How To Become Chief Financial Officer in India – Arif Patel
Planning, implementing, administering, and overseeing all financial activities of a firm fall within the purview of the chief financial officer (CFO). They monitor cash flow and financial planning, evaluate the company’s financial strengths and weaknesses, and suggest remedial measures to help the company become efficient with its finances.
Best Professional Courses on CXO
| Offering College | Course | Website |
| Indian School of Business | ISB Chief Digital Officer | Visit |
| Indian School of Business | ISB Chief Technology Officer | Visit |
| IIM Lucknow | IIML Chief Marketing Officer Programme | Visit |
Arif Patel said, Students can enrol in management courses like BBA and MBA or finance courses at the undergraduate and graduate levels to become a chief financial officer CFO. Many prominent management colleges, including the IIMs and other prestigious schools like MDI Gurgaon, JIMS Rohini, Xavier Institute of Management, IMT Ghaziabad, Amity University, etc., provide these courses. The majority of the time, management entrance exams like the IPU CET, DU JAT, and NMIMS NPAT are used to determine admission to these colleges for undergraduate and postgraduate programmes, respectively.
Who is a CFO?
Chief financial officers (CFOs) are top executives in charge of managing a business’s finances. They are typically in charge of handling the business’s finances, determining its financial strengths and weaknesses, ensuring that the business remains financially secure and improving the business’s financial position. Examining the financial performance and position of the business and making recommendations for improvement are the most critical tasks for the Chief Financial Officer. Monitoring cash flow and creating a budget for the business are additional duties. The duties of a chief financial officer are similar to those of a controller or treasurer in that they are responsible for managing the accounting and finance divisions and ensuring that the company’s financial reporting is accurate and executed efficiently.
CFO Course Highlights
| Particulars | Details |
| Course Name | Chief Financial Officer (CFO) |
| Course Sector | Business and Accounting |
| Course Eligibility | Candidates must have a minimum of 10+2 with a minimum of 50% of pass marks. |
| Job opportunities | CFO, Business Analyst, Investment Banker, Financial Analyst, Executive in Business Development |
| Average salary | Rs.3,50,000 |
Steps To Become CFO
To get admitted to a finance or accounting course, a candidate must complete the following steps:
| Particulars | Details |
| Making Decisions | Students must decide before they reach the tenth grade and begin preparing for a career as a chief financial officer. A candidate must choose their course of study in order to be able to prepare for one of the many entrance exams required to get admitted to that programme. For them to be accepted into the programme, they must perform well on their 10th and 12th-grade examinations. |
| Selection of subjects | To pursue this vocation, a candidate should have done well in school in the 12th grade. To get into a good institution, students must pick what disciplines they wish to pursue further. However, students wishing to pursue a BBA, MBA, or BBM would be given an advantage if they have prior knowledge of the business. |
| Preparation | Preparing for the Entrance Exam: Few colleges offer admission to bachelor’s and master’s programmes based on the results of the Entrance Exam. Therefore, a candidate should study in accordance with the most recent exam syllabus. To be admitted to the chosen course, all portions must be well-prepared. |
| Selection of suitable college | Students must choose a college after conducting adequate research, and they should aim to select an institution that offers opportunities for students to gain practical experience and workplace exposure through internships. Bachelor’s and master’s degrees in business, finance, and accounting are offered by a number of universities. Therefore, an applicant must pick the best university for himself. |
Role of CFO
People with careers as chief financial officers supervise a team of financial controllers and analysts and make sure that the company’s rules are upheld. The duties of the chief financial officer also include planning for firm fundraising and monitoring and evaluating the capital structure. The chief financial officer’s duties also include managing all finance personnel and ensuring that the organisation’s activities have an adequate cash flow. A team of financial controllers and analysts are under the direction of the chief financial officer, who also makes sure that the law and the company’s regulations are upheld. The chief financial officer’s job description calls for accurate current and forecasting reports, as well as the setup and management of the business’s financial IT system.
Reporting
The Chief Financial Officer offers daily reports throughout the fiscal year to help businesses assess the goods and services offered in a particular sector. The data in reports, which includes marketing strategies, financial and accounting assistance, and strategic analysis, can be used to assess prospective courses of action.
Plan strategically
A strategy is a plan of action designed to promote the priorities and objectives of an organisation. To plan strategically all these facotrs need to be taken into account; financial reporting, market dynamics and stakeholder demands. The chief financial officer who participates in strategic planning should set goals, determine the activities that employees need to do, and inspire the company to achieve those goals.
How To Become Chief Financial Officer in India
In India, becoming a CFO is a fairly simple process, but it also requires a lot of merit and commitment. Since becoming a CFO demands a lot of focus and concentration, they need mentally prepare for the position.
| Course | Fees |
| School Level | Students must successfully finish their examinations in the commerce stream with mathematics and earn at least a 50% grade from any accredited Indian board. |
| Entrance Exams | Many colleges and agencies administer admission tests. Admission is granted mostly on the basis of the applicants’ performance after completing the entrance exam. A 10 + 2 exam must also be passed in order to be admitted to several universities. The entry requirements for each university differ in terms of grade requirements and registration procedures. |
| Undergraduate Level | After successfully finishing their 10+2 in the commerce stream, students must engage in bachelor’s degrees in order to become Chief Financial Officers. Below is a list of the bachelor’s degrees needed to become a chief financial officer Banking and Insurance B.Com. BBA stands for Bachelor of Business Administration. B.Com. in Finance and Accounts |
| Postgraduate Level | After completing a bachelor’s degree programme successfully, students have a variety of possibilities for advancing their future jobs. The two main detours are listed here to assist you in making the best decision with the fewest obstacles. The first choice: Students can enrol in a postgraduate curriculum that will prepare them to become chief financial officers after receiving their bachelor’s degree. For future potential, the chief financial officers also have doctorates.The second choice: Students will start working for the company as entry-level employees once they have received their bachelor’s degree. When students have several years of professional experience, they will instead apply to postgraduate programmes. |
Skills Required For Chief Financial Officer
| Skills | Description |
| Communication skills | Effective communication is paramount for a CFO. They must adeptly convey complex financial matters to diverse stakeholders, fostering understanding and informed decision-making. Persuasive presentation, collaboration, and aligning financial insights with strategic goals are essential for successful leadership and organisational growth |
| Financial understanding | Having a strong financial understanding is crucial for the Chief Financial Officer. In order to better grasp financial problems, he or she should be able to keep an eye on the present investment market, financial issues, and interest rates. |
| Accounting Proficiency | Chief financial officers must possess accounting knowledge in order to work effectively in the financial industry. He or she is also skilled in budgeting, general ledger maintenance, cost analysis and reduction, cash flow management, and bank statement reconciliation, among other things. |
Chief Financial Officer Job Outlook
Experienced and skilled chief financial officers are in high demand among banking institutions. With India emerging as a substantial global market and witnessing a surge in global activities like innovations, partnerships, and acquisitions, the requirement for these professionals remains substantial. The competitive landscape for chief financial officer positions is expected to intensify due to the increasing significance of these roles. Those candidates boasting exceptional academic achievements, noteworthy professional histories, and distinct aptitudes will stand a better chance of securing these coveted positions.
Frequently Asked Questions
Question: What does a chief financial officer do?
Ans: An executive with senior status who is in charge of managing a company’s financial operations is known as the chief financial officer (CFO). A company’s chief financial officer (CFO) often occupies the third-highest position and is crucial to its organisational plans.
Question: Who has more authority, the CEO or the CFO?
Ans: The Chief Financial Officer, or CFO, is in control of the business’s budgeting, financial reporting, and financial operations, making him or her the person with the highest-ranking financial position in any organisation. The CEO, however, is in charge and at the top of the hierarchy. The CEO is directly responsible for the CFO and other staff members.
Question: A Chief Financial Officer is an accountant, right?
Ans: Yes, a Chief Financial Officer (CFO) is often associated with accounting since they are responsible for overseeing an organization’s financial operations and strategy. However, the role of a CFO goes beyond just accounting. They play a crucial role in financial planning, analysis, risk management, and strategic decision-making. CFOs are responsible for managing a company’s financial health, ensuring accurate financial reporting, optimizing financial resources, and providing insights to drive business growth. While a strong background in accounting is valuable for a CFO, their responsibilities encompass a broader range of financial and business functions.