CPA Certification Guide
Many corporate accounting positions and jobs in accounting firms focus on financial reporting duties. Financial reporting is the process of compiling, verifying, classifying, organizing, and documenting an organization’s financial data during a specified time period. For example, publicly traded companies must report their financial results quarterly and annually. CPAs are professional accountants who meet some of the industry’s highest standards for knowledge, ethics and experience.
The salary bump: How much more do CPAs earn?
Earning CPA certification is generally considered very difficult, but it ultimately depends on your abilities and effort. If you have an affinity for the subject matter and work hard to gain the required knowledge and skills, you will likely have a more direct path to licensure. You will receive your Certified Public Accountant certificate if you pass the exam. Each state has its own requirements regarding additional work experience and academic qualifications.
CPAs have a wide range of career options available in public accounting (that is, working for an accounting firm), corporate accounting (working inside a company), or government service. Individuals with the CPA designation can also move into executive positions such as controller or chief financial officer (CFO). Each section is taken individually, and candidates can choose the order in which they take them but must pass all four sections of the exam within 18 months.
Step 4: Schedule and Take the CPA Exam
CPA licensure can lead to many senior-level accounting and finance opportunities. Many CPAs transition into high-level positions after gaining experience in specialized accounting roles. AICPA scores exams from 0 to 99 and releases them every month or quarter, depending on the section. In most states, candidates can sit for the exam once they finish their bachelor’s degree.
Make Financial Recommendations
One of the requirements of the CPA license is the Continuing Professional Education (CPE). You are certified public accountant cpa required to take courses and webinars to ensure you stay up-to-date on the latest developments in accounting. Your ongoing education ensures you adapt to new practices, technologies and regulations.
Career opportunities
It’s a credential you earn once and benefit from for the rest of your career. The CPA exam is available internationally in countries like Australia, Germany, Japan, India, Brazil, Ireland, Hong-Kong, Kuwait, and Bahrain. However, you must still apply through a U.S. state board, and your eligibility depends on that state’s rules.
While both CPAs and accountants handle financial data, CPAs have passed a rigorous licensing exam and met additional education and experience requirements. CPAs are also authorized to perform audits, file reports with the SEC, and represent clients before the IRS, which general accountants cannot do. Each state has specific rules, so it’s important to check with the State Board of Accountancy in your jurisdiction. Every state requires CPAs to be licensed within their jurisdiction, but the requirements to become a CPA can vary.
- Management accountants specialize in translating financial information into actionable insights that businesses can use to their strategic advantage.
- The CPA designation is not just for tax accountants—many CPAs work in various fields, including corporate finance, government agencies, forensic accounting, and consulting firms.
- An accountant is a financial professional who manages and analyzes financial records, prepares financial statements, handles tax returns, and provides business advice.
- The CPA is an important credential to me, and I still get continuing education credits every year to keep up with our state requirements.
- This helps me keep current on issues happening in the industry and new accounting pronouncements.
What industries do CPAs work in?
Learn about day-to-day duties, overall responsibilities, and areas of expertise for certified public accountants. Each of these certifications requires an examination, professional experience, and membership in the certifying organization. You must also renew these credentials each year, which requires continuing education credits.
- In many accounting roles (especially those involving senior financial decision-making) having a CPA is not just something that’s “nice to have”, it is expected.
- To earn this license, you’ll need to meet your state’s education and experience requirements, plus pass the CPA Exam.
- In January 2025, these efforts were first codified into law in Ohio when state officials abolished the firm 150-credit requirement.
- We learned a lot about financial accounting and also learned to audit.
However, testing and scoring windows expanded in 2025, with multiple new windows opening for each of the four exam sections. Earning your initial CPA license is a major professional accomplishment. Your next challenge involves maintaining your credentials through the license renewal process. However, eligibility to do the exam is decided by each state’s board of accountancy. At first, you must complete an accounting study program at university/college.
Whether in public accounting, corporate finance, or forensic investigation, CPAs continue to be one of the most respected and in-demand professionals in the financial industry. The CPA designation is regulated in the United States, but similar accounting credentials exist worldwide, such as the Chartered Accountant (CA) in Canada and the UK. As with education, all states require CPA candidates to meet certain minimum experience levels, but details differ among jurisdictions. Generally, requirements include at least 2,000 hours of professional experience. In many states, you must also accrue those hours within a specific time frame.
If you don’t, the credit for the sections you have passed will be lost and you’ll have to take those tests again. The Information Systems and Controls section of the exam looks at candidates’ understanding of an ability to use information systems, as well as the controls and risks inherent in these systems. This includes information technology (IT), security and privacy, audit and advisory, and data management. In these scenarios, the CPA can deliver an exceptional ROI, both financially and professionally. It’s a powerful signal to employers, clients, and colleagues that you’re serious about your career and qualified to lead. The ideal time is when you’ve completed most of your accounting coursework and can dedicate 10–15 hours per week to study.
Continuing professional education (CPE) components form the backbone of the renewal process — most states require CPAs to keep their skills sharp and current through ongoing training. In Canada, “CPA” is an initialism for Chartered Professional Accountant. This designation is for someone who would like to be a Canadian CPA. The Certified Public Accountant (CPA) is a license for working accountants that signals a degree of professional expertise. If you are an accountant or want to be one, it’s a valuable tool to help you move up the ladder.
As a management accountant, you can pursue a certified management accounting (CMA) credential from the Institute of Management Accountants. CMAs are recognized experts in applying accounting principles to guide business growth and optimize operations. However, a few states offer a CPA certificate, which shows that you’ve passed all four sections of the CPA Exam but haven’t fulfilled the other licensure requirements. Before you apply, you need to make sure you meet the state requirements to sit for the exam. If you do, you’ll need to submit the proper documents, pay the fee, and apply through the state where you plan to be licensed. Once your application is accepted, you can schedule to sit for your first section.