Whether you’re considering a career in accounting or finance or you’ve already started working in these fields, you may be wondering about certification. “Is it worth the investment?”, “Do I need to be certified to advance?”, and “What certification options are out there?” are common questions for many accounting and financial professionals.
While certifications aren’t always a condition of employment, earning them is a great way to stand out and show prospective employers (or your supervisor) that you’ve demonstrated a certain level of competence and expertise within your field. Read on to discover even more of the benefits that come with certification, plus 16 of the top finance and accounting certificates available for professionals like you.
Benefits of Earning Accounting and Finance Certifications
In addition to providing a leg up when applying for roles or making your case for a promotion, certification can open the door for a wide variety of opportunities, including:
- A higher salary — For example, when comparing annual pay between non-certified accountants and certified public accountants (CPAs), Indeed estimates that CPAs have the potential to out-earn accountants by roughly 40%. Similarly, a study conducted by the CFP Board found that certified financial planners (CFPs) earn 12% more than their non-certified counterparts.
- The ability to specialize — Certain certifications allow you to explore a targeted niche within the finance and accounting fields, such as forensic accounting, government finance, bank auditing, and more. This is especially advantageous if you’re looking to transition into a more focused role or pursue a special interest.
- Keeping your skills up to date — Many certifications require recipients to periodically renew their credentials. Maintaining a current status generally involves completing a certain number of continuing professional education hours and enrolling in training courses to ensure that your knowledge stays fresh.
- More career prospects — Whether your goal is to climb the corporate ladder or go into business independently, it becomes much easier to progress your career with an accounting certification to your name. Not only does it make you a more attractive candidate to hiring managers, certification also shows potential clients that you’re trustworthy and qualified to manage their finances.
- Growing your network — Earning certification admits you into a new community of professionals who have made the same investment in their careers as you. To make connections and expand your professional circle, look out for opportunities to attend member-specific networking events, such as meetups, conferences, and groups.
Top Accounting Certifications
Certified Public Accountant (CPA)
As one of the most widely recognized accounting certifications in existence today, the CPA is a go-to for accounting professionals who are looking to take the next step in their careers. While CPAs still perform many of the same accounting duties as their unlicensed counterparts, they have a more in-depth knowledge of tax codes and are held to a higher ethical standard. Additionally, CPAs may represent their clients in front of the IRS and are permitted to sign tax returns.
Exam information: To become a CPA, you must first pass the Uniform CPA exam, which is divided into four sections that are each taken separately within an 18-month period.
Renewal requirements: Varies between states.
Prerequisites: Varies between states.
Certified Management Accountant (CMA)
Certified management accountant is a professional accounting distinction awarded by the Institute of Management Accountants (IMA). This designation signifies that an individual has expertise in both financial accounting and strategic management principles and, as such, CMAs are often called upon to prepare more detailed management reports and support larger decision-making efforts in addition to their regular accounting duties.
Exam information: In order to register for the CMA exam, you must first become a member of the IMA. The exam itself consists of two parts, the first concentrating on financial planning, performance, and analytics, and the second focusing on strategic financial management. You’ll need to sit for each part separately, and you are free to complete them in any order you choose.
Renewal requirements: Annual fee; 30 hours of qualifying continuing professional education (CPE) per calendar year, two of which must be focused on ethics.
Prerequisites: To qualify, you must have at least a bachelor’s degree and two continuous years of professional experience in either management accounting or financial management.
Certified Internal Auditor (CIA)
The certified internal auditor is a certification issued by the Institute of Internal Auditors (IIA), which is the only globally recognized certifying body for internal auditors. This certification is highly valued by employers because it demonstrates that recipients have a high proficiency in auditing concepts and principles and adhere to a high ethical standard.
Exam information: The CIA exam is broken into three parts, which can be taken in any order and must be completed within 180 days of registration. Candidates must register for each section individually.
Renewal requirements: 40 annual CPE hours for practicing members, including two hours of ethics training.
Prerequisites: To qualify, candidates must hold at least a bachelor’s degree, or an active Internal Audit Practitioner designation, or have at least five years of internal audit experience. Students in their final year of college or who are enrolled at an approved Internal Audit Education Partnership school may take the exam, but will not receive certification until their degrees are complete.
Chartered Global Management Accountant (CGMA)
This globally recognized distinction for CPAs certifies that holders consistently demonstrate advanced competency in the areas of finance, operations, strategy, and management. While similar to the CMA, this certification puts a greater emphasis on developing strategic decision-making and leadership skills development, both skills that are valued in today’s business world.
Exam information: The CGMA exam is a three-part test focusing on operations, management, and strategy, and is presented as a set of case studies that challenge test-takers’ ability to respond to real-world scenarios. Tests are offered four times annually.
Renewal requirements: Annual fee; CGMA holders must also meet a CPE requirement, though no minimum amount of hours is mandated.
Prerequisites: If you’re a U.S. CPA, you must become an AICPA member; have three years of qualifying work experience in accounting or finance; and hold at least a bachelor’s degree in business, accounting, or finance. Non-CPAs must also complete the CGMA finance leadership program (an up-to-three-year commitment) to be eligible.
Top Certifications for Finance
Financial Risk Manager (FRM)
Financial risk manager is a top professional distinction awarded by the Global Association of Risk Professionals (GARP). Those who earn this certification are better equipped to evaluate risk in real-world scenarios, enjoy increased advancement opportunities, and possess in-depth knowledge of risk-management techniques.
Exam information: The FRM exam is a two-part, multiple-choice test consisting of 100 and 80 questions respectively. While test-takers may sit for the second part of the exam before the first is graded, part II is only scored after receiving a passing grade on part I. Candidates must take and pass part II within four years of passing part I.
Renewal requirements: 40 CPE hours every two years.
Prerequisites: Two years of full-time, professional experience in financial risk management.
Certified Financial Planner (CFP)
The CFP is to financial planning as the CPA is to accounting — the gold standard. A CFP demonstrates to potential clients that an advisor is held to an exacting set of professional standards and is committed to acting as a fiduciary — meaning that they legally must make decisions in their clients’ best interest.
Exam information: The CFP exam is made up of two parts that are administered over the course of one day. It is offered three times a year, in March, July, and November.
Renewal requirements: Annual fee, renewal application, 30 CPE hours every two years.
Prerequisites: Completion of a CFP Board Registered Education Program, must hold at least a bachelor’s degree within five years of passing the CFP exam, 6,000 hours of professional personal financial planning experience (or 4,000 hours of apprenticeship experience).
Chartered Alternative Investment Analyst (CAIA)
The CAIA is intended for financial professionals who wish to work in an alternative investment space, such as hedge funds and private equity, or anyone working in non-traditional roles within traditional financial institutions. It is issued by the CAIA Association, a respected global leader in alternative investment education.
Exam information: To become a CAIA, candidates must pass two exams — level I and level II. The level I exam includes two sections of 100 multiple choice questions and both are completed on the same day. The level II test features 100 multiple choice questions and three short essay questions.
Renewal requirements: Annual CAIA membership fee.
Prerequisites: CAIA membership; must hold at least a bachelor’s degree (or equivalent) and have one year of relevant professional experience, or have four years of relevant professional experience, or be a CFA charter holder in good standing; two professional references.
Other Finance and Accounting Certifications to Consider
If you prefer to concentrate on a more specialized area of expertise, these six certifications are worth looking into:
- Certified Fraud Examiner (CFE)
- Enrolled Agent (EA)
- Financial Services for Internal Auditors Certificate (FSAC)
- Certified Community Bank Internal Auditor (CCBIA)
- Certified in Financial Forensics (CFF)
- Certified Government Financial Manager (CGFM)
Choosing the Right Certification
So, which certification is the best fit for you? It depends on a variety of factors. When figuring out your next steps, ask yourself the following questions to help you determine a match:
- How does the certification program align with your career goals? Certification is intended to help you progress your career. First, identify what you ultimately want out of this progression. Then, select the certification program that will help you achieve that end.
- Which certifications are required for your industry or role? Are there any certifications that must be held in order to qualify for the job you want or work in the industry of your choice? If there are, then earning the appropriate ones is a must.
- What are your interests? Certification is a great way to pursue your professional interests. Having a strong idea of what interests you can lead you to the right certification programs.
FAQs
Q: Is getting a finance or accounting certification worth it?
A: Earning certification can go a long way toward broadening your career prospects, setting you apart as a competitive candidate when applying for jobs, and increasing your earning potential.
Q: How long does it take to earn an accounting or finance certification?
A: The total time investment will depend on the program you choose. Some certifications ask for a certain amount of professional work experience in order to qualify for the program while others only require passing an exam.
Q: How much does it cost to get certified?
A: Again, it depends on the program. Some certifications require membership with the certifying organization, which generally come with annual dues, while others do not. In all, you can expect to pay anywhere from a couple hundred to a few thousand dollars on your certification.
Q: How can I tell which certification is right for me?
A: To determine which finance or accounting certification is the best option for you, consider your career goals, any industry or role-specific requirements, and your professional interests.
Q: What are some popular accounting and finance certifications?
A: For accounting, popular certifications include certified public accountant (CPA), certified management accountant (CMA), certified internal auditor (CIA), and chartered global management accountant (CGMA). For finance, financial risk manager (FRM), certified financial planner (CFP), chartered alternative investment analyst (CAIA), and chartered financial analyst (CFA) are commonly earned credentials.
Making the Most of Your Search
When it comes to progressing your career in finance or accounting, having the right certifications can make all the difference. Not only does it widen your prospects and increase your earning potential, it can also give you a leg up when applying for roles. And in terms of your job search, it’s important to have all the help you can get.
KBW Financial Staffing & Recruiting is a locally-owned and managed, full-service staffing firm, providing the region’s top employers with highly-qualified job candidates and jobs in the accounting and finance fields. Our success is built upon a highly personalized approach resulting in thousands of successful matches between professionals and employers, and we’ve made thousands of successful matches since opening our doors in 2005.
Our team of recruiting experts are here to help with your search. Get in touch today to start the conversation, or browse our open positions to see what’s available.
