This is a guest contribution from the Nielsen Valuation Group.
Becoming a CFO is a big but very realistic career goal if you enjoy numbers, strategy, and leadership. In simple terms, you get there by building a strong finance or accounting foundation, where you can accumulate years of hands-on experience and prove that you can guide a business, not just report on it.
This guide explains what a Chief Financial Officer actually does, how to become one (including fractional and non-traditional routes), what you need to study, and what the typical career path and next steps look like.
TABLE OF CONTENTS
What is a Chief Financial Officer?
A Chief Financial Officer is the senior leader responsible for the financial health of an organization. The CFO looks after cash flow, budgets, reporting and funding, but also plays a major role in shaping the company’s direction.
In practice, a CFO will:
- Design and run the budgeting, forecasting, and reporting processes
- Ensure accounts are accurate and comply with relevant standards
- Advise the CEO and board on investments, risks, and big strategic moves
- Work with banks, lenders, and investors to secure capital
- Lead the finance team and coordinate with other departments
How much does a CFO earn?
Because the role is so central, compensation is typically high. In the United States, for example, as of April 2026, the median annual salary of CFOs is around $437,720 or $654,306 with bonuses included. While in the UK, the average yearly CFO base salary is £120,000. Factors such as education, location, and experience largely influence how much a CFO can earn.
The potential for bonuses and long-term incentives makes the CFO role one of the few careers that could make you a billionaire, if you find your way into the right type of business.
Types of CFOs
Not every CFO role looks the same. You’ll often see three types:
Full-time CFO: This is the classic model. The CFO is a permanent member of the executive team, working full-time for one employer and overseeing everything from day-to-day accounting to long-term strategy. This is common in mid-sized and large organizations.
Interim CFO: An interim CFO steps in for a limited period, usually full-time. They might cover a sudden departure, help during a crisis, or lead the finance work around a major event such as a merger, turnaround, or IPO. Once everything's stable, they do a handover to a permanent hire.
Fractional CFO: A fractional CFO is an experienced finance leader who works with several companies on a part-time, ongoing basis. You'll have a specific number of days or hours per month, and they become part of the leadership team without being a full-time employee. This setup is popular with growing businesses that need senior support but cannot afford to offer a full-time salary.
All three roles use the same core skill set. The main difference is how much time the CFO spends on the business and how long.
It’s common to start as a full-time CFO and, as you gain experience and contacts, transition into interim or fractional CFO roles. These positions offer valuable insights into a variety of companies, and many consultants enjoy the opportunity to drive meaningful change, often within the first 90 days of an engagement.
What education do you need to become a CFO?
The starting point to becoming a CFO is usually a business or finance degree plus strong professional experience. Most CFOs have at least a bachelor’s degree in one of the following:
- Accounting
- Finance
- Economics
- Business administration or management, with a focus on finance
These programs teach you financial accounting, corporate finance, tax, audit, economics, and basic financial strategy — exactly the areas you need to develop the skills you can rely on later in your career.
Many Chief Financial Officers also complete postgraduate study, such as an MBA or a Master’s in Finance or Accounting.
On top of formal education, employers often look for professional certifications. For example, a CPA, a CMA, or a CFA.
You don’t need every qualification on the list, but one well-chosen certification can set you apart from other candidates with similar degrees.
How to become a fractional CFO
If you like variety, autonomy, and the idea of working with several clients, becoming a fractional CFO can be a smart move. And for some, a quicker way to gain CFO experience.
A straightforward path to becoming a fractional CFO starts with building a strong finance-focused career in roles like senior accountant, or finance manager or controller, where you can prove you can manage budgets, close the books, and communicate clearly with non-finance teams.
Gaining experience in fast-growing or changing businesses, whether through fundraising, system upgrades, or turnarounds, makes you especially valuable to clients who need stability during moments of change.
It also helps to specialize rather than remain a generalist, focusing on a niche such as SaaS, nonprofits, or manufacturing, and being clear about the outcomes you deliver, from tighter cash control to investor-ready reporting.
Most fractional CFOs also work flexibly, often operating as a virtual CFO and joining leadership meetings remotely, offering part-time executive support on a schedule that suits both sides.
Over time, you can build a portfolio career, combining several fractional clients, project work, and perhaps board or advisory roles.
Is it possible to become a CFO without a degree?
While it’s more challenging to reach the CFO level without a traditional degree, it’s entirely possible in smaller, fast-growing, or founder-led organizations. The key is to build strong practical experience, pursue alternative credentials such as accounting or finance certifications, and consistently deliver measurable results that show you can improve profitability, strengthen cash flow, and lead major projects.
Choosing environments that value hands-on ability over formal academics, like SMEs and start-ups, can accelerate your path. Strong networking also matters: many CFOs land opportunities through referrals, so building relationships with founders, CEOs, and investors can open doors that a degree doesn't typically provide.
The skills you need to become a CFO
To step into a CFO role, you’ll need more than technical finance knowledge. Modern Chief Financial Officers are expected to be strategic partners and strong leaders. Key areas to focus on include:
- Technical and financial expertise: Strong accounting knowledge, confident financial modeling, and the ability to interpret and challenge financial statements.
- Commercial awareness: Understanding how the business makes money, its customers, markets, and competitive pressures.
- Leadership and communication: Leading teams, influencing senior stakeholders, and explaining complex information clearly.
- Calm, practical problem-solving: Making balanced decisions under pressure when cash, compliance, or major deals are at stake.
Career path & next steps
Once you set your sights on the CFO role, it helps to understand how people usually reach it. For most professionals, becoming a CFO takes around 10–15 years, progressing from early technical roles into management positions and eventually senior leadership, with the timeline varying based on career choices, company type, and how quickly you take on broader responsibilities.
Many start in public accounting or auditing, while others progress through corporate finance roles such as FP&A, treasury, or controller positions. Some build sector-specific experience in areas like technology, healthcare, or manufacturing. A typical path moves from junior accountant to senior analyst, then into management roles before stepping into head-of-finance or controller positions, and eventually the CFO seat.
From there, some CFOs move into the CEO role. It’s a natural progression in many organizations because CFOs already understand the company’s financial engine, work closely with boards and investors, and are used to balancing growth with risk.
Others choose a more flexible route by moving into fractional or consulting work. This can increase earnings, offer more control over your schedule, and let you focus on high-impact projects like fundraising, reporting improvements, or major transactions.
CFOs can also move into related fields such as business valuation methodology, M&A, private equity, venture capital, or corporate development. These areas make full use of the analytical and strategic strengths developed in senior finance roles while offering a fresh set of challenges.
A final advice
If you’re serious about becoming a CFO, think of it as a long, strategic game. Choose education that fits your goal, gather experience that stretches you, and keep looking for chances to move from “keeping the score” to helping decide how the game is played. Over time, the shift from back-office expert to trusted business partner is what will put you in the Chief Financial Officer’s chair.