T here are a many accounting certifications that finance professionals can use to enhance their careers with each designation being slightly different. Depending on your career focus, some accounting certifications may be a better fit than others, and in some cases, having more than one credential could be beneficial.
Common Accounting Designations in the United States
Certified Public Accounting (CPA)
The Certified Public Accountant credential is the oldest and most respected accounting designation in the profession and is a designation awarded by the American Institute of Certified Public Accountants (AICPA). CPAs are financial advisors who help individuals and business to plan and reach their financial goals. CPAs are:
- The only accountants who are licensed by state governments
- Allowed to write audit reports
- Allowed to give opinions on publicly traded company financial statements
- Able to sign tax returns as paid preparers and represent clients in front of the IRS.
It’s important to note that all CPAs are accountants, but not all accountants are CPAs.
Becoming a CPA
- To become a CPA, you first need to fulfill the education requirement from a nationally or regionally accredited college or university, with credit hours equivalent to a bachelor’s degree
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- You will then need to write the Uniform CPA Exam. While the exam is the same regardless of where it is taken and passing the CPA Exam is a major milestone on your way to becoming a CPA, you will need to check your state or jurisdiction, as each may have additional or unique education requirements for licensure
- Complete the work experience requirements in your state
Certified Management Accountant (CMA)
Certified Management Accountant (CMA) is a globally recognized credential with a special focus on corporate finance and management accounting. The CMA professional certification is offered by the Institute of Certified Management Accountants (ICMA), a division within Institute of Management Accountants (IMA) which is in over 140 countries.
How to Become a CMA
To earn the Certified Management Accountant Designation, you will need to meet the following requirements:
- Hold a bachelor’s degree from an accredited university or college or a related professional certification.
- Become a member of the IMA
- Write and pass Parts 1 and 2 of the CMA Exam
- Follow the IMA’s Statement of Ethical Professional Practice
- Have two continuous years of professional experience in management accounting or financial management
Certified Financial Planner (CFP®)
The certified financial planner (CFP) designation is one the most widely recognized credentials in the areas of financial planning, retirement and estate planning, insurance and taxes.
Awarded by the Certified Financial Planner Board the CFP designation is awarded to those who successfully complete the CFP Board's initial exams, then continue ongoing annual education programs to maintain their skills and certification.
- Those who wish to pursue their certified financial planner designation must have a bachelor's degree and complete college or university-level coursework through a CFP Board Registered Program. In order to then write the board exam, they must have 4,000 to 6,000 of professional experience and also maintain 30 hours of continuing education every two years.
Chartered Financial Analyst (CFA)
A Chartered Financial Analyst (CFA) is a professional designation recognized globally and awarded by the CFA Institute. Those who earn this designation often become analysts for portfolio managers at various types of financial institutions.
- Candidates for the CFA designation must have completed a four-year college or university degree, or they must have at least four years of professional work experience.
For a more comprehensive list of accounting designations, visit Investopedia
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