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Top 5 Accounting and Finance Certifications to Get Ahead
The right accounting and finance certifications signal to employers and customers that you’re committed to the field and ongoing learning.
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Nearly every public and private business entity — across all levels of government, small and large businesses and major accounting firms (such as KPMG, EY, Deloitte and PwC) — hires finance professionals. These professionals help businesses manage their organizational finances.
To improve their accounting skills, knowledge, credibility and job prospects, many financial and accounting professionals seek additional certifications, earning specializations in various accounting niches. We’ll explore five of the most popular accounting and finance certifications and how they can benefit finance professionals.
What are accounting and finance certifications?
There are several different accounting and finance certification types. One of the most well-known is the certified public accountant (CPA) certification. CPAs specialize in auditing, compliance, taxes, forensic accounting, fraud examinations and more. Another popular finance certification is the certified management accountant (CMA) certification, which leans toward financial analysis.
Other lesser-known certifications include certified bank auditor, certified fraud examiner, certified information systems auditor, certified internal auditor and enrolled agent. However, CPA is the most sought-after certification, as many accountants’ careers will plateau early on without one.
Top 5 accounting and finance certifications
We’ll take an in-depth look at five of the most popular and valuable accounting and finance certifications, along with some additional credentials you may be interested in pursuing.
1. Certified Government Financial Manager
Those interested in government accounting, financial reporting, auditing and budget planning at the local, state or federal level should consider the Certified Government Financial Manager (CGFM) certification offered by the Association of Government Accountants (AGA).
According to Payscale, those who have obtained their CGFM certification typically earn an annual salary of about $90,000. For comparison, the average salary of a budget analyst is about $65,000, reported Salary.com.
To get a CGFM certification, candidates must have a bachelor’s degree and at least two years of professional experience in government financial management. They must also pass three CGFM exams:
- Governmental Environment (GE)
- Governmental Accounting, Financial Reporting and Budgeting (GAFRB)
- Governmental Financial Management and Control (GFMC)
Each exam costs $135. Candidates must also pay an application fee of $80 for AGA members, $36 for student members and $109 for nonmembers. Beginning in September 2024, a new version of the CGFM with updated content will be released. Beta testing of these examinations will be held from September 1 to October 31 and have a discounted rate of $105.
2. CMA
The Institute of Management Accountants (IMA) is the membership organization behind the CMA certification, which is aimed at management accountants and financial professionals.
Regarding what differentiates a CMA from other accounting-related professionals, the IMA explains that CMAs understand the “why” behind numbers, not just the “what.” That means a CMA’s role may involve analyzing and reporting monthly financials, forecasts and the annual budget as well as providing strategic planning input.
A CMA certification can be lucrative. IMA’s Global Salary Survey reports that the median total compensation for CMAs is 58 percent higher than it is for those without the designation. The study found that the overall median base salary in 2021 was $110,000, with an overall median total compensation of $124,000.
Globally, the average salary for CMAs in 2023 was about $14,853 higher than the average salary of non-CMA holders. IMA’s 2023 Global Salary Survey shows that 62 percent of CMAs credit their salary increases to their CMA certification.
To achieve the CMA designation, you must have the following:
- Current IMA membership
- A bachelor’s degree or an approved accounting certification
- Two years of relevant work experience
- A passing score on the two-part CMA exam
The first part of the CMA exam covers financial reporting, planning, performance management and analytics. The second part focuses on financial strategy and decision-making.
The IMA charges $295 for a Professional membership, an entrance fee of $300 (for professional members) and $495 for each exam part. (A discount is available to students and academic members, and a limited number of scholarships is available each year.)
3. CPA
The creme de la creme of accounting certifications is the CPA. CPAs can work for public- or private-sector organizations or as consultants. CPAs can handle various tasks, such as financial records maintenance, corporate finance, budget oversight, tax preparation and financial planning.
Some CPAs earn additional certifications and engage in more specialized activities, including serving as an internal financial records auditor, applying forensic accounting techniques to detect financial crimes and acting as a fraud examiner.
Each state ― and several jurisdictions ― certify and license CPAs through their boards of accountancy, so you’ll need to research the requirements of your locale. A typical minimum requirement is a bachelor’s degree with courses in general accounting, cost accounting and more. AccountingEdu.org and the Association of International Certified Public Accountants (AICPA) CPA Exam page are good starting points to determine the requirements you’ll need to meet.
The typical CPA salary is about $80,000, based on salaries reported by the Bureau of Labor Statistics (BLS).
4. Chartered Financial Analyst (CFA)
The CFA Institute offers the CFA certification, which is geared toward investment and portfolio managers, corporate finance advisors and analysts.
Candidates for the CFA designation must have the following:
- A passport for ID purposes
- A bachelor’s degree or be enrolled in the last year of a four-year program
- The completion of 4,000 hours of professional work experience
- Or a combination of education and professional work experience
Earning the CFA designation requires passing three exams — levels I, II and III. The Level I exam focuses on knowledge and comprehension of investment tools. The Level II exam tests a candidate’s application and analysis of asset valuation. The Level III exam tests for portfolio management skills.
The CFA Institute charges a one-time program enrollment fee of $350 and a standard registration fee of $1,250 for each exam. Early registrants pay $940 per exam.
The BLS listed the median salary for financial managers as $156,100 in 2023.
5. Enrolled Agent (EA)
Tax professionals may be interested in earning the EA credential. Created by the IRS, the EA credential identifies people qualified to represent United States taxpayers in personal and business tax situations, such as collections and appeals. Typically, a certified EA has a lot of experience in tax preparation for a wide variety of federal and state tax returns. The EA is the highest credential you can achieve through the IRS.
To become an EA, you must have worked for the IRS for at least five years interpreting the tax code or you must pass the three-part Special Enrollment Exam (SEE). Additionally, you must obtain a preparer tax identification number (PTIN), pass a background check and adhere to ethical standards. To maintain your EA status you will need to complete 72 hours of continuing education every three years.
Each part of the SEE costs $259, and candidates must pay a $140 fee to apply for enrollment after passing the exam.
The National Association of Enrolled Agents (NAEA) offers more information and training resources for becoming an EA.
The salary for EAs varies widely by location in the U.S. EAs. can expect an average annual salary of about $68,000, according to Indeed.
Other finance and accounting certifications to consider
- Certified bookkeeper: The certified bookkeeper certification comes from the American Institute of Professional Bookkeepers. This certification can help you achieve more high-level bookkeeper positions.
- Institute of Internal Auditors certifications: The Institute of Internal Auditors is well known for its certified internal auditor certification, but it also offers the Certified Financial Services Auditor certification and Certified Government Auditing Professional certification, among a few other credentials.
- AICPA certifications: In addition to providing CPA exam information and resources, the AICPA offers several certifications of its own, including the accredited in business valuation, Certified in Financial Forensics, Certified in Entity and Intangible Valuations, Certified in the Valuation of Financial Instruments and Chartered Global Management Accountant designations.
These are some higher-level and specialty certifications of note:
- Certified chief accountant
- Financial Risk Manager
- Certified fraud examiner
- Certified Valuation Analyst
- Master analyst in financial forensics
- Chartered alternative investment analyst charter holder
What are the benefits of being certified?
Certifications indicate specialized knowledge, which can help clients hire the right accountant for their needs. Current financial certifications can also help accomplish the following:
- Enhance professional reputations.
- Support continued professional development.
- Demonstrate a high level of commitment to the field.
- Validate skills and knowledge.
- Communicate credibility.
- Increase opportunities for career advancement and increased earnings.
- Differentiate candidates in a competitive job market.
Certifications also have benefits that extend to the public, the financial industry and employers. Certifications can help businesses do the following:
- Standardize practices.
- Increase cooperation between organizations in the same discipline.
- Provide the means for self-regulation.
- Increase employee competence.
- Identify quality service providers.
- Provide the means to establish an ethical code.
- Establish customers’ confidence in employees.
- Make employment decisions.
Financial certification FAQs
- CFA: The CFA designation requires a bachelor’s degree (at minimum) and two years of experience in addition to two exams. It takes four or more years, on average, to complete the CFA program, with candidates logging more than 300 study hours per exam level.
- CPA: Most CPAs have earned a bachelor’s degree and several pursue a Master of Business Administration with a specialization in accounting or a master’s degree in accountancy. The licensing exam varies by state but is typically spread over two days.
- CGFM and CMA: The CGFM and CMA designations require a bachelor’s degree or accounting certificate and a minimum of two years of professional experience in addition to passing three exams.
- EA: The EA designation requires five years of experience or a passing score on the three-part SEE.
Sean Peek contributed to this article.
