Declining CPA Credentials

In recent years, the role of the Chief Financial Officer (CFO) has evolved dramatically. The days when a CPA credential was a near-mandatory qualification for CFOs are behind us. Today, due to declining CPA Credentials, strategic leadership, operational expertise, and a deep understanding of business analytics are taking precedence. I often discuss this shift with colleagues, including Nathan Lawless , who regularly shares insights on this evolving landscape through OnlyCFO and Secret CFO .

Nathan recently posted about the changing requirements for CFOs, emphasizing how companies increasingly prioritize broader business acumen over traditional accounting skills. It’s a trend that raises questions about the future of finance leadership.

Shifting Trends and Statistics

In 2012, around 55% of CFOs in the S&P 2000 were CPAs. By 2022, this number dropped to 43%, highlighting a significant shift (cfodive.com). Among the 1,000 largest U.S. public companies, the proportion of CFOs with CPA certifications decreased from 46% in 2014 to about 36% in 2019 (wsj.com). This evolution is not just a statistical anomaly but a reflection of the role’s transformation.

The Growing Emphasis on Strategy

The CFO role is no longer limited to financial reporting and compliance. CFOs today are expected to be strategic partners, driving the business’s direction and adding value beyond traditional accounting. Conversations I’ve had with Nathan often touch on the need for CFOs to integrate financial expertise with a more holistic business vision, something that groups like OnlyCFO and Secret CFO are advocating.

What Does This Mean for Aspiring CFOs?

  1. Broaden Your Skill Set: Aspiring CFOs should develop strategic thinking and operational management skills, not just focus on accounting.
  2. Invest in Business Acumen: Understanding market dynamics, analytics, and digital transformation is critical.
  3. Stay Connected and Informed: Engaging in platforms like OnlyCFO and Secret CFO can be invaluable for knowledge sharing and professional development.

The finance world is changing, and so must we. The ideal scenario is to find a CFO who holds a CPA credential while also possessing strategic experience and a deep understanding of business analytics.

Do you have a viewpoint or recent experience to share? Please comment on this post.

If you enjoyed this post, check out my thoughts on other workplace trends and how small operational tweaks can have a big impact (https://accelebron.com/executive-insights/)

References

Lawless, N. (2024, November 7). Understanding the Real Value of a CFO: Why Not All “Fractional CFOs” Are Created Equal. LinkedIn Blogs. https://www.linkedin.com/feed/update/urn:li:activity:7260065100185686017/

Maurer, M. (2020, January 29). Why You Don’t Need to Be an Accountant to Be a CFO. Wall Street Journal. https://www.wsj.com/articles/companies-appointing-fewer-finance-chiefs-with-accounting-skills-11580293801

Noto, G. (2023, November 16). Next-gen CFOs: Forging a new path. CFO Dive. https://www.cfodive.com/news/paving-way-for-next-gen-finance-chiefs-accounting-tech-finance/699926/

OnlyCFO: Overview | LinkedIn. (n.d.). Retrieved November 12, 2024, from https://www.linkedin.com/company/onlycfo/

Secret CFO: Overview | LinkedIn. (n.d.). Retrieved November 12, 2024, from https://www.linkedin.com/company/secret-cfo/