A certified public accountant (CPA) can make a substantial impact on a business’s financial performance and is vital for any company’s growth strategy. A CPA can help manage the cash flow, balance the books, and identify ways to cut overhead costs. They are also financial advisors for companies and provide insight when setting company goals and objectives. A CPA can either work directly for a company or work for smaller companies through an outsourced accounting firm.
Interested in becoming a certified public accountant? There are several required educational components for becoming certified, as well as a few critical examinations. Obtaining certification usually takes about five years. However, the time and money spent on becoming certified is an investment that pays dividends many years down the road.
A CPA is a strong foundation for a career as a corporate financial advisor, treasury and cash flow manager, or tax professional. Almost all major CFOs (Chief Financial Officer) are certified public accountants. There are also a select few jobs available for CPAs through government institutions.
Job positions that require CPA-level certification are usually well-paid and dependable jobs with internal growth opportunities. Salary levels and benefits for CPA accountants vary based on the industry, company size, and location. But what are the exact requirements for becoming a CPA? Let’s go over a few of the main steps for becoming a certified public accountant.
Bachelor’s Degree in Accounting or Finance
The first step to becoming a CPA is to obtain a four-year degree from an accredited university in the United States. Universities from outside the US may not carry the same level of in-depth preparation for careers in accounting and are unlikely to help you understand the federal and state-level regulations involved with accounting practices or ethics.
Accounting and finance degrees will directly help you prepare for the challenges of the AICPA exam and ethics test. However, while these two-degree focuses are usually advisable, a management or general business degree can also provide a strong background in this career. For the highly motivated, there are also dual degree business degree programs. These allow students to major in accounting and management simultaneously, which results in better preparation for future work.
Most universities require 120 credit hours for the completion of a degree. However, CPA-bound students are required to have at least 150 credit hours. The additional credits required for certification are obtainable through the next step in the CPA process.
Experience With Entry-Accounting Work
Most states require experience in an entry-level accounting position to qualify for certification. The extent of this experience varies considerably based on the state. To check the experience requirements for your state, check out the links at the bottom of this page. Note that not every state requires experience.
Post-Baccalaureate Program or Master’s Degree
After completing a four-year degree, there are two options for becoming a CPA: getting a master’s degree in accounting or studying accounting through a post-baccalaureate program. These two programs both serve to prepare students to take the Uniform CPA examination at the end of their studies.
Post-baccalaureate programs for accountants have a standard duration of one year. The program has students prepare for the exam by studying specific best practices, financial management for businesses, and accounting ethics. The program is considerably more focused in length and scale when compared to accounting master’s programs.
Accounting master’s degree programs have a standard length of two years and are usually the better option for preparing for the Uniform CPA exam. The coursework and level of study are more intensive and are often a more direct follow-up to a bachelor’s degree. However, the cost of graduate school can sometimes put these programs out of reach financially. Online study options are available for students who have already joined the workforce.
Pass the Uniform CPA Exam (and Ethics Test)
Passing The Uniform Certified Public Accountant Exam is the final major step toward becoming a CPA. The exam is proctored and read by the AICPA (American Institute of Certified Public Accountants) in association with NASBA (National Association of State Boards of Accountancy). The minimum passing score for the exam is 75. Note that CPA exam scores are now being released on a rolling or continuous basis throughout the year so it is important to check the schedule of the CPA exam score release. The exam result is only eligible for work within the United States.
After passing the Uniform CPA exam, you will also need to study for and pass a CPA ethics test. The ethics exam ensures your understanding of businesses’ legal obligations, particularly regarding proper financial reporting and taxes. You can get more information on the Uniform CPA exam and ethics test through the AICPA or NASBA website.
Preparing for the CPA exam can be a challenging and stressful process. Exam pass rates average around 50%, with minor variations for each quarter or year. The exam has four divided study areas: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation.
Careful preparation and scheduled study time are essential to passing the exam. There are many additional test preparation courses and review guides available online that can help you prepare for the exam. Start by taking a look at a CPA exam study guide, which will provide an overview of the material that will be covered on the exam, as well as specific strategies for how to approach each section. A study guide can help to identify any areas where you may need additional review. By using a study guide and a review course, candidates can increase their chances of passing the CPA exam and becoming licensed CPAs.
Conclusion– How to Become a Certified Public Accountant
Becoming a certified public accountant can be an extended and challenging process. However, it can also be equally rewarding, with the potential to increase the earnings and growth potential in your career.
Salaries for accounting and finance professionals increase substantially for CPAs, with median earnings well over 70K. A CPA also qualifies for many jobs that are unavailable without certification. These jobs often require a CPA because of the financial responsibilities of the hiring business. An outsourced accounting company is an example of a company that traditionally only hires certified accountants.
A CPA is a vital team member for any company and helps to measure and determine the financial well-being and future of the business. As a certified accountant, you will often have a significant impact on business decisions. You may be fully responsible for reporting a company’s finances to the executive board or C-Suite members within your organization. The support of a CPA is ultimately an invaluable resource that helps ensure business success.
