What is CPD? Demystifying Continuing Professional Development

Written by CFI Team

Reviewed by Jeff Schmidt

Read Time 6 minutes

Introduction to Continuing Professional Development (CPD)

Continuing Professional Development (CPD) is a globally recognized approach to keeping your skills sharp and your knowledge up-to-date. For finance and accounting professionals, CPD ensures you can navigate industry changes, meet professional standards, and grow your career. It offers a structured way to build expertise, adapt to evolving challenges, and maintain relevance across different jurisdictions.

This article breaks down the most frequently asked questions (FAQs) from professionals about CPD, from what CPD is and why it matters to how you can make it an integral part of your professional journey.

1. What is CPD?

Continuing Professional Development (CPD) refers to an ongoing process of learning that helps professionals enhance their skills, knowledge, and competencies. It is designed to support career advancement, ensure professional effectiveness, and maintain alignment with industry standards.

For finance and accounting professionals, CPD covers a wide range of activities, from technical training to leadership development. By engaging in CPD, you’re better equipped to stay informed about regulatory changes, refine your expertise, and deliver impactful work in a fast-changing field.

Recognized worldwide, CPD requirements vary by jurisdiction and profession, ensuring global applicability while addressing local needs.

2. Who Needs CPD?

Many professional licensing and certification bodies require Continuing Professional Development (CPD) of members. Examples include accountants, auditors, financial analysts, financial planners, and risk managers among others. CPD ensures these professionals stay informed about regulations, industry updates, and best practices. Completing CPD demonstrates your commitment to staying informed and capable in a rapidly changing field.

3. Why is CPD Important?

CPD enables finance and accounting professionals to keep their skills aligned with industry demands, helping them deliver accurate and effective work. By engaging in CPD, you remain equipped to adapt to changes in regulations, technology, and best practices, ensuring your professional competence.

CPD also plays a critical role in career advancement. It helps you build the expertise needed for leadership opportunities and specialized roles. Beyond meeting compliance requirements, CPD reflects your dedication to professional growth and excellence, setting you apart in competitive environments.

4. What are CPD Requirements?

CPD requirements vary by profession and jurisdiction, but most organizations expect professionals to complete a specific number of learning hours annually or over a multi-year cycle. These requirements are often divided into subject categories, such as technical skills, ethics, and professional development.

For example:

The Association of Chartered Certified Accountants (ACCA) requires 40 units of CPD annually, emphasizing ethics and structured learning.
The Institute of Internal Auditors (IIA) mandates 40 hours of CPD per year, covering auditing, risk management, and governance topics.
CPA Australia sets a three-year rolling requirement of 120 hours, with a minimum of 20 hours per year.

Other organizations, such as the Institute of Singapore Chartered Accountants, Hong Kong Institute of Certified Public Accountants, Dutch Association of Tax Advisers (NOB), and Institut der Wirtschaftsprüfer in Deutschland (IDW), tailor CPD requirements to their members’ needs. This flexibility ensures that CPD remains globally applicable while meeting local and professional standards.

5. How Can CPD Be Earned?

You can earn Continuing Professional Development (CPD) through three main types of learning activities: Structured CPD, Reflective CPD, and Informal CPD. Each offers unique ways to expand your knowledge and skills.

Structured CPD (Active Learning): These are formal, planned activities that involve participation. Examples include online courses, in-person seminars, and workshops. This type of CPD often meets the requirements set by professional bodies and is highly trackable.
Reflective CPD (Passive Learning): This involves learning from observation or listening without direct interaction. Examples include watching training videos, attending non-interactive lectures, or engaging with podcasts, industry briefings, and case studies.
Informal CPD (Self-Directed Learning): These are self-initiated activities that foster knowledge growth. Examples include reading books, articles, or industry-specific news, discussing topics in online forums, or conducting independent research.

Online CPD options, like those offered by CFI, provide flexibility to learn at your own pace while meeting professional requirements. These platforms make it easier to tailor your learning to your goals and schedule.

6. Should I Track My CPD Hours?

Accurately tracking your CPD helps you stay compliant with the requirements of the professional organization that governs your license or certification. Many governing bodies require detailed evidence of your completed learning, including dates, durations, and topics. Proper record-keeping ensures you can demonstrate your efforts during audits or certification renewals.

7. What Happens If I Don’t Meet CPD Requirements?

Failing to meet the CPD requirements for your credential can lead to significant consequences. Many professional organizations impose fines, suspend certifications, or even revoke memberships for non-compliance. These penalties can affect your ability to work in your field or maintain professional credibility.

To avoid non-compliance, consider these tips:

Set annual goals: Break your CPD requirements into manageable milestones throughout the year.
Use tracking tools: Platforms like CFI offer personalized dashboards to help you monitor progress and ensure you meet deadlines.
Prioritize structured learning: Courses and workshops are often easier to document and align with professional standards.

Staying proactive helps you maintain your certifications and continue building your expertise without unnecessary stress.

8. What Topics are Popular for CPD in Finance?

Continuing Professional Development (CPD) in finance and accounting covers a wide range of topics designed to keep professionals updated and effective. Here are some of the most popular topics, grouped by category:

Core Finance and Accounting Skills: Develop expertise in accounting fundamentals, financial statement analysis, 3-statement modeling, budgeting and forecasting, and business valuation.
Technical and Analytical Skills: Build advanced skills in Excel tools like Power Query and Power Pivot, master data analytics, and leverage business intelligence platforms like Power BI or Tableau for data visualization and reporting.
Risk Management: Learn practical approaches to assessing, measuring, and addressing risks, including financial, operational, and regulatory challenges.
Specialized Expertise: Expand into areas like FP&A, sustainable finance and ESG, cryptocurrency and blockchain, mergers and acquisitions (M&A) modeling, LBO modeling, and DCF valuation.
Leadership and Professional Skills: Enhance communication and presentation skills, improve conflict resolution, and develop effective team management and leadership abilities through targeted programs.

These topics ensure you’re equipped to handle both foundational and emerging challenges in your career.

9. How Does CPD Differ From CPE?

While Continuing Professional Development (CPD) and Continuing Professional Education (CPE) are similar in purpose, they differ in focus and regional use. CPD is a broader concept commonly used in Canada, the UK, Europe, Asia, and Australia, encompassing all types of learning — structured courses, informal activities, and self-directed study — that contribute to professional growth. CPD emphasizes overall career development, including technical, leadership, and professional skills.

In contrast, CPE, primarily used in the United States, focuses on structured, formal education required to maintain certifications like the CPA designation. CPE credits are typically tied to compliance requirements and measured in increments of 50 minutes per credit.

There’s significant overlap between CPD and CPE. Providers like CFI offer CPD and CPE courses recognized by global licensing and certification bodies, allowing professionals worldwide to comply with CPD requirements. This flexibility makes CFI an ideal choice for professionals from different regions and jurisdictions.

10. How Can CFI Help Me with CPD?

CFI is recognized by professional organizations worldwide as a trusted provider of CPD-compliant courses. All CFI courses fall under Structured CPD (Active Learning), offering interactive, participation-based learning activities that meet the requirements of leading certification bodies.

Here’s why CFI is a top choice for finance and accounting professionals:

Globally recognized CPD courses: CFI’s CPD courses align with standards set by finance and accounting organizations across jurisdictions.
Self-paced learning: Learn at your convenience, balancing work and development goals.
Career-aligned content: Courses cover technical skills, advanced analysis, and leadership, tailored to real-world finance roles.
Comprehensive tracking tools: Easily log and monitor your progress to stay compliant.
Cost-effective all-access membership: Unlimited access to a vast library of courses at a single, affordable rate.

CFI equips you with practical skills and helps you maintain professional certifications, making it an invaluable resource for your CPD journey.

The Value of CPD and Your Next Steps

Continuing Professional Development (CPD) keeps your skills and knowledge relevant, enabling you to adapt to industry changes, meet professional standards, and unlock new career opportunities in finance and accounting. Engaging in CPD ensures you’re prepared to deliver high-quality work and maintain your certifications.

CFI is a trusted global partner, offering CPD-compliant courses tailored to the needs of finance professionals. With self-paced learning, career-focused content, and tools to track your progress, CFI makes completing your CPD straightforward and impactful.

Explore CFI’s globally recognized courses today and complete your structured CPD with ease.

Earn Your Credits!