Yes. An Accountant Can Become a CEO. Why an Accountant Visions for CFO When They Can Be CEO?

Why do we finance people who play small when we're designed for big? I have observed that the majority of finance professionals aim for the designation of the Chief Financial Officer (CFO) rather than the Chief Executive Officer (CEO). It doesn't mean that we should not try to be the CFO of the organization. It is easier to move from CFO to CEO but it depends on our ultimate "Why".

That is, what I set out to do was to investigate what difference it makes going back to first principles with the things we do in Finance, and asking “why?” I know from experience that understanding why we do things can increase our motivation in doing them. Once you can see the end goal, and see the benefits of that goal, any tedious, difficult or complex steps towards it become less burdensome. And often asking “why” reveals implications that will change the way we do things.

Our vision shouldn’t be centred on being the cheapest, or even the most efficient. It should be centred on adding the most value to the business by being more thoroughly value-driven. If we’re to drive the performance of the business, we, in our Finance teams, need to think wider and deeper about the way we engage with our businesses. We also need to influence further. We should stop seeing ourselves as mere servants of the business. Instead, we should see ourselves as central to the business. We’re an essential part of the business.

In my experience, not all accountants wanted to get involved in the strategic aspect of the business and had entered the profession simply because they ‘liked doing numbers’. A general theme emerged suggesting that although an accountant may possess the technical skills there needs to be a desire to get involved in the business and to have a genuine interest in business issues.

Last year, Best Buy announced that their CFO, Corie Barry, would replace their CEO, Hubert Joly. Corie Barry, the CFO, had a career as an auditor before joining the Best Buy team. Corie started her career at Best Buy as a financial analyst and eventually landed different roles on her way to the CEO, including the Chief Strategic Growth Officer. Accountants tend to have skill areas that are perfect for the position of CEO, but solely their accountancy skills and knowledge will not help them get there. The ability to sell, show humility, learn different positions and departments, be relatable and trustworthy, and be patient are all key areas that enable long-term success for accountants wanting to reach that CEO position.

To some, Finance is still the bean-counting, number-crunching, function. And to them, the CFO is still the chief bean counter. These people don’t see Finance as having anything to do with business strategy. They see Finance as the people who count the pennies spent and pennies received, and tell the board how much profit the business has made. Why should Finance have anything to do with deciding how the business should be run? Accountants are apt to take on the role of CEO, for the following reasons:

• They understand the numbers of the business. According to Warren Buffett, “Accounting is the language of business.” So, accountants by nature speak the common language of the business. Therefore, they know what drives the profitability and growth of the business. They know how to read financial reports to determine what are the top revenue streams and what are the biggest costs areas of the business. And because accountants prepare reports that regularly are distributed publicly, they know how to present information in a logical manner.
• They are detailed and organized by nature, which is a great skill for any executive. Accountants shouldn’t be accountants if they can’t handle great amounts of detail in an organized format, because handling a significant amount of transactions requires one to be organized so that if someone from senior management asks for an explanation to a financial report, the accountant can provide an answer.?
• They understand how to navigate difficult legislation, policies, and rules. Accountants have to abide by accounting rules on a daily basis to be compliant with laws and to ensure a proper standardization of financial reporting. Therefore, in regulated business environments, accountants are prepared to navigate many different laws and guidelines simultaneously.

“Accountants by nature speak the language of business”

When investors, owners or shareholders want to understand why their business is not performing as they want it to, who do they turn to (or on!) first? The CFO! For them, the CFO should understand what is driving the performance (or otherwise) of the business. I believe the purpose of the Finance function is to drive and manage business performance, not just to spectate and commentate. That’s mainly because Finance is already involved in every critical element of business performance management, and therefore the CFO is expected to manage business performance alongside the CEO.

Accountants have skills that make themselves apt for the top position of a company, they also have many things that hinder them from becoming more than just an accountant. Accountants are commonly known to be overly introverted, unrelatable, and just plain geeky. The common theme about accountants that I have personally heard in my career is that they don’t truly understand the business and too “black and white.” Business is filled with a grey area. And the grey area of business involves relationships.

In my following article, I am going to explain how an accountant can become a CEO. What ingredients are required for an accountant to get the position which drives the business?