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Business & Management 4 mins

How to become a CFO

A chief financial officer helps pilot the business direction of an organisation by crafting and implementing crucial financial strategies. Find out what the role entails in this article.



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A chief financial officer (CFO) plays an essential role in managing a company’s finances, improving financial performance and making important financial decisions. They oversee various financial functions within an organisation, such as financial reporting, budgeting and financial analysis.

CFO responsibilities have also grown more in recent years. According to a global Egon Zehnder survey, 82 per cent of CFOs reported that their duties have increased in the past five years. Their additional duties involve environmental, social and governance (ESG) issues, mergers and acquisitions, and corporate strategies. Factors such as globalisation and rapid technological developments have evolved CFOs into important strategic partners alongside the CEO. The large scale of their professional obligations is often compensated with a wide range of attractive perks besides their salary. Their remuneration package may include bonuses, stock options and more.

The road to becoming a CFO may differ according to each individual. However, aspiring professionals aiming for this C-suite role are expected to have relevant educational background and years of proven senior management experience with a specialisation in finance.

Most CFOs have academic qualifications in finance, economics, business or a related field. They typically have at least a bachelor’s degree and many of them have a postgraduate qualification such as a Master of Business Administration (MBA) or Master of Finance.

This article discusses essential information about becoming a CFO in Malaysia.

What is a CFO?

A CFO is the highest-ranking financial executive of an organisation. They’re in charge of their company’s overall financial health, strategies and activities.

The CFO reports to the chief executive officer (CEO) and helps them make data-driven business decisions and develop long-term growth strategies with their financial expertise. They also work with other leadership executives and managers from various departments. This role typically oversees the accounting and finance teams within a company. The CFO may also present financial reports to the board of directors and important stakeholders.

CFOs work in companies of all sizes across diverse industries, such as banking, technology, business and more. Some of them may work as full-time employees, while some may be employed as independent consultants.

What does a CFO do?

While the responsibilities of CFOs may vary, these C-suite executives generally supervise the overall financial activities of an organisation. Some of their duties may include:

  • creating guidelines and policies to improve operational efficiency in accounting and finance departments
  • developing and executing financial strategies to increase an organisation’s revenue and reduce costs
  • managing risk management processes such as preparing contingency plans and performing audits regularly
  • performing cost-benefit analysis and financial forecasting procedures
  • working together with top senior executives to determine the strategic direction of an organisation
  • presenting financial reports and suggestions during board meetings
  • overseeing the preparation of budgets and financial statements
  • finding new business and investment opportunities

5 steps to becoming a CFO in Malaysia

Many CFOs have a solid educational background and years of industrial and leadership experience in relevant disciplines. Here are some common steps to becoming a CFO in Malaysia:

  1. Get an undergraduate degree

    Complete your undergraduate studies with a bachelor’s degree in finance, accounting, economics or a related field. A bachelor’s programme typically takes three to four years of study.

    Build a strong foundation for your career as you gain industry-relevant knowledge and skills by taking on subjects like Principles of Business Finance, Risk Management and Corporate Finance. You may also be required to undergo an internship during your studies, allowing you to acquire hands-on experience and industry exposure before entering the job market.

    Getting an undergraduate qualification in a relevant field is a great first step for fresh graduates with long-term career goals in finance. Working professionals looking to elevate or switch career paths can also study a finance-related bachelor’s degree to help them get started.

  2. Gain extensive work experience

    Look for an entry-level position that can help you develop core financial skills, such as accounting assistant, junior tax associate or audit assistant. You may perform different financial tasks depending on your role. Accumulate experience as you familiarise yourself with the industry and work your way up.

    As you progress further in your career, you may handle more responsibilities as you enter mid-level roles such as finance manager, cost manager and accounting manager. Your duties may involve evaluating financial data, preparing budgets, developing investment strategies, making forecasts and more.

    Besides honing your technical skills, focus on building your leadership and people management skills. Find opportunities to lead teams and projects and observe different management styles from your seniors. You can gain an understanding of the best leadership practices that will help you take on managerial roles in your pursuit of becoming a CFO.

  3. Acquire a professional qualification

    Many CFO roles require candidates to have a relevant professional qualification to demonstrate their financial expertise.

    Some well-known organisations recognised in Malaysia offering these additional qualifications include the Association of Chartered Certified Accountants (ACCA), the Malaysian Institute of Certified Public Accountants (MICPA) and the Chartered Institute of Management Accountants (CIMA). Becoming a Certified Public Accountant (CPA) can also improve your credibility as a finance professional.

    These qualifications may have different specialisations. For example, ACCA concentrates on technical accounting knowledge and principles while CIMA focuses on management accounting. Choose the right professional qualification that aligns with your career goals.

  4. Obtain a postgraduate degree

    Having a postgraduate qualification can be advantageous in elevating your career. Many graduates and professionals aiming for leadership positions choose to pursue an MBA. The master’s degree usually takes one to three years for you to complete.

    You can develop the practical skills needed to excel as a manager and gain deeper insights into the business environment. MBAs also offer specialisations in various areas for you to pursue, such as finance, entrepreneurship and business analytics.

    Studying a postgraduate degree also provides you with numerous networking opportunities. Building connections with peers, faculty members and industry professionals can help you grow professionally in your career.

  5. Progress into senior roles

    The journey and time taken to become a CFO greatly vary according to your career path. CFOs typically move up the corporate ladder after taking on various positions and senior management roles, such as financial controller, audit manager or director of finance.

    Working in diverse management roles that focus on the company’s financial health helps you build the necessary skill set to make major financial decisions as a CFO. You can learn how different organisations execute various strategies to improve their financial performance and adopt the best methods when you end up in a CFO role.

CFO salary in Malaysia

According to the PERSOLKELLY 2023/24 Malaysia Salary Guide, the monthly salary of CFOs in multinational companies ranges from RM40,000 to RM75,000. Their compensation package, which may include long-term incentives and performance bonuses, may vary widely depending on a number of factors.

The size and performance of a company can influence a CFO’s pay. Big companies typically have more teams and employees to manage. As these organisations typically generate a higher amount of income, their CFOs tend to have a higher base salary than those in smaller organisations. CFOs may also receive bonuses if the company’s performance exceeds its revenue targets or beats other business competitors.

Another factor affecting a CFO’s salary is the industry they work in. According to the Wall Street Journal, the industries of top-earning U.S. CFOs in 2023 include financial services, tech and retail. Industries with high profitability tend to offer higher salaries to attract and retain skilled talent.

A CFO’s salary may also be affected by the state of the economy. Some factors that may influence the economic climate include inflation, exchange rates and unforeseen circumstances like the global pandemic. During these times, many businesses would try to cut down on expenses, including top executives’ paychecks, to continue operating.

Creating a competitive remuneration package is essential as it can motivate a CFO to perform to the best of their abilities to grow a company’s revenue and achieve its financial goals.

What skills do CFOs need?

Here are some of the top CFO skills you need to develop to become successful in your role:

Soft skills

Communication: In this position, you will be communicating with all employees and a variety of people outside of a company. This skill is important as you may need to influence stakeholders, present financial reports in meetings and give updates and clear instructions to staff members.

Strategic thinking: As a CFO, you assist the CEO in developing long-term growth plans for the company. This skill allows you to evaluate risks and financial opportunities effectively as you create strategies that will keep the organisation competitive in the market.

Leadership: A CFO is responsible for managing the accounting and finance department of a company. An excellent leader builds an environment where team members can thrive as they work towards achieving shared business goals. This can improve team morale and operational efficiency.

Problem-solving: CFOs may face many complex issues at work, such as finding ways to cut costs, identifying the best technologies to invest in and performing financial forecasting to create contingency plans. Having this skill helps you to analyse possible options for a hurdle and choose the best solution to overcome it.

Hard skills

Financial expertise: This role requires you to have expert knowledge in financial procedures, such as financial reporting, forecasting, budgeting and tax management. Having strong financial skills will help you oversee the operations of an organisation’s accounting and finance departments and manage other important matters that influence the company’s financial health.

Business intelligence (BI): A CFO typically employs BI techniques to help an organisation make data-driven decisions. This skill involves using the right tools to gather and evaluate data. You can derive meaningful insights that allow you to understand a company’s financial performance, monitor KPIs and reduce risks.

Risk management: Having this skill is essential as you need to help organisations mitigate various risks, such as financial risks, operational risks and compliance risks. These issues may lead to negative consequences that affect an organisation’s financial health. Finding and analysing potential risks allow you to develop strategies to prevent them from happening or overcome them if they occur.

CFO jobs in Malaysia

CFOs can be found working across various sectors. Their responsibilities may differ according to the industry they’re in, such as:

Industry Responsibilities
Healthcare A CFO in this industry supervises the financial activities of a hospital and finds cost-efficient ways to run the facility. Your responsibilities may include handling financial risks, allocating hospital resources and negotiating vendor contracts.
Banking As a bank CFO, you develop and execute financial strategies to keep the bank operating profitably. Other duties may involve ensuring compliance with the proper regulations, optimising the bank’s financial procedures and overseeing the treasury and accounting departments.
Education The CFO supervises the overall financial operations of an educational institution. Your job may entail distributing resources effectively to fund academic and administrative needs, creating sustainability strategies and developing annual budgets.
Hospitality A hospitality CFO ensures the stability of an establishment’s financial health. You assist other C-level executives in making crucial decisions in capital distribution, acquisitions and mergers, and new investment ventures. Your role may also include identifying ways to reduce operational costs without affecting service quality.
Telecommunications The CFO of a telecommunications company executes financial strategies to enhance customer experience and remain competitive. Your duties may involve finding new and innovative technologies to fund, predicting future market trends and streamlining financial procedures using emerging technology like artificial intelligence (AI).

Strive for financial success

The journey to becoming a CFO often requires an extensive amount of industrial experience and knowledge. As the top financial executive, you must have the expertise to make the right calls that can lead to profitable outcomes for the company. You can build your foundational knowledge by studying a finance course. Explore various finance programmes offered by top universities in Malaysia here.

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