Which Accounting Certification Has the Best Value?

How important to your resume are accounting certifications? Important enough to list on the very top line. Yes, right next to your name. Accounting credentials identify you as a professional, arguably more than that B.S. or MBA further down on the resume. Skip your middle initial? That’s fine--but never your certifications.

Now, say you’re trying to land your first job in accounting, or staking out your next career move. You’re probably wondering which accounting credential has the best salary potential. Modus operandi for you ROI seekers.

Of course do not discount natural interests, talents, and more subjective career goals in choosing the type of accounting to pursue. Don’t be frightened by the choices either. There are lucrative careers available for broad skillsets; there are plenty of worthwhile credentials that leave doors open for specialization later when opportunities present themselves.

Certified Public Accountant (CPA) + Big Four Experience Remains Standard

When it comes to professional certification, CPA carries a reputation of rigor, and it’s the most recognized brand in the business. With a CPA you can start work as an assistant controller at a Big Four accountancy, and pivot into specialized accounting later, or rack up seniority and grow steadily.

INVESTMENT: You’re looking at about 400 hours of study time to pass the CPA exam--a four-part test which, odds are, you will fail repeatedly. You need only pass each part once, but all have a 45-55 percent pass rate. The governing body of CPA certifications National Association of State Boards of Accountancy (NASBA) doesn’t publish records of first-time passes, but in 2012 leadership disclosed an estimate--only 20 percent of CPA exam takers go a perfect four for four their first time. Feeling lucky?

RETURN: Pass the CPA early. The Journal of Accountancy drew up a great chart rationalizing salary difference and time spent getting the CPA. Long story short, if you’re an average test taker working at average companies, get your CPA by age 38 and the numbers work in your favor. Pass at 22 and you’re golden.

Chartered Global Management Accountant (CGMA) or Chartered Management Accountant (CMA)

The Freemasons and the Knights of Columbus of the fund management set: CMA and CGMA. The former is the older certification, and CMA holders like debating which is “better.” On CyberCoders, the CMA pops up in more searches, but has an SEO advantage so take that with a grain of salt. Either way, if you like your accounting work with a side of investment and risk management, it’s a logical step with few obstacles, and a sensible career arc for fund accounting managers.

INVESTMENT Until very recently, CGMA required three years of professional seniority plus membership with one of two sponsoring institutions — the American Institute of CPAs (AICPA) or Charted Institute of Management Accountants (CIMA). AICPA now requires the CPA; CIMA presently for conducts its own, separate exam for admission. With some time in the field, passing a CGMA exam, and paying a couple hundred dollars for annual dues are the only liability.

RETURN A six figure income before age 27 if you’re diligent.

Certified Information Systems Auditor (CISA) and Certified Fraud Examiner (CFE) are poised for growth

Accountants don’t “keep the books” in 2018. They keep electronic spreadsheets housed in software applications. Military-grade encryption, decentralized ledger systems, and even crypto-currency blockchain are bringing rapid change and disruption to the financial sector. CISA and CFE are hot.

INVESTMENT Stacking cybersecurity or app development accreditation on top of traditional accounting isn’t new. For example, forensic accountant auditors focus on investigating and protecting the books from electronic fraud. The education path is relatively well-forged despite the dynamic climate of the profession.

RETURN Even in flyover states IT Audit managers routinely see high $80s to $90,000 salaries after five years. Big banks and blockchain startups are both paying top dollar for candidates that know their way around encryption as well. Watch for application development around bitcoin and its counterparts to drive demand.

ELITE RETURN A TS/SCI clearance, or top secret clearance, requires deep background investigation and a polygraph test. Employers sponsor TS/SCI clearance examinations based on need-to know specifications, so it tends to be rolled in with a promotion from something like an IT Auditor, ITIS specialist, or a similar role. You can’t get TS/SCI just to get one, but you can take it with you after certification. Once obtained, you’ll be looking at TS/SCI development jobs that approach $200,000 in annual salary.

Accounting credentials belong in the top line of your resume because they’re the bottom line for employers.