What Are the Differences Between a CPA and a CFO?

What Is the Difference Between a CFO and a CPA?

The terms CFO and CPA are often used interchangeably in small business conversations, but their roles, skill sets, and contributions to an organization are quite distinct. While a Certified Public Accountant (CPA) focuses on accounting accuracy, compliance, and regulatory record-keeping, a Chief Financial Officer (CFO) emphasizes broader financial strategy, planning, and guiding business growth. For many entrepreneurs, a Fractional CFO offers access to that high-level financial expertise on a part-time basis, providing strategic insight without the cost of a full-time executive. Understanding these differences is essential for entrepreneurs deciding what level of financial expertise their business needs.

What does a CPA do?

A CPA (Certified Public Accountant) focuses on the financial aspects of a business related to accuracy, compliance, and reporting. Their primary responsibility is working with historical data to ensure financial records are correct and aligned with accounting standards and tax regulations. CPAs prepare financial statements, manage audits, and support businesses with tax strategy, helping owners stay compliant while identifying opportunities for legitimate cost savings.

In the relationship between a CFO and a CPA, the CPA provides the reliable historical foundation that strategic decisions depend on. While a CPA may advise on past performance and tax implications, they typically are not embedded in the executive team or involved in ongoing strategic planning and forecasting.

What does a CFO do?

A CFO (Chief Financial Officer) plays a forward-looking, strategic role focused on guiding the company’s financial future. A CFO uses historical data prepared by accounting teams to forecast performance, build budgets, and assess financial risk across the organization. As part of the executive team, the CFO aligns financial strategy with business goals, supports growth initiatives, and drives long-term decision-making.

Many growing businesses work with fractional CFO or CFO consulting services to access this level of expertise without the cost of a full-time executive. In this model, the CFO and a CPA work together: the CPA ensures accuracy and compliance, while the CFO turns that information into actionable insights that improve profitability, scalability, and sustainable cost savings.

What are the Differences Between a CPA and a CFO: Definition and Core Roles of a CPA

A CPA is a licensed accounting professional who has passed the rigorous CPA exam, with passing the uniform CPA examination being a key requirement, and met state-specific education and experience criteria, including obtaining a bachelor’s degree. CPAs bring proficiency in bookkeeping, tax preparation—ensuring tax compliance and demonstrating deep knowledge of tax law—auditing, and ensuring that financial reports comply with accepted standards. Their responsibilities also extend to producing accurate financial statements, ensuring financial accuracy and historical accuracy in financial records, navigating ever-changing tax laws, and representing businesses during audits and before tax authorities. CPAs are responsible for conducting audits and preparing tax returns for individuals and businesses. Many CPAs are employed by public accounting firms. In many cases, engaging with a CPA is not just advisable—it’s required for certain statutory filings and attestations, especially as a business grows.

Key Differences Between a CPA and a CFO

• Primary Focus: A CPA concentrates on accounting accuracy, audits, and tax compliance; a CFO focuses on financial leadership and strategic decision-making.
• Time Orientation: A CPA works mainly with historical financial data; a CFO uses that data to forecast, plan, and guide future growth.
• Scope of Responsibility: A CPA manages technical accounting and regulatory requirements; a CFO oversees the company’s entire financial strategy and performance.
• Role vs. Credential: CPA is a licensed certification earned through exams and experience; CFO is an executive role within the organization.
• How They Work Together: A strong CFO relies on CPA-prepared financials to ensure compliance while driving long-term goals, risk management, and profitability.

Definition and Core Responsibilities of a CFO

The CFO is a senior executive role charged with steering the company’s overall financial vision, overseeing all financial aspects, financial health, and financial strategy. A CFO works within an organization to manage financial strategies, capital structure, and ensure alignment with the company’s long-term goals. Unlike CPAs, CFOs are actively involved in high-level decision-making; their strategic role includes setting strategic goals and aligning financial strategies with the company’s vision.

A CFO works closely with the CEO and the executive team to analyze market opportunities, assess financial risk, manage financial risk, and support business expansion or restructuring plans. The CFO brings financial expertise to financial planning, managing budgets, forecasts, investments, capital structure, and equity financing decisions.

When guiding business expansion or restructuring, the CFO’s focus on long term strategy and long term growth ensures that financial strategies support the company’s growth and sustain its financial health.

For small businesses, a fractional CFO or outsourced CFO service can provide access to this expertise without the cost of a full time CFO. Fractional CFOs offer flexible, cost-effective leadership, while CPAs and CFOs have complementary roles—CPAs focus on compliance and reporting, and CFOs drive strategic financial management.

Compliance and Reporting vs. Financial Leadership and Strategy

The main differences and key differences between CPAs and CFOs lie in their roles, responsibilities, and the impact they have on a company’s financial management and strategy.

CPAs are compliance-oriented, focusing on meticulous reporting and adherence to regulatory frameworks. Their work ensures your books are correct and audit-ready, contributing to a company’s transparency and credibility. In contrast, CFOs take a more proactive approach to financial leadership—overseeing budgeting, cash flow management, organizational forecasting, and strategic growth initiatives. CFOs use financial data and strategic thinking to align financial goals with broader business goals, ensuring that financial strategies support long-term organizational success. Where a CPA might prepare historical data, a CFO interprets that data—requiring deep understanding and financial acumen—to shape the company’s future.

Industries and Companies Each Typically Serves

Small businesses, startups, and established companies of all sizes need the services of a CPA, especially for tax filing, audits, or compliance projects. Many professionals gain experience in various industries as part of their career path to becoming a CPA or CFO, progressing through roles that build the necessary skills and qualifications for these senior finance positions. However, organizations aiming to scale or navigate complex financial landscapes benefit from engaging a CFO. Traditionally, CFOs were found only in larger companies, but more small businesses are now hiring part-time or outsourced CFO services for small business. Both roles are vital— a CPA for robust financial foundations and a CFO for strategic financial growth and guidance.

Is CPA the Highest Level of Accounting?

A Certified Public Accountant (CPA) title is widely regarded as the gold standard in the accounting profession. While a cpa license is not required for executive roles such as CFO or Controller, it is highly advantageous, and many professionals in these positions also pursue an advanced degree, such as an MBA or Master’s in Finance, to further their careers. However, while it is one of the most respected and demanding designations, it is not necessarily the highest position or role in the accounting field. The CPA credential demonstrates a high level of expertise in accounting, auditing, tax, and regulatory compliance, but it often serves as a launching pad for more advanced executive roles such as CFO or Controller, where holding a cpa license is often a prerequisite for advancement.

How Prestigious Is the CPA Certification?

The CPA qualification is one of the most prestigious certifications for accountants, signifying mastery of accounting principles, ethics, and compliance with stringent state licensing requirements. A CPA not only verifies financial statements and ensures accuracy but is also authorized to represent clients before the IRS, underscoring the trust placed in their expertise. Achieving a CPA is a significant professional milestone that requires passing a rigorous exam, meeting educational thresholds, and meeting the work experience criteria.

Advanced Accounting Roles Beyond CPA

While the CPA credential is fundamental, the accounting hierarchy extends to other specialized certifications and executive positions. Designations such as the Certified Management Accountant (CMA), Certified Internal Auditor (CIA), and advanced degrees like the MBA may focus on managerial accounting, internal controls, or business strategy. For those seeking executive roles such as CFO or CAO, participating in leadership development programs and developing the ability to manage teams are essential for mentoring, leading projects, and improving communication skills. On the organization chart, roles like Chief Financial Officer (CFO), Chief Accounting Officer (CAO), or corporate Controller represent the highest leadership responsibilities in the finance function, often filled by professionals with a CPA or equivalent background and substantial experience.

Is a CPA a Must-Have for Moving up to Executive Roles?

The CPA credential is often a prerequisite or highly preferred qualification for those aspiring to executive ranks such as CFO. While not the terminal role in accounting, the CPA is a foundation upon which many leading finance professionals build their careers. It provides the credibility and technical know-how needed to oversee complex financial operations, lead teams, and make strategic decisions. Many CFOs began as CPAs before leveraging their technical competency into broader financial leadership. However, augmenting a CPA with additional skills in strategic planning, risk management, and leadership is crucial for those seeking to advance to the highest levels of a company’s financial management.

Is a CPA or CFA Better as a CFO?

For business owners and entrepreneurs eyeing growth, selecting the right financial leader is crucial — and the choice between a CPA (Certified Public Accountant) and a CFA (Chartered Financial Analyst) can be pivotal. While both credentials offer specialized expertise, the best fit for a CFO position typically depends on your company’s needs: a CPA brings a strong foundation in accounting and compliance, while a CFA delivers deep insights about investment management and financial strategy. Most successful CFOs boast a blend of skills, but certain scenarios favor one background over the other.

The CPA designation is geared toward accounting, tax, audit, and regulatory compliance — all critical pillars for healthy business operations and transparency with stakeholders. A CPA as CFO will excel in internal controls, risk management, and accurate financial reporting, making them invaluable for companies with complex operational, tax, or audit requirements. In addition, a CPA’s advanced knowledge of GAAP or IFRS ensures smooth sailing at audit time and when dealing with intricate financial statements.

On the other hand, the CFA credential involves deep expertise in financial analysis, portfolio management, and investment strategy. A CFA-qualified CFO can add outsized value to your organization when strategic capital allocation, fundraising, mergers and acquisitions, or sophisticated financial modeling take center stage. Many companies in the finance, investment, fintech, or asset management sectors find a CFA’s toolkit especially applicable.

How Each Credential Prepares a Professional for the CFO Role

Many CFOs hold a CPA as their core credential, because executive financial leadership demands not just strategy, but mastery over the company’s numbers and compliance. These credentials are often paired with MBAs or additional certifications — such as the CFA or CMA (Certified Management Accountant) — to add breadth to their expertise. In fast-growing startups or companies with complex financing needs, a combination of CPA and CFA experience can be a real differentiator.

Common Educational and Professional Backgrounds of CFOs

A practical look at today’s CFOs across industries shows a variety of backgrounds, but most have advanced degrees and certifications. According to industry surveys, the majority of CFOs come from a CPA background, followed by MBAs, and increasingly, CFAs. What matters most is how the credential matches your company’s stage and leadership needs. For those looking for comprehensive outsourced accounting and financial leadership, like what Milestone offers, our teams have professionals holding both CPA and CFA designations, ensuring you get the right mix of accuracy, insight, and strategy to drive your business forward.

CFO vs. CPA Salary: Who Earns More?

When comparing a CFO vs. CPA salary, it’s clear that Chief Financial Officers command higher earnings than Certified Public Accountants on average. While both roles are prestigious and come with excellent compensation, the scope, responsibilities, and strategic influence of a CFO translate into substantially greater salary potential. On the other hand, a CPA role, while lucrative and foundational to many finance careers, generally offers a lower compensation ceiling compared to the executive leadership and breadth of the CFO position.

Average Salary Ranges: CPA vs. CFO Roles

The average salary for a CFO in the United States, according to reputable salary research platforms, typically sits around $394,200, with total compensation packages often ranging between $300,000 and $500,000 annually. This includes not only base salary, but also performance bonuses, incentive pay, and, at large organizations, stock or equity options. In contrast, CPA salary ranges vary significantly by region, experience, and specialization, but generally fall between $70,000 and $150,000 annually, with senior roles in public accounting or industry reaching upwards of $200,000 in some markets and industries.

Factors Affecting Salary: Experience, Company Size, and Industry

Several variables can greatly influence both CFO salary and CPA salary ranges. For CFOs, total compensation is largely determined by the size of the company, the complexity of its finances, the industry vertical (such as financial services, tech, or manufacturing), and the executive’s previous track record. Meanwhile, CPAs see salary growth based on years of experience, advanced credentials, and their move into managerial or partnership roles in firms. Stepping into industries with higher revenue or more complex regulations—like healthcare, finance, or multinational corporations—can also push salaries higher for both roles.

Career Growth Potential: From CPA to CFO

One of the most common career trajectories for accounting professionals is starting as a CPA, gaining deep expertise in financial reporting and compliance, then advancing to broader leadership roles, eventually aspiring to become a CFO. That leap is significant—moving from technical, compliance-driven work to big-picture financial strategy, risk management, and leadership. Because of this, the financial rewards for CFOs are much higher, reflecting their role as stewards of a company’s long-term value and success. For highly ambitious CPAs, targeting executive roles such as CFO is an excellent way to unlock greater compensation, career influence, and impact.

Ready to maximize your company’s financial performance while controlling costs? Milestone offers flexible, expert CFO services designed for growing businesses—so you can gain C-suite financial leadership and strategic planning at a fraction of the full-time executive cost. Contact Milestone today and leverage our experience to transform your financial future and take your business to the next level.