When considering a degree in finance, you may be uncertain about what kinds of credentials prospective employers will be looking for on your resume. There are a lot of possibilities for specialization available in the field. It may be difficult for finance majors to decide which certifications are worthwhile and which they can do without. The following list will give you an idea of the top five certifications successful finance professionals should obtain.
1. Certified Public Accountant
A certified public accountant, or CPA, license is probably the best-known and most useful certification available to those seeking a career in the finance or accounting industry. A CPA license will immediately set you apart in the fields of:
- tax preparation
- financial statement analysis
- business planning
CPAs are also expertly skilled in double-entry accounting systems. This makes them excellently qualified to perform financial statement analysis.
Those with CPA certifications are also more highly qualified to seek top-level positions in large corporations, including chief financial officer and chief operations officer.
Related Resource: What is the Difference Between a CPA and a CFA?
2. Certified Financial Planner
This certification has become increasingly popular in recent years. CFP Professionals are versed in a multidisciplinary approach that includes:
- insurance
- asset management
- education
- tax planning
- employee benefits
- estate planning
This certification will allow you to take a more holistic approach to future clients’ financial futures. It also makes you a more well-rounded finance professional overall. The CFP’s website offers a more complete description of the many advantages of this certification.
This is one of the few certifications that can be obtained globally. Each country has a nation-specific certification to ensure its CFPs are knowledgeable in that country’s financial and tax law. This is one certification in particular that looks good to employers both domestically and internationally.
Related Resource: How Do You Become a Certified Financial Planner?
3. Chartered Financial Consultant
A chartered financial consultant certification is one of the oldest, most trusted certifications in the industry. The examinations cover such subjects as:
- taxation
- estate planning
- portfolio management
- investment analysis
- ethical standards
Each of these examinations must be passed to demonstrate your level of knowledge and competency in those respective fields. This certification is meant to enhance your knowledge in a broad range of industry topics to increase your earning potential.
Related Resource: What is a Chartered Financial Consultant?
4. Chartered Financial Analyst
The chartered financial analyst certification requires extensive knowledge in the fields of securities analysis and portfolio management. Being a CFA charter holder is a prestigious certification. The requirements to be completed are extensive and include:
- four years of work experience
- stringent ethics requirements
- passing marks in three separate examinations
Financial institutions look very favorably on a CFA charter because they know anyone with this certification is knowledgeable in the most relevant marketplace challenges the industry currently faces.
Related Resource: What is a Chartered Financial Analyst?
5. Financial Risk Manager
The Financial Risk Manager program is a multi-level certification program. The Global Association of Risk Professionals administers the examinations and is the only institution qualified to award the FRM certification.
Both Level I and Level II require graduate-level work in order to pass successfully. Level I tests your knowledge of complex yet foundational subjects such as:
- quantitative analysis
- valuation and risk
- foundations of risk management
- markets and products
Level II then builds upon this foundation of knowledge with topics like:
- investment management
- market and credit risk
- operational risk
- advanced risk management skills.
Conclusion
While there are dozens of other certifications available to finance majors, these are the top five that finance professionals regard highly. Each certification requires high levels of knowledge in specific areas of finance, as well as continued education and re-certification to ensure you have the most up-to-date knowledge to offer your clients.
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