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An accountant is like the pathologist in a hospital. After the patient has died. He takes the body down to his dark room at the bottom of the hospital and works out why the patient died.
A CFO is like a family/primary physician. More in the business of prevention.
The primary physician sees patients before they are sick and advises them that if they continue smoking/eating fatty food, they are likely to get sick.
The primary physician sees patients before they are sick and advises them that if they continue smoking/eating fatty food, they are likely to get sick.
The primary physician can prescribe drugs that can help prevent patients from getting sick in the future.
The pathologist is a specialist. Focused on one discipline. The family physician is a generalist that knows a little about almost every specialisation.
An accountants expertise lies in what happened in the past. A CFO's expertise lies in what will happen in the future. Although there maybe some overlap.
When you are recruiting an accountant focus his/her expertise in historical financial data.
-Balance sheet
-P&L
-IFRS training
A good accountant is well versed in all of these areas.
-Balance sheet
-P&L
-IFRS training
A good accountant is well versed in all of these areas.
Qualifications include:
ICAN
ACCA
Bsc Accounting
MSc in Accounting
ICAN
ACCA
Bsc Accounting
MSc in Accounting
IFRS must be top notch to avoid stories that touch.
A CFO, like a primary physician is more of a generalist.
In addition to basic accounting, your CFO should know a lot about business analysis, marketing, operations, finance and business strategy. Business strategy is very important.
In addition to basic accounting, your CFO should know a lot about business analysis, marketing, operations, finance and business strategy. Business strategy is very important.
Qualifications include:
MBA
CFA
SIMA
Data analytics
Bsc Finance and Msc Finance
MBA
CFA
SIMA
Data analytics
Bsc Finance and Msc Finance
When you interview a CFO the candidate should sound entrepreneurial. Continually thinking of the future and speaking intelligently about every area of the business beyond the balance sheet.
CFO's tend to also have really good relationships with investors from banks,to PE's to VC's to investment banks.
Their networks are deep and they are solid sales men/women. Who can present data in appealing visual ways and tell a great story.
Their networks are deep and they are solid sales men/women. Who can present data in appealing visual ways and tell a great story.
In America, most CFO's are NOT accountants. The role has morphed to the point that accounting expertise is often no longer required. https://www.wsj.com/articles/companies-appointing-fewer-finance-chiefs-with-accounting-skills-11580293801
If possible. CFO should know a little economics too.
