MBA, CPA or Neither for CFO and Controller Positions
| Jan 26, 2012
I have my thoughts on this but was curious what the group thought was better training to be CFO and/or controller? MBA, CPA or neither? I recognize they are two different positions requiring different skills so opinions on which is better for both would be great.
I am having a discussion with a collegue about this is the reason I am asking. Thanks in advance.
Answers
Company: Duke Manufacturing
Overall, it's what you can do that matters. If you are in a job and with a company that you love and can grow with, it's much better to focus all of your attention to your job, your company and doing more than is expected. If you are successful at doing this, you should be recognized by your supervisor and others as someone to nurture and promote. I've always focused on promoting from within because you knew what you were getting. Hiring from the outside, no matter how many interviews and psychological reviews are done, is still risky. So if the company that you're currently with has a track record of promoting from within and is one that you truly love, emerse yourself into your job, learn the business inside and out, and talk with your boss and HR about your aspiriations and ask for their help and guidance to get you there. (At many companies, if you are a high potential employee, the company may want you to get a higher degree and may sponser you and pay for you to get that degree).
However, if you are looking to change jobs, nothing beats having credentials on your resume. There was a string of comments on another similar post and I felt that the majority agreed that having an MBA is more "powerful" than a CPA (or CMA) to open doors and get interviews.
In the end, why aren't you pursuing obtaining both? Your career is a journey and you don't have to have your MBA and CPA both within the next two years. Develop and execute a plan to get these accomplished within the next 10 years. Professional (and personal) development is a continuous process.
Company: SBA * Consulting, LTD
I interviewed a woman with more letters after her name that the sum of all the letters of her full name. My statement was "wow, that's a unique set of certifications and education". Her answer was "I like taking tests".
Obtaining a MBA, CPA or CMA isn't always about being qualified; it can be about taking tests and liking school.
That being said, a person's whole career must be weighed with both education & certification as one part of the equation. In this job market, too much emphasis is placed on credentials that may or may not be germane to the company today and even tomorrow.
Company: Carlson Advisors LLC
Anyone sharp enough to be a Controller or CFO is probably sharp enough to get an MBA, CPA, CMA or most any other credential. Whether they have the time, money or inclination to do so is another matter. The credentials make the recruiter's job a little easier by offering a screening tool. You may be eliminated from consideration for a job if you lack any credential the recruiter is using to screen applicants.
For whatever it's worth, I wouldn't hire a Controller or CFO without a CPA and/or a CMA. IT is a consideration, but I'd rather see IT certification and experience than an MBA when it comes to that.
Company: EarthClean, SinuGenix, & Fitness Formulary
There is a blog post on this topic in every finance forum, including an excellent discussion started by Cindy Kraft on Proformative - with lots of comments, etc.
There are some standard technical skills for someone to be a CFO - regardless of the path taken - those most be accomplished to handle the requirements of the CFO role.
As for whether MBA or CPA, I've seen excellent CFOs from both routes because the companies had different needs and while has they each had the CFO title, their roles inside their respective company are very different.
The one answer is "A company will define what it needs" - I know that sounds trite, but it's not intended to be. It's simply a reflection that every company has needs driven by their board, CEO, strategic plan, pricing, level of complexity in accounting, etc. I will say the within similar companies, there is a tendency to hire similar profiles for the CFO.
I remember the focus for anyone seeking to be a CFO is to look at people who hold the role you seek (industry, company size, company ownership, etc.), that will be a good starting place.
Lastly, remember to focus on your own strengths - I happen to be a CFO from the MBA side, because while I appreciate accounting and have done my fair share, it's still not my strongest skill set within finance. My election for an MBA was to take advantage of where I was strong in skills and interest.
Company:
I have an MBA which gave me many tools to handle a variety of ever-changing challenges. However, what I have found is, especially post-SOX, the controller in a public company is expected to have a CPA and often specific big four experience. A CFO with such a controller may not need to have the certification. But I agree with the notion that if you can get both early in your career, that's the best route to full employment.
Company: Stono Capital Management LLC
Let's forget about public companies. I should have been more specific. My collegue and I are only talking about private companies. How do you think that changes the dynamic? It may be hard to believe for some but not everyone has the desire to work at a public company.
Company: IDG Communications Inc
As an MBA with 25+ years in private companies, I realize I am not impartial on this subject... Every controller I have worked with has been a CPA, but not all the CFO's have been CPA's. My experience with controllers I've worked with is that they are hyper-focused on transactional aspects of the business and less focused on the strategic aspects like growth, innovation, leverage. I agree that 2 different skills sets are presented, so choice is dependent on what skills the company requires.
Company: FP Consulting
Credentials are mostly about changing jobs and moving up in a company or division when people don't know you. Once you are there it is about getting along with others and doing a good job rather than whatever credentials you may have on the resume. A good personality is worth at least one certificate or two in practice. I find from experience when it comes to credentials one favor's one over the other based on their experience and personal background. Audit types weigh the CPA over the MBA and general financial executives the MBA. I've also seen some people use it as an excuse for passing over someone when clearly it has nothing to do with the job. My advice is go for more education whenever you can and pursue what you are comfortable with because in the end that's what will show up in your work product.
Company: Integrys Energy Group
If someone needs to go through one of those on-line employment or HR portals, it seems like a lot of times they won't even get into the eligible pool without a CPA, but that is not necessarily the case if they don't have an MBA.
Company:
"There is a blog post on this topic in every finance forum, including an excellent discussion started by Cindy Kraft on Proformative - with lots of comments, etc." Thanks for the mention, Mark Richards!
You've really summed up the "right" answer with this comment, Mark ... "A company will define what it needs". I would just add ... or wants! It is why I believe it is SO CRITICALLY IMPORTANT to understand WHAT your value is and WHO needs it. Otherwise, the job hunt is even more frustrating than it has to be.
But to your point, Dan, the MBA is probably -generally- more valuable in the private sector. At least, that's the trend I'm noticing.
Company: R. Ellis Advisors
I have found very effective CFOs that have neither a CPA nor MBA.
Company:
FEI SF recently had retained recruiters from Russell Reynolds and Spencer Stuart spark on what employers are looking for today in a CFO. Financial planning was the top skill being sought as companies need to look forward and develop scenarios in these uncertain times. CPA is not needed and in fact Controller skills are less sought after in this post SOX implementation era. Experience is most important vs degrees.
Company: UC Berkeley
Many employers may seek a controller and require a CPA certification...often influenced by a friend, colleague, or even a recruiter. So you must have CPA certification to compete for such position with the company. In certain instances, likewise, an employer may believe that they "require" an MBA and nothing else will suffice. The irony is that an MBA from, say, Left Wheel, Mississippi is not the same as an MBA from CAL. Okay, let's look at the situation from your perspective. Are you seeking an accounting career and would you like to become a corporate controller (typically the company's de facto chief accounting officer), then gaining your CPA certification is an absolute must do. If you are seeking a career in financial planning and budgeting, mergers and acquisitions, consulting or to become a CFO in most companies, then the academic content learned getting an MBA from a good school will be more valuable. There is no right answer...only answers that best fit your goals and aspirations.
Company:
Just out from CFO.com on finance talent ... http://b.cfo-coach.com/yv4dJR
Here's an excerpt: The most desirable finance staffer, says Donald Kilinski, CFO practice leader at recruiting firm DHR International, is a CPA who then gets an MBA.
Company: UPMC Health Systems
I believe that the financial community has taken a bullish approach to the CPA designation and its application to every area of business. Passing a license doesn't make you a financial expert. I have met so many CPA's that have passed their license's and they were CLUELESS. I have found out in my years experience that CPA's are impressed by other CPA's.
I believe that experience and the willingness to get it and apply it counts first. CPA/CMA/CFA/MBA are all great and believe that the help alot, but they are just the icing on the cake. Running a company and learning about all of the industry niches takes time. A company has to be willing to hire you and show you the ropes before you aspire for the grand title of CFO.
Company:
I think the biggest advantage of having a CPA certificate is during a job search. It seems that so many HR folks hang their hat on this. CPA's will usually have a good handle on financial controls, GAAP and now SOX. Although important, in my experience, this is only a part of the CFO's responsibilities. A good Controller should be able to provide the organization those skills.
More importantly, the CFO must be adept at budgeting, strategic analysis and planning, risk management, balance sheet management and especially resource allocation. For this reason, I think an MBA gives a more rounded framework to prepare someone to become a CFO.
Having said that, the most important issue is wisdom and experience. The more experience, the less important either CPA or MBA become.