Finance and Accounting Certifications for Undergraduates

Did you know that you can make good money by becoming a finance and accounting professional? Business and financial occupations earned $79,050 in median annual wage (BLS, May 2023). Around $48,060 per year is the median wage for all occupations.

Plus, business and finance occupations have a faster-than-average projected job growth (2023-2033). About 963,500 openings, on average, are projected every year. This means there’s a good place for finance and accounting graduates in the workforce.

Furthermore, all these occupations only need bachelor’s degrees in relevant fields. But why stop at earning a bachelor’s degree in finance or accounting?

You should consider earning finance and accounting certifications for undergraduates, too. Many of the high-paying financial occupations also demand these certifications.

Accountants and auditors, for example, have the CPA credential and can earn over $137,280 per year. Financial analysts usually have the CFA credential and can rake in over $175,840 every year.

Indeed, finance and accounting certifications provide a competitive edge. With these certifications, you can:

• Convey your advanced knowledge and skills in your specialization
• Emphasize that you are fully committed to continuous learning and professional development
• Prove your leadership and teamwork skills

How are these possible, you ask? You can only pass certification exams if you have advanced knowledge and skills. Then, you can only maintain your certification through continuing education.

Related:

• Top Online Master’s In Finance
• Best Online Master’s in Accounting
• Industry-Recognized Certifications for Career Switchers
• What kind of classes will I have to take to get a degree in finance?
• Certifications That Lead to High-Paying Jobs

Overview of Finance and Accounting Certifications

Here are the basics of finance and accounting certifications for undergraduates.

Let’s talk about their importance for skill validation and career advancement. First, you can convey your advanced knowledge and skills in your specialization. Your certification is an assurance for employers that, indeed, you’re competent.

Second, you’re most likely to be considered for promotions. This is a no-brainer, as employees with more advanced credentials are the first picks.

Professional certifications also make for a smoother college-to-work transition. You have a competitive edge, for starters, from applicants without certifications. Think of your certification as one foot in the door.

There’s also the fact that earning certifications expands your network. In turn, you will find mentorship and job opportunities from your contacts.

Then, you have real-world knowledge and skills with immediate applications in your work. There’s little second-guessing yourself, much less experiencing imposter syndrome. You’re confident in your abilities – and it will show.

Here’s a brief comparison of the key finance and accounting certifications for undergraduates.

In the following sections, we’ll take a closer look at these three key certifications. We’ll also discuss other excellent certifications that you can earn.

Certified Public Accountant (CPA)

What Is the CPA?

The CPA certification for accounting students is the first step in their careers. This is a professional credential recognized nationwide and required by all states. Indeed, in the accounting field, it’s a must to convey professional knowledge, skills, and credibility.

Among the key areas of knowledge that CPAs must prove are:

• Financial accounting and reporting
• Auditing
• Management Accounting
• Taxation, including tax planning and preparation
• Professional standards and ethics

Eligibility and Exam Requirements

Here’s how to become a certified accountant.

• Earn a bachelor’s degree, preferably in accounting, and additional college-level credits to complete 150 credits of education.
• Gain relevant work experience, usually at least two years
• Pass the Uniform CPA Exam with four parts:
  • Auditing and Attestation
  • Business Environment and Concepts
  • Financial Accounting and Reporting
  • Regulation

Your state will have its specific licensure requirements, too. These can include US citizenship, state residency, and passing an ethics exam.

Career Opportunities

CPAs work in a wide range of settings, including:

• Public accounting organizations
• Corporate finance companies
• Government agencies
• Non-profit organizations
• Consulting firms

Indeed, where there’s money, there’s a need for accountants and auditors. Thanks to growing economies, globalization, and complex regulatory environments, there’s a steady demand for them. Their median annual salary is $79,880 (BLS, May 2023).

Chartered Financial Analyst (CFA)

What Is the CFA?

The CFA Institute awards the CFA designation, a nationally recognized credential. Professionals with the CFA designation have advanced knowledge and skills in:

• Portfolio management
• Investment analysis and management
• Financial analysis
• Quantitative methods
• Ethical and professional standards in finance

CFA Exam Structure

CFA exam preparation for finance majors is intense because of its difficulty. These are the three levels of the CFA exam and their time commitment and pass rates.

The CFA exam covers these topics, among others:

• Financial statement analysis
• Quantitative methods
• Economics
• Corporate finance
• Ethical and professional standards
• Alternative investments

Career Opportunities for CFA Holders

Pursuing finance certifications for college students has its merits. CFAs find lucrative work in a wide range of industries, including:

• Investment banking
• Risk management
• Equity research
• Asset management

CFAs are respected worldwide because of their advanced competencies. Financial analysts earn a median wage of $99,010 (BLS, May 2023) but can earn upwards of $175,840 per year. Their services are in high demand, too, because of economic growth, among other factors.

Association of Chartered Certified Accountants (ACCA)

What Is the ACCA?

The ACCA—or the Association of Chartered Certified Accountants—an international professional accounting organization, has members who hold the Chartered Certified Accountant credentials. ACCA is an internationally recognized credential in accounting and finance.

Professionals with ACCA credentials are recognized for their expertise in diverse subjects, including:

• Accounting and auditing
• Financial reporting
• Taxation, including national and international laws
• Performance management

Exam Requirements and Structure

The ACCA membership exam consists of 13 papers divided into two main levels.

• The Fundamental Level consists of the following:
  • Applied Knowledge with three papers on business concepts and core accounting techniques
  • Applied Skills with six papers focused on practical finance skills
• The Professional Level with its Strategic Professional exams. Candidates show their abilities in more complex scenarios. There are two essential papers and two optional papers here.

Candidates can choose from several exam dates. There are several global centers, too, which makes it convenient for candidates.

ACCA also requires candidates to:

• Complete an online ethics module
• Show proof of at least three years of relevant work experience
• Meet nine performance objectives

Gaining the ACA credential isn’t easy. However, the ACCA certification benefits make the challenges worth it.

Career Opportunities with ACCA

Consider the wide range of lucrative career paths for ACCA holders:

• Public accounting firms
• International corporations
• Consulting organizations

Plus, you can take your ACCA credential anywhere in the world.

Other Notable Certifications in Finance and Accounting

Take a look at these notable finance and accounting certifications for undergraduates, too.

Certified Management Accountant (CMA)

The CMA certification focuses on management accounting and corporate financial management. CMAs can become financial analysts, controllers, and financial managers, even CFOs. Their median total compensation was $163,932 per year.

Certified Internal Auditor (CIA)

The best internal auditors usually have CIA credentials. Their key competencies include:

• Internal control processes
• Regulatory compliance
• Risk management
• Governance frameworks

Career paths include audit director, internal audit manager, and chief audit executive in the public and private sectors.

Financial Risk Manager (FRM)

The FRM credential is among the most popular undergraduate finance certifications for its international recognition. With the increasing complexity of financial markets, FRMs are in high demand.

This is among the best certifications for finance students, too, because of its diverse career options. FRMs become risk managers, risk analysts, and CROs.

Choosing the Right Certification for Your Career Goals

ACCA vs. CPA vs CFA: which is better? Here’s a basic guide to choosing between these options.

• Determine your career goals and interests. Choose a certification based on these factors.
• Assess the education and certification exam requirements. Ask yourself if you have the time, money, and drive to meet them. 
• Consider the compensation, demand, and career growth opportunities in every certification.

Conclusion

Earning a finance or accounting certification boosts your employment prospects. You’re more competitive for jobs and promotions. For this reason, you must explore your certification options while you’re still in college.

Think of it as getting a head start even in your successful career. It’s never too early to start.