Question

Certifications in accounting may be obtained to prove your knowledge and make you more vaulable in the worplace. The Certified Public Accountant and Certified Management Accountant are two certifications for accountants. Discuss the qualifications of obtaining either of these certifications. How does one obtain the certifications? What are the benefits of having either of these certifications?

Answer 1

Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. In the United States, the CPA is a license to provide accounting services to the public. It is awarded by each of the 50 states for practice in that state. Additionally, almost every state (49 out of 50) has passed mobility laws to allow CPAs from other states to practice in their state. State licensing requirements vary, but the minimum standard requirements include passing the Uniform Certified Public Accountant Examination, 150 semester units of college education, and one year of accounting related experience.

Certified public accountants (CPAs)advise clients regarding tax and financial matters. They may also perform internal and external audits to ensure companies are following the guidelines for financial reporting. Prior to becoming certified, individuals first become accountants, which requires a minimum of a bachelor's degree in finance or accounting.

Certification requirements vary somewhat per state; however, one of the common requirements includes completing 150 semester hours of postsecondary study, which includes some graduate-level coursework. Upon meeting the education requirements, public accountants can sit for the certification exams. There are four different exams, and individuals have 18 months to pass all four exams. Once certified, CPAs maintain their certification through continued education coursework.

Let's look at what steps you will take to become a CPA.

Step 1: Complete a Degree Program in Accounting

Most states require aspiring CPAs to complete at least 150 semester hours of study to become licensed. Students generally accrue 120 hours via a traditional bachelor's degree program. To earn the required 150 hours, some schools offer the option of a combined 5-year bachelor's and master's degree program in accounting. Coursework generally begins with fundamental topics in accounting theory and advances to cover more complex topics like cost accounting.

Step 2: Consider Graduate Degree Options

Next, consider completing a graduate degree program. A graduate degree is usually not required to become a CPA, but for students who have only completed a traditional 4-year bachelor's degree program, it may help them meet credit hour requirements to become a CPA. Options include a Master of Science in Accounting, Master of Arts in Accounting or Master of Business Administration (MBA) with a specialization in accounting. Although coursework varies depending on the chosen program, most curricula cover advanced topics from tax planning to financial controls.

Step 3: Enter the Workforce

The next step is to begin working in the field. Prior to taking the certification examinations, state boards typically require accountants to complete at least two years of work experience. Aspiring CPAs may find work with public and private accounting firms or in an accounting department of any type of company. Duties may range from verifying financial documents to preparing tax returns and may include implementing financial measures to reduce mismanagement of products and services.

Step 4: Take the Exams

Once education and work experience requirements are met, step four is to take the certification exams. The American Institute of Certified Public Accountants (AICPA) has developed four exams that must be successfully completed in order to earn the CPA designation. The exams test candidates on accounting aspects like attestation and financial reporting.

Upon completing the first exam, candidates must complete the rest within 18 months. Those who pass all exams within the allotted time earn their license and become CPAs.

Step 5: Continue Education

your final step is to participate in continuing education. In order to stay current with laws and practices, most states mandate CPAs to renew their licenses. CPAs may meet renewal requirements by completing continuing education coursework. Some states may require CPAs to include ethics courses as part of their continuing education.

To become a certified public accountant, you must complete 150 hours in a degree in accounting, gain practical experience, complete all four exams, and participate in continuing education to keep your license valid.

**CMA(Certified Management Accountant): certification is a professional certification credential in the management accounting and financial management fields. The certification signifies that the person possesses knowledge in the areas of financial planning, analysis, control, decision support, and professional ethics. The CMA is a U.S.-based, globally recognized certification offered by the Institute of Management Accountants.

Qualification:

The Certified Management Accountant Exam is a two part exam that must be passed as a prerequisite to earning the CMA designation. .[2][3] Candidates are given three years from registering to pass both parts of the exam. The exams are given during three testing window periods: January/February, May/June and September/October at Prometric centers.

In addition to successfully passing the exams, CMA candidates must fulfill education and experience requirements in order to be certified:[9]

1. Bachelor's degree from an accredited college or university

2. Two continuous years of professional experience employing the principles of management accounting and financial management including:

Preparation of financial statements

Financial planning & analysis

Monthly, quarterly, and year end close

Auditing (external or internal)

Budget preparation & reporting

Manage general ledger and balance sheets

Forecasting

Company investment decision making

Costing analysis

Risk evaluation

3. For certified CMAs, 30 hours of CPE credits, including two hours of ethics, and annual IMA Membership are required to maintain active status.

* Benifits of having CPA certificate

#1CPA, or certified accountants, are finance professionals who have achieved expertise beyond a “normal” accountant does. This is done through advanced education, training, experience and hard work.

Accountants who aspire to become partners in the accounting firm or move up the corporate ladder want the CPA qualification.

#2. CPAs Are Needed Everywhere. Corporations, non-profit organizations and governments in every industry around the world look for CPAs to fill in their senior finance positions. It is not surprisingly that junior accountants with CPA are preferred when it comes to recruitment and promotion.

#3. CPAs Are Indispensable. After the financial crisis, corporate accountability has become the number one concern for companies and their shareholders. Senior management relies on Certified Public Accountants for financial health and integrity of the corporations.

#4. CPAs Are In Demand. As a result of the Sarbanes-Oxley Act, workload in the accounting department of every corporation has vastly increased, leading to a shortage of accounting experts .

#5. CPAs Are Paid Better. A study by global recruiting agency Robert Half points out that CPA on average earns 10% better than non-CPA. Also, CPAs with 5+ years experience are paid $80-110K in public accounting firms.

**Benifits of CMA certificate:

1. Gold-Standard in Management Accounting

2. Arguably the Most Global Management Accounting Certification

3. CMAs Get Paid More

4. For Many, CMA Skills are More Practical

5. IMA Makes it Easy