial officer job down the road. (We’ll get to those soon.) There are also skills that may be generally beneficial to a CFO. These are:

• Proficiency in accounting, reporting, financial analysis and budgeting
• Analytical prowess, along with vision and leadership know-how
• Ability to probe into financial risks — and then reduce said risks
• Adaptability (regarding market trends, technology and new business models)
• Communicative dexterity, which means you’re able to effectively communicate financial information to everyone: C-suite colleagues, employees in all departments, stakeholders and a board of directors (if applicable)
• A predictive sense of where technology might be going, especially in terms of fintech and data-management tools

Again, a strong sensibility for strategic planning will only enhance your capabilities and range once you enter this position. But how you maneuver your way to becoming a CFO will be based on your primary career objectives — and how your professional development unfolds.

So, what is a would-be CFO’s initial move toward attaining this coveted title? One option is to obtain a bachelor’s or master’s degree — preferably one that deals with business so it can prepare you with career-relevant skills. And if life, work or family has you in tangles, don’t fret: You can complete your degree online through ���۴�ý’s business degree program and then consider these postgraduate options as well:

• A Post-Master’s Certificate in Business Administration (CERT-D-BA)
• A Doctor of Business Administration (DBA)

If you’d like details about the online degree programs, contact UOPX to request more information.