If you are looking for the best accounting school then you are at the right place, you will find top 100 universities providing excellent programs related to accounting. There are many people who want to become an accountant but there is a question for everyone that which degree is best for accounting? This post is related to which program should I take if I want to become an accountant after degree, i.e., you have degree in arts or business administration.
This may come as a surprise, but the best online accounting degree is not an online accounting degree. If you can get into one of the top 100 accounting schools in the country (a good place to start), then there are many benefits of attending these types of institutions, including meeting new people and taking classes alongside accounting majors.
Certified Public Accountant (CPA)
The Certified Public Accountant credential is the oldest and most well known accounting designation in the profession. You can think of the CPA as the gold standard since everyone knows what it is and it earns great respect. This is due to the designations unique capabilities.
No other certifications have the ability to write audit reports or give opinions on publicly traded company financials. Only CPAs are licensed by state governments to perform these duties. CPAs also sign tax returns as paid preparers and represent clients in front of the IRS.
CPAs can really do it all and the title is considered one of the more general certifications in the field. CPAs can do all of the same tasks and jobs that other certifications can do, but CPAs don’t go as specific as the other certifications.
In order to become a CPA, you must take and pass all four parts of the infamous AICPA uniform CPA exam. You will also need to meet the education and work experience requirements of your state.
Chartered Financial Analyst (CFA®)
This designation is intended for those that want a career in the finance and investment world. Most CFA®s are finance professionals working on Wall Street or for a hedge fund/investment fund, but the certification has responsibilities beyond company management.
Although the CFA® is not as popular as the CPA in the United States, it is one of the most internationally known accounting designations. In Europe and China this designation is much more popular. It helps train people to think analytically about finance, investing, and how businesses operate. This makes CFA®s great controllers and CFOs.
To become a CFA®, you must pass the CFA® exam that is administered by the CFA® Institute. The exam process is much longer than the CPA exam because it is only tested one to two times each year depending on the level you are sitting for. The total exam time is also longer and costs more than the CPA exam.
If you are looking to get into the world of finance and investing, this is a good certification for you. If you want to do tax preparation or auditing, you’d be better off with a CPA.
Certified Management Accountant (CMA)
Specializing in company accounting management, the CMA designations is a unique title that does not really overlap with the CPA. CMA candidates are great for internal management and executive level roles in companies, like COO or CFO.
Although this certification is not great for public accounting, it is ideal for management. It doesn’t train or certify you to perform audit procedures, write reports, or do any type of tax work. It’s strictly focused on management. For example, if you wanted to become an executive level officer in a Fortune 500 company, the CMA certification would be the one for you to get.
The exam you are required to pass to become a CMA is about half the size of the CPA exam and is administered by the Institute of Management Accountants (IMA). There are also specific and strict requirements to sit for the exam. This includes a bachelor’s degree with proper amounts of educational credits in specific subjects. You will also need to meet the two years of work experience requirement in order to be certified.
Enrolled Agent (EA)
Created by the IRS, the enrolled agent certification is used to demonstrate one’s knowledge of the US tax code and the ability to apply its concepts. Since the EA designation is specifically focused on US taxation of all entity types (both individuals and corporations), this designation does not educate you on any finance, auditing, management, or other business topics. It’s strictly a tax certification. If you have this, you know taxes.
If your career goal is in either tax preparation or internal tax work for a company, this would be a good credential to go after. One thing to know is that all public accounting firms will want you to have your CPA over your EA, so if that’s your goal you should start with the CPA.
Enrolled agents do have several responsibilities that CPAs can do as well, such as signing tax returns as paid preparers and representing clients in front of the IRS. This makes the EA designation somewhat useful in public accounting, but most states have additional laws for public firms that restrict ownership and authority to CPAs.
If you want to be a tax professional who doesn’t want to deal with all the education and experience requirements for the CPA exam, the EA designation is meant for you. It allows them to have many of the same rights as CPAs without the certification. To become an EA, you will have to take the enrolled agent exam administered by the IRS. The exam consists of three parts and is 12 hours long.
Certified Internal Auditor (CIA)
This designation is strictly for compliance officers and auditors. A CIA typically works for a larger company performing audit procedures and helping independent auditors. On order to gain this certification, you must complete the three sections of the CIA exam totaling 6.5 hours of testing. If you are looking for a career in auditing, the CIA certification is for you.
Chartered Certified Accountant (ACCA) Designation
The Chartered Certified Accountant (ACCA) designation is a globally recognized accounting certification that focuses on topics such as financial management, reporting, taxation, auditing, leadership, and ethics. Unlike the CPA, ACCA is more internationally recognized and applicable as it focuses on IFRS as opposed to U.S. GAAP. However, this means that ACCA is less appropriate in the United States. Additionally, it no longer counts for CPA exam exemptions.
The ACCA accounting designation consists of three levels (modules) and up to 13 exams. It costs roughly £2,000 to attain the designation and takes around three years to complete. As there are many exams in the ACCA, the pass rate can vary from 30% to 80% depending on the exam.
Certified Financial Planner (CFP) Designation
The Certified Financial Planner (CFP) designation is a great finance certification for anyone who is pursuing a career in investment or wealth management. This certification is focused on financial planning – the high net worth and retail segment of investment management. Though the CFP’s coverage of wealth management is extensive, its focus is narrow, thus making it not as applicable to other finance careers.
The CFP has two levels and two exams. While completing the CFP, you also complete an FPSC (Financial Planning Standards Council) Level 1 certificate as part of the process. It costs about $2,000 and 4 years to obtain this designation. The pass rate for the CFP is around 67%.
Certified Management Account (CMA) Certification
The Certified Management Accountant (CMA) certification is an accounting certification that is offered by the Institute of Management Accountants. The CMA looks further into financial accounting and mixes in elements of strategic management. The certification is concerned with teaching the underlying factors behind a company’s financials and what strategic business decisions can be derived from them.
There are no levels in the CMA certification but there is a final exam with two parts that are tested separately. The CMA can cost anywhere between $850 to $2,500, depending on if you are a student or professional and if you are purchasing supplemental study resources. The pass rate for the CMA exams lies between 40-50%.
Certified Public Accountant (CPA) Certification
The Certified Public Accountant (CPA) certification is one of the most important certifications for accountants and is also significant for a finance career path. For a career in accounting, the CPA is virtually a “must have” certification. Many employers list it as a requirement for accounting positions. The CPA program covers topics such as auditing, attestation, financial accounting and reporting, business environment and concepts, as well as regulation.
The CPA does not have any levels and has a single exam that consists of four sections. Each of these four sections is tested separately, acting as their own exam. Completing the entire program can cost anywhere from $1,000 to $3,000, depending on the jurisdiction and study program (self-study or live classes). However, accounting companies, especially the big four accounting firms, often pay for their employees CPA fees. The pass rate for the CPA exam is usually around 50%.
Chartered Alternative Investment Analyst (CAIA) Designation
The Chartered Alternative Investment Analyst (CAIA) designation is a finance certification which focuses on alternative investments. This finance certification is aimed at people who want to work in asset management and hedge fund industries. CAIA primarily covers topics such as hedge funds, private equity, real assets, asset allocation, structured products, risk management, and ethics. While not as versatile as other designations, the CAIA is very useful for niche areas of finance, specifically for managing alternative investments like real assets.
The CAIA consists of two levels and two exams. Finishing the CAIA costs around $3,000 and takes between one to two years. The pass rate for CAIA exams is approximately 70%.
CFA—Chartered Financial Analyst:
Chartered Financial Analyst is one of the most popular and also one of the most difficult professional qualifications that most of the candidates found difficult to get. CFA is under the control of the CFA institute
To get CFA, you have to pass three-level exams. CFA holders normally get higher paid on average than others qualification in the professional accountant. On average is $60k annual based on E-financialcarrer.
How to get CFA?
- Eligibility: CFA is the professional qualification, but the be eligible to take the example, the candidate required to hold the BA or at least in the year four of their BA. You also required to have four years of working experience and hold an international passport. You need to pass this requirement to eligible to take the exam
- Three-level exam: As you might know, there are three levels for the CFA exam. You need to pass all of these three exams.
- What are they? Well, the three-level of CFA exams are the Level I test on investment tool and analysis were level two focus on the complexity of analysis and assets valuation. Level three focuses on portfolio management and wealth planning.
- Where to take the exam? The exam center is word wild and you can test at the nearest centres.
- How often the exam take place? The exam test annually and sometime around June.
- CFA exam form in multiple-choice questions and Wiley CFA and Kaplan Schweser CFA is the well-know multiple materials
Conclusion
To be qualified as an accountant you will need good training and experience. There are various kinds of degree levels one can choose, depending on your college or university. Obtaining a degree is the first step towards becoming an accountant. A specific major will be required by most employers for this job, so it is best to stay on top of things before deciding which accounting school to attend.