A CFO job description records what the chief financial officer is accountable for across the whole organisation, not every task the finance team touches in a week. Most are a long list of duties borrowed from the last incumbent. This page sets out what to put in one, using the structure from my guide to the job description and the standard described in the CFO competency framework.
I use the US term job description here. In Australia the same document is usually called a position description, and everything below applies unchanged. The job description vs position description page covers the wording differences.
What is a CFO job description?
A CFO job description is a short written record of why the chief financial officer role exists, the outcomes it is accountable for across financial strategy, reporting, control and capital, and the essential requirements of doing it well.
O*NET lists Chief Financial Officer among the reported job titles for chief executives. Its task list for that occupation includes directing or coordinating an organisation's financial or budget activities to fund operations, maximise investments or increase efficiency, preparing budgets for approval, and preparing or presenting reports on activities, expenses and budgets.
That list describes activities. A job description needs the outcomes behind them, because the activities change whenever a system, a standard or a board changes, and the outcomes mostly do not.
A note on terminology. A competency framework is also called a competency model, especially in the United States. I use competency profile for the competencies and required levels for one role, and competency matrix for the grid of required against current proficiency. Usage varies by region, and I explain the differences in this competency model definition.
What is the purpose of a CFO role?
The purpose statement is one or two sentences that say why the role exists. The NSW Government describes a role description as a short summary of a job that explains why the role exists and what outcomes it delivers, and advises focusing on outcomes, not tasks or processes.
A workable purpose for a CFO reads like this:
To give the board and executive an accurate view of the organisation's financial position, and to direct financial strategy, capital and control so that strategic decisions are funded, lawful and reported honestly.
What accountabilities should a CFO job description include?
Five to seven accountabilities is enough. Each one is written as an outcome that someone could check, not as a duty. The table shows how common CFO tasks convert.
| Task people usually list | Accountability written as an outcome |
|---|---|
| Prepares the annual budget | The board approves a budget that funds the strategy, and variances are explained within the reporting cycle |
| Oversees financial reporting | Financial statements and regulatory reports are accurate, on time and understood by the board |
| Manages treasury and funding | Cash, debt and investment positions keep the organisation solvent and able to fund its plans |
| Maintains internal controls | Controls over spending, assets and records are designed, tested and corrected where they fail |
| Advises the CEO and board | Major decisions reach the board with the financial case, the risks and the alternatives set out |
| Leads the finance function | The finance team has the people, systems and capability to deliver the above without heroics |
The how to write a job description page walks through the steps and the review checklist for this part.
What essential requirements should it list?
O*NET asked incumbents how much education a new hire needs. For chief executives, the occupation that lists the CFO title, 46% said a master's degree and 32% a bachelor's degree. For treasurers and controllers, the closest finance occupation, the answers split evenly at 48% each between a bachelor's and a master's degree. The data shows a range, not a single required qualification.
Keep the essential list short and separate from the desirable list. A professional accounting qualification is common for the role but the work is defined by the outcomes, so list a credential as essential only if the organisation or its regulator needs it.
- Essential: senior experience directing financial reporting and control, a recognised accounting or finance qualification where the regulator expects one, and experience presenting to a board or audit committee.
- Desirable: experience in the organisation's sector, or in a transaction such as a capital raise or a system replacement.
What competency profile fits a CFO?
The job description says what the role is accountable for. The competency profile says what standard the role needs, and it selects from the organisation's framework rather than inventing new competencies. Written together they form a role profile. The levels below are illustrative, and the accounting competency framework shows finance roles beneath the CFO levelled the same way.
| Competency | Required level | What it looks like in this role |
|---|---|---|
| Financial strategy and planning | Level 4 | Sets the financial strategy and capital plan that the corporate strategy depends on |
| Financial reporting and control | Level 4 | Owns the integrity of reporting and the control environment, and answers for failures |
| Risk and compliance judgement | Level 4 | Weighs financial, legal and reputational risk on novel decisions with incomplete information |
| Stakeholder influence | Level 4 | Shapes decisions at board and investor level, including when the answer is unwelcome |
| Leading a function | Level 3 | Builds the finance team's capability and succession through the leaders who report to the role |
What a CFO job description is not
It is not a task list, a job advertisement, a performance agreement or a competency profile. Each of those answers a different question, and mixing them is the main reason these documents become unusable.
Where do CFO job descriptions go wrong?
- Task inventories. The list grows every year and never shrinks, until nobody can tell what the role is for.
- Catch-all lines. "Other duties as required" hides the real scope of the work.
- Copied requirements. Credentials are lifted from the last incumbent whether or not the work needs them.
- CFO and controller blurred. The role is asked to run the books and set strategy at once, with no sense of which comes first.
- Levels set by seniority. Required levels are inflated because the role is senior, instead of being set by scope, autonomy and complexity.
Starting from the job description template avoids the first three, and the job description examples show the same structure applied to other roles.
What are the trade-offs when writing one?
Outcome wording takes longer to write than a task list, and it is harder to get agreement on. It pays back at review time, because outcomes survive a change of systems, standards and board composition.
A CFO description also has to fit a specific organisation. A listed company, a government agency and a small private business all use the title, but the accountabilities for investor reporting, appropriations or owner funding differ. Write the description for the organisation you have, and use the competency profile to hold the common standard.
FAQ
What is the difference between a CFO and a finance director job description?
The titles overlap and usage varies by country and organisation. The accountabilities are what matter: a CFO job description covers financial strategy, reporting, control and capital for the whole organisation, so use whichever title your organisation uses and write the same outcomes.
How long should a CFO job description be?
One to two pages. A purpose statement, five to seven accountabilities, a short essential and desirable list, and a pointer to the competency profile is enough.
What qualifications does a CFO need?
O*NET respondents for the occupation that lists the CFO title most often reported a master's degree, with a bachelor's degree next. Only list a degree or professional accounting qualification as essential if the work or the regulator requires it.
Is a CFO job description the same as a position description?
Yes. Position description is the common term in Australia and job description is the common term in the United States. The content and structure are the same.
