Accounting is a very important thing in today’s world and industry. There are various types of accountants and they all have different roles in the system.
There are a ton of significant professional designations and certifications for accountants.
The most important designations to mention are CPA, CFA, CMA as well as EA and CIA.
The Certified Public Accountant(CPA) credential is the most general designation which an accountant can receive. CPA’s are basically able to do all the tasks of accounting. The other major designations and certifications are more specialized. A special license CPA’s have is, that they are the only accountants that write audit reports and give opinion opinions on publicly traded company financials. To receive this designation, you have got to pass all parts of the AICPA uniform CPA exam.
The Chartered Financial Analyst (CFA) designation is way more uncommon than the CPA credential. CFAs profession is to prepare their customers for a career as a financier or investor. The exam that one has to pass to receive the designation is way more complex and the process takes much longer than the one for the CPA credential.
The Certified Management Accountant (CMA) certification is a special designation for accountants that handle the accounting management of companies. This certification is not recommended for public accounting since it is strictly focused on managing. The CMA exam is about half the size of the CPA exam and is administered by the IMA. It has very strict requirements and a work experience is needed as well.
The Enrolled Agent (EA) credential is created by the IRS and its object is strictly working with the tax code of the US. The designation does not teach you in any other topics which other accountants learn and carry out. If one wants to work at public companies, these want one to have the CPA credential over the EA credential. To become an EA one has to pass the EA exam by the IRS.
The last major professional designation in accounting is the Certified Internal Auditor (CIA) designation is strictly just meant for compliance officers and auditors. CIA’s work at large companies to help other auditors and handle audit procedures. The three sections of the CIA exam, as well as 6.5 hours of testing, have to be completed.
To summaries the professional designations and certifications in accounting, there are a lot of ways and companies to work as an accountant. Each designation has its own profession and tasks to carry out. Becoming an accountant always presupposes that one has passed the specific exam for one’s designation. Personal preferences decide which designation one chooses and carries out as one’s job.