What Does a CFO Really Do — and How Can a CA Reach There?

Many CA students dream of becoming a CFO (Chief Financial Officer) one day.
People say it is a powerful role, a respected position, and a very high-paying job. But when students are asked a simple question — what does a CFO actually do? — most answers are unclear.

• Some think a CFO only checks accounts.
• Some think a CFO only signs financial statements.
• Some think a CFO is just a senior accountant.

All these ideas are incomplete.

Who Is a CFO? (Explained Simply)

A CFO is the top finance leader of a company.

In simple words:

• A CFO looks after all money matters of the company
• A CFO helps the company grow safely
• A CFO helps the CEO take big decisions
• A CFO ensures the company does not face financial trouble

If the CEO decides where the company should go,
the CFO decides whether the company can afford to go there.

Why a CFO Is Not Just a Senior Accountant

This is very important to understand.

An accountant mainly works with:

• Past transactions
• Bookkeeping
• Accounting entries
• Compliance and reporting

A CFO works with:

• Future plans
• Business decisions
• Risk management
• Growth strategy

Accounting shows what already happened.
A CFO focuses on what should happen next.

That is why a CFO role needs much more than accounting knowledge.

What Does a CFO Really Do? (Detailed Explanation)

Let us now understand the real responsibilities of a CFO, one by one.

Managing Cash Flow (Most Important Role)

Many students think profit is everything.

In reality, cash is more important than profit.

A company may show profit on paper but still fail if it does not have cash to:

• Pay salaries
• Pay rent
• Pay suppliers
• Pay loan EMIs

A CFO tracks:

• How much cash is available today
• How much cash will come this month
• How much cash will go out
• Whether the company will face shortage in future

The CFO plans cash so that the company never runs out of money.

Controlling Company Expenses

Every department wants money:

• Marketing wants ads
• Sales wants incentives
• Operations wants machines
• HR wants hiring

If everyone spends freely, the company will suffer.

The CFO decides:

• Which expenses are necessary
• Which expenses can be delayed
• Which expenses should be reduced

This does not mean stopping growth.

It means spending wisely, not emotionally.

Budgeting and Financial Planning

A CFO prepares budgets and financial plans.

A budget answers questions like:

• How much can we spend this year?
• How many people can we hire?
• How much sales do we need?

Financial planning helps the company:

• Prepare for good times
• Survive bad times
• Avoid sudden financial shocks

This is long-term thinking, not short-term accounting.

Helping in Business Decisions

Before any big decision, the CFO is involved.

For example:

• Launching a new product
• Entering a new city
• Opening a new branch
• Buying another company
• Taking a big loan

The CFO checks:

• Cost involved
• Expected benefit
• Risk involved
• Worst-case loss

The CFO does number-based decision making, not guesswork.

Dealing With Banks, Investors, and Board Members

The CFO is the financial face of the company.

The CFO:

• Talks to banks for loans
• Explains numbers to investors
• Presents reports to board members
• Builds trust with stakeholders

For this, the CFO must:

• Understand numbers deeply
• Explain them clearly
• Be honest and confident

You do not need fancy English.
You need clear thinking and honesty.

Managing Financial Risk

Every business faces risks:

• Loan defaults
• Market slowdown
• Legal penalties
• Fraud
• Cash shortages

The CFO:

• Identifies possible risks
• Measures how serious they are
• Plans how to reduce damage

This protects the company from unexpected losses.

CFO vs Other Finance Roles (Very Clear Comparison)

Role	What They Focus On
Accountant	Recording transactions
Auditor	Checking accuracy
Tax Professional	Tax compliance
Finance Manager	Reports & budgets
CFO	Leadership, strategy, decisions

A CFO looks at the entire business, not just finance files.

Can a Chartered Accountant Become a CFO?

Yes. Very much.

In fact, many CFOs in India are Chartered Accountants.

CA gives you:

• Strong accounting base
• Understanding of law and compliance
• Financial discipline
• Risk awareness

But here is the truth:

CA degree alone does not make you a CFO.

What you do after becoming a CA matters the most.

Why Many CAs Never Become CFOs

This is a reality check.

Many CAs:

• Stay only in compliance work
• Avoid business-facing roles
• Do not upgrade skills
• Fear leadership responsibilities
• Avoid communication

Because of this, they remain:

• Senior accountants
• Tax managers
• Audit heads

All are good careers, but not CFO careers.

Skills a CFO Must Have (Beyond CA Syllabus)

Let us go deeper into skills.

Business Understanding

You must understand:

• How the company earns money
• What increases sales
• What increases costs
• What customers want

Finance without business understanding is incomplete.

Financial Analysis Skills

A CFO does not just see numbers.
A CFO understands what numbers are saying.

For example:

• Why profits are falling
• Why expenses are increasing
• Why cash is reducing

This comes from experience, not textbooks.

Communication Skills

You must explain finance to:

• Non-finance managers
• Business heads
• Investors

Simple language is enough.

Clear explanation is more important than English fluency.

Leadership and Responsibility

A CFO:

• Manages teams
• Handles pressure
• Takes responsibility for mistakes
• Supports tough decisions

Leadership skills grow slowly with time.

Step-by-Step Path: How a CA Can Become a CFO

Now let us understand the exact journey.

Step 1: Clear CA With Strong Concepts

Focus on understanding:

• Financial management
• Costing
• Strategic management
• Financial reporting

Do not study only to pass exams.

Step 2: Choose Articleship Exposure Wisely

Try exposure in:

• Corporate finance
• Internal audit
• Management reporting
• Due diligence

Only compliance exposure may limit growth.

Step 3: Move Into Industry After CA

CFOs are built in industry roles.

Good starting roles:

• Financial analyst
• FP&A executive
• Business finance role
• MIS reporting role

Step 4: Learn Practical Finance Tools

You must learn:

• Advanced Excel
• Budgeting models
• Forecasting
• Financial dashboards

These are daily CFO tools.

Step 5: Work With Business Teams

Try to:

• Attend business meetings
• Understand sales and operations
• Learn how departments work

This builds business mindset.

Step 6: Grow Into Finance Leadership Roles

Before CFO, most people become:

• Finance Manager
• Finance Controller
• Head of Finance

This stage builds decision-making ability.

Step 7: Reach CFO Role (With Time)

Becoming a CFO:

• Takes 12–20 years for most people
• Depends on company size
• Depends on leadership skills

There is no shortcut, but the path is clear.

Does MBA Help in Becoming a CFO?

MBA can help, but it is not compulsory.

MBA helps in:

• Strategy
• Leadership
• Business thinking

Experience matters more than degrees.

CFO Salary: Reality Check

CFO salary depends on:

• Experience
• Company size
• Industry

Approximate idea:

• Mid-size company CFO: ₹40–80 LPA
• Large company CFO: ₹1 crore+
• Startup CFO: Salary + equity

High salary comes with high pressure.

Should Every CA Aim to Become a CFO?

No.

CFO role suits you only if:

• You enjoy decision-making
• You can handle pressure
• You like leadership roles
• You enjoy business thinking

If you love deep technical work, CFO may not be the right goal.

Final Thoughts

Becoming a CFO is not about clearing CA only.

It is about:

• Thinking like a business leader
• Using finance to guide decisions
• Learning continuously
• Taking responsibility

As a CA, you already have a strong base. What you do after CA decides how far you go.