:max_bytes(150000):strip_icc():format(jpeg)/business-woman-thinking-account-businesswoman-accounting-office-working-976512548-cb6ae59ee6f543fcac7e4dbe0a3d71f0.jpg "Business woman thinking account,Businesswoman,accounting,office,working")
Finding The Right Accounting Certification
The right accounting certification can open the doors of opportunity.Anyone interested in an accounting career should become a Certified Public Accountant. CPAs provide such an abundance of skills and credibility that hiring managers tend to question the competency of any candidate who does not possess the certification.CPA educational requirements usually include 150 semester hours worth of accounting classes. Candidates must pass the CPA exam, which covers financial accounting and reporting, auditing and attestation, regulation, and business environment and concepts. They also must take more than 40 hours of continuing education each year.Certified Management Accountants lean more toward financial analysis, organizational performance measurement, budgeting, and strategic assessment. The CMA exam covers business analysis, management accounting, strategic management, and business applications.CMAs must register with the Institute of Management Accountants, earn a bachelor’s degree, pass the CMA exam, have two continuous years in management accounting or financial management, and complete at least 30 hours of CE each year.Other certifications that have less intensive requirements include the Certified Internal Auditor, Certified Fraud Examiner, Certified Information Systems Auditor, Certified Bank Auditor, Certified Government Auditing Professional, and Enrolled Agent, among others.The CPA is the most meaningful certification, but each of these can complement it nicely.
Fact checked by Timothy LiReviewed by Amy SoricelliFact checked by Timothy LiReviewed by Amy Soricelli
Obtaining a widely recognized accounting certification can help you land a job, increase your marketability, and lend professional credibility to you and your firm in a competitive marketplace.
Human resource managers and prospective clients see the time, money, and effort needed to acquire a certification as a testament to an individual’s desire to succeed. A universally recognized certification can often serve as the tie-breaker between two qualified job candidates.
Acquiring an accounting certification can also increase your salary, bonus, and chances for promotion. For the accounting-designation shopper, there are a few choices widely recognized by the business, finance, and accounting communities. Numerous others are distinct to a specific industry or job.
Key Takeaways
- Obtaining an accounting certificate can help increase your chances of getting a job by increasing your marketability.
- Having an accounting certificate can lead to higher salaries, bonuses, better jobs, and promotions.
- The two most prominent accounting certifications are Certified Public Accountant (CPA) and Certified Management Accountant (CMA).
- Other important certifications include Certified Bank Auditor (CBA), Certified Fraud Examiner (CFE), Certified Information Systems Auditor (CISA), and Enrolled Agent (EA).
- These other certifications are niche and not all are treated equally and are not as highly regarded as a CPA.
Top-Tier Accounting Certifications
Certified Public Accountant (CPA)
If you are committed to advancing your accounting career, then you should earn a Certified Public Accountant (CPA) certification. CPAs work in specializations such as auditing, compliance, taxes, forensic accounting, fraud examination, IT systems, risk management, and appraisals, among others.
Hiring managers and prospective clients tend to question a candidate’s background and level of accounting competency if they are not a CPA. CPAs help companies comply with bylaws and regulations, reduce risk, support valuation and appraisal initiatives, improve processes, and create and maintain reporting mechanisms that allow management to make critical decisions.
States set their own license standards, but typically you will need 150 semester hours of education at an accredited college or university, with varying amounts of accounting classes. You will need to pass the CPA exam administered by the American Institute of Certified Public Accountants (AICPA). Because requirements vary, it is best to contact your state board for details.
The exam was updated in 2024 and you must pass four sections: three core sections and one discipline section. You can choose one of three discipline sections.
The core sections are:
- Financial Accounting and Reporting (FAR)
- Auditing and Attestation (AUD)
- Taxation and Regulation (REG)
The three discipline sections of which you must choose one are:
- Business Analysis and Reporting (BAR)
- Information Systems and Controls (ISC)
- Tax Compliance and Planning (TCP)
You need a minimum score of 75 to pass. While this may not sound difficult, the pass rate is less than 50% for some of the sections. The most difficult section is Financial Accounting and Reporting, while the easiest is Tax Compliance and Planning.
There are two schools of thought on which order to tackle the sections. Some test-takers recommend starting with the most difficult section, while others say starting with the easiest section is better to establish momentum and build confidence.
Note
The salary for an accountant in the U.S. ranges from $67,000 to $111,000 a year.
Certified Management Accountant (CMA)
A Certified Management Accountant is another great certification. There is overlap between the competencies of a CPA and CMA, but CPAs may be better equipped for compliance, accounting for transactions, tax, and controls.
Certified Management Accountants, as the moniker implies, lean toward financial analysis, organizational performance measurement, budgeting, strategic assessment, and ongoing stewardship of the company. The exam is administered by the Institute of Management Accountants (IMA).
The exam is broken into two parts covering 12 competencies:
- Part One: external financial reporting decisions; planning, budgeting, and forecasting; performance management; cost management; internal controls; and technology and analytics
- Part Two: financial statement analysis; corporate finance; decision analysis; risk management; investment decisions; and professional ethics.
To earn your CMA, you will need:
- An IMA membership
- A bachelor’s degree
- To pass both parts of the CMA exam
- Two years of management accounting or financial management experience
- To follow the IMA Statement of Ethical Professional Practice
Helpful Job/Industry-Specific Accounting Certifications
There are plenty of accounting designations out there—just know that not all of them are perceived or treated equally. Managers, executives, and prospective clients still attach most of the value and prestige to a traditional CPA. There are, however, niche certifications that are suited for job and industry-specific roles.
These include:
- Certified Bank Auditor (CBA)
- Certified Fraud Examiner (CFE)
- Certified Information Systems Auditor (CISA)
- Certified Internal Auditor (CIA)
- Enrolled Agent (EA)
There are varying requirements to earn each of the above certifications. These requirements will probably not be as intensive, time-consuming, and involved as earning a CPA or CMA.
If you want to elevate your standing, you should first invest time and effort in getting your CPA. Depending on your job or industry focus, you can augment that designation with one of the above certifications.
For example, those who wish to earn a CISA are heavily involved with accounting and IT information systems. If your work involves uncovering fraudulent transactions, a CFE can help you elevate your understanding of this field. As mentioned, there is no substitute for a CPA.
Other Accounting Certifications
There are a number of additional certifications to choose from, some include:
- Certified Payroll Professional (CPP)
- Fundamental Payroll Certificate (FPC)
- Accredited Business Accountant
- Accredited Financial Examiner (AFE)
- Accredited Tax Advisor (ATA)
- Accredited Tax Preparer (ATP)
- Certified Public Bookkeeper (CPB)
- Certified Financial Services Auditor (CFSA)
- Certified Forensic Accountant (CRFAC)
- Certified Professional Environmental Auditor (CPEA)
- Certified Quality Auditor (CQA)
- Forensic Certified Public Accountant (FCPA)
What Is the Best Certificate for Accounting?
The Certified Public Accountant (CPA) is the most prominent certificate for the field of accounting. Many top-tier accounting jobs will require a CPA; additionally, a CPA certificate will make you more marketable and can lead to better jobs and higher salaries.
What Is the Difference Between CPA and ACCA?
A Certified Public Accountant (CPA) certificate makes you a chartered accountant in the U.S. whereas the Association of Chartered Certified Accountants (ACCA) makes you a chartered accountant globally, allowing you to practice chartered accountancy in many countries.
Is a Certificate in Accounting Worth It?
Whether a certificate in accounting is worth it will depend on your career goals. While a certificate in accounting will take time and effort to achieve, it will greatly boost your career prospects, leading to better jobs and more money in your career.
The Bottom Line
Corporate finance and accounting is a competitive field. Most accountants who work for one of the Big Four accounting firms will hit a career plateau early on if they do not obtain a CPA.
When an accounting firm bids on a consulting or client project (and demands more than $200 per hour for a relatively inexperienced associate’s time), why would a prospective client fork over this kind of cash out to this specific firm if the project is staffed with outsourced professionals that are not CPAs?
A competing accounting firm can come in and win the contract by promising to staff the project with several CPAs. The fact is, numbers-crunching is typically a commoditized service. Unless you possess unusual insights and relationships in a specific job or industry, you are better served to earn accounting certifications to improve your station.
Read the original article on Investopedia.