Jobs in the financial industry may be quite profitable, which adds to the explanation of why they are so in demand. Of course, getting a job in the banking industry is difficult—the admission requirements might be as high as the pay. Many professionals have postgraduate degrees in business, math, economics, or statistics, and the majority of occupations demand at least a four-year degree. Furthermore, it is essential to follow career advice to stay on the right path.

However, it goes without saying that more than just getting good marks is necessary to have a successful career in Finance. Therefore, can you remember what made you decide to pursue this job path, whether you’re just starting out or a seasoned executive?

Accounting and financial professionals must exhibit a variety of talents in today’s quickly changing workplace, including accounting skills, excellent soft skills, razor-sharp analytical ability, and a solid grasp of industry-standard software.

What Does Finance Involve?

The field of Finance focuses on managing money and how it is obtained and spent by a person, business, or government organization. This area may cover budgeting, borrowing, lending, and investing. Important facets of the financial industry include investment banking, risk assessment, financial engineering, and stockbroking.

Those who work in this sector may examine these markets and the way that money moves through the economy. The term “finance” may also refer to the entire system of financial markets that control the movement of money.

Pros and Cons of Working in Finance

Here are the advantages and disadvantages of working as a Finance professional.

Pros of A Finance Career

• Excellent income and rewards – At all levels of the sector, there is potential for higher-than-average pay, along with a good career path, excellent perks, and bonuses. City-based businesses frequently provide wellness perks to hard-working staff, such as free gym membership, access to nutritious food, and healthcare.
• Job security – Due to its high demand and ongoing growth, this field of work offers a steady career. Therefore, there are a variety of jobs available. The Bureau of Labor Statistics (BLS) projects that this industry will grow by 5% during the following ten years. Your depth of specific expertise increases with time, elevating your value as an employee. As a result, a career in Finance might be described as secure.
• Variety – There will never be two identical days. You’ll always be active and pick up new skills due to the industry’s quick speed and unpredictability. There won’t be time for clock-watching because the office is likely to be buzzing with excitement.
• Career development – There are many prospects for growth and promotion in a career in Finance. There are many possibilities for you to grow in your job, and that too fast, after you’ve successfully entered the market. Top-tier roles are usually easy to fill. Given that this professional route does not confine you to a particular region, you might also investigate chances abroad. Moreover, you might pursue employment with businesses like the World Bank. In addition to this, you can open your own business.
• Job satisfaction – Finance professionals have among the greatest levels of work satisfaction because of their extraordinary salaries, job stability, and possibilities for professional development.

Cons of A Finance Career

• Long hours – Financial professionals often put in more than 40 hours each week, including weekends. Working between 50 and 70 hours a week is also very typical. For investment bankers, the range is 100. Therefore, there is a lot of pressure to persevere and achieve your goals in your early years. Consequently, maintaining a balance between work and life becomes challenging. Additionally, this occupation severely impacts your personal life because it is difficult to find time for your friends, family, and yourself.
• Relatively stressful – Challenges and stress are both present in the financial services industry. The workload changes significantly since many vocations are seasonal. Additionally, the clients, stocks, and quotas that drive a career in this sector change regularly. Such adjustments demand a lot of mental fortitude to handle. Many people succumb to the pressure, which puts their jobs in danger. Aside from this, a lot of outside variables affect your career here. Political changes, interest rates, and worldwide pandemics all play a huge effect, to use the stock market as an example.
• Tough and ongoing education – Even while the employment market is diverse and poised to grow, not everyone should pursue the necessary education to enter it. Finance is regarded as a challenging major on a global scale. Obtaining a license or the necessary credentials requires a significant amount of time and effort. Additionally, the examinations are really difficult. Complex mathematical formulas and financial jargon may be very intimidating. Furthermore, once you have a degree, your education doesn’t end. You must continuously refresh yourself by enrolling in appropriate courses if you want to keep up with the ever-changing industry.

Top 10 Career Advice for Finance Professionals

Here are my top ten career advice in Finance.

Ground Career Advice – Build A Strong Foundation in Finance and Accounting Principles

Having a strong foundation in finance and accounting principles is essential for success in any finance career. Make sure you have a good understanding of financial statements, budgeting, financial analysis, and other key concepts.

Network and Build Relationships

Building relationships with other finance professionals, both within and outside your organization, can be extremely beneficial for your career. Networking can help you stay up to date on industry trends, find new job opportunities, and gain valuable insights and advice from others in the field.

Another Career Advice – Stay Current

The world of Finance is constantly changing, so it’s important to stay current on industry developments and trends. Consider taking continuing education courses or earning additional certifications to keep your skills and knowledge up to date.

Be Detail-Oriented and Analytical

Finance professionals need to be detail-oriented and analytical in order to be successful. Pay close attention to the details of your work and use your analytical skills to make informed decisions.

Significant Career Advice – Develop Strong Communication Skills

In Finance, it’s important to be able to communicate complex financial concepts and information in a clear and concise manner. Developing strong communication skills will help you effectively present financial information to both internal and external stakeholders.

Take on Additional Responsibilities

Showing a willingness to take on additional responsibilities and projects can help you stand out and advance your career. Look for opportunities to volunteer for new projects or take on additional duties, even if they are outside your comfort zone.

Important Career Advice – Be Proactive

 Don’t wait for opportunities to come to you – be proactive in seeking out new challenges and opportunities for growth. This might involve seeking out additional training or education, networking with industry professionals, or taking on new responsibilities at work.

Specialize in A Particular Area of Finance

There are many different areas within Finance, such as investment banking, corporate Finance, and financial planning. Consider specializing in a particular area of Finance that interests you and aligns with your strengths and career goals.

Be Ethical

Ethics are of the utmost importance in the finance industry. Make sure you always follow ethical guidelines and principles and avoid any actions that could be perceived as unethical or dishonest.

Seek Out Mentors and Role Models

Having a mentor or role model can be incredibly helpful as you navigate your finance career. Look for someone who is experienced in the field and can provide guidance and advice on your career path.

The Bottom Line – Follow My Career Advice to Reach Success

Financial careers frequently include high entrance barriers, intense competition for qualified candidates, and significant levels of stress. Nevertheless, these positions have many benefits, such as a demanding workplace, connection with smart and highly driven coworkers, chances for growth, and high income. Although many people enter the financial industry for monetary possibilities, those who succeed tend to have a clear love for what they do. Above all, follow my advice to ensure you are on the right path!

Finally, if you are interested in pursuing a career in Finance, you can take my course to ensure you have all you need to become a Finance Professional.

FP&A analysts are responsible for analyzing and forecasting a company’s financial performance and providing insights to support decision-making.

They may also be involved in budgeting, financial modeling, and preparing reports and presentations to communicate financial results to stakeholders.

FP&A analysts typically work in finance departments and may report to an FP&A manager or director. They may work closely with other finance professionals, such as controllers, financial analysts, and financial planners, as well as with business unit leaders and other stakeholders.

What Is The Role of An FP&A Analyst?

The role of an FP&A analyst can vary depending on the size and industry of the company, as well as the specific needs of the FP&A team. In general, FP&A analysts are expected to have strong analytical skills and be proficient in financial modeling and data analysis tools. They should also be able to communicate financial information clearly and effectively, both in written and oral form.

Overall, the role of an FP&A analyst is to provide financial insights and support informed decision-making to help a company achieve its financial and strategic goals.

FP&A Analyst Roadmap of Actions During The First 100 Days

Here is a roadmap of actions you can take during your first 100 days as an FP&A analyst:

Start: Days 1-10

1. Interview your main stakeholders, including finance team members, other department heads, and your management.
2. Get to know the company and its financial systems and processes.
3. Review the company’s financial statements and key performance indicators (KPIs).
4. Learn how the company’s financial systems and processes work, including budgeting, forecasting, and reporting.
5. Understand the company’s financial policies and procedures.

Days 11-30

1. Build relationships and contribute to the finance team.
2. Build relationships with key stakeholders, including finance team members, other department heads, and external partners such as suppliers, investors, and clients.
3. Participate in meetings and discussions with the finance team and other departments to better understand the company’s financial performance and needs.
4. Identify areas for improvement in the company’s financial processes and systems, and prioritize the topics with your finance colleagues.

Days 31-60

1. Develop a strong understanding of the company’s financial goals and objectives and how the FP&A function supports them.
2. Use financial modeling tools, such as Excel, to analyze and forecast financial data.
3. Stay up-to-date on industry trends and market conditions that may impact the company’s financial performance.
4. Contribute to the development and maintenance of accurate and reliable financial forecasts and budget plans.
5. Communicate financial information clearly and effectively to non-financial stakeholders.

Final part: Days 61-100

1. Work closely with other departments to understand their needs and how they impact the company’s financial performance.
2. Collaborate with the finance team to ensure that financial reporting is accurate and timely.
3. Participate in strategic planning and decision-making processes to provide financial insight and guidance.
4. Identify and analyze key drivers of financial performance, and develop strategies to optimize them.
5. Use data visualization tools to clearly communicate financial information to stakeholders.
6. Leverage technology to streamline and automate financial processes, such as budgeting and forecasting.

And After?

1. Make a self-assessment of your work every 3 to 6 months.
2. Continuously seek to improve financial processes and systems.
3. Then, build a network of financial professionals and stay up-to-date on industry trends and developments.

The Bottom Line – Follow The Roadmap of An FP&A Analyst

In conclusion, the first 100 days as an FP&A analyst can be a challenging but rewarding period of learning and adaptation.

• The main areas of focus of this roadmap should be:
• Get to know the company and its financials
• Meet the key stakeholders
• Learn the FP&A processes and tools
• Understand in the budgeting process
• Develop financial models
• Revamp the financial results presentations
• Seek out opportunities for improvement

Therefore, by following this roadmap,  you will be well-prepared to make a meaningful contribution to the company’s financial success.

Furthermore, if you continue to build your knowledge and your skills, you will be well-positioned use your expertise as an FP&A analyst and make a lasting impact on the company’s financial performance.

This is why it is important to invest in yourself and learn the key skills needed to be an efficient and valuable FP&A analyst. If you want to steal everything I learned over the last 14 years, start with my course. If you need more specific help, feel free to email me.

Finally, if you want to get a new job but you don’t feel prepared for interviews, I combined the 50 most asked interview questions for finance jobs in a 64 pages guide. For each question I also explain how to answer these questions. Here is the guide to prepare yourself for Finance job interviews.

A top executive in charge of overseeing a company’s financial operations is referred to as the chief financial officer (CFO). Also, the chief financial officer’s responsibilities include monitoring cash flow, budgeting the company’s finances, identifying its financial strengths and shortcomings, and recommending corrective measures. The road to CFO is only for those with genuine ambition.

If that describes you, you probably already place a high priority on your educational and professional ambitions. Is your goal to become a CFO? If it is, then this is the right place for you.

Types of CFO

CFO of a listed company

Focus will be to manage the shareholders and launch strategic plans within the group.

CFO of a division

The role here is to drive the performance of the business and make sure you apply the group strategy.

CFO of a medium size company

The tasks are more diverse within finance (accounting, tax, treasury, compliance, analysis, M&A), and the role can sometimes be extended to an additional function like operations or human resources.

CFO of a small company

Here, the role is more hands-on, and the CFO needs to master the doing of many topics as the team is smaller and there are fewer experts.

CFO of a start-up

The main goal will be to help finance the growth through external shareholders or banks. On the operational side, the CFO of a start-up needs to focus on implementing tools and processes which can scale with the growth.

Which Skills Do You Need on The Road to CFO?

Here are the required skills.

Leadership
You will be a leader in the company, and you need to drive the people.

Business partnering
You need to work hand in hand with the other departments to bring value to the company.

Technical skills
Depending on the role (see above), you need more or less deep knowledge in accounting, corporate finance, FP&A, tax, treasury, and systems.
However, you always need to demonstrate that your understanding covers all the topics. Even when you don’t have deep knowledge, you are able to bring internal or external resources to help you make a decision on these topics.

Experience

• You need a proven track record where you have demonstrated the skills listed above.
• Additionally, you can acquire experience by navigating between technical and analytical jobs, which gives you a broader profile.
• To help you in your career, make sure that you always have one job which was really close to operations.
• Start with a smaller team and get more and more responsibilities along your career or get diversity in your role.

The Bottom Line – The Road to CFO Is Not Easy, But It Is Possible

The road to CFO is a challenging but rewarding journey. It requires a combination of strong financial skills, business acumen, and leadership abilities.

Above all, CFOs play a critical role in the financial strategy and decision-making of a company. Additionally, they are responsible for managing financial resources, analyzing financial data, and providing financial guidance to the rest of the organization.

Therefore, to reach the CFO level, individuals typically start by building a solid foundation in finance and accounting. In addition, they gain practical experience through internships and entry-level positions. Moreover, continuously learn and develop their skills through continuing education and professional development opportunities.

However, the road to CFO is not easy, but those who are committed and willing to put in the hard work can achieve this prestigious position and make a significant impact in their organization and industry.

Finally, if you want to learn more finance skills and become a high-performing finance professional, you can take my course.

Everyone wants to succeed, even if it’s on their own terms, in the competitive event of obtaining greater career opportunities and progress. Being on the wrong track makes winning challenges. Therefore, I decided to make this blog post and show you how to improve as a global finance professional.

Improving As a Global Finance Professional – 3 Must-learn Skills

Although it will be an exciting and financially rewarding path, it may be challenging to perform effectively and advance your career in the finance industry. Simply put,  given the vast quantity of data and cutting-edge technologies, it’s hard to make progress instantly. However, I have listed in this document the skills you need to develop to accelerate your career in Finance.

1. Analysis Skills

Being a good analyst is one of the most important things in order to advance as a global finance professional. Learn how to use the right analysis methods such as:

• Price Volume Mix
• Sensitivity analysis
• Variance analysis
• Horizontal analysis
• Vertical analysis

2. Accounting

To understand the impact of business events on financials, you need a basic understanding of accounting and learn how the three statements (P&L, Balance Sheet, and Cash Flow) work together. That being said, it’s clear that accounting plays a big role in the whole process of becoming better on a big scale.

3. Soft Skills

Develop the following soft skills to deliver value to your organization:

• Communication (written and verbal)
• Interpersonal
• Influencing
• Put yourself in other people’s shoes

Conclusion on Improving the Global Finance Professional

Many people may have aspirations of achieving a successful financial career, and the secret to that is going on the proper course. Start by building a strong foundation by seeking advanced knowledge and abilities in your profession, then take baby steps towards your objective of a long-lasting career.

Therefore, if you are willing to develop your analysis skills, I am here to help you. I have a program to help finance professionals upskill themselves and accelerate their careers. Feel free to check my online course.

A valuable FP&A analyst is a professional who is responsible for providing financial analysis and support to an organization. In addition, this can include tasks such as creating financial models, developing budgets and forecasts, analyzing variances, and supporting decision-making processes.

Also, a valuable FP&A analyst often works closely with other finance professionals, such as controllers and managers, to ensure that an organization’s financial plans align with its strategic goals.

Become A Valuable FP&A Analyst

Here is your skill roadmap to becoming a valuable FP&A analyst.

Master All The Analysis Methods

• Learn Price Volume Mix
• Use sensitivity analysis
• Know how to calculate project variance
• Combine horizontal and vertical analysis to know where to focus on
• Make Pareto your best friend
• Be the best at using B.O.T.E estimations (Back Of The Envelope)

Get The Most Out of The IT Tools

• Make the machines work for you and not the opposite
• Identify the IT champions for each software
• Know all the data available
• Automate non-added value tasks to free up more time for analysis

Know The Accounting Basics

• Understand the general accounting principles (especially revenue recognition)
• Know your accounting policies
• Be comfortable with your cost accounting methods
• Speak the accounting language to communicate with the accounting team

Manage The Budget Process

• Be the person in charge of setting up and run the budget process
• Frame the assumptions and methods
• Know the different budget and forecasting methods and use the one bringing the most value
• Be the link between all departments as well as the link between the top and middle management to ensure consistency between the strategic and operative goals

Be The Best Finance Business Partner

• Understand your operational business partner goals
• Bring non-finance data with finance data to create more insights
• Manage priorities and demand
• Be able to explain Finance to Non-Finance People

Use Storytelling to Be A Valuable FP&A Analyst

• Get the right data
• Know how to visualize ideas
• Be confident when leading finance presentations in front of executive management
• Get your message clear (“The world rewards the people who are best at communicating ideas, not the people with the best ideas” – David Perell)

The Bottom Line – Become A Valuable FP&A Analyst Soon

It took me 14 years to learn all these skills, and I am still learning every day. With strong analytical and problem-solving skills, as well as a deep understanding of finance and accounting principles, an FP&A analyst plays a crucial role in the success of an organization.

But you don’t have to wait so long to become a valuable FP&A analyst.

If you are looking to move into FP&A or just looking to be a more valuable FP&A analyst, you can take my course.

If you are considering a switch from accounting to financial planning and analysis (FP&A), you may be feeling a mix of emotions as you consider this new path. Therefore, here is a short tip for people wanting to change jobs. However, people don’t like this advice, but it’s the easiest way to transition into a new career.

Let’s imagine two people: John and Sarah. They both work in accounting, and they both want to transition to a new career, in this case, FP&A.

John’s Story

John is applying to many FP&A positions outside his organization. Unfortunately, he always gets a negative response. Furthermore, the number one feedback he receives is that he lacks experience in FP&A.

Sarah’s Story

Sarah chooses another strategy. She contacted the FP&A department of her organization. In addition, she asked what tasks they were performing with the accounting figures Sarah was giving to the FP&A team. Then Sarah proposed to perform some of these tasks to support the FP&A team and make more sense of the whole process. A few months after, Sarah extended her scope of work, being a mix of accounting and FP&A. After that, somebody in the FP&A left. Finally, Sarah applied and got the job.

Why? This happened because:

• She is already working for the company (no recruitment costs, faster process for HR)
• She already knows the finance processes and tools
• She demonstrated that she could work with the FP&A team
• She already showed that she could learn the FP&A skills

The Bottom Line – Develop A Strategy to Transition to A New Career

People don’t like to hear this. But often, the easiest solution is to start small and be patient. And if you read this and you know somebody who needs to read this, please do share it with them.

My goal is to inspire people who want to transition to a new career in Finance!

If you want to receive more finance tips like this, feel free to sign up for my newsletter. If you subscribe, every two weeks, you will receive an email from where I share best practices, career advice, templates, and insights for Finance Professionals.

Transitioning from a career in accounting to finance can be an exciting and rewarding move. While both fields share some common ground, finance offers a broader range of opportunities and challenges for professionals with a background in accounting.

If you are considering making the transition from accounting to finance, there are key steps you need to take to set yourself up for success.

10 Key Steps to Transition to Finance

Here are the steps to  successfully transition to Finance:

#1: Understand What Finance Is About

Finance is not just about money. It’s really about optimizing existing resources and capitalizing on opportunities for growth. In other words, in finance roles, you will spend a lot of time working with people outside of your finance department.

#2: Know Your Strengths

Your accounting and quantitative skills will greatly assist any finance role.

#3: Develop Your Analytical Skills

Learn when and how to use key analysis methods, such as Price Volume Mix and Scenario Modeling.

#4: Work on Your Soft Skills to Transition to Finance

Developing certain soft skills, like Storytelling and Communication, will help you in your transition.

#5: Invest in Continuing Education

Certificates are good, but practical training is better. Therefore, get out of your comfort zone to take on different assignments whenever possible.

#6: Target The Right Responsibilities

Focus on responsibilities first rather than titles.

#7: Start Your Transition to Finance Where You Are

You have more chances of learning new skills within your existing organization than elsewhere, so start growing where you are.

#8: Find A Mentor or Career Strategist

Finding the right success partners will help you in the long run. Especially if they already went down your desired path.

#9: Grow and Cherish Your Network

Networking can bring you new ideas, meaningful friendships, as well as valuable advice about conquering obstacles you may face in your career.

#10: Have a Lifelong Learning Strategy

Developing professional skills should not only happen in formal education settings. There are several ways you can set yourself up for success.

The Bottom Line – Start Your Transition to Finance Today!

In conclusion, with dedication and hard work, you can successfully transition from accounting to finance and take your career to the next level.

Wassia and I worked together to prepare this mini-guide. Our goal was to help and inspire people who want to transition to finance.

So, in this document, we share the following:

• Our personal stories of how we went from Accounting to Finance
• Our recommendations on how you could do the same.

Furthermore, what makes this extra collaboration special is that:

• Wassia and I both speak French
• Also, we both worked at some point for PwC
• We both worked at some point for a German Company
• We both earned our MBA from US State universities and lived only a few hours away from each other without knowing each other.
• And most importantly, we both successfully transitioned from Accounting to Finance on two different continents.

Finally, I am grateful to Wassia, who approached me to make this collaboration and provide a guide to help finance professionals transition towards a new career!

If you had a career change, let us know what worked best for you. Also, if you are interested in more finance insight and knowledge, you can take my course.

To become a successful CFO ( Chief Financial Officer), you will need to have a strong background in finance and business.

A common path to becoming a CFO is to start by earning a bachelor’s degree in finance or accounting. From there, you can gain experience in the field through internships and entry-level positions in finance.

As you gain experience, you can move up the ranks to positions like controller. Having manager roles is an important step prior to being a CFO

Additionally, earning a master’s degree in business administration (MBA) can also be helpful in preparing for a CFO position. In addition to education and experience, a CFO should have strong leadership and communication skills. Also, a thorough understanding of financial regulations and compliance.

But do you know there are five types of CFO?

The Five Different Types of A Successful CFO

Here are the five different types of CFO.

CFO of A Listed Company

The focus will be to manage the shareholders and launch strategic plans within the group.

Here are the 5 main skills you need to become a successful CFO of a listed company:

Financial management and reporting

• Why: To manage a company, your first tool to steer financial performance is your financial management reporting systems. It’s key to report the public financial information to your stakeholders.
• How to Acquire: You can acquire this skill through education and experience in finance, accounting, and business. An MBA or CPA certification can be helpful.
• Example: A CFO of a listed company has to prepare and present financial statements to the board and shareholders during quarterly earnings calls.

Strategy development and execution

• Why: As a CFO of a listed company, it is important to have the ability to develop and execute strategic plans to achieve the company’s goals and meet the expectations of stakeholders.
• How to develop this skills: be involved in strategic projects as soon as you can. You will learn how to define a strategic project and how to link it to the overall strategy of the company.
  The next step will be to get experience in planning strategic project and executing them. In this step you will work on financial models and business cases.
  The last step will be to be part of the team managing the whole strategic planning process of a company. In this last part, you will build the whole planning and present it to the board.
• Example: As a CFO of a listed company, you will need to work with the CEO and other executives to develop a long-term strategic plan and ensure its implementation to drive the company’s growth.

Risk management

• Why: As a CFO of a listed company, it is important to have the ability to identify, assess, and manage risks to the company’s financial stability and performance.
• How to acquire these qualities: they can be acquired through education in finance and risk management, experience in risk assessments and analysis, and exposure to different industries and business models.
• Example: A CFO of a listed company has to perform regular risk assessments and develop contingency plans to mitigate potential financial impacts to the company.

Investor relations

• Why: As a CFO of a listed company, it is important to have strong communication skills to effectively engage with investors and address their concerns. But also understand the regulations concerning listed companies as well as the stock market dynamics.
• How to acquire these skills: You can acquire it through an experience in investor relations and exposure to the investment community.
• Example: A CFO of a listed company will meet regularly with investors and participate in earnings calls. In this call he will have to provide financial updates and address investor concerns.

Stakeholder management

• Why: As a CFO of a listed company, it is important to have the ability to effectively communicate and manage relationships with stakeholders such as shareholders, employees, customers, and suppliers.
• How to be great at these skills : through experience in different cross-departmental projects. You can also take specific soft-skills workshops focusing on developing your ability to understand the different traits of character you can deal with in a company. In this workshops you would also learn how to influence and communicate with different types of personality.
• Example: A CFO of a listed company has to communicate the company’s financial performance and strategy to employees and participate in stakeholder engagement activities to build and maintain positive relationships.

Become A Successful CFO of A Division

His/her role is to drive the performance of the business and make sure you apply the group strategy.

If you want to become a great CFO for a division of a multinational company, here are the main strengths to demonstrate:

Business acumen

• Why: A CFO of a division should have a strong understanding of the company’s products, services, and operations to drive performance and align with the overall company strategy.
• How to acquire it: you can acquire it through experience in the company’s industry, hands-on experience in various functions, and education in business and management. The best way to learn business acumen is to spend time in operational roles either as a controller or an FP&A analyst for a manufacturing unit or dedicated to a department.
• Example: A CFO of a division needs to analyze sales data and market trends to make recommendations for improving business performance.

Knowledge of company’s products and services

• Why: As a CFO, it is important to have a deep understanding of the company’s products and services to make informed financial decisions and effectively manage the company’s operations.
• How to develop this skills: First, you need to have a full overview of your products and services portfolio. Get it by having deep discussions with sales and marketing. Then you need to understand the economics of your products and services. Analyse the gross margins of your products by understanding how the price is set up and the composition of the standard price. Finally, participate in strategic discussions around product roadmap and development.
• Example: A CFO could work with the company’s product development team to assess the financial viability of new product offerings. The CFO will also have to review investment decisions for product improvement and innovation. Finally, he is responsible to ensure that the company’s product and service offerings are aligned with the company’s overall strategy and goals.

Business Performance Management:

• Why: As a CFO of a division, it is important to have the ability to effectively manage and improve the performance of the division’s operations. This is how the group will judge your success.
• How to get great at Business Performance Management: you will need first to learn how to track performance by setting up the right indicators. Getting experience in FP&A will give you a great understanding of how to compute and follow indicators. Then you will need to learn how to manage performance. This is the most difficult part and where you will have to demonstrate leadership skills. Start by joining a performance management project as active participant. For example, as an analyst you could track specific indicators. Then you could take meetings notes. And finally you could follow up with the different stakeholders when preparing the next follow up meeting. Observe how the leader of the performance management project acts and influence stakeholders to get results. Learn for yourself what works, what does not work and understand the lessons learned of the project to build your own experience.
• Example: A CFO of a division will need to work with the division’s management team to set performance targets, monitor progress, and implement improvements to drive the division’s success. It could be a cost reduction plan with a bi-weekly meeting where the project team analyses item by item how to reduce costs and follows up the implementation of the action plan.

Understanding of group’s processes and controls

• Why: As a CFO of a division, you will be the first point of contact of your group in charge of implementing the group’s processes and controls. Therefore, it’s important to have a deep understanding of group processes and internal controls to ensure financial stability, compliance with laws and regulations, and the accuracy and integrity of financial reporting.
• How do you acquire this understanding? Through experience in different units of the group in finance departments or in the internal audit department. You can also acquire it by participating to a large transformation like ERP implementation or Finance reorganisation.
• Example: A CFO may have to work with the group’s finance and accounting teams to implement and maintain internal controls and financial processes locally and regularly assess the effectiveness of these controls. Additionally, the CFO may be responsible for ensuring the accuracy and integrity of financial reports, which requires a strong understanding of group processes and internal controls.

CFO of A Medium Size Company

The tasks are more diverse within finance (accounting, tax, treasury, compliance, analysis, M&A), and the role can sometimes be extended to an additional function like operations or human resources.

If your focus is to become the CFO of a medium size company, you will want to focus on the following skills:

Financial management and reporting

• Why: To become a successful CFO of a medium-sized business it is important to have a deep understanding of financial management and reporting to effectively manage the company’s financial resources, make informed financial decisions, and provide accurate and timely financial information to stakeholders.
• How to acquire this skill: This skill can be acquired experience in different finance departments: accounting, reporting and FP&A. It’s important that you get exposure to different financial systems and reporting processes. For external reporting you will need to stay up-to-date with requirement through continuous education in accounting and regulatory updates.
• Example: A CFO of an medium-sized enterprise may be required to work with the company’s finance and accounting teams to develop and implement financial management processes, regularly assess the company’s financial performance, and prepare and deliver accurate and timely financial reports to stakeholders, including shareholders, lenders, and regulatory bodies. The CFO must be able to effectively manage the company’s financial resources, including cash flow, investments, and credit facilities, while ensuring compliance with relevant laws and regulations.

Financial analysis and planning

• Why: The CFO is responsible for providing financial insights and recommendations to support the company’s decision-making.
• How to acquire this skill: You can start in a FP&A department, working on budgeting and forecasting. Get involved in business case calculations but also in presenting the business cases. Learn to associate financial data with non financial data to create insights.
• Example: A CFO of a medium-sized company has to prepare the company’s budget and forecast future financial performance to support strategic planning.

Taxation

• Why: As a CFO, it is important to have a deep understanding of taxation to minimize the company’s tax liability, comply with relevant laws and regulations, and ensure the accuracy of financial reporting related to taxes.
• How can you develop your taxation skills? Don’t wait to become a CFO to learn about tax! Even if it’s not in your scope, discuss with your tax department on the tax implications of some deals and be sure to understand the current hot topics in tax. Then make also sure that you stay informed about the regulatory tax updates of your country.
• Example: You could work with the company’s tax team to develop and implement tax planning strategies, ensure compliance with tax laws and regulations, and prepare and file tax returns.

Treasury

• Why: Treasury management is a critical function for a CFO of a medium-sized company, as it involves managing the company’s financial resources and ensuring that it has sufficient liquidity to meet its obligations.
• How to get treasury skills: get exposure to a range of treasury management challenges and opportunities. A CFO of a medium-sized company must have a strong understanding of financial markets, financial products, and financial risk management practices, as well as the ability to effectively manage the company’s financial resources.
• Example: You could work with the company’s tax team to develop and implement tax planning strategies, ensure compliance with tax laws and regulations, and prepare and file tax returns.

Compliance

• Why: Compliance is an essential aspect of the role of a CFO of a medium-sized company, as it involves ensuring that the company adheres to relevant laws, regulations, and ethical standards.
• How to acquire it: through education in law and regulation, practical experience in compliance, and exposure to a range of compliance-related challenges and opportunities. A CFO of a medium-sized company must have a strong understanding of relevant laws, regulations, and ethical standards, as well as the ability to effectively manage the company’s compliance processes and procedures.
• Example: You could work with the company’s tax team to develop and implement tax planning strategies, ensure compliance with tax laws and regulations, and prepare and file tax returns.

M&A experience

• Why: M&A (Mergers and Acquisitions) is an important aspect of the role of a CFO of a medium-sized company, as it involves identifying and executing opportunities for growth through mergers, acquisitions, or other business combinations.
• How to acquire it: This skill can be developed through education and training in finance, business strategy, and M&A, as well as practical experience in executing M&A transactions. A CFO of a medium-sized company must have a strong understanding of finance and business strategy, as well as the ability to analyze and evaluate potential M&A opportunities, and to manage the financial and operational aspects of M&A transactions.
• Example: A CFO of a medium-sized company may be involved in identifying and executing M&A opportunities to drive growth and expansion. The CFO must be able to analyze and evaluate the financial and operational aspects of potential M&A transactions, such as the financial and operational performance of the target company, the potential benefits and risks of the transaction, and the potential impact on the company’s overall financial position and performance. The CFO must also be able to manage the financial and operational aspects of the M&A transaction, such as due diligence, financing, integration, and post-merger operational management. A strong understanding of M&A enables the CFO of a medium-sized company to play a key role in driving the company’s growth and success.

CFO of A Small Company

His/her role is more hands-on; the CFO of a small company needs to master the doing of many topics as the team is smaller, and there are fewer experts.

Here is what you need to learn if you plan to become a successful CFO of an SME.

Business strategy

• Why: Understanding business strategy is essential to become a successful CFO of a small company. It allows them to align their financial management and reporting activities with the overall goals and objectives of the company.
• How to acquire it: through exposure to a range of strategic business challenges and opportunities. Sit down with your CEO and other executives. Understand the strategy and link it to financials. A CFO of a small company must be able to understand the company’s overall goals and objectives and develop financial management and reporting activities that support those goals.
• Example: A CFO of a small company may need to work closely with the CEO and other members of the leadership team to understand the company’s overall strategy and to develop financial plans and reporting activities that support that strategy. The CFO must be able to provide financial analysis and support for business decisions, and to help the company make informed decisions about growth, investment, and other strategic initiatives. A strong understanding of business strategy allows the CFO of a small company to play a key role in driving the success of the company over the long-term.

Entrepreneurial mindset

• Why: To become a successful CFO of a small company, you should be able to think creatively and outside the box to solve problems and drive growth.
• How to acquire it: through exposure to entrepreneurship, starting a business, or working in an innovative environment.
• Example: A CFO of a small company will be required to develop new and creative ways to secure funding and support the company’s growth.

Problem-solving skills

• Why: As a CFO of a small company, problem-solving skills are essential for identifying and addressing financial and operational issues that arise in a small company environment.
• How to acquire it: Develop it through practical experience and exposure to a range of financial and operational problems and challenges. A CFO of a small company must be able to identify problems, analyze data, and develop solutions that address these problems.
• Example: A successful CFO of a small company identifies and addresses financial issues such as cash flow management, profitability, and cost control. The CFO may also be involved in operational issues such as process improvement, risk management, and compliance. In each of these areas, the CFO must be able to use their problem-solving skills to identify issues, analyze data, and develop solutions that address the problems and help drive the performance of the company. The ability to solve problems quickly and effectively is a critical skill for the CFO of a small company, as it allows them to drive performance, support growth, and ensure success.

Adaptability and versatility

• Why: Adaptability and versatility are critical skills for a CFO of a small company due to the fast-paced and dynamic nature of small businesses.
• How to acquire it: This skill can be developed through exposure to a range of financial and operational challenges, and through a willingness to learn and adapt to new situations. A CFO of a small company must be able to quickly adapt to changing circumstances and be willing to take on new responsibilities as needed.
• Example: A CFO of a small company may need to be able to quickly adapt to changes in the business environment, such as changes in customer demand, changes in the competitive landscape, or changes in the regulatory environment. The CFO must also be able to take on new responsibilities and challenges as the company grows and evolves, such as new financing needs, new operational requirements, or new compliance challenges. A CFO with strong adaptability and versatility skills will be better equipped to succeed in a fast-paced and dynamic small business environment and to help the company grow and succeed over the long-term.

CFO of A Start-Up

The main goal will be to help finance the growth through external shareholders or banks. On the other hand, the operational side of the CFO of a start-up needs to focus on implementing tools and processes which can scale with the growth.

Therefore, if you are targeting to become the CFO of a start-up, you need to be able to master these topics:

Entrepreneurial mindset

• Why: It is important to have an entrepreneurial mindset to understand the unique challenges and opportunities of a growing business and to support the company’s vision and goals.
• How to acquire this mindset: through experience in starting and growing businesses and exposure to different entrepreneurial approaches and success stories.
• Example: A CFO with an entrepreneurial mindset may be required to work closely with the company’s management team and other stakeholders to understand the company’s vision, goals, and unique challenges. However, the CFO must be able to think creatively and outside the box to develop and implement strategies that support the growth and success of the business. Additionally, the CFO must be able to continuously assess the company’s financial performance and risk exposure and make agile and informed decisions to support the company’s growth and sustainability. An entrepreneurial mindset allows the CFO to be a strategic partner to the management team and a key player in the success of the business.

Networking and fundraising skills

• Why: The CFO of a start-up is responsible for securing funding to support the company’s growth and expansion.
• How to acquire these strengths: through experience in fundraising and networking, education in corporate finance and entrepreneurship, and exposure to the investment community.
• Example: A CFO of a start-up will work with potential investors to secure funding for the company’s expansion.

Financial planning and analysis

• Why: To become a successful CFO, it is important to have a deep understanding of financial planning and analysis (FP&A) to provide accurate and relevant financial information, support decision-making, and drive performance.
• How to learn it: through education in finance and accounting, professional experience in financial analysis and planning, and exposure to different FP&A techniques and tools.
• Example: A CFO of a start-up will have to develop and implement FP&A processes, analyze financial data, and provide accurate and relevant financial information to support decision-making. This may involve preparing budgets, forecasts, and performance reports, analyzing financial trends, and providing insights and recommendations to the management team. Additionally, the CFO must be able to effectively communicate financial information to investors.

Strong interpersonal and leadership skills

• Why” As a CFO of a start-up, strong interpersonal and leadership skills are critical for building relationships with key stakeholders, including investors, employees, and customers.
• How to learn it: These skills can be developed through a combination of education in leadership and management, practical experience leading teams, and exposure to different leadership styles and approaches. Start-ups typically have a dynamic and fast-paced environment, and a CFO with strong interpersonal and leadership skills will be better equipped to navigate this environment and lead effectively.
• Example: A CFO of a start-up may need to lead and manage a lean team of finance and accounting professionals and work closely with the company’s management team to drive performance and secure funding from investors. Additionally, the CFO must be able to effectively communicate financial information, risks, and opportunities to stakeholders and to build and maintain positive relationships with investors, employees, and customers. As a result, a CFO with strong interpersonal and leadership skills will be better equipped to lead the company through periods of rapid growth and change and to build a strong and successful finance function that supports the company’s goals.

The Bottom Line – Start Today and Become A Successful CFO!

To sum up, to become a successful CFO has great challenges, but it is a rewarding career path. Therefore, with dedication and hard work, you can become a successful CFO and make a meaningful contribution to your organization.

Finally, if you are interested in moving to FP&A before becoming a CFO, you can join my course and learn from my 14+ years of experience.

To begin with, I will explain to you my journey in the transition from audit to FP&A. Therefore, Six years ago; I made four changes in my professional and personal life:

• I changed my country of residence (moved from Luxemburg to Germany).
• I changed my language (French to German).
• I changed the industry (Financial Services to aerospace, transport, and defense).
• I changed the job (Audit to FP&A/Controlling).

Also, I will share with you the following:

1. The skills I developed from my audit experience and used as strength to change to controlling.
2. What I had to learn to transition to controlling.
3. The different fields of controlling.
4. How I continue to grow.

Transferable Skills

I always believed that an auditor has a good base to work in the controlling/FP&A. And here is why:

• An auditor has a strong accounting knowledge which is the base for all finance jobs.
• Working for audit and consulting companies teaches you to be structured, efficient and goal oriented.
• Being in an audit team and working under pressure is a good accelerator for improving your communication skills at work.
• Jumping from one assignment to another and having to gain trust and knowledge from your client will help you be quickly operational in any new job.

What You Need to Learn When You Transition from Audit to FP&A?

As a controller (or FP&A), you need to learn new concepts as your focus will be to provide value to your business partners. As a result here is what you need:

• Deeper understanding of profitability, price sensitivity, cost accounting
• Learn the key KPIs
• Get the most out of the ERP and reporting tools to deliver efficient & valuable reporting/analysis
• Budgeting, forecasting, modeling
• How to improve processes to be more efficient as a finance function

The Different Fields of Controlling/FP&A

Once you dive into the controlling/FP&A world, you discover that depending on the company and the industry (automotive, ecommerce, retail, industry, services…), there are many roles to learn like:
commercial controlling, project controlling, cost controlling, industrial controlling, financial planning & analysis, reporting. In addition, you can continue developing yourself by changing roles and tracing your own career path.

The Way I Continue to Grow

In the last five years I already experienced different roles (head of controlling, business partner, business controller, finance transformation, ad hoc controlling work) and each time I get to learn more about controlling and how I can bring more value to my organization. Also, I recommend exchanging best practices with your colleagues but also with people in your professional network.

The Final Verdict – Transition from Audit to FP&A Successfully

I hope this post can help people willing to transition or already in the process of doing it.

Furthermore, if you need help to transition from audit to FP&A/controlling, take advantage of the course I built where I share my 14 years of experience.

Key Takeaways

• Transitioning from audit to FP&A involves changes in residence, language, industry, and job roles.
• Transferable skills from audit include accounting knowledge, structured work, efficiency, communication, and adaptability.
• To succeed in FP&A, learn concepts like profitability, KPIs, ERP tools, budgeting, forecasting, and process improvement.
• Controlling/FP&A offers diverse roles such as commercial, project, cost, industrial controlling, and financial planning & analysis.
• Continuous growth involves trying different roles, learning from experiences, exchanging best practices, and leveraging your professional network.

FAQ

1. What changes did you make when transitioning from audit to FP&A?

• I changed my residence, language, industry, and job role, moving from Luxembourg to Germany, from French to German, from Financial Services to aerospace, transport, and defense, and from Audit to FP&A/Controlling.

2. What skills from audit are transferable to FP&A?

• Strong accounting knowledge, structured work habits, efficiency, communication skills, and adaptability gained in audit are valuable in FP&A.

3. What do you need to learn for a successful transition to FP&A?

• You should aim for a deeper understanding of profitability, cost accounting, KPIs, efficient use of ERP and reporting tools, budgeting, forecasting, modeling, and process improvement in a finance function.

4. What roles are available in the Controlling/FP&A field?

• Depending on the industry, there are roles like commercial controlling, project controlling, cost controlling, industrial controlling, financial planning & analysis, and reporting.

5. How can you continue growing in FP&A after transitioning?

• Exploring different roles, such as business partner, finance transformation, and ad hoc controlling work, while sharing best practices with colleagues and professional network members, can facilitate ongoing growth.

How can your course assist in the transition from audit to FP&A?

• The course offers insights from 14 years of experience, helping individuals successfully navigate the transition from audit to FP&A/controlling.

Are you a young finance professional? Several employment options in the financial sector may be available based on your background, qualifications, experience, and interests. Therefore, start with these five things, and you will be well on your way to a successful career in finance!

#1: Business Partnering

Learn how to provide value and see finance as a service provider bringing value to internal clients.
How? Find a colleague in your company who is good at business partnering and learn from him/her.

#2: Learn PowerBI

This is the number one growing Business Intelligence tool. Moreover, in a few years, it will be a minimum requirement to have experience with it.
How? First, install PowerBI for free. Then, go to YouTube for many free tutorials and create your own first report within 30 minutes.

#3: Financial Modeling

Build financial models to support your analysis and business decisions. In other words, this will show your strong analytical and technical skills.
How? Start with small models, learn the three financial statements and train yourself in a financial modeling course.

#4: Get A Finance Professional Qualification

Get a recognized financial qualification to make you stand out from the others. Also, it will give you the technical knowledge and skills required in finance.
How? You can start with a part-time MBA or an online financial qualification like CFA, FRM, or ACA.

#5: Finance Professional Analysis

You need to be able to understand and explain the financial statements of your company, sector, or country. Furthermore, how do the results compare to the budget, last year, or the competition? Also, what do the ratios tell you?
How? Begin with being curious and reading annual reports, and look for someone who can help you understand them. In addition, learn PVM, standard costing, project variances, and sensitivity analysis.

Conclusion – Become A Top Finance Professional

A great place to start if you want to have a successful financial career is to enroll in a finance course. Therefore, you can contact me or check out my course.

Additionally, if you need help to advance on any of these five topics, you can contact me.