In 2025, the role of CFOs is more demanding than ever. A staggering 86% of UK investors believe CFOs must go beyond managing finances—they need to drive corporate value, strategy, and long-term growth. It’s no longer just about balancing the books; it’s about shaping the future of the business.
What makes some CFOs stand out while others struggle to keep up? It’s not just experience or technical skills—it’s the habits they’ve built over time. The most effective CFOs think differently, act strategically, and lead with confidence.
If you’re aiming to become a high-impact CFO, these five habits will show you what it takes to excel in a leadership role and drive real results. But beyond these habits, what can CFOs do to make a lasting impact
What Can CFOs Do?
A Chief Financial Officer (CFO) is a senior leader who works closely with the CEO and other executives to manage a company’s financial strategy. Their expertise in finance and accounting, gained through years of experience, helps strengthen the organization’s financial position.
Responsibilities of a CFO:
- Work with accounting, customer service, and finance teams.
- Handle financial and accounting matters.
- Communicate with clients, investors, and senior management.
- Manage cash flow and plan for financial needs.
- Oversee and guide the finance department.
- Support risk management, audits, and financial research.
- Identify investment opportunities and financial strategies.
- Assist in budget planning and management.
- Prepare tax returns.
- Attend board meetings and present financial reports.
CFOs analyze financial data to assess the impact of business decisions.
5 Habits That Make CFOs More Effective Leaders
What makes some CFOs more successful than others?
Stephen Covey’s book The 7 Habits of Highly Effective People outlines principles for improving effectiveness in any role. Unlike passing trends, these principles remain relevant over time.
Similarly, the following five habits help CFOs succeed, no matter the company’s size, revenue, or industry trends. These are not quick fixes but essential practices that set top CFOs apart.
1. They Focus on Solutions, Not Just Problems
A CFO’s job isn’t just to point out financial risks—it’s to find ways to manage them. Instead of dismissing new ideas due to potential pitfalls, effective CFOs work to refine them and make them viable.
Rather than acting as a roadblock, a great CFO partners with the CEO to assess risks, adjust strategies, and turn ambitious ideas into actionable plans. Entrepreneurs are natural risk-takers, and a CFO’s role is to guide financial decisions in a way that supports innovation while ensuring stability.
2. They Build Strong Relationships Across the Organization
An effective CFO does more than manage budgets—they collaborate across departments and engage with stakeholders. If a CFO frequently denies budget requests without discussion, they risk being seen as an obstacle rather than a leader.
Successful CFOs maintain open communication with executives, board members, and employees at all levels. They recognize that financial decisions impact the entire company and use their connections to gain a broader understanding of business needs.
Beyond internal relationships, they also engage with external partners, including investors and suppliers, to strengthen the company’s financial position.
3. They Work Closely with the CEO
CEOs look for CFOs who share their vision and can help execute it. The most effective CFOs don’t just highlight financial concerns—they offer solutions that align with business goals.
While the CEO focuses on innovation and expansion, the CFO ensures that growth is financially sustainable. They develop cost-saving strategies, improve operational efficiency, and refine pricing models to support long-term success. Even when they have different perspectives on risk, strong CFOs remain adaptable and provide insights that strengthen decision-making.
4. They Prioritize Ethics and Transparency
Trust is fundamental to a CFO’s role. A strong CFO communicates financial performance honestly and avoids misleading stakeholders by inflating successes or downplaying challenges.
Beyond compliance with accounting regulations, they promote ethical standards across the organization. As CFOs take on broader responsibilities—including HR, IT, and corporate strategy—integrity in decision-making becomes even more important. They focus on sustainable, long-term growth rather than short-term financial gains.
5. They Simplify Financial Reporting
Financial reporting should provide clarity, not complexity. Many finance teams spend excessive time preparing detailed reports that add little value to strategic decision-making.
Effective CFOs designed reporting by focusing on essential performance indicators and relevant financial data. They remove unnecessary details, ensuring that reports highlight the most useful information for business leaders. This approach improves decision-making and allows finance teams to focus on initiatives that drive growth rather than excessive paperwork.
By practicing these five habits, CFOs enhance their effectiveness and play a significant role in their company’s success.
The CFO’s True Power
A CFO’s job isn’t just about crunching numbers—it’s about steering the ship through calm and stormy waters alike. You can have the sharpest financial mind in the room, but if you’re not driving strategy, building trust, and simplifying complex decisions, you’re just another suit with a spreadsheet.
The best CFOs don’t just report the numbers—they shape the story behind them. They don’t just mitigate risk—they find ways to turn challenges into opportunities. And they don’t just protect the bottom line—they fuel long-term growth.
So, here’s the real question: Are you leading with vision, or just keeping the lights on? It’s time to rethink what it means to be a CFO. Adapt, evolve, and step beyond the balance sheet—because in 2025, the most effective CFOs aren’t just financial experts; they’re the architects of the future.
FAQs
What makes a great CFO?
A great CFO goes beyond managing numbers—they drive strategy, manage risks, and align financial decisions with business goals. Strong leadership, adaptability, and clear communication set top CFOs apart. They don’t just report financial data; they use it to shape the company’s future.
What do top CFOs focus on to stay ahead?
Top CFOs prioritize long-term growth, financial transparency, and strong partnerships with executives. They simplify financial reporting, identify smart investments, and ensure the company remains agile in changing markets.
How can someone become the best CFO?
The best CFOs master financial expertise while developing strategic thinking and leadership skills. They work closely with the CEO, build strong internal and external relationships, and stay proactive in decision-making to drive company success.
What is the most effective leadership style for a CFO?
The most effective CFOs balance analytical thinking with visionary leadership. They lead with integrity, communicate complex financial matters clearly, and make decisions that support both stability and innovation.