If you are an accounting professional or aspiring to become one, you might wonder about the best accounting certifications to boost your career. Accounting certifications are credentials that demonstrate your expertise and competence in various areas of accounting. They can help you stand out, increase your earning potential, and advance your career prospects.
But with so many accounting certifications available, how do you choose the right one? This article will provide you with a comprehensive guide on the best accounting certifications in 2024. We will cover the following topics:
- What are accounting certificates, and why are they necessary?
- CPA (Certified Public Accountant): The most popular accounting certification
- CFA (Certified Financial Analyst): The gold standard for finance professionals
- CMA (Certified Management Accountant): The ideal certification for business managers
- EA (Enrolled Agent): The tax expert certification
- CIA (Certified Internal Auditor): The certificate for audit professionals
- CISA (Certified Information Systems Auditor): The accreditation for IT auditors
- Other accounting certifications to consider
- How to choose the best accounting certification for you
By the end of this article, you will have a clear idea of what each accounting certification entails, the requirements and benefits of each one, and how to decide which one suits your goals and interests. Let’s get started!
What are Accounting Certifications, and Why are They Important?
Accounting certifications are professional designations that validate your knowledge and skills in specific areas of accounting. Recognized organizations or associations grant them after you meet specific educational and experiential requirements and pass a rigorous exam.
Accounting certifications can have many benefits for your career. Some of them are:
- They can enhance your credibility and reputation as an accounting professional in Melbourne. They show that you have met high standards of quality and ethics in your field.
- They can increase your marketability and employability. They can make you more attractive to employers and clients who value certified professionals over non-certified ones.
- They can improve your career opportunities and advancement. They can open new doors for you regarding job roles, responsibilities, and industries. They can also help you negotiate better salaries and bonuses.
- They can expand your knowledge and skills. They can keep you updated with the latest trends and developments in accounting. They can also expose you to new areas of specialization and expertise.
- They can boost your confidence and satisfaction. They can give you a sense of achievement and recognition for your hard work and dedication. They can also motivate you to pursue lifelong learning and professional development.
CPA (Certified Public Accountant): The Most Popular Accounting Certification
The CPA certification is the most common and widely recognized accounting certification globally. It is issued by the American Institute of Certified Public Accountants (AICPA) and is accepted in all 50 states of the US and many other countries.
The CPA certification demonstrates your accounting, auditing, taxation, business law, ethics, and financial reporting proficiency. It is the minimum requirement for many accounting positions, especially in public accounting firms. It is also a prerequisite for other accounting certifications, such as CFF and CFE.
To become a CPA, you need to meet the following requirements:
- Education: You need a bachelor’s degree or higher in accounting or a related field from an accredited institution. You also need to complete 150 semester hours of college education, which may include some graduate-level courses.
- Experience: You need at least one year of relevant work experience in accounting or auditing under the supervision of a licensed CPA. The exact requirements may vary by state.
- Exam: You need to pass the Uniform CPA Examination, which consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). You need to score at least 75% on each section to pass. You have 18 months to pass all four areas before starting the exam.
- Ethics: You must complete an ethics course and pass an ethics exam approved by your state board of accountancy. You also need to adhere to the AICPA Code of Professional Conduct and the rules and regulations of your state board.
The benefits of becoming a CPA are:
- You can work as a public accountant, auditor, tax advisor, financial analyst, consultant, or manager in various industries and sectors.
- You can earn an average salary of $73,560 per year, according to the Bureau of Labor Statistics (BLS). This can vary depending on your location, experience, and specialization.
- You can enjoy job security and stability, as the demand for CPAs is expected to grow by 4% from 2024 to 2029, according to the BLS. This is due to the increasing complexity and regulation of financial transactions and reporting.
- You can join the AICPA and access its resources, networking opportunities, continuing education programs, and advocacy initiatives.
Key Takeaways:
- The CPA certification is the most popular accounting certification in the world.
- It demonstrates your accounting, auditing, taxation, business law, ethics, and financial reporting proficiency.
- It requires a bachelor’s degree or higher in accounting or a related field, 150 semester hours of college education, one year of relevant work experience, passing the Uniform CPA Examination, and completing an ethics course and exam.
- It can help you work as a public accountant, auditor, tax advisor, financial analyst, consultant, or manager in various industries and sectors.
- It can help you earn an average salary of $73,560 annually and enjoy job security and stability.
CFA (Certified Financial Analyst): The Gold Standard for Finance Professionals
The CFA certification is one of the world’s most prestigious and respected accounting certifications. It is issued by the CFA Institute and is recognized globally by employers, regulators, investors, and academic institutions.
The CFA certification demonstrates your expertise in investment analysis, portfolio management, financial markets, ethics, and professional standards. It is designed for finance professionals who want to advance their careers in investment banking, asset management, corporate finance, research, or consulting.
To become a CFA charter holder, you need to meet the following requirements:
- Education: You need to have a bachelor’s degree or equivalent from an accredited institution or be in the final year of your bachelor’s program. You can also qualify if you have four years of relevant work experience or a combination of education and work experience totaling four years.
- Experience: You need at least four years of relevant work experience in investment decision-making or related activities. This can include roles such as financial analyst, portfolio manager, investment banker, consultant, auditor, accountant, or educator.
- Exam: You need to pass three levels of exams that cover topics such as ethics and professional standards; quantitative methods; economics; financial reporting and analysis; corporate finance; equity investments; fixed income; derivatives; alternative investments; portfolio management; and wealth planning. Each exam consists of multiple-choice questions (Level I) or a combination of multiple-choice and essay questions (Level II and III). Each exam lasts six hours (three hours in the morning and three hours in the afternoon). You need to score at least 70% on each exam to pass. You can take one exam per year.
- Membership: You must apply for membership with the CFA Institute and a local CFA society. You must agree to abide by the CFA Code of Ethics and Standards of Professional Conduct and submit professional references and sponsor statements.
The benefits of becoming a CFA charter holder are:
- You can work as a financial analyst, portfolio manager, investment banker, consultant, researcher, or educator in various sectors and industries.
- You can earn an average salary of $95,051 per year, according to the CFA Institute. This can vary depending on your location, experience, and specialization.
- You can enjoy global recognition and mobility, as the CFA certification is accepted and respected in more than 170 countries. You can also network with more than 170,000 CFA charter holders worldwide.
- You can access the CFA Institute’s resources, publications, events, continuing education programs, and career services.
Key Takeaways:
- The CFA certification is one of the world’s most prestigious and respected accounting certifications.
- It demonstrates your expertise in investment analysis, portfolio management, financial markets, ethics, and professional standards.
- It requires a bachelor’s degree or equivalent, four years of relevant work experience, passing three levels of exams, and applying for membership with the CFA Institute and a local CFA society.
- It can help you work as a financial analyst, portfolio manager, investment banker, consultant, researcher, or educator in various sectors and industries.
- It can help you earn an average salary of $95,051 annually and enjoy global recognition and mobility.
CMA (Certified Management Accountant): The Ideal Certification for Business Managers
The CMA certification is another popular and respected accounting certification in the world. It is issued by the Institute of Management Accountants (IMA) and is recognized globally by employers, educators, and regulators.
The CMA certification demonstrates your expertise in management accounting, financial planning, analysis, control, decision support, and professional ethics. It is designed for accounting professionals who want to advance their business management, strategy, and leadership careers.
To become a CMA, you need to meet the following requirements:
- Education: You need a bachelor’s degree in any discipline from an accredited institution or a professional certification recognized by the IMA. You must also complete two years of college-level courses in accounting, economics, finance, statistics, and management.
- Experience: You need at least two years of relevant work experience in management accounting or financial management. This can include roles such as financial analyst, budget analyst, cost accountant, controller, treasurer, or consultant.
- Exam: You need to pass two parts of exams that cover topics such as financial reporting, planning, performance, and control; financial decision-making; ethics; and case studies. Each exam consists of 100 multiple-choice questions and two essay questions. Each exam lasts four hours (three hours for the multiple-choice questions and one hour for the essay questions). To pass, you must score at least 360 out of 500 on each exam. You have three years to pass both exam parts once you register.
- Membership: You must join the IMA as a professional member and pay an annual fee. You must also agree to abide by the IMA Statement of Ethical Professional Practice and complete at least 30 hours of continuing education each year.
The benefits of becoming a CMA are:
- You can work as a management accountant, financial manager, business analyst, consultant, or executive in various sectors and industries.
- You can earn an average salary of $87,230 per year, according to the BLS. This can vary depending on your location, experience, and specialization.
- You can enjoy global recognition and mobility, as the CMA certification is accepted and respected in more than 140 countries. You can also network with more than 125,000 CMA holders worldwide.
- You can access the IMA’s resources, publications, events, continuing education programs, and career services.
Key Takeaways:
- The CMA certification is another popular and respected accounting certification in the world.
- It demonstrates your expertise in management accounting, financial planning, analysis, control, decision support, and professional ethics.
- It requires a bachelor’s degree or higher in any discipline or a professional certification recognized by the IMA, two years of relevant work experience, passing two parts of exams, and joining the IMA as a professional member.
- It can help you work as a management accountant, financial manager, business analyst, consultant, or executive in various sectors and industries.
- It can help you earn an average salary of $87,230 annually and enjoy global recognition and mobility.
EA (Enrolled Agent): The Tax Expert Certification
The EA certification is a specialized accounting certification that focuses on taxation. It is issued by the Internal Revenue Service (IRS) and is recognized nationally by the US government and tax professionals.
The EA certification demonstrates your federal taxation, tax law, ethics, and representation expertise. It is designed for accounting professionals who want to provide tax services to individuals, businesses, and organizations. It also allows you to represent taxpayers in audits, appeals, and collections before the IRS.
To become an EA, you need to meet the following requirements:
- Education: You do not need a formal education in accounting or taxation. However, it would help if you understood federal tax laws and regulations well.
- Experience: You do not need to have any work experience in taxation. However, you need a valid Preparer Tax Identification Number (PTIN) issued by the IRS.
- Exam: You need to pass three parts of exams that cover topics such as individual taxation; business taxation; representation, practices and procedures; and ethics. Each exam consists of 100 multiple-choice questions. Each exam lasts 3.5 hours. To pass, you must score at least 105 out of 130 on each exam. You have two years to pass all three exam parts once you apply.
- Background Check: You need to undergo a suitability check by the IRS that includes a review of your tax compliance history and a criminal background check.
- Membership: You do not need to join any professional association or organization to become an EA. However, you may enter the National Association of Enrolled Agents (NAEA) or other state or local EA associations for networking and educational opportunities.
The benefits of becoming an EA are:
- You can work as a tax preparer, advisor, planner, or consultant for individuals, businesses, and organizations in various sectors and industries.
- According to ZipRecruiter, you can earn an average salary of $54,890 per year. This can vary depending on your location, experience, and specialization.
- You can enjoy national recognition and authority, as the EA certification is the highest credential awarded by the IRS. You can also represent taxpayers before the IRS in any tax matter, without limitation.
- You can access the IRS’s resources, publications, events, continuing education programs, and practice rights.
Key Takeaways:
- The EA certification is a specialized accounting certification that focuses on taxation.
- It demonstrates your federal taxation, tax law, ethics, and representation expertise.
- It requires a valid PTIN issued by the IRS, passing three parts of exams, and undergoing a suitability check by the IRS.
- It can help you work as a tax preparer, advisor, planner, or consultant for individuals, businesses, and organizations in various sectors and industries.
- It can help you earn an average salary of $54,890 annually and enjoy national recognition and authority.
CIA (Certified Internal Auditor): The Certification for Audit Professionals
The CIA certification is another specialized accounting certification that focuses on auditing. It is issued by the Institute of Internal Auditors (IIA) and is recognized globally by employers, regulators, and auditors.
The CIA certification demonstrates your internal auditing, risk management, governance, control, and assurance expertise. It is designed for accounting professionals who want to provide audit services to organizations in various sectors and industries. It also allows you to perform internal audits following the International Standards for the Professional Practice of Internal Auditing (IPPF).
To become a CIA, you need to meet the following requirements:
- Education: You need a bachelor’s degree or higher in any discipline from an accredited institution or a professional certification recognized by the IIA. You also need to submit proof of your education to the IIA.
- Experience: You need at least two years of relevant work experience in internal auditing or related activities. This can include roles such as internal auditor, compliance officer, risk manager, consultant, or educator.
- Exam: You need to pass three parts of exams that cover topics such as the essentials of internal auditing, the practice of internal auditing, and business knowledge of internal auditing. Each exam consists of 125 multiple-choice questions. Each exam lasts 2.5 hours. You need to score at least 600 out of 800 on each exam to pass. You have four years to pass all three exam parts once you register.
- Character Reference: You must submit a character reference form signed by a CIA, CGAP, CCSA, CFSA, CRMA, or your supervisor.
- Membership: You must join the IIA as a professional member and pay an annual fee. You must also agree to abide by the IIA Code of Ethics and complete at least 40 hours of continuing education each year.
The benefits of becoming a CIA are:
- You can work as an internal auditor, compliance officer, risk manager, consultant, or educator in various sectors and industries.
- You can earn an average salary of $68,791 per year, according to PayScale. This can vary depending on your location, experience, and specialization.
- You can enjoy global recognition and mobility, as the CIA certification is accepted and respected in more than 170 countries. You can also network with more than 165,000 CIA holders worldwide.
- You can access the IIA’s resources, publications, events, continuing education programs, and career services.
Key Takeaways:
- The CIA certification is another specialized accounting certification that focuses on auditing.
- It demonstrates your internal auditing, risk management, governance, control, and assurance expertise.
- It requires a bachelor’s degree or higher in any discipline or a professional certification recognized by the IIA, two years of relevant work experience, passing three parts of exams, submitting a character reference form, and joining the IIA as a professional member.
- It can help you work as an internal auditor, compliance officer, risk manager, consultant, or educator in various sectors and industries.
- It can help you earn an average salary of $68,791 annually and enjoy global recognition and mobility.
CISA (Certified Information Systems Auditor): The Certification for IT Auditors
The CISA certification is the last specialized accounting certification we will cover in this article. It focuses on information systems auditing, control, and security. It is issued by the Information Systems Audit and Control Association (ISACA) and is recognized globally by employers, regulators, and auditors.
The CISA certification demonstrates your expertise in auditing, assessing, and protecting information systems and technology. It is designed for accounting professionals who want to provide audit services to organizations that rely on information systems and technology for their operations and performance.
To become a CISA, you need to meet the following requirements:
- Education: You do not need a formal accounting or information systems education. However, you need to understand information systems auditing standards and practices well.
- Experience: You need at least five years of relevant work experience in information systems auditing, control, or security. This can include roles such as information systems auditor, IT auditor, IT consultant, IT manager, or IT security officer.
- Exam: You need to pass one exam that covers topics such as information systems auditing process; governance and management of IT; information systems acquisition, development, and implementation; information systems operations and business resilience; and protection of information assets. The exam consists of 150 multiple-choice questions. The exam lasts four hours. To pass, you must score at least 450 out of 800 on the exam. You have five years to pass the exam once you register.
- Membership: You must join the ISACA as a professional member and pay an annual fee. You must also agree to abide by the ISACA Code of Professional Ethics and the ISACA Continuing Professional Education Policy. You must also complete at least 20 hours of continuing education each year.
The benefits of becoming a CISA are:
- You can work as an information systems auditor, IT auditor, IT consultant, IT manager, or IT security officer in various sectors and industries.
- You can earn an average salary of $99,684 per year, according to PayScale. This can vary depending on your location, experience, and specialization.
- You can enjoy global recognition and mobility, as the CISA certification is accepted and respected in more than 200 countries. You can also network with more than 150,000 CISA holders worldwide.
- You can access the ISACA’s resources, publications, events, continuing education programs, and career services.
Key Takeaways:
- The CISA certification is the last specialized accounting certification we will cover in this article. It focuses on information systems auditing, control, and security.
- It demonstrates your expertise in auditing, assessing, and protecting information systems and technology.
- It requires at least five years of relevant work experience in information systems auditing, control, or security; passing one exam; and joining the ISACA as a professional member.
- It can help you work as an information systems auditor, IT auditor, IT consultant, IT manager, or IT security officer in various sectors and industries.
- It can help you earn an average salary of $99,684 annually and enjoy global recognition and mobility.
Other Accounting Certifications to Consider
In addition to the accounting certifications we have discussed so far, some other accounting certifications are less common but still valuable for your career. Here are some examples:
- CFE (Certified Fraud Examiner): This certification is issued by the Association of Certified Fraud Examiners (ACFE) and demonstrates your expertise in fraud prevention, detection, investigation, and deterrence. It is designed for accounting professionals specializing in forensic accounting and fraud examination.
- CFF (Certified in Financial Forensics): This certification is issued by the AICPA and demonstrates your expertise in financial forensics. It is designed for accounting professionals who want to specialize in litigation support, dispute resolution, fraud investigation, valuation, bankruptcy, and other areas that require financial forensic skills.
- CPP (Certified Payroll Professional): This certification is issued by the American Payroll Association (APA) and demonstrates your expertise in payroll administration. It is designed for accounting professionals specializing in payroll management, compliance, and tax issues.
- CRMA (Certification in Risk Management Assurance): This certification is issued by the IIA and demonstrates your expertise in risk management assurance. It is designed for accounting professionals who want to provide assurance services to organizations that must align their risk management and governance processes.
- CGMA (Chartered Global Management Accountant): This certification is issued by the AICPA and the Chartered Institute of Management Accountants (CIMA) and demonstrates your expertise in management accounting, business strategy, and leadership. It is designed for accounting professionals who want to become global business leaders.
How to Choose the Best Accounting Certification for You?
Now that you have learned about the best accounting certifications in 2024, you might wonder how to choose the best one. Here are some factors that you should consider before making your decision:
- Your career goals and interests: You should choose an accounting certification that aligns with your career goals and interests. For example, if you want to work in public accounting, you should consider the CPA certification. If you’re going to work in investment analysis, you should consider the CFA certification. If you’re going to work in information systems auditing, you should consider the CISA certification.
- Your education and experience: You should choose an accounting certification that matches your education and experience. For example, if you have a bachelor’s degree or higher in accounting or a related field, you should consider the CPA, CMA, or CFA certifications. You should feel the CMA or CFA certifications if you have a bachelor’s degree or higher in any discipline. If you do not have a formal education in accounting or information systems, you should consider the EA or CISA certifications.
- Your exam preparation and commitment: You should choose an accounting certification that suits your exam preparation and dedication. For example, consider the CPA, CMA, or CFA certifications if you are confident in your accounting knowledge and skills. If you need more time and resources to prepare for the exams, consider the EA, CIA, or CISA certifications.
- Your budget and availability: You should choose an accounting certification that fits your budget and availability. For example, consider the EA or CIA certifications if you have a limited budget and time. Consider the CPA, CMA, or CFA certifications if you have a flexible budget and time.
Conclusion
In this article, we have provided a comprehensive guide on the best accounting certifications in 2024. We have covered the following topics:
- What are accounting certificates, and why are they necessary?
- CPA (Certified Public Accountant): The most popular accounting certification
- CFA (Certified Financial Analyst): The gold standard for finance professionals
- CMA (Certified Management Accountant): The ideal certification for business managers
- EA (Enrolled Agent): The tax expert certification
- CIA (Certified Internal Auditor): The certificate for audit professionals
- CISA (Certified Information Systems Auditor): The accreditation for IT auditors
- Other accounting certifications to consider
- How to choose the best accounting certification for you
We hope this article has helped you understand the benefits and requirements of each accounting certification and how to decide which one suits your career goals and interests. We wish you all the best in your accounting career! 😊
