The right financial certification for the job

How do you find the right person to handle your finances? They all have resumes and experience. They’re all bright-eyed and bushy-tailed. They all have a firm, but not too firm handshake. They all look the part and can do long division in their head. They all have a fist full of certifications, but you only have one or two specific areas on which to focus.

What you need is a cheat sheet telling you which certifications are best for which types of jobs....

CIMA

You want to be sure you are dealing with a person who has the highest standards of financial education and ethical standards. That means you want someone with their CIMA, Certified Investment Management Analyst. Click here for more info on why a CIMA is so important. Out of this list of reasons provided, these two stand out:

Rigor - The CIMA certification process takes most candidates nine months to a year to complete, but only one in three individuals who start the CIMA certification process will successfully finish.

Differentiation - CIMA certification stands out in a crowded marketplace as the only financial services credential in the U.S. to have met an international standard for personnel certification (ISO 17024) and earned accreditation by American National Standards Institute.

Even if you do not understand all of the terminology of financial management, it is still easy to see that this certification is highly differentiated in the business world. It is a tough program to complete, and is well recognized worldwide. This is the certification to look for in someone to manage your global investments.

CPA

CPA stands for Certified Public Accountant. If what you need is someone to manage the books, you can pretty much dismiss any candidates that do not have this certification. For accounting, it is the gold standard, and has been for a very long time. Investopedia describes the job this way:

CPAs help companies comply with bylaws and regulations, reduce risk for the organization, support valuation and appraisal initiatives, improve processes, and create and maintain reporting mechanisms with which management makes important and critical decisions based on the supplied data.

Be particularly mindful of applicants moving from another state, as educational and experience requirements are state regulated, and differ from one state to another. Generally speaking, gaining a CPA requires 150 hours of post Bachelors coursework. There is also a CPA exam administered by the American Institute of Certified Public Accountants. The four parts of the exam are:

1. Financial accounting and reporting
2. Auditing and attestation
3. Regulation
4. Business environment and concepts

You should get a good sense of whether this certification is necessary for your purposes just by knowing a little about the exam.

CMA and CFA

Because of the initials, these two certifications may be mistaken for similar things. They are not. CMA stands for Certified Management Accountant. While CFA stands for Chartered Financial Analyst. Unlike a CPA the CMA is a global, not a state credential. Certificate holders are more qualified for corporate accounting the finance industry. The two-year mandatory work experience can only be gained by working for another CMA

The CFA is focused more on those who are active in the investment decision making process including:

Treasurers
Financial analysts
Financial advisors
Investment banking analysts
Portfolio managers
Private bankers
Research analysts
Traders

The CFA Institute recommends candidates study for at least 300 hrs. for each part of the three-part exam. Based on the low pass rate, they’re going to need it. Unlike other certifications, the test is only offered in English, making it even more difficult for people for which English is a second language.

There are more certifications than you can shake a stick at. These less-known certs are for industry specific, or job specific roles. These include:

Certified Internal Auditor (CIA)
Certified Fraud Examiner (CFE)
Certified Information Systems Auditor (CISA)
Certified Bank Auditor (CBA)
Certified Government Auditing Professional (CGAP)
Enrolled Agent (EA)

The key to hiring the right person is understanding the relative strength and focus of each certification. If all else is still equal, ask the deciding question: Kirk or Picard. The one that picks Picard is the one for you.