Question of Credentials

[Roberts]

I have a small investment firm. As you can imagine, investments is NOT the place to be right now but thankfully 70% of our business is muni-bonds and they have held up wonderfully through the entire mess. Still, it got me thinking. I sort of enjoy studying and learning and am wonder "what credential would help me the most long term?" 5 years ago I got the Enrolled Agent sort of on a whim and I've attained a few small business clients and a couple dozen individuals but would like to grow it more. What designation or certification would help me most in this area? I think I specifically am interest most in accounting and acquiring more corporate work.

I can't be a CPA because I can't do the public auditing for 3 years which is required in my state. Along with the EA I am licensed for securities with the Series 7, 63, 65 and 24. (yeah, I said I enjoy the process of learning). I had the CFP but found nobody cared about it in the 10 years I had it so I just let it lapse.

Would I be better off just being a Quickbooks Pro? Or is their a designation or credential I'm not aware of that clients (or employers) might find important between that and the CPA?

Thanks

[Zee]

I don't think I would have let my CFP lapse if I was performing services in the investment area. It's stronger than it used to be. In many states the requirement to become a CPA now includes 5-years of college with a major in accounting. The public experience varies from 1-3 years. You're also an Enrolled Agent. You should be proud of your accomplishments. I've always said there are just so darn many professional designations these days, none of them mean very much. For example, Certified Senior Advisor. What is it? A 1-week program than can be taken as a correspondence course. The proliferation of Certifications and their corresponding letter designations must be extremely confusing and misleading to the average consumer.

I was a QB Pro Advisor for a short-time. I studied the material and passed the exam without really having a good, solid understanding of QB. I think if you really learn QB well, becoming a QB advisor might be the best alternative because QB has really taken over the small business marketplace, and the investment to become a QB Pro Adviser is very small (and includes the software). The competition is signficant. I see QB Pro Advisors advertising all the time for business helping in the set-up, etc. The hourly rates are also quite low, so you'll have to distinquish yourself from the herd.

[David1980]

Some states are easier to meet the experience requirement. In Washington it's pretty easy to meet the experience requirement.

http://www.cpaboard.wa.gov/CertificateLicense/experience_requirements.shtml

"Your experience must be a minimum of 12 months, consisting of at least 2,000 hours, through the use of accounting, issuing reports on financial statements, management advisory, financial advisory, tax, tax advisory or consulting skills. The 2,000 hours are work hours; i.e., the hours are not limited to billable hours nor are they limited to hours for which you received a wage or salary. "

I should probably study/take the tests while tax is still an acceptable experience.

[Roberts]

While each state is different, you can't become licensed as a CPA in one state just to avoid the requirements in another. For example I think in Montana or Wyoming the requirements are the easiest (don't remember because it's been years since I reviewed it) but they can't claim themselves as CPAs in my state. In my state, 3 years of public auditing is required before you are fully a CPA. Plus my degree is in Finance so I didn't take the high level accounting classes.

I'd like something that is a credible identifier that I understand bookkeeping and basic accounting for the small business. These "pass it in a week for $200" credentials aren't worth anything in my opinion.

[AZ-Tax]

Robert, must cost you a fortune to maintain all those

licenses. I have a 7, 24 & 63 and most of my clients are in fixed annuities so I have quite a few happy clients. I do very little in stocks and mutual funds with a bulk of my securities being muni and corp bonds. I finally located a BD that does not mandate E&O coveage so my mo fee is only $50/mo. Before I was being charge around $300/mo with my previous BD. I luanched a P&C insurance agency in Jan 2007 and that part of my business is increasing the most then I cross sell my products and services. I too have been considering the QB Pro Advisor.

[Roberts]

licenses. I have a 7, 24 & 63 and most of my clients are in fixed annuities so I have quite a few happy clients. I do very little in stocks and mutual funds with a bulk of my securities being muni and corp bonds. I finally located a BD that does not mandate E&O coveage so my mo fee is only $50/mo. Before I was being charge around $300/mo with my previous BD. I luanched a P&C insurance agency in Jan 2007 and that part of my business is increasing the most then I cross sell my products and services. I too have been considering the QB Pro Advisor.

To be honest I don't know how much it costs to maintain securities licenses. We get a bill once per year from FINRA and it's pretty reasonable for the 3 reps we have. I never considered it cost prohibitive. The EA on the other hand is an absolute BARGAIN. Attaining it was extremely reasonable and I can't imagine a cheaper license to maintain per year. The CFP on the other hand was extremely expensive in my opinion not only to achieve but to maintain. When I got it the cost to achieve it was reasonable enough but the CE and yearly fees go up substantially every year. That's the big reason I gave up on it. Without an obvious benefit, I'm not forking out $2,000 per year.

[David1980]

While each state is different, you can't become licensed as a CPA in one state just to avoid the requirements in another.

True. If you were to move states or practice in other states you would have to meet the CPA requirements for that state. So if you had one of the old 4-year licenses and moved now you'd probably end up taking another year of college to meet current 5-year requirements.