The best certifications for finance professionals

If you are a finance professional or aspiring to become one, you may be wondering what are the best certifications to boost your career and credibility in the industry. Certifications can help you demonstrate your knowledge and skills, gain recognition and respect, and access opportunities and challenges. However, not all certifications are created equal. Some are more reputable and rigorous than others, and some are more relevant and useful for your specific goals and interests.

In this blog post, we will introduce you to three of the most prestigious and valuable certifications for finance professionals. By the end of this post, you will have a better idea of which certification suits you best and how to prepare for it.

By the way, if you are interested In certifications in other areas than this one, you might want to read this article.

Certified Public Accountant

Suppose you are interested in pursuing a career in accounting. You may have heard of the Certified Public Accountant (CPA) credential in that case. This professional designation signifies a high level of knowledge and skill in the accounting field.

What is it?

A CPA is a licensed accounting professional who has met the education, examination, and experience requirements set by the Board of Accountancy for each state. The CPA license is recognized nationally and internationally as a mark of excellence and professionalism in accounting. CPAs can perform various accounting tasks, such as preparing and auditing financial statements, filing tax returns, providing business advice, and conducting forensic investigations.

Who is it for?

The CPA credential is for anyone who wants to advance their career in accounting or related fields. CPAs can work in public accounting firms, corporations, government agencies, nonprofit organizations, or as independent consultants. CPAs can also specialize in different areas of accounting, such as taxation, auditing, financial reporting, management accounting, or information technology.

How to get it?

To become a CPA, you need to meet the following requirements:

• Education: You need a bachelor’s degree in accounting or a related field from an accredited institution. You must also complete 150 hours of education, which may require additional coursework beyond your bachelor’s degree.
• Examination: You need to pass the Uniform CPA Exam, which consists of four sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and Business Environment and Concepts (BEC). Each section has four hours of testing time and covers multiple-choice questions and task-based simulations. To pass the exam, you must score at least 75% on each section.
• Experience: You need to have at least two years of public accounting experience under the supervision of a licensed CPA. The experience must be relevant to the services you intend to provide as a CPA.

What benefits can you expect from it?

Becoming a CPA can bring you many benefits, such as:

• Increased earning potential: According to the U.S. Bureau of Labor Statistics, the median annual wage for accountants and auditors was $73,560 in 2020. However, CPAs typically earn more than non-CPAs due to their higher level of expertise and demand.
• Enhanced career opportunities: CPAs have more job opportunities and career advancement options than non-CPAs. CPAs can work in various industries and sectors and pursue leadership roles such as controller or chief financial officer (CFO).
• Greater credibility and trust: CPAs are respected and trusted by their clients, employers, regulators, and peers for their ethical standards and professional competence. CPAs must also adhere to a code of conduct and complete continuing education courses to maintain their license and stay updated on the latest developments in accounting.
• Personal satisfaction: CPAs enjoy the challenge and reward of solving complex problems and providing valuable services to their clients and society. CPAs also have the opportunity to learn new skills and expand their knowledge throughout their career.

Certified Financial Planner

Suppose you are looking for professional guidance on how to achieve your financial goals. In that case, you may consider working with a Certified Financial Planner (CFP). This professional designation indicates a high level of competence and ethics in financial planning, taxes, insurance, estate planning, and retirement saving.

What is it?

A CFP is a licensed financial advisor who has met the education, examination, and experience requirements set by the Certified Financial Planner Board of Standards, Inc. (CFP Board). The CFP Board is a nonprofit organization that oversees the standards and certification of financial planners in the United States. The CFP credential is recognized nationally and internationally as a mark of quality and professionalism in financial planning. CFPs can provide comprehensive and personalized financial advice to individuals and families on various topics, such as investment planning, retirement planning, insurance planning, education planning, and tax planning.

Who is it for?

The CFP credential is for anyone who wants to work with a qualified and trustworthy financial advisor. CFPs can help you create and implement a financial plan that suits your needs, preferences, and goals. CFPs can also help you monitor and adjust your plan as your circumstances change over time. Whether you are saving for a home, planning for college, preparing for retirement, or managing your estate, a CFP can help you make informed and confident financial decisions.

How to get it?

To become a CFP, you need to meet the following requirements:

• Education: You need to have a bachelor’s degree or higher from an accredited institution. You also need to complete a college-level program of study in personal financial planning that covers the major areas of financial planning. Alternatively, you can demonstrate equivalent knowledge by holding specific professional credentials or academic degrees recognized by the CFP Board.
• Examination: You must pass the CFP exam, which consists of 170 multiple-choice questions that test your ability to apply financial planning knowledge and skills in real-life scenarios. The exam covers eight domains of financial planning: professional conduct and regulation; general principles of financial planning; education planning; risk management and insurance planning; investment planning; tax planning; retirement savings and income planning; and estate planning. The exam has two sessions of three hours each with a 40-minute break in between.
• Experience: You need at least 6,000 hours of professional experience related to the financial planning process or 4,000 hours of apprenticeship experience that meets additional requirements. The experience must be completed within ten years before or five years after passing the exam.
• Ethics: You must agree to abide by the CFP Board’s Code of Ethics and Standards of Conduct, which sets forth the ethical principles and rules of conduct for CFPs. You must also pass a background check and disclose any relevant information about your professional behavior and disciplinary history.

What benefits can you expect from it?

Becoming a CFP can bring you many benefits, such as:

• Increased trust and credibility: According to the CFP Board’s research, consumers prefer working with financial advisors who have certifications over those who do not. Moreover, consumers trust CFPs more than other types of financial advisors because they know that CFPs have met rigorous standards of education, examination, experience, and ethics. CFPs are also required to act as fiduciaries, which means they must always put their client’s best interests ahead of their own or any third party’s interests.
• Enhanced career opportunities: According to the U.S. Bureau of Labor Statistics, the demand for personal financial advisors is expected to grow by 4% from 2019 to 2029, faster than the average for all occupations. The CFP credential can give you an edge over other candidates in this competitive field. CFPs can work in various settings, such as independent practices, financial firms, banks, insurance companies, or nonprofit organizations. CFPs can also specialize in different niches or markets, such as women, millennials, business owners, or high-net-worth individuals.
• Greater professional development: Becoming a CFP requires continuous learning and improvement. To maintain their certification, CFPs must complete at least 30 hours of continuing education every two years, including two hours on ethics. This helps them stay updated on the latest trends and developments in financial planning and enhances their knowledge and skills. CFPs also have access to various resources and opportunities provided by the CFP Board and other organizations that support their professional growth.

Chartered Financial Analyst

If you are passionate about investing and want to pursue a career in the investment management industry, you may want to consider earning the Chartered Financial Analyst (CFA) credential. This is a professional designation that signifies a high level of competence and ethics in the areas of investment analysis, portfolio management, and wealth planning.

What is it?

A CFA is a licensed investment professional who has passed the CFA Program. This rigorous, comprehensive three-level exam covers the core knowledge and skills required for effective investment decision-making. The CFA Program is administered by the CFA Institute, a global nonprofit organization that promotes the highest standards of ethics, education, and professional excellence in the investment profession. The CFA credential is recognized worldwide as a mark of quality and professionalism in investment management. CFAs can provide various investment services to individuals and institutions, such as financial analysis, asset allocation, security selection, risk management, performance evaluation, and ethical advice.

Who is it for?

The CFA credential is for anyone who wants to excel in the investment management industry or related fields. CFAs can work in various roles and sectors, such as portfolio managers, research analysts, consultants, advisors, traders, bankers, regulators, or educators. CFAs can also specialize in different asset classes or markets, such as equities, fixed income, derivatives, alternative investments, or emerging markets.

How to get it?

To become a CFA, you need to meet the following requirements:

• Education: You need to have a bachelor’s degree or equivalent from an accredited institution or be in the final year of your bachelor’s degree program. You can also qualify if you have four years of relevant work experience or a combination of education and work experience totaling at least four years.
• Examination: You need to pass the CFA exam, which consists of three levels: Level I, Level II, and Level III. Each level has a six-hour exam that tests your knowledge and skills on various topics related to investment management. The exam covers ten domains of investment knowledge: ethical and professional standards; quantitative methods; economics; financial reporting and analysis; corporate finance; equity investments; fixed income; derivatives; alternative investments; and portfolio management and wealth planning. You must pass each level sequentially before moving on to the next level.
• Experience: You need at least 48 months of relevant work experience in the investment decision-making process. The experience must be completed within ten years of passing the Level III exam or five years of applying for membership with the CFA Institute.
• Ethics: You must agree to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct, which sets forth the ethical principles and rules of conduct for CFAs. You must also complete a professional conduct statement and disclose relevant information about your professional conduct and disciplinary history.

What benefits can you expect from it?

Becoming a CFA can bring you many benefits, such as:

• Increased recognition and respect: According to the CFA Institute’s research, employers and clients prefer working with investment professionals who have certifications over those who do not. Moreover, employers and clients trust CFAs more than other types of investment professionals because they know that CFAs have met rigorous standards of education, examination, experience, and ethics. CFAs are also respected by their peers and regulators for their expertise and professionalism in investment management.
• Enhanced career opportunities: According to the U.S. Bureau of Labor Statistics, the demand for financial analysts is expected to grow by 5% from 2019 to 2029, faster than the average for all occupations. Having the CFA credential can give you an edge over other candidates in this competitive field. In addition, CFAs can work in various settings and locations worldwide and pursue leadership roles such as chief investment officer (CIO) or chief executive officer (CEO).
• Greater professional development: Becoming a CFA requires continuous learning and improvement. To maintain their credentials, CFAs must complete at least 20 hours of continuing education every year, including two hours on ethics. This helps them stay updated on the latest trends and developments in investment management and enhances their knowledge and skills. CFAs also have access to various resources and opportunities provided by the CFA Institute and other organizations that support their professional growth.

Conclusion

We hope this blog post has given you a clear overview of three of the best certifications for finance professionals: CPA, CFP, and CFA. Of course, each certification has its advantages and disadvantages, depending on your background, preferences, and aspirations. However, all three certifications share some common features: they require a high level of education, examination, experience, and ethics; they are recognized and respected worldwide, and they can help you advance your career and serve your clients better.

Whichever certification you choose, we wish you all the best in your journey. However, remember that earning a certification is not an end but a means to an end: becoming a more competent and ethical finance professional who can make a positive difference in the world.