By Monte Swain, PhD, CMA, CPA, CGMA.
If you’re planning a career in the world of accounting or finance, two distinctions have the branding impact and bench strength you need. Invest your time and effort into stacking the Certified Public Accountant (CPA) and Certified Management Accountant (CMA) letters behind your name.
First and Lasting Impressions
The first impression a potential employer will have of you comes in a flash – the top line of your LinkedIn profile or your resume or perhaps a quick meet-and-greet at a social event. That first impression may be an actual 20-second elevator pitch as you stand next to a business executive. When I learn that someone has “CPA” or “CMA” behind their name, I immediately know a lot about that individual. Those letters have branding impact!
Earning these designations isn’t just about getting your foot in the door. The CPA and CMA brands do more than strengthen the initial impression others will have of you. Achieving the right professional credential also builds your bench strength, or your ability to step in and tackle greater responsibilities. Your advanced knowledge puts you in a position to make a lasting impression throughout your career.
A CPA or CMA represents a significant skill set and an integrated mindset. Passing these exams requires competency across a wide range of critical accounting and finance subjects, which means you have a lot of talent on your professional bench to put in the game as needed. That bench strength will be there for you throughout your career.
5 Benefits of Stacked Credentials
The decision to stack the CPA and CMA credentials may be the most important decision of your professional career. Do your research, talk with your mentor, observe the trajectory of other CPAs and CMAs, and reflect carefully on what you want out of your career.
Together, these designations provide a unique combination of skills and knowledge. Here’s how that combination can truly strengthen your career path.
- Competitive Advantage: Many young professionals focus on either public accounting (CPA) or corporate accounting (CMA). But having both certifications early in your career shows that you possess in-demand skills and a passion for the industry. Your CPA represents the ability to handle tasks related to auditing, tax, financial reporting, analytics, and internal controls. The CMA demonstrates your talent for financial analysis, budgeting, profitability, risk management, and strategic planning. In a competitive job market, employers see dual certification as a sign of dedication, capability, and a drive to excel. Organizations value professionals who can wear multiple hats. The ability to work in financial management and financial reporting makes you an attractive candidate for a vast selection of positions. And there’s a significant personal benefit for you to start your career with stacked credentials. These two certificates allow you to explore different paths and find your niche faster than those with only one designation.
- Earning Potential: Certified accounting and finance professionals typically earn more than their non-certified peers. Those with both CPA and CMA credentials command even higher salaries. Companies recognize the dual expertise and may offer compensation packages that reflect your advanced skills. During salary negotiations, having both certifications gives you leverage, showing you bring more to the table than other candidates. According to the 2023 Global Salary Survey from the Institute of Management Accountants (IMA), the median base salary for a professional with stacked CPA and CMA credentials is $137,800, compared to $126,274 for a CPA and $120,000 for a CMA.
- Professional Networking: Membership in both the American Institute of Certified Public Accountants (AICPA) and IMA gives you access to a wider network of professionals, mentors, and industry leaders. These networks can lead to job opportunities, mentorship programs, and professional development events. As a young professional, you can leverage these networks to connect with potential advisers, attend high-impact conferences, and learn about new job openings or industry trends.
- Career Progression: Pursuing two demanding certifications early in your career signals that you are ambitious, disciplined, and capable of handling complex responsibilities. This makes you a candidate for leadership programs, rotational roles, or fast-track career paths within your organization. With both credentials, you are likely to be considered for promotions or higher-level roles earlier in your career because you have demonstrated technical and strategic expertise. By proving your capability and gaining a competitive edge from the start, you’re able to secure positions that might take others years longer to reach. Many young professionals with only the CPA might focus on becoming a controller or finance vice president. A chief financial officer role may be a possibility. But adding the CMA signals early on that you are committed to strategic leadership roles. These stacked credentials can make it easier for you to transition into leadership roles sooner, as they show you are prepared to handle the technical and strategic aspects of the business. That’s serious career acceleration if you’re interested in one day joining the C-suite of your organization.
- Future Adaptability: Life moves fast. The accounting and finance industry is evolving rapidly with new technologies, regulatory changes, and business practices. With both certifications, you can easily pivot to different roles or industries, making you a more adaptable and resilient professional. If there are downturns or disruptions in one sector, you can pivot to roles that require strategic financial management, making you less vulnerable to economic shifts. The ability to move between different career paths is a safety net, not just in the event of shifts in the market, but also when your own emerging personal interests shift over time. Having transferable skills can help you navigate your career more effectively, taking advantage of new roles or opportunities as they arise. Credential stacking is a strategic way to future-proof your career, ensuring you remain valuable, versatile, and in demand.
Difficulty Level of Earning CPA and CMA
It’s not easy, but making this investment in stacking credentials is absolutely doable with a little planning.
The CPA credential requires four separate exams, and the CMA requires two. It’s important to know that CPA is a certification and license, which means you need to understand the licensing process for your state or territory. For most individuals, satisfying the requirements to sit for the CPA exam is more complex than the CMA exam.
The CMA process is the same worldwide. If you’ve yet to begin the examination process for either credential, it’s generally best to start with the CMA exam. This recommendation is especially true if you haven’t graduated from college yet. Both credentials require a college degree, but the CMA exam can be taken while you’re still in school.
Another key to successful credential stacking is to stay focused on one designation at a time and to complete all the associated exams efficiently. If you decide to invest in exam prep resources to help you study, be sure your chosen provider supports the CPA and CMA exams to ensure consistency in tools, format, and style. As you become comfortable with your learning system, your preparation work to succeed on these exams gets easier and faster.
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Monte Swain, Ph.D., CMA, CPA, CGMA, is a Lead Instructor for UWorld CMA Review and the (newly retired) Deloitte Professor of Accounting at Brigham Young University. He offers advanced instruction and research in management accounting and strategic performance measures. His specialties include behavioral issues in decision support systems, activity-based costing, and strategic scorecards.
He has received several teaching awards throughout his career, including the Brummet Distinguished Award for Management Accounting Educators from the Institute of Management Accountants (2016) and the Core Professor of the Year Award from the BYU MBA Program (2021). He is a certified management accountant, a licensed CPA, and a chartered global management accountant.
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Tags: Accounting, Firm Management
