How is the CFO role evolving?

Chief Financial Officers (CFOs) now play roles that extend beyond managing, tracking, and reporting financial data. Modern CFOs can be found contributing to company strategy, driving institutional change, and implementing cutting-edge technologies to benefit the entire organization. These leaders frequently face new challenges and opportunities, which require them to stay updated on trends that will impact the future of finance. Selecting the right kind of CFO for a business is one of the most critical decisions a leadership team can make, and it is important to recognize that not all CFOs are the same.

Searching for the Next CFO  

Before hiring a new Chief Financial Officer (CFO), an organization should first assess its current position within the business cycle—whether it is in the early stages, experiencing rapid growth, or established as a mature enterprise. Once this determination has been made, organizations can choose the right type of CFO that aligns with their needs. David Alexander, Partner and Consumer Practice Leader, highlights that there are three general categories of CFOs to consider.

•  Accounting CFO: The CFO is responsible for overseeing the company’s financial operations. This role involves safeguarding company assets, ensuring compliance with financial regulations, maintaining accurate financial reporting, and informing investors and board members about value and risk matters.
• FP&A CFO: This type of CFO focuses on planning and strategizing to meet business requirements. By participating in strategic planning, the CFO can help shape the company’s future direction.
• Capital Markets CFO: The CFO plays a pivotal role in navigating capital markets by overseeing the financial strategy, capital structure, fundraising, and investor relations.

The company may require all or some of these skills. Organizations often seek a business leader to manage finances and support future growth, rather than just an accountant.

Additionally, an organization must consider whether industry or domain knowledge is required to be successful. Evan Wescott, Principal, notes that sector requirements (e.g., manufacturing, healthcare, etc.) can vary. “Often, we see healthcare organizations typically requiring prior work in a similar healthcare setting, while in some consumer sectors, such as automotive or hospitality, clients place more importance on problem-solving skills, and value candidates that ‘borrow’ relevant experiences that map to strategic goals.”

That said, while some CFOs transition between industries, some sectors still seek specialized knowledge and may not allow time for on-the-job training. David Alexander notes, “For example, construction accounting is the practice in a retail business, which may focus on locations and inventory management. While some skills can be transferred, specific industry knowledge is often needed.” It is important to have clarity on how far outside your domain you are willing to look, and whether creative, outside solutions or quick acclimation to business is more important.

The Changing CFO Function

Today’s fast-changing business climate demands CFOs who combine financial expertise with adaptability. Strategic plans often struggle to keep pace with rapid shifts; for example, tariffs can dramatically alter costs and market dynamics, requiring CFOs to anticipate such challenges. Priorities now include preparing for policy fluctuations, economic uncertainty, cyber threats, and skill gaps. Moreover, increased uncertainty means companies are more cautious about hiring finance executives, preferring low-risk candidates due to gaps in key skills.

Succession planning has become crucial for many organizations, with CFOs increasingly stepping into leadership roles. According to the Harvard Business Review, 2024 saw a record turnover among CEOs, with 44% of new S&P 500 CEOs hired externally, the highest rate since 2000. Data from early 2025 indicates that executive turnover is still ongoing, leaving organizations unprepared for future challenges. The CFO’s responsibilities are rapidly expanding to include strategic partnership and organizational guidance, while also requiring them to identify and cultivate successors for key finance positions. This presents CFOs with a substantial opportunity to aid their organizations in developing effective succession planning strategies and strengthening their teams for both recovery and future growth.

CFOs are leveraging AI, automation, and analytics to enhance growth, improve efficiency, and enable informed decision-making. By embracing their leadership role in IT strategy and data governance, they can optimize financial processes, manage risks effectively, and foster innovation within their organizations.

Today’s CFO is expected to be adaptable to changing business cycles and actively participate in guiding the organization’s growth or turnaround efforts.

CFO Recruitment Challenges

One of the biggest challenges companies face today when hiring a CFO is the lack of available talent. As the role expands to require a more diverse skill set that goes beyond finance, finding candidates with both the necessary breadth and depth of expertise has become increasingly difficult.

Additionally, companies struggle to find a CFO who aligns with their culture. Ian Turnbell, a Principal, emphasizes the importance of organizational, functional, and cultural alignment between the client and the candidate. A strong cultural fit is essential for driving change, facilitating effective communication, and ensuring long-term financial stability.

When hiring a CFO, a company should conduct  a thorough and honest honest assessment of its current state. The CFO will evaluate operations, including personnel, systems, and processes, and implement necessary improvements. It is crucial to select a candidate who is well-suited to the company’s maturity level and future goals.

Why hire an executive search firm? 

When searching for the next CFO, organizations must demonstrate persistence. CFOs are among the most difficult executives to schedule due to their demanding roles. They are highly data-oriented and need comprehensive information to make informed decisions about new opportunities. Companies must provide accurate, consistent, and clear facts at the right moments during discussions.

Compiling this information can be a challenging process; however, our firm manages it on behalf of our clients. We remain dedicated and persistent in our engagement with candidates.

Organizations do not search for a CFO every day, but Buffkin / Baker specializes in this process. Hiring experts ensures a smooth search and succession plan. We help you build your finance team and find the right CFO, reducing both the effort and stress associated with the process.