What certification fits your accounting career plan?
Approximately 40% of accounting and finance professionals have a specialized certification. It’s no secret that certifications can give you an advantage in the job market. It demonstrates commitment to your profession and expertise. Most everyone knows of the CPA, but there are other options you should explore.
Certified Public Accountant (CPA)
This is a state license to practice as a Certified Public Accountant. It is one of the most widely respected credentials out there. To receive this designation and license you must:
Depending on your state, have 150 semester hours, which is usually more than most bachelor’s degrees. In California, you need 24 units in accounting-related subjects and 24 units in business-related subjects. Be sure to check your state requirements as that number may be different depending on your state.
You will need to sit for four exam sections: Financial Accounting & Reporting, Auditing and Attestation, Regulation, and Business Environment & Concepts. In order to pass, you must earn a 75 to pass. On average, the pass rate for all four exams is just under 50%. Oh, and don’t forget the ethics exam!
Most states require you to have one to two years of experience working in public accounting. Some states also accept certain non-public accounting experience, such as working in industry or government, but the required number of years may be higher. In California, you will need 12 full months of experience and a minimum number of hours.
Depending on your state, you almost always have two options: a general license “G” or an attest license “A”. If your career path doesn’t involve the need to sign off on reviews and audits - a “G” license may be just fine and you can obtain this without working in public accounting as long as you have a supervisor with an active CPA to sign off on your experience. You can also add the attest experience at a later date after obtaining a “G” license.
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Certified Management Accountant (CMA)
The CMA is the most prominent certification for managerial accountants. Although more common in Europe, it has picked up quite a bit of traction in the US over the past few decades. If you are planning a career in private industry, especially one that involves cost accounting of any kind - the CMA is your certification. To receive this designation you must:
Have a bachelor’s degree from an accredited university with coursework in economics, statistics, and financial accounting.
You will need two years of relevant management accounting or financial management work experience.
You’ll need to pass a two-part exam and abide by an ethics agreement. The exam parts are Financial Planning, Performance, and Analytics and part two, Strategic Financial Management.
Hold an active IMA (Institute of Management Accountants) membership.
You can download the CMA handbook here for a complete guide.
Certified Internal Auditor (CIA)
The CIA designation is for those accountants who conduct internal audits for their employers. CIAs usually work in the internal audit department of large corporation or government agencies. to earn this designation you must:
Have a bachelor’s degree.
Obtain a minimum of 24 months of internal audit experience.
Submit character references.
Pass the 3 part exam along with agree to abide by a code of ethics.
Certified Fraud Examiner (CFE)
The CFE is for those who work in fields related to fraud, auditing, loss prevention, or law. If your career path involves forensic accounting, this is your certification. To earn this designation you must:
Have a bachelor’s degree.
Obtain two years of related work experience.
Pass a 3 part certification exam and agree to abide by a code of ethics.
Enrolled Agent (EA)
The EA is created by the IRS to demonstrate knowledge in the US tax code. This is strictly a tax certification. If your career path involves tax preparation or working in a corporate tax department, this is your certification. Keep in mind though that you will want your CPA over an EA if you’re planning a career in public accounting. EA’s can sign tax returns and represent companies in front of the IRS. This is a great alternative for a tax professional who may not meet the educational or experience requirements to sit for the CPA exam. To obtain this designation you must:
Pass a four session exam covering Personal Estate & Corporate Taxes as well as Ethics and IRS Regulations.
Pass a tax compliance check that verifies you’ve filed your own taxes and do not have any outstanding tax liabilities.
Other Options
Other options you may want to research include:
Certified Payroll Professional (CPP)
Certified Information Systems Auditor (CISA)
Certified Government Auditing Professional (CGAP)
Certified Government Financial Manager (CGFM)
Certified Bank Auditor (CBA)
Certified Global Management Accountant (CGMA)
Certified Valuation Analyst (CVA)
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