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Graduate Degrees for Accountants
A winning Combination

In the noted words of that great baseball philosopher Yogi Berra, “the future ain’t what it used to be”. Due to the dynamic and global nature of today’s business world, it can also be said that accounting ain’t what it used to be. Traditionally, accountants have been viewed as ‘bean counters’ and ‘number crunchers’….

Although highly respected for their knowledge in such areas as financial reporting, taxes and auditing, today’s accountants are also expected to have a solid foundation in marketing, economics, finance, management and information systems. They continue to have a greater involvement in all aspects of a business and are viewed by their companies and/or clients as ‘business advisors’ who will provide value-added services. Consequently, individuals considering accounting as a career path will find increasing and diversified job opportunities, greater expectations and financial rewards, and a premium placed on a technological training and skills.

In order to meet the challenges of today’s changing accounting landscape, continuing education and on-going skill development is imperative. Whether you have just graduated with a bachelor’s degree or have been out in the workforce dor several years, pursuing a Masters Degree in Accounting is an excellent way to update and advance your knowledge and skills, enhancing your chances for future success in the accounting profession. The focus of this article is to show how closely graduate degrees and professional accounting certificates are aligned and briefly outline selected professional certificates and options available to candidates considering a graduate degree in accounting.

Certified Public Accountant (CPA)

Still the marquee designation for accounting professionals, individuals earning their CPA license will find numerous opportunities in public accounting, industry (corporate accounting) and the not-for-profit sector. Since over 40 states now require prospective CPAs to earn 150 credit hours of college credit, a masters degree in such areas as accounting information systems, taxation or business administration will likely be the norm for tomorrow’s accounting professional. For those who are already CPAs, pursuing a masters degree is a great way to meet state licensing continuing professional education (CPE) requirements, while also improving your skills on the job and increasing your opportunities for advancement.

Certified Management Accountant (CMA)
Certified in Financial Management (CFM)

Although not as widely know as the CPA, the CMA and CFM are gaining in recognition and stature. The CMA was established in 1972 by the Institute of Management Accountants (IMA) to afford accounting professionals an opportunity to demonstrate their knowledge and expertise in internal and corporate reporting issues. It is particularly appealing to those not wishing to obtain the public accounting experience usually necessary to earn the CPA designation. The IMA established the CFM program in 1996 in an effort to attract other business professionals who may not have an undergraduate degree in accounting. Both the CMA and CFM reflect the expanded scope of today’s accounting and financial professionals by requiring that candidates have knowledge in the following areas:

• Economics, Finance and Management (CMA/CFM).
• Financial Accounting & Reporting (CMA).
• Corporate Financial Management (CFM).
• Management Reporting, Analysis and Behavioural Issues (CMA/CFM).
• Decision Analysis and Information Systems (CMA/CFM).

Candidates for the CMA/CFM designation are not required to hold a masters degree. However, the ‘core’ courses in most graduate accounting and MBA programs are directly in line with the common body of knowledge required of CMAs/CFMs.

Certified Financial Planner (CFP)

For today’s accountants, personal financial planning is one of the fastest growing segments of the accounting profession. This is particularly true in the small business sector where in their role as business advisors, accountants are also expected to assign in all aspects of financial planning, from insurance and risk management to estate and retirement planning. Since much of the work of a CFP involves the taxation of financial planning, pursuing a Masters in Taxation or an MBA with a concentration in finance and taxation provides an excellent foundation for the accounting professional to gain expertise in this area and offer value-added services to their clients.

Because of the dynamics and complexities of today’s global business environment, the accountant is expected to ‘wear many hats’. In order to better assist their companies and clients, accounting professionals need continuing professional education and skill development. One way to achieve this is through graduate education. An added benefit to master’s level coursework is that it also helps candidates prepare for several highly respected professional certification(s). Accounting professionals with both a master’s degree and professional certification next to their name have a clear way of differentiating themselves from the ‘pack’. Surveys conducted by several accounting organizations have shown that over the course of their career, individuals with professional certifications earn about $12,000 more per year than their non-certified counterparts.

Since CPE is a must, why not pursue a master’s degree in tandem with a professional certification? Once you see what a few more letters next to your name can do for you, you will understand why accounting ain’t what it used to be.

Author:
Joseph M. Hargadon, PhD, CPA, CMA
Associate Professor of Accounting