How CPA Certifications Impact Financial Analysts' Career Paths

CPA stands for Certified Public Accountant. It is an exhaustive and prestigious professional program introduced by the American Institute of Certified Public Accountants (AICPA). It takes approximately 12 to 18 months of an individual's time, depending on their pace of study and how well they commit to the certification course. There are a total of four exams that an aspirant has to appear for and has to pass with good marks. Usually, by engaging in 20 to 25 hours of study every week, an individual can finish the course in 12 months by taking one exam every three months. 

The course allows the candidates to develop a diverse range of skills and in-depth knowledge in the fields of finance, taxation, and accounting. Now, any aspirant pursuing the CPA certification must meet certain eligibility criteria. Remember that for obtaining a CPA certification for financial analysts, a bachelor's degree is necessary. Simply put, the eligibility for a CPA exam requires 120 credit points; this can be gained through graduation + post-graduation or professional certifications, preferably in the audit and accounting field.

After this, if the aspirant decides to have a CPA license, they must pass all four exams within 18 months and gain professional experience of a minimum of two years in finance and accounting. Now that we know the basics of CPA, let's get down to the question we all have in our minds: How do CPA certifications impact the career paths of financial analysts, and more importantly, how much can a CPA make in a year? Well, how much you earn depends on your skills, but remember that reputed organizations trust qualified CPAs who have the ability to take up crucial roles and responsibilities in the domain of business, finance, taxation, and accounting. These professionals play an essential role in the smooth functioning and growth of organizations.

Here is a series of CPA advantages that directly help financial analysts in their professional careers: 

#1 - Higher Earning Potential

A financial analyst with a CPA certification can take up a variety of roles and responsibilities and can work in different domains within a big organization. A CPA certification helps in an extensive range of roles that are vital for an organization operating in the finance space. A few examples of these roles are consultancy, forensic accounting, audit and assurance, ethical standards, and international financial expertise. 

Note that individuals with CPA certification can also get roles associated with leadership and management, advisory services, taxation, compliance, and not to forget, financial reporting and analysis. This shows that with each of the roles, a financial analyst with a CPA certification has a high earning potential. 

#2 - Expanded Career Opportunities

A Financial analyst with a CPA certification and diverse skills automatically expands their career opportunities. They have the luxury to switch between roles and organizations easily, with employers readily looking for young and experienced talent. As we discussed above, CPA certification for financial analysts has a wide scope of functions spread across different industries and sectors. With the right timing, push and knowledge, career opportunities are literally endless for a financial analyst holding a CPA certification.

#3 - Long-Term Career Growth

CPA certification for financial analysts works in a million ways. They not only offer a wide range of skills and scope of roles and responsibilities but also significantly improve career prospects. Both the skills and knowledge of CPA and financial analysis work hand in hand to offer extensive career growth and a promising career that goes beyond the average term.

#4 - Stronger Professional Network

When you enroll in the CPA program, you have the opportunity to meet new people, work with them, make connections, and grow your network. Moreover, as you get to work in different areas and domains, you get to know more people and thus can strengthen your network. Now, in any profession, skills are essential. That said, networking does play a crucial role and gets you to places and opens doors to new opportunities that may have remained closed on the basis of your academic background and just experience. 

There is a wide variety of CPA career benefits that can turn to your favor, but before you make the final decision to enter the CPA certification program, you really need to ask yourself, are you prepared to put in all the time and effort in it for the next 12 to 18 months? CPA certification does make a positive difference to your career.

Having said that, first, you have to make yourself eligible for enrolling in the program. Post-enrollment, you must pass all four exams with good marks and gain relevant professional experience to obtain the certificate. The CPA certification will definitely add value and merit to your resume and enhance your professional career, giving it a significant boost. Some of the key benefits of a CPA certification for financial analysts are global recognition, career flexibility, and job security coupled with respect and status. 

When you embark on a professional journey, different milestones will come your way, and each one of them plays an important role in your career graph and learning curve. Comparing CPA vs CFA, we can easily say that CPA is a much more competitive choice, and it makes real sense to opt for CFA instead of CPA because of the requirements to fulfill. For instance, CFA demands only three exams to be passed, whereas CPA has four exams. 

The CFA institute recommends 20 CPE credits each year, but when it comes to CPA, most states require an average of 40 credit points per year. With all these factors, you might find pursuing a CFA is a better decision instead of a CPA. That said, if you have the financial analyst certification and can accumulate the time, skills, and knowledge and qualify for the CPA criteria, you should definitely consider going for CPA. With this thought, we leave with our best wishes for your academic and professional career growth.