subject: Designations In The Accounting Field [print this page] While there are many designations, licenses, and certifications available to you in the accounting field, only one is global in its recognition: the Certified Public Accountant (CPA). When you are a CPA, your license is recognized from Paris, Texas to Paris, France and your expertise is acknowledged immediately. No matter which niche you practice in-from forensic accounting to tax preparation-being a CPA gives you instant credibility.
The same cannot be said about the following designations which are very specific to certain niches and do not translate to career cache' in other fields within accounting. The Institute of Management Accountants confers the Certified Management Accountant (CMA) designation. As of fall 2009, you must have at least a bachelor's degree to qualify to sit for the exam. (Previously, a good score on the GMAT or GRE graduate school exam was permissible as well.) After you pass a four-part examination on financial statement analysis, working-capital policy, capital structure, valuation issues, and risk management, you must agree to meet continuing education requirements and comply with standards of professional conduct to be a CMA.
The Institute of Internal Auditors (IIA) offers the Certified Internal Auditor (CIA) designation. You must: *Have at least a bachelor's degree from an accredited college or university. *Have worked for two years as an internal auditor. *Have passed a four-part examination. The IIA also offers the designations of *Certified in Control Self-Assessment (CCSA), *Certified Government Auditing Professional (CGAP), and *Certified Financial Services Auditor (CFSA) to those who pass the exams and meet educational and experience requirements.
The ISACA, formerly known as the Information Systems Audit and Control Association, confers the Certified Information Systems Auditor (CISA) designation after you pass an examination and have five years of experience auditing information systems.
Information systems experience, financial or operational auditing experience, or related college credit hours can be substituted for up to two years information systems auditing, control or security experience. The Accreditation Council for Accountancy and Taxation, a satellite organization of the National Society of Accountants, confers four designations: *Accredited Business Accountant (ABA) You can apply if you specialize in tax preparation for small and medium-sized businesses and you pass the ABA exam. *Accredited Tax Advisor (ATA) You can apply if you have five years of experience in sophisticated tax planning cases such as qualified retirement plans, complex estates, and the ownership of closely held businesses. ACAT is developing a test consisting of 140 questions for this designation. *Accredited Tax Preparer (ATP) You can apply if you specialize in tax return preparation for individuals and the self-employed. *Elder Care Specialist (ECS): You can apply if you have three years' experience in accounting or taxation and specialize in estate and trust planning, and retirement planning for senior citizens.
The National Society of Accountants provides three tracks which must be completed, and you must pass a test at each level. Candidates for the other designations must complete the required coursework and for certain designations and licenses, pass an exam as well. The Association of Certified Fraud Examiners offers the Certified Fraud Examiner (CFE) designation for forensic or public accountants involved in fraud prevention, detection, deterrence, and investigation.
To obtain the designation, you must have a bachelor's degree, two years of relevant experience, pass a four-part examination, and abide by a code of professional ethics. Related work experience may be substituted for the educational requirement. The Association of Government Accountants grants the Certified Government Financial Manager (CGFM) designation for accountants, auditors, and other government financial workers at the Federal, State, and local levels.
You must have a minimum of a bachelor's degree, 24 hours of study in financial management, two years of experience in government, and passing scores on a series of three exams. The exams cover topics in governmental environment, governmental accounting, financial reporting and budgeting; and financial management and control.
Each of these certifications is highly specialized and does not necessarily translate into being viewed as an expert in another field. For instance, simply because an accountant is an Elder Care Specialist does NOT mean that the accountant is viewed automatically as an expert in fraud examination. However, there is one license which garners credibility in every niche of accounting and that is the Certified Public Accountant (CPA). The most globally recognized designation for an accountant is the Certified Public Accountant (CPA). It opens the greatest number of doors around the world for those who have it. For accountants, the career path upwards requires becoming a CPA. Progressing from being an accountant to becoming a CPA offers greater opportunities for promotion into management, greater career opportunities, and higher salaries.
In many companies, you must be a CPA before you are promoted into upper management and especially at C-Level such as CFO (Chief Financial Officer).
