Certified Public Accountant: What the CPA Credential Means
Some states require CPA candidates to be at least 18 to 21 years old, and a few require that you’re a citizen or permanent resident. The US Bureau of Labor Statistics (BLS) projects employment for accountants and auditors to grow by 6 percent from 2023 to 2033, faster than the average for all occupations 1. While accountants make a median annual salary of $81,680, according to BLS, CPAs can often command higher salaries thanks to the additional education and licensing they’ve received.
- The sample test is a shorter version of the exam that uses the software you will experience in a test center.
- Whether it’s saving for a new home, opening a new office, or orchestrating a multi-billion-dollar merger, CPAs offer the guidance needed to reach these objectives.
- Candidates must pass all four sections of the exam within 30 months.
- Compounding this problem, approximately 75 percent of the members of the American Institute of Certified Public Accountants (AICPA) are eligible for retirement2.
Studying consistently—at least hours per week per section—and taking multiple practice exams can significantly increase the chances of passing. While the process to become a CPA may seem complex, understanding each step can make the journey more manageable. This guide will walk you through the requirements, application process, exam details, and strategies for success, helping you navigate the path to CPA certification with confidence. Discover how to become a CPA, including the requirements you’ll need to meet for education, experience, and testing. Bookkeepers and CPAs both provide financial expertise to organizations or individuals. However, bookkeepers focus more on administrative tasks like recording data related to payroll and invoices.
Job security
Specific duties and day-to-day tasks may vary by job, area of specialty, and employer. Even though most people use CPA certification and CPA license interchangably, there isn’t a recognized CPA certification. Because it’s regulated by the state, you’re working toward your CPA license not certification. Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact…
What Is Needed to Maintain CPA Certification?
Also, candidates must pass one of three Discipline sections to gain specialized knowledge in more advanced topics. For example, if you enjoy working more directly with clients, you may find being able to assist them directly with financial planning or defend them against the IRS to be more fulfilling. Similarly, if you enjoy strategy and planning, having a CPA license shows you have more in-depth knowledge of financial analysis.
What do you think is the most important skill CPAs need to succeed?
Many states have adopted this pathway or are in the process of adopting an additional pathway for licensure. Because passing the CPA Exam is a prerequisite to becoming a licensed CPA, understanding how the CPA Exam works is crucial. The time, energy, and money you invest in your education and attaining CPA licensure are well worth it. The CPA license sets you up for long-term career success and represents public protection, expertise, competence, trust, and integrity. The questions on each individual exam are pulled from a pool of questions.
- Candidates often underestimate how much study time they’ll need for the full set of CPA exams before starting, then realise they need to put more time in than they expected when they’re part way through.
- This section was eliminated as of December 15, 2023, and replaced by the three Discipline exam sections.
- As a certified public accountant, you have the expertise and knowledge to handle international accounting, US GAAP and complex financial reporting.
- A CPA license is a state-issued, professional designation that allows accountants to certify financial statements, complete external audits, and represent clients in front of the IRS.
International Accounting Specialist
Once these requirements are met, candidates receive their CPA license and can officially practice as Certified Public Accountants. Understanding what a CPA is, how they earn their designation, and what responsibilities they hold can provide insight into why this credential is highly valued in the financial industry. A CPA is a trusted financial advisor who assists individuals, businesses, and organizations in planning and achieving their financial goals. Whether it’s saving for a new home, opening a new office, or orchestrating a multi-billion-dollar merger, CPAs offer the guidance needed to reach these objectives.
The CPA exam is a substantial undertaking and the final step to becoming a certified public accountant (CPA). With a CPA, you can make career moves like starting out in public accounting and later transition into industry, or moving from compliance work into leadership or advisory roles. When applied to the right financial career path, the CPA is undoubtedly a powerful credential. But it’s not the only financial qualification that should be on your radar. Depending on your career goals, interests, and industry, another certification might actually be a better fit (or even complement your CPA down the line).
Other majors are acceptable if the applicant meets the minimum requirements for accounting courses. Some candidates complete their 150 hours by earning a master’s degree in accounting or an MBA, while others take additional undergraduate or online courses to fulfill the requirement. It is essential to check with your state board to ensure compliance with local CPA eligibility rules. Becoming a Certified Public Accountant (CPA) is a rewarding achievement that opens doors to career advancement, higher salaries, and professional credibility in the accounting industry. The CPA credential is widely recognized and highly respected, signifying expertise in financial reporting, auditing, taxation, and business consulting. However, an accounting master’s degree can help students meet the CPA education requirement of 150 credits since most bachelor’s programs only require 120 credits.
But once you reach your destination, you will realise that the program is totally worth it. You will be able to access better job profiles, higher salaries and even career opportunities abroad. The CPA credential requires additional exams, work experience, and continuing education beyond a standard degree.
Becoming a Certified Public Accountant (CPA) requires dedication, but the benefits are well worth the effort. By meeting educational requirements, passing the CPA Exam, gaining work experience, and fulfilling licensure obligations, candidates can achieve a respected and rewarding career in accounting. CPAs are certified accounting professionals who must meet specific requirements and hold a professional license that authorizes them to work as a CPA in their state. Public accountants can work for individuals, companies, nonprofits, or the government.
Always check the current standards that apply in the jurisdiction where you plan to practice. This consists of four individual exams, including three Core sections certified public accountant cpa that all students must take. A Discipline builds on one of the Core subjects, allowing candidates to gain more specialized knowledge in the area they are more likely to work in. Before we start breaking down the steps, the first thing you should do is check with the state where you plan to get your CPA license because every state is different. For example, some states allow candidates to submit part-time work toward the experience requirement while other states only accept full-time employment.