In today’s advancing accounting field, a mere academic accounting degree may not suffice to fulfil the desired career goal. To make it larger one must acquire optimum knowledge and accounting skill in a professional manner. Here comes the importance of internationally recognized professional accounting credentials to get better job prospects vis-à-vis a decent salary. In this regard, two such popular courses come in to play a bigger role namely Certified Management Accountant (CMA US) and Certified Public Accountant (CPA US) courses. While the former certification is offered by the Institute of Management Accountants (IMA), the later is provided by the American Institute of Chartered Public Accountants (AICPA). Although both the courses vary in their scope and target destinations, it is often coming to mind that which one to select for better career growth with reference to salary and job opportunities. Let us try to put some light to clear any possible dilemma in finding better options.
The Inclination
CMA USA to select if you have inclination for management accounting and wants to be a part of strategic management planning and decision-making processes of the organization. This certification orients you to focus on financial planning and control in relation to the performance.
On the other hand, if you are more inclined to auditing, taxation etc. in the public accounting domain, CPA US should be your cup of tea. Additionally, CPA US has a licensing procedure for independent practice.
Duration
CMA US exam has two papers to write while CPA US exam requires to clear a four-part exam which obviously indicate that the former certification demand shorter time to complete than the later course.
Eligibility
The eligibility criteria for CMA US are a graduation degree preferably with accounting major. On the contrary, CPA US require 120 credit points to write the exam and 150 credit points to be eligible for licensure. Very often a graduation degree from Indian universities may not suffice for the same and additional qualifications or post-graduation is required for the same.
Job Opportunities
The positions available for CMA US mostly in MNCs including Big 4s are Management Accountants, Relationship manager, Finance Manager Cost Accountants, Financial Analyst, Financial Controller, Chief Financial Officer etc. from entry level to seasoned accountants.
CPA US holders have wide span of lucrative positions from public to private sectors in various positions such as Internal/External Auditor, Budget Analyst, Tax Examiner, Business Systems Analyst, Finance Controller, Forensic Accountant, Financial Advisor etc. In addition, a CPA US license holder can pursue independent public accounting services as self-employed consultant.
Salary
In India, salary of both CMA US and CPA US vary depending on the working experience of the candidate as well as the status and pay structure of the employer. However, at entry level, the average salary of CMA US holder ranges from 5-7 lakhs per annum while for a CPA it is slightly on the higher side ranging in between 7- 10 lakhs/annum. Both CMA and CPA, with experience, gets a salary of 12 to 60 lakhs per annum within India and higher than that in the international platform.
Summary
Both the CMA US and CPA US courses are high end professional courses recognized across the globe. Both the courses have their own scope and perspectives but having greater job potentials. CPA US has an additional licensing procedure not applicable for CMA US. Based on the duration, eligibility, and inclination, one can go for the right course as per the suitability of his job profile and inclination.
Earning certifications in finance and accounting is a big step toward improving your marketability and career advancement as a professional in this field.
Continuing education is an investment in time and money, of course, and your employer may help make the case for credentials. Robert Half research shows that a majority (72 percent) of CFOs interviewed say their company will cover all or some of the cost of obtaining a professional certification, and 76 percent said their organizations help in maintaining such certifications once they’re earned.
What are the best accounting certifications?
The answer depends on your career path, specialization plans, resources and eligibility. Of the numerous certifications, each has its own requirements with regard to education, work experience and examination. Each, too, has specific skills to be gained by attaining it and ways in which it would benefit your career and positioning as an expert in the field of accounting and finance.
Certified Public Accountant
Chartered Global Management Accountant
Certified Management Accountant
Chartered Financial Analyst
Certified Financial Services Auditor
Certified Internal Auditor
Certified Fraud Examiner
Certified Government Auditing Professional
Certified Information Systems Auditor
Certified Information Technology Professional
Let’s first take a closer look at three certifications geared to careers in corporate accounting.
Certified Public Accountant
The Certified Public Accountant (CPA) license has a long reputation as the gold standard for accounting and finance roles in the United States. With this accounting certification, you validate your expertise in forensic accounting, tax, compliance, risk management and other skills that can lead to top CPA jobs.
Granted by: American Institute of Certified Public Accountants (AICPA)
Estimated cost: $2,000 to $3,000
Prerequisites: Five years of higher education, a minimum number of continuing education credits in business and accounting (typically about 150), and verified relevant experience
Exam requirements: Four levels; can be taken in any order
Time to certification: Passing the CPA exam usually takes a year; exam and license requirements vary state by state, but most state boards require one year of accounting experience before you get the license.
Ongoing requirements: Requirements for continuing professional education (CPE) credits vary by state.
Who should get it: This designation is a versatile one, as CPAs work in public accounting, management accounting, governmental accounting, taxation, financial advisory, compliance and other roles. The CPA is highly valued throughout the accounting industry, and some companies require it for managerial jobs. If you know you want to make your career in accounting and have the time and money to invest, the CPA is a good credential to pursue.
To learn more about how to make the most of your accounting and finance career and find your next job, mail to info@upliftprofessionals.in.
Chartered Global Management Accountant
The Chartered Global Management Accountant (CGMA) financial certification is a global designation for CPAs working in business and government. It’s an achievement that demonstrates your competency in management accounting skills and your expertise in developing strategy that connects all aspects of business.
Granted by: Both AICPA and the Chartered Institute of Management Accountants (CIMA), two of the world’s leading accounting organizations
Estimated cost: $325 plus membership fee for AICPA; for CIMA, cost of designation is included in membership
Prerequisites: Any AICPA member is eligible, with an experience requirement of three years of relevant, work-based, practical management accounting experience. CIMA members are already qualified.
Exam requirements: One computerized case study taken on site, which asks for long-form, written answers that reflect management accounting competencies
Time to certification: Exams offered four times a year; results released within four weeks
Ongoing requirements: Membership in good standing
Who should get it: Finance and accounting professionals who want their experience and skills recognized throughout the world, in addition to research, tools and a global network
Certified Management Accountant
The Certified Management Accountant (CMA) certification is sponsored by the IMA (Institute of Management Accountants), and is recognized globally. Professionals who hold this accounting certification demonstrate mastery of critical accounting and financial management skills from a generalized, managerial and internal perspective.
Granted by: IMA
Estimated cost: $1,000 to $2,000
Prerequisites: A bachelor’s degree and two consecutive years in financial management or management accounting
Exam requirements: Two levels, with a total exam time of eight hours
Time to certification: Typically one to two years
Ongoing requirements: 30 hours of CPE credits
Who should get it: Many accountants choose to get both the CPA and the CMA, as there is considerable overlap in the exam topics. The CMA is often considered a more practical application of the theoretical concepts tested in the CPA exams and is recommended for accountants in the corporate sector, particularly in large, multinational companies.Learn more about CMA US here: https://www.upliftprofessionals.in/CMA-USA.html
If you are considering a career as a financial analyst, or already working as one, you’ll want to look at the CPA license, as well as professional finance certifications.
Here are five certifications for careers in banking and financial services.
Chartered Financial Analyst
Chartered Finance Analyst (CFA) certification demonstrates your knowledge and competence regarding principles of portfolio management, investment analysis, economics, and professional and ethical standards.
Granted by: CFA Institute, a nonprofit based in the U.S.
Estimated cost: $2,500
Prerequisites: A bachelor’s degree and four years of relevant experience
Exam requirements: Three levels, with a total exam time of 18 hours; you must pass one level before you move to the next
Time to certification: Can be completed in 18 months, but most people take more than two years
Ongoing requirements: A recommended 20 hours of CPE credits, with at least two hours of standards, regulatory and ethics education
Who should get it: This has become a must-have for security analysts and asset managers in the investment community. Finance professionals who are (or aim to become) equity analysts, fund managers or hedge fund managers will also find the CFA useful, as will anyone who hopes to reach the CFO or senior finance manager levels. If you are pursuing a career in audit, however, it won’t be particularly useful to you.
Certified Financial Services Auditor
The Institute of Internal Auditors’ Certified Financial Services Auditor (CFSA) is a specialty certification for audit professionals who have a minimum of two years of experience in financial services organizations, such as banks, holding and investment companies, insurance companies, credit agencies, or security and commodity services.
These certifications are geared to audit, fraud and risk managementcareers.
Certified Internal Auditor
The Certified Internal Auditor (CIA) is the only internationally accepted designation for the internal auditor career path, and people who hold this financial certification demonstrate competence in areas such as risk and control and information technology, as well as proficiency in working with internal staff and external clients.
Granted by: Institute of Internal Auditors (IIA)
Estimated cost: $1,500
Prerequisites: A bachelor’s degree and two years of internal audit experience (but a master’s degree can substitute for one year of experience)
Exam requirements: Three levels, with a total exam time of 6.5 hours
Time to certification: Typically a year to 18 months
Ongoing requirements: CPE credits are required; the number depends on your work status
Who should get it: The CIA is really only useful to internal auditors, with particular importance for those who would like to become managers or chief audit executives.
Available to members of the Association of Certified Fraud Examiners, the Certified Fraud Examiner (CFE) is beneficial for finance professionals focused on anti-fraud endeavors across private and public agencies. Passing the CFE exam demonstrates expertise in the four main areas of fraud examination: Financial Transactions and Fraud Schemes, Law, Investigation, and Fraud Prevention and Deterrence.
Applicants for the CFE exam need to submit documentation of their education and work experience, along with three professional recommendations.
Certified Government Auditing Professional
The Institute of Internal Auditors offers the Certified Government Auditing Professional (CGAP) for audit practitioners in the public sector. It demonstrates skill in the unique requirements of government auditing. To qualify for the exam, auditors must have two years of experience in government auditing.
Here are two certifications for accountants with information technology careers.
Certified Information Systems Auditor
Accountants holding a Certified Information Systems Auditor (CISA) certification can show they have a proficiency in information systems control, security and auditing.
Granted by: ISACA (previously known as the Information Systems Audit and Control Association)
Estimated cost: $450 for members; $650 for nonmembers
Prerequisites: No experience is required to take the exam
Exam requirements: 150 questions; four hours, on site at locations worldwide
Time to certification: A minimum of five years of professional information systems auditing, control or security work experience is required for certification, with some substitutions possible
Ongoing requirements: Maintenance fees and CPE hours
Who should get it: Information systems audit, control and security professionals who desire global recognition
Certified Information Technology Professional
Offered by the AICPA, the Certified Information Technology Professional (CITP) is a specialty credential for CPAs who want to demonstrate technology skills that can help a company span the gap between business concerns and technical consideration. Aside from passing the CITP exam, additional requirements include having a minimum of 1,000 hours of business experience and 75 hours of continuing education in information management and technology assurance within the five years preceding application for the CITP.
Certifications for specific roles
Accounting education, from associate’s, bachelor’s and graduate degrees to certifications, is valuable not only for moving your career forward but also for expanding your skills and expertise to become a more well-rounded professional.
It can also help you become a more desirable job candidate or employee, one who can command a higher salary. According to the Robert Half Salary Guide for Accounting and Finance Professionals, specialized certifications can put you at the higher end of the compensation tables.
What are the most highly sought accounting jobs and the credentials that would boost your resume if you were aspiring to them? Here’s an alphabetical list of a few:
Accounts receivable/accounts payable — Most accounts receivable/accounts payable professionals hone their skills with on-the-job experience. But an accounts receivable or accounts payable certification can make you a more desirable applicant or move you up the job ranks. AR professionals might look into Accredited Receivables Manager (ARM) or Accredited Receivables Specialists (ARS) certifications. AP professionals might consider the Accredited Payables Manager (APM) and Accredited Payables Specialist (APS) credentials.
Auditors — To reach higher-level auditing positions, you’ll want to consider a Master of Business Administration (MBA), as well as a CPA or CIA. IT auditors should look into the CISA, rather than the CIA.
Business and business systems analysts — Business analysts and business systems analysts can increase their marketability by acquiring an MBA. If you want to go a step further, you can sit for the Certified Business Analysis Professional (CBAP) or Certification of Competency in Business Analysis (CCBA).
Compliance professionals — The options for compliance certifications vary, depending on your industry and specialization, and they are almost as numerous as regulatory mandates. Options include the Certified Compliance and Ethics Professional (CCEP), Certified Compliance and Regulatory Professional (CCRP), Certified Regulatory and Compliance Professional (CRCP) and Investment Adviser Compliance Certification Program (IACCP).
Controllers — If you’re a controller on the job market, an MBA will distinguish you from other candidates, especially if it’s accompanied by a CPA or CMA credential. It’s important to note that most employers prefer the CPA, making it one of the most in-demand certifications.
Cost accountants, staff accountants, senior accountants — You can propel yourself upward in these accounting jobs by obtaining a CPA or CMA. Employers prefer the CPA, and if you’re looking to hit senior or management levels, an MBA can help you get there.
Financial analysts — To make the preferred candidate list as a financial analyst, you’ll need a CPA or an MBA. Having both is even better.
Payroll professionals — Looking to land your dream payroll job? The Certified Payroll Professional (CPP) designation can help you make it to supervisory roles.
Have you seen enough acronyms for one article? Here’s another: The AICPA’s Certified in Entity and Intangible Valuations™ (CEIV™) credential is for CPAs and finance professionals to demonstrate a commitment to enhancing audit quality, consistency and transparency in fair value measurements for public company financial reporting purposes in the U.S.
When considering what accountant certifications to pursue, carefully study how each might help advance your career. Your choice may be swayed, for instance, by whether you work in private vs. public accounting. The niche that is your company’s focus might also dictate your direction as well as your own career aspirations.
Do you have the certifications needed to set yourself apart from other candidates and command a higher salary? If not, there’s no time like the present to show employers you mean business and increase your career opportunities by investing in professional development.
Here are some insights into potential trends and developments that might shape the future of management accountants.
Emphasis on Data Analysis and Technology: Management accountants will likely need to become more proficient in data analysis and utilize advanced technologies such as artificial intelligence and machine learning. These skills will enable them to process and analyze large volumes of financial data more efficiently and extract valuable insights for decision-making.
Automation and AI Adoption: Routine and repetitive tasks in accounting are expected to become increasingly automated, freeing up management accountants to focus on more strategic and analytical functions. This shift will require management accountants to adapt and learn how to work effectively with automated systems.
Business Advisory Role: Management accountants are likely to take on more advisory roles, partnering with business leaders to provide insights into financial data, offering strategic recommendations, and contributing to overall business planning.
Regulatory Changes and Compliance: The accounting industry is continuously evolving, with new regulations and reporting standards being introduced. Management accountants will need to stay up-to-date with these changes and ensure compliance to avoid penalties and maintain ethical practices.
Soft Skills and Communication: As management accountants take on more advisory roles, their ability to communicate complex financial information in a clear and understandable manner will become increasingly important. Developing soft skills, such as effective communication and collaboration, will be crucial for success.
Globalization and Cross-Border Transactions: With businesses becoming increasingly global, management accountants will likely encounter more cross-border financial transactions and international reporting standards. Familiarity with international accounting practices like GAAP and IFRS will be essential.
Sustainable and Socially Responsible Practices: Businesses are increasingly focusing on sustainability and corporate social responsibility. Management accountants may need to integrate environmental, social, and governance (ESG) considerations into financial analysis and reporting.
Continuous Professional Development: To stay relevant and competitive, management accountants will need to embrace lifelong learning and actively engage in professional development to keep up with the rapidly changing landscape of accounting and finance.
It’s important to remember that the actual trajectory of management accountants’ roles will depend on various factors, including technological advancements, economic conditions, and industry-specific changes. Continuous adaptability and openness to learning new skills through international certifications like the CMA US will be vital for management accountants to thrive in the evolving business landscape.
FP&A (Financial Planning and Analysis) can be a rewarding career in finance for several reasons:
Strategic Impact: FP&A professionals play a crucial role in shaping the financial strategy of an organization. They provide insights, analysis, and forecasts that guide decision-making at the executive level. Being involved in strategic discussions and influencing key business outcomes can be intellectually stimulating and rewarding.
Holistic Perspective: FP&A professionals have a comprehensive view of the entire organization’s financial landscape. They work closely with various departments, such as sales, marketing, operations, and finance, gaining exposure to different aspects of the business. This broad understanding allows them to contribute to cross-functional initiatives and have a deeper understanding of how the organization operates.
Analytical Rigor: FP&A roles require strong analytical skills. Professionals in this field often work with large data sets, perform financial modeling, conduct variance analysis, and create forecasts and projections. The ability to analyze complex financial information and derive meaningful insights is highly valued and can provide a sense of accomplishment.
Problem-Solving Opportunities: FP&A professionals are often tasked with solving complex financial challenges. They may be asked to identify cost-saving opportunities, optimize resource allocation, or develop financial models to support strategic initiatives. This problem-solving aspect can be intellectually stimulating and rewarding, as it allows professionals to apply their financial knowledge and skills to overcome business hurdles.
Continuous Learning: Finance is a dynamic field, and FP&A professionals need to stay updated with industry trends, regulations, and emerging technologies. This continuous learning environment offers ongoing opportunities for professional development, skill enhancement, and career growth. Staying at the forefront of financial best practices can be rewarding and provide a sense of personal and intellectual growth.
Career Progression: FP&A roles often serve as stepping stones to more senior positions within an organization. Professionals with a strong foundation in FP&A may transition into executive roles such as CFO (Chief Financial Officer) or other strategic leadership positions. The career progression opportunities in FP&A can be substantial, leading to higher levels of responsibility, increased compensation, and broader impact within the organization.
Visibility and Influence: In many organizations, FP&A professionals have a high level of visibility among top management. They are frequently involved in financial presentations, reporting to executives, and participating in strategic discussions. This visibility and influence can provide a sense of recognition and make FP&A professionals feel valued within the organization.
It’s important to note that individual experiences may vary, and rewards can differ based on personal preferences and goals. However, for many finance professionals, the challenging and impactful nature of FP&A roles can make them highly rewarding and fulfilling careers in the field of finance.
In order to be a successful FP&A professional and work across the globe, achieving the CMA US credential from the IMA US is highly recommended.
ChatGPT and similar AI technologies have the potential to impact the jobs of finance professionals in various ways. Here are a few potential influences:
1. Automation of Routine Tasks: AI-powered systems can automate repetitive and rule-based tasks, such as data entry, basic financial analysis, and report generation. This could free up time for finance professionals to focus on more complex and strategic activities.
2. Enhanced Data Analysis: AI can assist finance professionals in analyzing large volumes of financial data quickly and accurately. By leveraging machine learning algorithms, AI systems can identify patterns, detect anomalies, and generate insights that aid in decision-making.
3. Improved Efficiency and Productivity: AI technologies can streamline processes, reduce manual errors, and enhance efficiency in financial operations. This can lead to improved productivity for finance professionals, allowing them to accomplish more in less time.
4. Support for Decision-Making: AI systems can provide real-time financial information, predictive analytics, and scenario analysis to support finance professionals in making informed decisions. These technologies can enhance the accuracy and speed of financial forecasting and planning.
5. Compliance and Risk Management: AI can help finance professionals in monitoring compliance with financial regulations, identifying potential risks, and implementing risk management strategies. AI-powered systems can analyze vast amounts of data to detect fraud, mitigate risks, and ensure regulatory compliance.
6. Shifting Skill Requirements: The rise of AI in the finance industry may lead to a shift in the required skill set for finance professionals. While technical and analytical skills will remain crucial, there will be an increasing demand for skills such as data interpretation, strategic thinking, problem-solving, and collaboration to work effectively with AI technologies.
It’s important to note that while AI technologies can automate certain tasks and enhance efficiency, they are not expected to replace finance professionals entirely. The human element, such as critical thinking, professional judgement, and ethical decision-making, remains essential in finance roles.
Finance professionals can adapt to these changes by staying updated with emerging technologies, continuously upskilling themselves, and focusing on developing expertise in areas that complement AI capabilities. Programmes like the US CMA or CPA are enough to make a finance guy stand above the influence of AI. This proactive approach can help finance professionals leverage AI as a tool to augment their work and create new opportunities within the finance industry.
