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Stuart Gentle Publisher at Onrec

From CPA to CEO - Which Certifications Have the Greatest Potential for Growth

CPA or a certified public accountant may be associated more with a CFO position, but your accounting credentials can help you reach even greater heights. Becoming a CEO as a CPA is definitely possible. Still, you should continue to upgrade your credentials to set yourself apart.

How Can a CPA Get You a CEO Position?

Accountants, CPAs, and CFOs make for incredible CEOs because they can handle finances like no one else. As a professional business tax accountant, financial analyst, and auditor, you can develop a company strategy that stays within budget and/or generates the overall highest ROI.

Here are a few more reasons why accountants should transition into CEOs:

  • They Understand the “Language of Business:” 

As Warren Buffet famously said, “accounting is the language of business.” By nature, accountants are able to prepare reports, locate top revenue streams, and present financial information in a logical way.

  • They Are Organized and Detail-Oriented

Accountants have to look at small details (individual numbers) and the bigger picture (the budget) at the same time. To create effective and accurate financial reports, they have to be organized and detail-oriented.

  • They Can Navigate Legal Policies and Legislation

Most CEOs don’t start businesses to intentionally break laws, but they often do by accident. A trained accountant can 

 

According to Investopedia, the top reasons why businesses fail are due to a lack of capital, inadequate management, ineffective business planning, and unfocused marketing. 

With a CPA in the CEO driver's seat, the business will immediately understand why they aren’t performing as well as expected. In fact, a CPA would be able to see a financial pitfall from miles away, meaning a business could avoid the path that leads down to bankruptcy altogether.

Why Upgrade Your CPA Certification?

Since accountants are trained to watch over the financial aspects of business and leave enough cushion for mistakes, they can effectively help any organization achieve long-term success. With that said, is there any need to upgrade your credentials further? Would a CPA be enough?

While CPAs are experts in the accounting field, they’re more akin to generalized professionals. A CPA will know how to perform high-level accounting tasks, but not to the level of a specialist. 

For example, a CPA will know how to evaluate financial data to maximize profits, but a chartered financial analyst (CFA) can see the bigger picture by including investment management. While a CPA works for a business, a CFA will work for Wall Street or hedge/investment funds.

While you will get the highest return on your investment by getting a CPA designation, other accounting certifications can separate you from other candidates. A CFA, CAIA, or CFP can make the difference between getting a CEO position in a high-profile company or missing out.

Which Accounting Certifications Offer the Most Growth Potential?

Besides the CPA, there are a select few accounting certifications that offer the best bang for your buck career-wise. 

Here are 7 certificates we recommend applying for this year.

1. Chartered Financial Analyst (CFA)

A chartered financial analyst certification proves you’re an expert in financial analysis. To get a CFA, you need to pass a 3-level exam that tests your knowledge of the investment industry. You’ll also need to demonstrate a high level of educational, ethical, and professional standards.

2. Chartered Alternative Investment Analyst (CAIA) 

A chartered alternative investment analyst certification proves you understand alternative investments, like private equity, venture capital, and hedge funds. If a CEO is able to take advantage of these investments, they may be able to make a more varied investment portfolio. 

3. Certified Financial Planner (CFP)

A certified financial planner certification is one of the hardest things you can achieve, but once you do, you prove that you can manage personal investments, like retirement and education. A CEO may need a CFP if they want to calculate the cost of benefit plans for their company.

4. Certified Management Accountant (CMA)

A certified management accountant certification proves you can complete management accounting tasks for large manufacturing facilities and enterprise-level organizations. A CEO will need a CMA if they want to conduct strategic management for mega-corporations.

5. Certified Internal Auditor (CIA)

A certified internal auditor certification proves you have world-class auditing skills. A CIA upgrades the auditing credentials a CPA already has by teaching students high-level auditing techniques. A CEO will need this if they work for large organizations or not-for-profit firms.

6. Financial Risk Manager (FRM)

A financial risk manager certification proves you can anticipate, respond, and adjust to critical risks that could arise while conducting business. An FRM is often compared to a CRA, but an FRM focuses on financial risk management, skills any good CEO would need in any industry.

7. Certified Fraud Examiner Designation (CFE)

A certified fraud examiner certification proves you’re an expert in fraud investigation, fraud laws, fraud schemes, and fraud prevention. CEOs would need a CFE to prepare their business and protect their employees against cyberattacks, external hacks, and internal malicious actors.