CFO vs CPA – What are the main differences?

CFO vs CPA – Key Differences Between the Roles?

While both of these roles are connected by financial acumen, CFO vs CPA are very different from each other. A Chief Financial Officer (CFO works within an organization, overseeing the finance function and providing financial reports and budgets. A Certified Public Accountant (CPA) consults with several organizations, providing accounting and compliance advice and services.

We will examine each of their responsibilities, scope, and career paths. You will see how they have differing impacts on an organization’s financial performance and future.

The responsibilities, scope, and career path of a CFO

CFOs have a strategic role within an organization. They are responsible for developing a company’s long-term financial strategies and plans. They also manage the overall financial health of the business and its capital structure. The CFO usually reports directly to the CEO and works with them to ensure financial strategy fits with overall organizational goals.

The CFO is often the public face of the finance function. They manage relationships with shareholders, investors, and financial institutions.

The scope of the CFO role is wide and encompasses overall organizational financial strategy and corporate governance. CFOs focus on forward-looking financial insights and planning and make decisions at a high level.

Educational qualifications and experience required to become a CFO normally include,

• A bachelor’s degree in finance, accounting, economics, or a related field.
• In many cases, an advanced degree.
• Significant financial management experience.
• In many cases, an accounting qualification, although this is not normally essential.

The career path of a CFO normally begins with a more junior role, such as an accountant, auditor, or financial analyst. Individuals looking to secure a CFO position then usually progress to a role as a finance manager or controller.

Having this experience in their careers puts finance professionals in the best position to reach the CEO level and achieve an average salary of around $334,295 to $572,006.

The responsibilities, scope, and career path of a CPA  

CPAs have expertise in preparing financial statements, auditing, and regulatory compliance. They provide accounting and tax advice and services for several different organizations rather than working in-house, as is the case with private accountants. These accounting professionals also advise on acquisitions, business valuations, and mergers.

The scope of the CPA role is far narrower than the CFO role. It’s primarily associated with financial accuracy and adherence to standards and regulatory requirements.

Educational qualifications and experience required to become a CPA include,

• A bachelor’s degree in accounting or a related field.
• A pass in the Uniform CPA Examination.
• One or two years of accounting experience while supervised by a qualified CPA.

The career path of a CPA normally begins with passing the CPA exam. Professionals looking to progress in their CPA career then gain experience in public accounting, often specializing in areas such as audit, tax, or forensic accounting. As they gain more experience, they can progress to more senior roles. The average salary that CPAs achieve is $96,779 to $122,229.

In summary

Both CFOs and CPAs operate in the financial realm. However, their roles are very different. CFOs have a strategic role within an organization with a wide scope, including strategic financial planning. CPAs work with several organizations and have a narrower role that involves ensuring financial accuracy and adherence to standards and regulations.