Financial Planning and Analysis credential program was launched in 2013 and sponsored by the Association for Financial Professionals (AFP) on behalf of the global FP&A profession. You demonstrate your understanding of those complex processes, tools, and practices by earning FP&A credentials and are identified as well-positioned to provide insight to strategic business at organizations. The certified Corporate FP&A Professional (FP&A) designation defines universal principles and standards of practice utilized in performing financial planning & analysis job functions mention below in the figure. In this review article, we discussed the requirements for the entrance exam of the FP&A program, how to get certified, and the benefits of certification.
1.) FP&A Program Entrance Requirement
You should have the following entrance requirements before you enroll in the FP&A credential program –
- should have a bachelor’s or equivalent degree or
- currently enrolled in an undergraduate program with a finance-related major (finance accounting, economics, or business) and be on track to graduate within two years.
- Understand the requirement for professional (You will be asked to follow with AFP Standards of Ethical Conduct).
2.) Education and Experience Requirement
Once the candidate may enroll in the program before the completion of Education and Experience Requirements and start taking the exams. It will not be awarded a credential until requirements have been met.
| Eligibility Category A | |
| Undergraduate Education | Bachelors or global equivalent in finance, economics, business, or accounting. |
| Graduate Education | None |
| Supplemental Education | None |
| Credential | None |
| Work Experience | (three years) FTE experience performing FP&A job tasks. |
| Eligibility Category B | |
| Undergraduate Education | Bachelors or global equivalent in any subject matter. |
| Graduate Education | Master’s Degree or higher or global equivalent in finance, economics, business, or accounting. |
| Supplemental Education | None |
| Credential | None |
| Work Experience | FTE experience (two years) performing FP&A job tasks. |
| Eligibility Category C | |
| Undergraduate Education | Bachelor’s or equivalent in a non-finance subject. |
| Graduate Education | None |
| Supplemental Education | Three semester hours of college-level course work or equivalent in finance and six semester hours of college-level course work or equivalent in managerial accounting or financial accounting |
| Credential | None |
| Work Experience | FTE experience (three years) performing FP&A job tasks. |
| Eligibility Category D | |
| Undergraduate Education | Bachelor’s or equivalent in a non-finance subject. |
| Graduate Education | None |
| Supplemental Education | None |
| Credential | finance-related credential* |
| Work Experience | FTE experience (two years) performing FP&A job tasks. |
*Approved Accounting or Finance Credentials
- Chartered Financial Analyst (CFA)
- Certified Government Financial Manager (CGFM)
- Chartered Global Management Accountant (CGMA)
- Certified Internal Auditor (CIA)
- Chartered Accountant (CA)
- Certified Management Accountant (CMA)
- Certified Treasury Professional (CTP)
- Chartered Professional Accountant (CPA)
- Chartered Certified Accountant (ACCA)
- Certified Public Accountant (CPA)
- Professional Business Accountant (PBA) Canada
- Certified General Accountant (CGA)
3.) Full-time Equivalent (FTE) Experience
At least 35 hours of work per week is required in positions. At least 50% of individuals time must be spent in managing or supervising those who manage following finance tasks like budgeting, forecasting, financial analysis, and modeling as well as strategic planning whereas positions such as internships, vacation employment, or volunteer positions do not provide the experience to qualify in meeting the full-time experience requirement.
4 How to get FP&A Professional Credential?
To gain the FP&A Professional credential, you must do the following –
- Satisfy the entrance requirements.
- Pay the enrollment fees.
- Pass both parts of the exam.
- Satisfy the education requirement.
- Satisfy the work experience requirement.
- Agree to follow with Standards of AFP of Ethical Conduct.
You must need to complete these requirements for the program within five years of enrollment into the program. If you are unable to complete the program requirements and earn your certification within five years of enrollment, the passes parts will expire. Until all requirements have been met, the credential will not be awarded. The final individual’s qualification is judged by AFP Certification Committee to obtain the credential. Only applicants will receive confirmation E-mail from AFP, which is deemed available to enroll in the examination.
5 Benefits of Certification
90% of FPAC credential holders see the certification as beneficial for their career due to the following reasons –
- Differentiate you from others in finance.
- Add skills and knowledge when preparing for exams.
- Salary increase on earning a credential.
- Preparation materials are relevant to your job.
- Assist your transition into the role of FP&A.
To summarize the above work, we can conclude that Certified Financial Planning and Analysis Professional credential sets the standard in the financial planning and analysis profession and play a significant role by performing budgeting, forecasting, and analysis that support major corporate decisions of the Chief Executive Officer, Chief Financial Officer and Board of Directors.