About 99% of the time, I fire my client’s outsourced bookkeeping service and replace them with our first accountant or accounting manager. My requirements are generally:

an accounting degree
3-4 years in public accounting
5-7 years working under 1-2 seasoned controllers
preferably, knowledge of at least 3 different ERP solutions

They also need to be likable, humble, and street smart.

Somehow, some of my clients translate the above to mean that their accounting candidates need the CPA designation. No, that’s not always the case. But this always leads to a coachable moment in discussing the CMA designation, too.

A Walk Down CPA Memory Lane

I nearly get ill thinking about obtaining my CPA designation. I screwed up in college by not allowing myself wiggle room to take the CPA refresher course during the last semester of my senior year.

That meant I had to study on weekends while working a full-time job at KPMG and raising a young family. That was torture. I still don’t know how, but I passed the exam over two sittings (strategically on purpose) during my first year while working in public accounting.

But I was not yet a certified public accountant. I needed two years of experience. After that, I’d need 40 hours of dry and boring continuing professional education credits.

Let’s stop here. Does having a CPA designation mean I’m special? That I’m some rock star in accounting? No, not at all. It means I got lucky passing a hard test, fulfilling an arbitrary experience requirement, and completing some courses that did not augment my knowledge. Never forget this.

The CPA vs. the CMA Designations

The CPA designation is the most recognizable, but will your first accountant need it? Will they be doing audits? Will they sign off on your tax returns? If so, the accountant needs those 3 little letters behind their name. But that will not be your requirement.

The CMA (Certified Management Accountant) certification is helpful early in an accountant’s career for those working in private industry. If they are a job candidate for an FP&A position with identical experience to three other peers, yet they are the only one with the CMA designation, then they will probably have a slight advantage.

I passed the CPA exam in 1990, but I don’t include it in my email signature or on LinkedIn. It’s irrelevant as a business advisor and consultant. Since I don’t do taxes or audits, I see no reason to use the designation.

One More Time, Does Your First Accountant Need the CPA or CMA Designations?

The CPA and CMA are just designations. That’s all. Refer back to my candidate filter above. My bias is on knowledge, experience, and street smarts. Not whether or not they could pass a hard test.

If, for some reason, you think a credential is necessary, then here is the designation your accounting candidate should have:

The designation required by the candidate to do his or her job, and
The one that will lead the professional to greater confidence and capabilities in current and future positions

Above all, let the position and its duties dictate whether a professional designation is needed for that accountant or accounting manager role.