6 critical skills to transition from Controller to CFO

Oct 14, 2022by Eduyush Team

A finance controller typically has a background in accounting and financial analysis. As such, they are well-equipped to handle the financial reporting and analysis functions of a company.

To become a CFO, however, one would likely need additional experience within corporate strategy and management. A CFO is ultimately responsible for all aspects of a company's financial health, including strategic planning, budgeting and forecasting, risk management, and investor relations.

A recent study by Gartner showed that only 33% of Financial controllers tend to become CFO's.  Which means two-thirds of the CFO jobs went to non-controller candidates, so there is plenty of opportunity for those who prepare to compete.”

To successfully transition from a finance controller to CFO, you must possess six critical skills. These skills are essential for overseeing all financial operations and ensuring that the company meets its financial goals. While not an exhaustive list, mastering these abilities will give you a strong foundation for furthering your career in finance.

Controller to CFO

Do also read our blog on Top 5 Essential skill to put on your finance resume by 2025

1. Evolve your leadership style

Move from a command-and-control style of leadership toward a collaborative and open manner. Successful CFOs lead with an “open style that persuades others to buy into a solution and to work as a team to implement it.”

in contrast, controllers “show themselves as methodical and analytical, focusing on quality and accuracy.”

2. Learn from others. 

Rely less on your technical expertise and embrace and draw on the strengths of others. Controllers become “task-focused leaders when under pressure. They communicate clearly and matter-of-factly, issue concise directions, delegate responsibilities, and emphasize policy adherence.

Obtaining buy-in and motivating the team are not usually high on the controller’s list.” in contrast, CFOs under pressure have a “fluid leadership style that manages toward swifter action through alternative solutions in concert with others.

3. Become situationally aware.

Keep your eyes open for situations that allow you to work collaboratively to solve problems. Controllers must be “attuned to professional situations that lend themselves to interactive leadership styles.”

4. Focus on people

Replace some of your emphasis on monitoring day-to-day minutiae with more attention to relationships and team-building.

Controllers need to “involve stakeholders in identifying the issues and finding solutions when problems are not well defined. This develops and exhibits competencies emphasizing getting things done through others and building teamwork.”

5. Improve creative thinking

Try to combine innovation with solid execution and resist the tendency to change direction quickly as the environment shifts. 

Controllers tend to “adjust quickly to changing situations, a flexible style that better suits the environment of a controller.”

In contrast, a CFO “takes the time to play with different solutions. This allows them to explore options in the context of the larger issues and to consider input from multiple stakeholders.”

6. Data analysis. 

Controllers must be able to understand and process large amounts of data. This skill set enables you to extract useful information from data, identify problems, and provide business solutions.

While a CFO will rely on others to process large amounts of data, the experience you gain as a controller in this area will help you understand the underlying factors of data from a more big-picture perspective.” If data analytics is not your suite, you can take a certification course from AICPA and get skilled.

Getting the Promotion

Controllers will find themselves in a favourable position to become CFOs. But success will depend on their ability to evolve into leaders who rely less on technical skills and more on their abilities to motivate and engage those who work for them. Fortunately, leadership is a skill that can be learned by those who are willing to put in the effort.” 

All the above skill sets will help controllers succeed in any role. They do not have to take on a new positions to leverage their skills. 

The key to successfully applying them to a C-level position is to step back and translate them into a big-picture, strategic perspective.


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CEO Questions? Answers.

A Chief Financial Officer (CFO) is responsible for overseeing the financial operations of a company. This includes financial planning and analysis, budgeting, financial reporting, risk management, and ensuring regulatory compliance. The CFO also plays a critical role in strategic planning, mergers and acquisitions, and investor relations.

A CFO contributes to strategic planning by providing financial insights and forecasts that inform decision-making. They analyze financial data to identify trends and opportunities, set financial goals, and develop strategies to achieve them. Their role is crucial in aligning the company's financial strategy with its overall business objectives.

Key skills for a CFO include financial acumen, strategic thinking, leadership, communication, and risk management. Additionally, a CFO should be proficient in financial modeling, data analysis, and the use of financial software and tools. They must also have strong ethical standards and the ability to navigate complex regulatory environments

A CFO manages financial risk by identifying potential financial threats to the organization and developing strategies to mitigate them. This involves implementing robust internal controls, diversifying investments, maintaining adequate liquidity, and ensuring compliance with financial regulations. They also use financial instruments and insurance to hedge against risks.

In M&A activities, a CFO is involved in financial due diligence, valuation, and structuring of the deal. They assess the financial health and potential synergies of target companies, negotiate terms, and develop integration plans to ensure a smooth transition. The CFO’s analysis is crucial in determining whether an acquisition aligns with the company’s strategic goals.

A CFO collaborates with various departments to align financial goals with operational strategies. They work closely with the CEO, COO, and other senior executives to develop and implement strategic plans. Additionally, they coordinate with department heads to manage budgets, optimize resource allocation, and ensure financial discipline across the organization.

Financial reporting is critical for a CFO as it provides stakeholders with accurate and timely information about the company's financial performance. This transparency is essential for maintaining investor confidence, securing financing, and complying with regulatory requirements. Accurate financial reports also aid in strategic decision-making and performance evaluation.

A CFO ensures regulatory compliance by staying updated with relevant financial laws and regulations, implementing robust internal controls, and conducting regular audits. They also develop policies and procedures to ensure that all financial activities adhere to legal standards. Compliance helps mitigate legal risks and maintain the company’s reputation.