Essential Guide to Accountant Certification: Requirements and Benefits
What Are Certified Public Accountant Certifications?
Accounting certifications are credentials that demonstrate expertise in a certain specialty area within accounting or that recognize specific skills. These certifications can also demonstrate expertise in specialized disciplines such as business analysis. Certain accounting roles require specific certifications, such as the Certified Public Accountant (CPA) credential. Accounting certifications can be awarded by industry regulatory bodies, the IRS, or specific schools. Examples of accounting certifications include Certified Management Accountant (CMA), Certified Internal Auditor (CIA), and Certified Fraud Examiner (CFE).
Who Can Benefit from Accounting Certifications?
Accounting certification programs are available for all different types of accountants, as well as for students enrolled in an accounting degree program.
Certifications are particularly beneficial for professionals who wish to perform regulated functions, advance into a new role, or pivot into a different area within the field of accounting.
Many accounting certifications can significantly increase earning potential compared to the median advertised accounting salary.
Accounting certifications can benefit accounting professionals, financial planners, and government financial managers. Certifications like the Certified Financial Planner (CFP) can benefit financial planners by helping them assist clients with long-term financial goals.
Types of Accounting Certifications
Certified Public Accountant (CPA) certification is the most common type of accounting certification.
Certified Management Accountant (CMA) certification demonstrates mastery of financial management, budgeting, and cost accounting skills.
Certified Internal Auditor (CIA) certification is a globally-recognized credential for internal auditors.
Certified Fraud Examiner (CFE) certification prepares professionals for careers detecting and investigating financial crimes and fraudulent activity.
Chartered Global Management Accountant (CGMA) certification is a global designation for CPAs working in business and government.
Certified Government Financial Manager (CGFM) certification provides expertise in government financial management, including accounting, auditing, financial reporting, and budgeting practices specific to government settings.
Benefits of Accounting Certifications
Accounting certifications can increase earning potential, with CMAs earning an average salary of $118,000.
Accounting certifications can open up new career opportunities, as they are globally recognized credentials.
Accounting certifications can demonstrate expertise in financial planning, analysis, and decision-making.
Accounting certifications can increase job security, as they are valuable assets for accounting and finance professionals.
Certification Requirements and Process
To become certified, candidates typically need to meet eligibility requirements, such as a bachelor’s degree and relevant work experience. Obtaining CPA licenses requires meeting specific educational prerequisites, work experience mandates, and continuing professional education (CPE) obligations.
Candidates must pass a certification exam, such as the CPA exam or CMA exam.
Candidates must maintain their certification through ongoing professional development, such as continuing education courses and professional certifications.
Candidates must adhere to the certifying organization’s Code of Professional Conduct and maintain their certification through annual renewal fees.
Preparing for the CPA Exam
Candidates can prepare for certification exams by studying relevant materials, such as textbooks and online courses. Developing management accounting skills is essential for certifications like the Chartered Global Management Accountant (CGMA). Candidates can also prepare by gaining relevant work experience and developing their skills in areas such as financial planning, financial accounting, and risk management. Candidates can use study groups and online forums to connect with other candidates and get support.
Maintaining Certification with Continuing Professional Education
Certified accountants must complete continuing professional education (CPE) courses to maintain their certification.
Certified accountants must adhere to the certifying organization’s Code of Professional Conduct.
Certified accountants must pay annual renewal fees to maintain their certification.
Certified accountants can use their certification to advance their careers and increase their earning potential.
Choosing the Right Certification
Candidates should choose a certification that aligns with their career goals and interests.
Candidates should consider the certification requirements and process, as well as the benefits of certification.
Candidates should research the certifying organization and its reputation in the industry.
Candidates should consider the cost of certification and the potential return on investment.
State-Specific Certification Requirements
Certification requirements vary by state, and candidates should check with their state’s regulatory board for specific requirements.
Some states require a CPA license, while others require a CMA or CIA certification. Certifications like the Certified in Financial Forensics (CFF) and Certified Fraud Examiner (CFE) are often required for professionals working with law enforcement agencies to investigate financial crimes.
Candidates should research the certification requirements for their state and plan accordingly.
Candidates should also consider the certification requirements for their industry or employer.
Global Certification Opportunities
The accounting profession is becoming increasingly global, and certifications are no exception. Many accounting certifications, such as the Certified Management Accountant (CMA) and the Certified Public Accountant (CPA), are recognized globally and can open up career opportunities worldwide. In fact, the CMA certification is offered in over 100 countries, and the CPA certification is recognized in over 40 countries.
Certified management accountants (CMAs) and certified public accountants (CPAs) can work in a variety of industries, including finance, healthcare, and manufacturing, and can hold leadership roles such as controller, chief financial officer, or chief accounting officer. Additionally, certifications like the Chartered Global Management Accountant (CGMA) and the Certified Government Financial Manager (CGFM) are designed to recognize the expertise of management accountants in financial management, financial planning, and decision-making.
Impact of Technology on Certification
Technology is having a significant impact on the accounting profession, and certifications are no exception. Many accounting certifications, such as the Certified Internal Auditor (CIA) and the Certified Fraud Examiner (CFE), require professionals to have a strong understanding of technology and its applications in accounting.
In fact, the CIA certification requires professionals to have a strong understanding of information technology and risk and control, while the CFE certification requires professionals to have a strong understanding of financial transactions and fraud schemes. Additionally, certifications like the Certified Information System Auditor (CISA) and the Certified in Financial Forensics (CFF) are designed to recognize the expertise of professionals in areas such as IT auditing and financial forensics.
Cost and Financial Aid for Certification
The cost of certification can vary depending on the certification and the organization offering it. However, many certifications, such as the CMA and CPA, offer financial aid and scholarships to help professionals cover the cost of certification.
In fact, the Institute of Management Accountants (IMA) offers a variety of scholarships and financial aid options to help professionals cover the cost of the CMA certification. Additionally, the American Institute of Certified Public Accountants (AICPA) offers a variety of financial aid options to help professionals cover the cost of the CPA certification.
Ethical Considerations in Certification
Ethics is an important consideration in certification, and many accounting certifications, such as the CMA and CPA, require professionals to adhere to a code of ethics. In fact, the IMA’s Code of Ethics requires CMAs to maintain the highest standards of integrity, objectivity, and professionalism, while the AICPA’s Code of Professional Conduct requires CPAs to maintain the highest standards of integrity, objectivity, and professionalism.
Additionally, certifications like the CFE and CFF require professionals to have a strong understanding of ethics and professional standards, and to adhere to a code of ethics. In fact, the Association of Certified Fraud Examiners (ACFE) requires CFEs to adhere to a code of ethics that includes principles such as integrity, objectivity, and professionalism.
Conclusion
Accounting certifications are valuable credentials that can increase earning potential, open up new career opportunities, and demonstrate expertise in financial planning, analysis, and decision-making.
Candidates should choose a certification that aligns with their career goals and interests, and research the certification requirements and process.
Certified accountants must maintain their certification through ongoing professional development and adhere to the certifying organization’s Code of Professional Conduct.
Accounting certifications can benefit accounting professionals, financial planners, and government financial managers, and can increase job security and earning potential.