Best Finance Certifications
According to the Bureau of Labor Statistics, not only are business and finance jobs outpacing other jobs by growth rate, but they also make 60% higher median salaries on average.
In this article, we’ll compare the best finance certifications to help you find which one will make the most difference in your finance career.
Below is an extensive list of the most important financial certifications that will help you in your business or finance career.
- Chartered Financial Analyst (CFA®)
- Chartered Life Underwriter (CLU)
- Certified Government Financial Manager (CGFM)
- Certified Valuation Analyst (CVA)
- Certified Financial Planner (CFP)
- Accredited in Business Valuations (ABV)
Chartered Financial Analyst (CFA®)
The CFA® certificate is the mark of proficiency in financial analysis and portfolio management. This self-study program focused on investment knowledge will help you reach the highest decision-making positions in investment management.
This program has three levels of organization: basic knowledge, applications, and advanced analytical methods. Each level ends with an exam. You’ll need to study for approximately six months before each exam and take the three exams sequentially.
To become a CFA®, you will need to become a member of the CFA® Institute and adhere to its code of ethics. Additionally, charterholders will also have to acquire four years of investment work experience. This is why successful candidates take, on average, 4 years to earn the CFA® charter.
Chartered Life Underwriter (CLU)
This globally recognized life insurance certification provides in-depth knowledge through a self-study program covering life insurance, financial planning, and investment banking.
The program offered by The American College can cost thousands of dollars and includes eight courses that may be taken over six months or at the student’s own pace.
While this is a costly and time-consuming enterprise, the certification may help you earn one-third more than non-certified professionals. The additional training and prestige associated with the credential are extremely valuable if you intend to specialize in life insurance.
To enroll in the CLU program, you must have 3 years of relevant full-time business experience. As a CLU, you are required to complete 30 hours of CPE every 2 years.
Certified Government Financial Manager (CGFM)
Do you work in the government sector at the local, state, or federal level? If so, the CGFM certification offered by AGA (Advancing Government Accountability) can be a valuable asset to your career. This highly respected credential shows that you are proficient in many aspects of government finances. Some of these aspects range from taxes to laws and budgeting.
To become a CGFM, you need to hold a Bachelor’s degree from an accredited institution. Additionally, you’ll need at least two years of full-time experience in government financial management.
Furthermore, you’ll also need to abide by AGA’s Code of Ethics and to pass three CGFM examinations. These exams cover government accounting, financial accounting, asset management, and reporting.
Certified Valuation Analyst (CVA)
This certification awarded by the National Association of Certified Valuation Analysts (NACVA) ensures high quality in business and intangible asset valuations.
Candidates for CVA certification must hold a CPA license or otherwise demonstrate the necessary theoretical knowledge and experience in wealth management (two years of full-time experience or over 10 business valuations). In addition, you must be a NACVA member and attend a five-day training program.
To become a CVA, you will have to complete a case study or report for peer review, submit six reference letters, and pass a five-hour examination.
The CVA is the only valuation certification accredited by the NCCA (National Commission of Certifying Agencies). Consequently, it is a valuable credential if your career in financial services leads you towards the field of business valuation.
Certified Financial Planner (CFP)
The Certified Financial Planner Board of Standards, a nonprofit organization based in the US, is the institution responsible for issuing CFP certifications.
Over 70,000 financial professionals hold this popular license in the US. Once you’ve passed the CFP exam, you’ll demonstrate your capability of handling the tasks of a financial advisor. These tasks range from estate planning to cash flow and liability management.
To qualify for the exam, you must possess at least a bachelor’s degree from a school registered with the CFB Board.
You must also have at least 3 years of professional financial planning experience. After meeting both of these requirements, you are then eligible to sit for the six-hour exam.
Because CFPs routinely provide people with advice on retirement and tax planning, it is important that they be ethical and trustworthy.
The CFPs who are the most successful always put their clients’ well-being ahead of their personal gain.
Accredited in Business Valuations (ABV)
Individuals with ABV certifications hold a wide variety of positions and job titles.
New ABVs are quickly finding out that they are highly desired and talented individuals are always in demand. Unlike other financial professionals, ABVs go beyond traditional analysis when it comes to business valuations and corporate finance.
This designation is a good way for professionals interested in becoming business valuation experts to get the edge over the competition.
Large tech companies such as Google, Amazon, and Apple constantly seek the advice of highly skilled ABVs. However, the exposure the ABV certification provides goes far beyond Silicon Valley.
The exam, which can cost upwards of $500, covers three separate areas:
- valuation analysis
- qualitative
- quantitative analysis
- and a section on related topics
Most states require ABVs to also hold a four-year college degree.
FAQs About the Best Finance Certifications
What are the best finance certifications for career growth?
The best finance certifications depend on the type of finance career you want. CFA is strongest in investment analysis and portfolio management; CFP is better for personal financial planning; CLU is useful for insurance-focused advisors; and CGFM is designed for government financial management roles.
Is the CFA or CFP better?
CFA is usually the better fit if you want to work in investment research, asset management, portfolio analysis, or institutional finance. CFP is usually better if you want to advise individuals on retirement, investments, tax planning, estate planning, insurance, and broader personal financial goals.
Which finance certification is best for business valuation?
CVA and ABV are both strong options for professionals who want to specialize in business valuation. CVA can appeal to valuation professionals from diverse backgrounds, while ABV is especially relevant to CPAs seeking to build credibility in valuation, litigation support, transactions, or advisory work.
Are finance certifications worth it?
A finance certification can be worth it when it matches the job you actually want. The value comes from choosing a credential that supports a specific career path, not collecting letters after your name just because they look impressive.
How should I choose between finance certifications?
Start with the work you want to do every day, then choose the certification that lines up with that path. Investment professionals may lean toward the CFA, financial planners may choose the CFP, insurance advisors may consider the CLU, government finance professionals may look at the CGFM, and valuation-focused professionals may compare the CVA and the ABV.
