Sisters and brothers of CACLUB INDIA !!!!!! , Oops !!! I just realised that this is a really dangerous statement to make , If my wife five years down the line happens to be a chartered accountant ( because that will mean she is surely a member of CACLUB INDIA ) because this is one truly awesome website ........
Hence I am going to stick to my normal way of addressing everyone which is
Greetings to every one
Dont take offense to the joke !!! , My articles though informative tend to be boring ... Hence I added the recipe for some entertainment
Coming back to the forum , This is an article I wrote to assist on people making the right career choices . Please read this and post your comments with suggestions for improvement and share your knowledge and resources.......
SO WHICH ACCOUNTING CERTIFICATION IS RIGHT FOR YOU ?
With the plethora of accounting certifications and qualifications out there today, no matter what country you are in, it can be a daunting task to choose which certification is right for you. Gone are the days when if you were a young fellow who aimed toward getting the Chartered Accountant Certification (CA) issued by the ICAI in India; gone are the days when you could just become a Certified public Accountant (CPA) in the USA, or for that matter anywhere else in the world.
The typical certified public or chartered accountant today is just one of the many recognized, approved and qualified accounting certifications today. There are numerous others, irrespective of where you are: the Association of Chartered Certified Accountants (ACCA, International) Certification, the Association of Accounting Technicians Certification (AAT, UK), the Certified Management Accountant (CMA) Certifications issued by the Institute of Management Accountants (IMA, USA), the Chartered Institute of Management Accountants Certification (CIMA, UK & International) which is totally a tier based certification, starting with entry, managerial, strategic and TOPCIMA. If you dig deeper into the US & UK Markets, you’ll see many others, and each of them has their own following. I recently found out that there was an Institute of Financial Accountants (IFA) in the UK, and it’s a pretty major organization. Interestingly enough, I’ve never seen ANY job advertised asking for a certification from the IFA. Questionable? Who in the hell knows.
But here is what I can tell you. Accounting has become a diversified field. The certifications mentioned above are only some of the management/financial/public accountant type, and there are other new accountant types, which come with some fascinating certifications of there own. The upcoming accountant job titles you will come across now are forensic accountants, environmental accountants, project accountants, systems accountants, etc. etc. The list is never ending. Gone are the days when you trained to be a Director of Finance/CFO, Financial Controller, or simply strived to become an auditor in a public accountancy firm. However, in today’s competitive world, no matter what country you are in, it is VERY important to pick the accountancy field that you want to go into. Since each of these fields/job titles in accounting has its own relevant certification or qualification, it can sometimes be difficult to trespass from one into the other. Also note that some of these are not multinational certifications, and when going cross border, especially between 2 first world countries (the US & UK, for instance), having one kind of a background or certification can cause you quite the grief.
Take, for instance, the simple line of Financial & Management Accounting. There are people out there, and particularly recruitment consultant characters, who will try to convince you that there is a LOT of difference between Financial & Management Accountants. Well, I’m here to tell you: its ridiculous !!!!!!!. Management Accountants are for incompetent business owners; financial accountants are for compliance. That statement is true, but what good is a financial accountant who can only comply? That’s no accountant; he’s a simple instruction taker.
Back to the topic at hand. If management or financial accounting is the field you want to pursue, well, CIMA is your certification for Europe and most parts of Asia. If you are in the US, CMA from the IMA is the direction you should be headed in; and despite the common ground between the two, do NOT be confused or deceived. One will not co-operate with the other. The two are essentially competitors, with the IMA fighting for international recognition alongside CIMA. But get this, the AICPA feels so threatened by the IMA in the US, primarily because they are rightly carving our a different role/job descripttion for financial managers in firms (a very niche position that CPA/CA types aren’t meant for), that they went out of the way to cut a deal with CIMA, saying that CIMA is indeed a decent certification, and that CIMA is an institution they recognize. There was an entire article in the IMA Magazine regarding the issue, and the problem is, the AICPA cannot risk losing the value of its members within the US, so it refuses to accept the separate role or importance of Financial & Management Accountants.
But the US is not a country where all is lost. Quality matters. America is probably the only place in the world where at some level, it’s not who you know, but what you know, with the result that even today, you can succeed in industry/private sector in the US without any certifications, but only if you know what the hell it is that you’re doing. Ideally, if you are going into industry, stick to the IMA Certifications: CMA They are relevant! AICPA has become bloated and extremely political, and let’s face it, most Certified Public Accountants really can get dull. It’s not their fault. If you sole purpose in life is to assure the work of others, your existence falls into the misery of being second for good! AND, due to the tactics and acts of Certified Public Accountants, today, if we creative financial & management accounting types get creative with our work, we get penalized. Way to go, AICPA!.But they are making earnest efforts and we will see a resurgence in 2011 for sure.
Now, if you’re in the UK, CIMA is the way to go. I have seen, with my exposure to this market, and some Asian & Middle East ones, that being a Chartered Accountant always helps. It looks good, no matter what job you apply for, but it is not always relevant. Being a CA does by no means make you good at management or financial accounting; it just means you can dig yourself in papers for hours and hours and not get fed up, which, on a whole different level, is something admirable since I myself have difficulty with that. Certifications for Private/Industry Accountants in the UK with value are the ACCA, the AAT, and CIMA. Note that if you come to the UK with other certifications from other countries (other than a CA which is issed by an Institute which is authorized/accredited by the Institute of Chartered Accountants in England & Wales [ICAEW]), like the ICMA you can get in India and Pakistan, which is the Istitute of Cost & Management Accountants, you won’t get too far over here.
For some reason, the ACCA is considered a medium level certification over here. I’m not sure why; maybe they haven’t advertised or marketed enough, but ACCAs are for some reason not given executive treatment, especially not to the level of the CIMA qualified personnel. CIMA, in the UK, is considered an executive level certification, and passing it in this country means that you have stood the accounting test of time, and deserve salary, whether or not you know anything is irrelevant. Although the basic content in ACCA & CIMA is comparable, as is the basic content of the CMA and CFM in the US (with an exception ot the differences between US GAAP, UK GAAP & IFRS/IASB), CIMA has marketed themselves well, and has forged business alliances that have given them the executive reputation. So, if you want to make it big in industry as a Controller, Director of Finance, VP of Finance, or a CFO, CIMA is the Certification you should be looking that. Correct me if I am wrong, but I think you will get there with the ACCA too. It will just take longer than with CIMA. AAT, on the other hand, has been coming up with all the positive marketing they’ve been doing lately. However, I think AAT is still considered an entry level professional certification for non-accounting degree holders, and it makes you familiar with some of the technical aspects of accounting in the UK: VAT, PAYE, NI, etc. etc. Hence, the name Accounting Technician.
Let’s be honest, interesting or not, right or wrong, there is a big following that goes with the CPA and CA Certifications. So you’re always playing it safe by aiming for one of those. They may not be relevant for industry, but they will and have always held their importance, since auditing has become a vital part of big corporate money. Of course, if it has been your lifelong dream to become a public accountant, to project your affairs into other people’s business, and spend the rest of your professional life assuring others that their work is upto par, well, what can I say, by all means, go ahead
Now coming to my recommendations on the most ideal courses to pursue considering everyone is based in India and would be looking for good postings in India and abroad.
1. Obviously CA
2. CMA from US VS CIMA UK ( Despite the numerous comparisons) I would any day select CMA from IMA US. It is not easy by any means but it is way better considering that you have to write 2 papers vs over 7 in CIMA even after claiming exemptions in CA.
CMA is time bound , you can get the qualification faster than CIMA and while CIMA teaches you all aspects relating to operations strategy and focus .CMA has an interface between cost and management accounting with financial accounting . CMA has more of a global recognition vs CIMA if US is included .
3. In the topic of which qualification is best considering IFRS implementation . CA is good enough . I never stop emphasizing this but CPA (USA) sounds like an attractive proposition since IFRS is coming into picture next year w.e.f from January 1,2011.
Never opt for ACCA ( Even if your seniors recommend and are pursuing it) . It is not the UK CA , ICEAW is the official chartered accountancy for U.K and ACCA in most of the countries is seen more like a mid level qualification . Even in the U.K Partners of major audit firms and industries rely more on ICEAW.ACCA also works out to the same cost as CPA considering you have to pay for a lot of exemptions so go for the better one which is CPA. Offering Oxford Brooks MBA as a mere bait to lure you in is no good
4. If you are tired of accounting , go for CFA USA for the sheer passion and zeal and not as a money making option . Don’t fall into the trap of most people who say IB recognizes CFA . They sometimes may prefer just a person who is a PHD in Maths because they look for people who can devise excellent statistical methods for forecasting . CFA is really good even in terms of quality and you can pursue it but wait for the rewards to pour couple of years later , because there are talks of another recession looming . In this way Accounting professions always seem better because they are virtually indispensable
5. A number of people have asked me whether CISA is a good qualification . I would concur if they want to make their career in Information Systems Audit . But I believe that CIA (also known as a certified internal auditor) is more comprehensive covering all aspects and allows you to further specialize in Financial Services Audit and so on . Please refer to the speciality exams they offer on their website.
I hope this resolves all your queries . I have made sincere efforts to assist in CPA USA by providing all this details , But I assure you that I shall post all relevant information relating to other courses including review materials .
Please keep my recommendations a guidepost and exercise your professional judgement since these courses are relatively expensive but my philosophy is to “Invest in yourselves since you are the best investment”
Take Care , Good day and God bless !!!!!
CAclubindia
