Certified Valuation Analyst Awarded by: The National Association of Certified Valuators and Analysts Uses: To perform business valuations to clients and consultants Requirements: A valid license as a certified public accountant, passing grade on a five-hour multiple choice test, and showing applied experience with a case study of a business valuation. From the accountant: Mel Abraham, an accountant with a practice in Simi Valley, finds that having the CVA allowed him to pursue an atypical career with a separate distinction from other CPAs. Some of the work he performs for clients is driving value for their businesses, protecting them from lawsuits and succession planning, Abraham said. “It helps with clients in knowing they are dealing with someone who is a specialist,” Abraham said. “It helps you position yourself in a market that could be commoditized and gives the perception that you are an expert.” Certified Financial Planner Awarded by: The Certified Financial Planner Board of Standards Inc. Uses: To develop and implement financial plans for individuals, businesses, and organizations Requirements: A bachelor’s degree, three years of relevant experience, and a passing grade on a 10-hour, two-day exam. The passage rate on the first try is 54 percent, according to the CFP Board of Standards. From the expert: To receive the CFP designation, one does not need to be a certified public accountant although CPAs and other professionals such as lawyers do receive the credential, said Dan Drummond, the board’s director of public relations. A recent survey by the board found that 88 percent of respondents are satisfied with their career choice in financial planning, Drummond said. “There is a connection there between getting the design and their professional success,” Drummond said. Certified Internal Auditor Awarded by: Institute of Internal Auditors Uses: Internal auditing of financial controls at a business Requirements: Passing grade on a four-part, multiple choice exam on the role of internal audit in governance, risk and control; business analysis, business management skills, and conducting audit engagements. From the expert: While being an accountant is not required, many in that profession do receive the CIA credential, said Scott McCallum, the manager of corporate communications for the Institute of Internal Auditors. Being sure that financial controls are working, one should have some knowledge of accounting principals, McCallum said. The institute has accredited 100,000 internal auditors and the designation is accepted globally, he added. “It opens up career markets,” McCallum said. “Whenever you see an internal auditor job posting, on average three out of four times they require a CIA designation.” Personal Financial Specialist Awarded by: The American Institute of CPAs Uses: Financial planning from a certified public accountant Requirements: 80 hours of personal financial planning education, two years of full time business or teaching experience, and a passing grade on a seven-hour exam of multiple choice questions and case study scenarios. From the accountant: Mitchell Freedman was one of the early adopters of the personal financial specialist credential in the late 1970s. Freedman, whose practice is in Westlake Village, said he got it to better help clients with investment advice. At that time, Freedman said he had clients using advisors who were more interested in selling them a product they did not need. He viewed financial planning as addressing all the issues in a client’s life, making recommendations and doing it on a fee basis. “Unless I had a credential, I could not separate myself from the competition,” Freedman said. Since then, he has been an advocate for the PFS designation and others that show an accountant has a specialty, Freedman said. Having a specialty means being able to help other accountants who lack that expertise, Freedman said. “It gives the opportunity among us for strategic alliances to better serve our clients,” Freedman said.
Alphabet Soup for Accountants: Credentials, Titles, Etc.
