ACCOUNTING CERTIFICATION
There are several differences about accounting certifications. Each of them requires the passing of an exam for their specific focus. It is common for an accountant to hold more than one certification, and some accounting jobs have duties that overlap between skills in two or more certified areas. It is important to understand that each state has different requirements for some certifications. Also, it is important to research your state's requirements to ensure you understand what will be expected of you and
what type of work you will be able to take once certified. Here are several accounting certifications that you need to know:
Certified Public Accountant (CPA)
The Certified Public Accountant credential is the oldest and most well known accounting designation in the profession. You can
think of the CPA as the gold standard since everyone knows what it is and it earns great respect. This is due to the designations
unique capabilities. No other certifications have the ability to write audit reports or give opinions on publicly traded company
financials. Only CPAs are licensed by state of governments to perform these duties. CPAs also sign tax returns as paid preparers
and represent clients in front of the IRS. In order to become a CPA, you must take and passed all four parts of the infamous AICPA
uniform CPA exam. You will also need to meet the education and work experience requirements of your state.
Chartered Financial Analyst (CFA)
This designation is intended for those that want a career in the finance and investment world. Most CFAs are finance
professionals working on Wall Street or for a hedge fund/investment fund, but the certification has responsibilities
beyond company management. Although the CFA is not as popular as the CPA in the United States, it is one of the most
internationally known accounting designations. In Europe and China this designation is much more popular. It helps train people to think analytically about finance, investing, and how businesses operate. This makes CFAs great controllers and CFOs. To become a CFA, you must pass the CFA exam that is administered by the CFA Institute.
The exam process is much longer than the CPA exam because it is only tested one to two times each year depending on the level you are sitting for. The total exam time is also longer and the costs are more than the CPA exam. If you are looking to get into the world of finance and investing, this is a good certification for you. If you want to do tax preparation or auditing, you’d be better off with a CPA.
Certified Management Accountant (CMA)
Specializing in company accounting management, the CMA designations is a unique title that does not really overlap with the CPA. CMA candidates are great for internal management and executive level roles in companies, like COO or CFO. Although this certification is not great for public accounting, it is ideal for management. It doesn’t train or certify you to perform audit procedures, write reports, or do any type of tax work. This strictly focused on management. For example, if you wanted to become an executive level officer in a Fortune 500 company, the CMA certification would be the one for you to get. The exam that you are required to pass to become a CMA is about half the size of the CPA exam and is administered by the Institute of Management Accountants (IMA). There are also specific and strict requirements to sit for the exam. This includes a bachelor’s degree with proper amounts of educational credits in specific subjects. You will also need to have two years of work experience requirement in order to be certified.
Certified Internal Auditor (CIA)
This designation is strictly for compliance officers and auditors. A CIA typically works for a larger company performing audit
procedures and helping independent auditors. On order to gain this certification, you must completed the three sections of the CIA exam totaling 6.5 hours of testing. If you are looking for a career in
auditing, the CIA certification is fit you.
Certified Tax Consultant/Bersertfikasi Konsultan Pajak (BAP)
BAP is one of the absolute requirements so that you can get a practice license as a tax consultant. Which is, you are required to pass the Tax Consultant Certification Exam (USKP) that held by the Indonesian Tax Consultant Association (IKPI). This is written in the accordance with Minister of Finance Decree No. 485/KMK.
03/2003. Those who pass will be entitled to get the BAP degree.