Chief accounting officers (CAOs) are increasingly stepping into critical roles, reshaping the finance landscape as chief financial officers (CFOs) take on more strategic responsibilities. As automation and artificial intelligence (AI) transform traditional finance hierarchies, CAOs are emerging as essential partners in business operations, overseeing governance, compliance, and risk management while allowing CFOs to focus on forecasting and value creation.
This significant transition is highlighted in a December 2025 analysis from the Journal of Accountancy, which underscores the evolving dynamics within financial organizations. Over the past decade, CAOs have implemented major standards from the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) concerning revenue recognition, leases, and financial instruments. Consequently, CAOs are collaborating more closely with various business units, marking a shift in their traditional roles.
As of October 2024, there are over 10,000 CAOs globally, a marked increase of 60.4% since 1990 and 36.9% since 2000, according to Live Data Technologies. This growth reflects the increasing delegation of tactical responsibilities by CFOs, who are prioritizing strategic planning over day-to-day operations.
CAOs Drive Operational Efficiency
Rachael Crump, CAO at Insight, a U.S. technology firm, exemplifies the new role of CAOs. Crump emphasizes that while financial statements remain a priority, her broader knowledge influences budgeting and long-term strategic planning. At Insight, which aims to prioritize AI integration, Crump leads transformations across various departments, achieving significant cost reductions.
Meanwhile, Jennifer McCalman, vice president and CAO at The Hershey Co., successfully led an enterprise resource planning (ERP) migration that reduced manual journal entries by 60%. Her proactive approach embeds her team within procurement and M&A processes, allowing for early identification and resolution of potential issues.
According to Tom Hood, executive vice president at the Association of International Certified Professional Accountants, the rise of transaction-layer automation through generative AI is pushing CAOs to adapt their roles. This shift moves responsibilities towards validation and forecasting, fundamentally changing how finance teams operate.
AI’s Impact on Finance Roles
The integration of AI in finance has automated tasks such as anomaly detection and fraud flagging, enabling CAOs to provide more interpretive guidance. Hood characterizes this change as an “inflection point” for the accounting profession. Yet, caution remains. McCalman notes that while AI is becoming inevitable, it is not yet mature enough for full reliance in financial processes. She emphasizes the importance of maintaining rigorous CPA scrutiny over AI’s operational mechanisms.
As the lines between controllership and financial planning and analysis (FP&A) blur, CAOs are increasingly integrating analytics into their roles. A March 2024 Forbes Councils article highlights how CAOs are evolving into strategic partners for CFOs across various operational areas, leveraging data to drive insights.
CAOs are not only responsible for compliance but are also becoming architects of strategic initiatives. According to McCalman, understanding and managing processes has become more vital than ever, shaping how finance teams function and collaborate.
Essential skills for future CAOs include strong analytical abilities for predictive analysis and scenario planning, technological proficiency particularly in AI and ERP systems, and an innovative mindset. McCalman notes that embracing transformation allows CAOs to gain credibility and influence within their organizations.
A Fortune study from August 2025 indicates that empowering skilled CAOs can significantly enhance CFO retention, further elevating the role within corporate hierarchies. The dynamic between CFOs and CAOs has been described as “complementary,” with CAOs like Patrick Russell at Jackson Healthcare overseeing multiple financial functions to free CFOs for strategic endeavors.
Recent appointments, such as Rui (Elie) Zhang becoming CAO at Photronics, reflect this ongoing trend of elevating the CAO role within organizations. The KPMG 2025 CAO Agenda highlights that 74% of C-level executives recognize the increasing importance of financial reporting, despite changing perceptions of the role.
As of 2025, the average CAO salary is reported to be $198,728, according to PayScale, emphasizing the demand for professionals who can navigate this evolving landscape. The modern CAO is seen as a strategic leader capable of building infrastructure and driving financial oversight, particularly within private equity firms, where their expertise is critical for value creation.
This realignment positions CAOs not merely as guardians of historical data but as forward-looking leaders facilitating CFOs’ navigation through uncertainty. As AI technology progresses and regulatory environments evolve, the role of CAOs is poised to gain even greater significance in the realm of corporate finance.
