Accounting has a wide scope of study. It involves recording, reporting, analysing and summarizing financial transactions.
In recording transactions alone, it requires documenting invoices, revenues and sales receipts. Since summarization of transactions is the biggest part and tedious part of accounting, it must be handled by a certified accounting professional. This is why it is important that an individual who wants to join any work related in the field of accounting must be have accounting certifications on a specific area he or she wishes to be included in.
The Importance of Accounting Certifications
When you are vying for a specific position in the accounting department, you’ll be one step ahead from the others if you have accounting certifications, since every employer sees to it that an applicant is capable to fulfil the necessary responsibilities given.
With the many various accounting certifications, first you must identify your strengths so you know which kind of exam you will sign up for to avoid wasting time and money. To help you with, browse through the list below and find out which one fits your eligibility.
Different Accounting Certifications
1. CPA (Certified Public Accountant) – A licensed public accountant can legally perform tasks such as auditing, financial reporting, taxation and other consulting services. Before you will be eligible to pass the licensure exam, you must first have the appropriate educational background. Every state has different requirements when it comes to licensed public accountants, so you might consider getting a multiple CPA licenses to allow you to work in many states. In some states however, they either give you the CPA certificate or be required to have at least 2 years of experience in public accounting.
2. CMA (Certified Management Accountant) – These kind of accounting certifications are given by the Institute of Management Accountants (IMA) to qualified individuals who have extensive knowledge in financial decisions and techniques. If you are able to pass the exam, then you will be ready for positions such as accounting officer, business analyst, comptroller, financial analyst, financial officer and many others.
3. CIA (Certified Internal Auditor) – If you are able to pass the exam given by the Institute of Internal Auditors (IIA) then you will be qualified to conduct internal audits and management controls. The CIA exam consists of four parts and must be completed in two years time. However, a bachelor’s degree and a minimum of 2 years of experience in internal auditing may somehow allow you to be hired by other employers to similar positions in their company.
4. Chartered Financial Analyst (CFA) – If you are lined in investments then you might want to consider these kind of accounting certifications because they offer you the opportunity to give financial advices and analyse investments.
5. Certified Financial Examiner (CFE) – If you qualify in the exam given by the Society of Financial Examiners then you will be able to determine and rule out the discrepancies in the company’s records.
6. Certified Information Systems Auditor (CISA) – These kind of accounting certifications must validate only professionals that have the analytical skills to secure and manage information in the computer system. He must not only possess the qualities of a skilled auditor but also has the technological skills to perform tasks in a right way.