Thesis and plan of development (finding a focus)

Thesis:   The major differences between public and private accounting are the tasks and responsibilities, work environment, and career opportunities.

Intro

·         “You can think of public accountants as “external” accountants who provides services to clients such as audit, consulting and tax planning services.”

·         “Private, or non-public accountants are “internal” accountants who work in a company, non-profit organization or a government agency. You can work in the financial accounting, management (cost) accounting, budgeting, corporate planning, treasury or in the internal audit department within the corporation.”

Tasks and Responsibilities

·         Breadth vs. Depth: Because corporate accountants spend all of their time working for one company, they are extremely knowledgable about the accounting for the company they work for. This makes an accomplished corporate accountant valuable to her company and companies that sell similar products and services. However, public accountants frequently serve many clients, sometimes in different industries. This gives them a breadth of knowledge about accounting issues at a variety of companies. This makes public accountants valuable to companies that are looking for employees with a large base of knowledge.

·         Public Accountant Job Duties: General responsibilities shared by all public accountants include preparing and verifying vital financial documents, analyzing budgets and planning finances. Public accountants give advice and provide basic financial information to a range of clients, from individuals to corporations. They also perform bookkeeping, consulting and auditing tasks. However, the duties of a public accountant vary by individual concentration; for example, some public accountants specialize in tax issues. Their responsibilities involve working with income tax returns and filing taxes in accordance with rules and regulations. Another specialty is forensic accounting, a branch that involves investigating financial fraud.

·         Education (private acc): A private accountant generally requires a four-year degree with an emphasis in accounting, business, economics or a related field. Courses in administration, business organization management, and business policies and procedures are also helpful. Some organizations and businesses prefer accounting candidates with a master's degree. Certification is also available for specific job functions, such as in payroll. Certification provides credibility for the individual's training, skills and experience.

·         Duties and Responsibilities: The private accountant performs a variety of tasks depending upon the size of the organization for which she works. In larger structures, private accountants are usually assigned to specific areas, such as general ledger -- the master record of all accounts and transactions -- accounts payable, accounts receivable, payroll or taxes. Accounts payable involves bills that need to be paid, while accounts receivable deals with income and invoice creation for clients. The private accountant's job in her area of specialty is to ensure that financial transactions are accurate and current. She might review financial statements, provide analysis of data and create reports.

·         “At present, there are approximately 28.5 million private companies in the United States and approximately 14,000 public companies. Public companies have financial reporting requirements to the Securities and Exchange Commission (SEC) pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.”

·         “Many of the private companies in the U.S. are very small businesses and thus have no reporting requirements other than filing income tax returns. There are, however, significant number of private companies that prepare financial statements in accordance with U.S. GAAP because such financial statements are required by lenders,

other creditors, bonding and credit-rating agencies, regulators, business owners, and

others. Many private companies preparing U.S. GAAP financial statements must issue

audited, reviewed, or compiled financial

statements.”

·         Most individuals who understand the basics of financial reporting are familiar with the phrase generally accepted accounting principles (GAAP) and will readily identify the Financial Accounting Standards Board (FASB) as the standard-setting body in the United States responsible for establishing accounting principles for nongovernmental entities. However, some may not be aware that there is no single reference source for GAAP because these principles are derived from a variety of sources. For example, although the FASB is responsible for issuing FASB Statements of Financial Accounting Standards, Interpretations, and Technical Bulletins, the American Institute of Certified Public Accountants (AICPA) issues Statements of Position, Audit and Accounting Guides, and Practice Bulletins, and the FASB Emerging Issues Task Force (EITF) issues EITF Abstracts.  It may seem that accounting principles could be generally accepted because of popular vote or consensus of opinion. However, generally accepted accounting principles is a technical accounting phrase defined in Accounting Principles Board (APB) Statement No. 4, Basic Concepts and Accounting Principles Underlying Financial Statement of Business Enterprises, as "the conventions, rules, and procedures that define accepted accounting practice at a particular time."

GAAP includes not only broad guidelines of general application but also detailed practices and procedures that provide a standard by which to measure financial presentations. For the most part, in financial reporting, generally accepted implies substantial authoritative support.

Work environments

·         Good People Skills. Public accounting is a client oriented business which means that you need good people skill. For example, you’ll need to communicate effectively with your clients when trying to understand the client’s business and to request information for your analysis. As you move towards partnership, you’ll acquire important skill in how to deal with difficult clients and getting the information you need at the same time.

·         Good Sales Skills. This is people skill in the next level, and is required if you aspire to become a partner or own your CPA firm. In short, you need to solicit business for your firm and good sales and marketing skill (and keeping your professionalism at the same time) is a critical skill.

·         More Stressful Environment. Because you are dealing with a wide variety of people and demands, public accountant’s work is inevitably more stressful. On the other hand, private accountants work with the same group of colleagues and tend to have a more relaxed lifestyle.

·         Longer Hours. Similarly, because you are working with clients vs colleagues, the deadlines are hard deadlines and over-time / late nights are common especially for junior accountants (associates and senior associates).  Other than the account-closing month, private accountants have more or less a 9-5 job.

·         Corporate accountants typically work long hours around the monthly close period, when the company completes the accounting records each month. In addition, corporate accountants work longer hours around the annual audit and quarterly reporting dates. Public accountants tend to work longer hours during the "busy season" of their clients. Usually, this is from January to April. However, as public accountants move up through the organization, this busy season can sometimes extend into a greater part of the year.

Career opportunities

·         Less Stability. While accounting job is considered one of the safest jobs, the boom and bust of economic cycle does affect CPA firms as clients cut budget and corporate finance activities. Within public accounting, audit and tax teams are more secure than advisory teams for this reason.

·         Better Exposure. Having said that, working in a public accounting firm expose you to a wide variety of projects in different industries and this is an unrivalled experience when compared to an accounting role in the corporate world.

·         More Doors Opened. Because of this, an experience in CPA firm (especially Big 4) is excellent for your resume, and you can always go from public accounting to private accounting but not vice versa.”

·         The U.S. Bureau of Labor Statistics has projected employment growth for all types of accountants, including public accountants, to rise at a rate of 22% between 2008 and 2018 (www.bls.gov). Job prospects should be good for accountants; however, CPAs should have better job prospects than their non-certified counterparts, due to their additional training and experience.

·         Earnings and Benefits: Private accountants typically work a 40-hour week as exempt employees with a salary. The U.S. Bureau of Labor Statistics lists the median annual wage for all accountants in 2010 at $61,690 in May. The top 10 percent can earn more than $106,880 per year. Most private accountants receive vacation pay, sick leave, and health and dental benefits. Some organizations offer 401k benefit plan or retirement plans for accountants after the accountant meets internal vesting requirements.

·         Career Opportunities and Outlook: The bureau reports that accountant jobs are expected to grow as fast as most occupations, at 16 percent from 2010 to 2020. Private accountants can work as cost accountants in manufacturing or companies with product lines, as accounting supervisors, payroll accountants or accounting analysts. After gaining on-the-job experience, private accountants are often promoted to positions of management. Accountants with graduate degrees can be promoted to controller or executive-level management positions.

·         Staff auditors perform the meat of an audit, engaging in the often mentioned "ticking and tying" activities, i.e., analyzing and verifying the information contained in the myriad ledgers and statements provided by the client. Under the supervision of an audit senior, they will work with the client to obtain information and determine the validity and accuracy of the accounting records. It is the staff accountant's responsibility to investigate specific accounts assigned to them and to identify, resolve and document any material issues. Staff auditors will often start to direct small audits (and will be referred to as the "acting senior" on the engagement) in their second years.

·         Tax Staff (year 1-3). Like their audit counterparts, tax staff personnel perform the meat of the tax work. They prepare tax returns, research tax issues and counsel clients on tax matters under the supervision of a tax senior and/or tax manager. Generally, tax staff do not have as much direct client contact as their audit counterparts. This level encompasses a significant amount of learning and training as the tax staff gets up to speed regarding basic aspects of income tax reporting, compliance and analysis.

Conclusion

·         Public Accountant Salary Information: PayScale.com reported in July 2010 that public accountants earned salaries ranging between $41,920 and $58,520. Annual salaries ranged from $47,901 to $71,173 for Certified Public Accountants. This wage difference can be attributed to the added requirements CPAs must meet in order to earn their distinction.

essay 2 - what my research told me

The following is the information i found in my research on public accounting vs. public accounting.

http://ipassthecpaexam.com/public-accounting-vs-private/ “You can think of public accountants as “external” accountants who provides services to clients such as audit, consulting and tax planning services.” “Private, or non-public accountants are “internal” accountants who work in a company, non-profit organization or a government agency. You can work in the financial accounting, management (cost) accounting, budgeting, corporate planning, treasury or in the internal audit department within the corporation.” For public accounting, you’ll need: Good People Skills. Public accounting is a client oriented business which means that you need good people skill. For example, you’ll need to communicate effectively with your clients when trying to understand the client’s business and to request information for your analysis. As you move towards partnership, you’ll acquire important skill in how to deal with difficult clients and getting the information you need at the same time. Good Sales Skills. This is people skill in the next level, and is required if you aspire to become a partner or own your CPA firm. In short, you need to solicit business for your firm and good sales and marketing skill (and keeping your professionalism at the same time) is a critical skill. “For public accounting, you’ll experience: More Stressful Environment. Because you are dealing with a wide variety of people and demands, public accountant’s work is inevitably more stressful. On the other hand, private accountants work with the same group of colleagues and tend to have a more relaxed lifestyle. Longer Hours. Similarly, because you are working with clients vs colleagues, the deadlines are hard deadlines and over-time / late nights are common especially for junior accountants (associates and senior associates).  Other than the account-closing month, private accountants have more or less a 9-5 job. Less Stability. While accounting job is considered one of the safest jobs, the boom and bust of economic cycle does affect CPA firms as clients cut budget and corporate finance activities. Within public accounting, audit and tax teams are more secure than advisory teams for this reason. Better Exposure. Having said that, working in a public accounting firm expose you to a wide variety of projects in different industries and this is an unrivalled experience when compared to an accounting role in the corporate world. More Doors Opened. Because of this, an experience in CPA firm (especially Big 4) is excellent for your resume, and you can always go from public accounting to private accounting but not vice versa.”

http://work.chron.com/public-accountants-vs-corporate-accountants-9502.html employer organization A major difference between corporate and public accounting is the type of company that you will work for. In most cases, public accountants work for a public accounting firm. This type of company is usually a partnership, sole proprietor, or other type of company that isn't publicly traded. In many cases, public accountants can, over time, move up through the firm and eventually have an opportunity to become an owner. Corporate accountants work in the accounting function of companies that produce goods and services, as opposed to selling accounting services. The organization of these companies varies, but many are publicly traded. Work hours Corporate accountants typically work long hours around the monthly close period, when the company completes the accounting records each month. In addition, corporate accountants work longer hours around the annual audit and quarterly reporting dates. Public accountants tend to work longer hours during the "busy season" of their clients. Usually, this is from January to April. However, as public accountants move up through the organization, this busy season can sometimes extend into a greater part of the year. Breadth vs. Depth Because corporate accountants spend all of their time working for one company, they are extremely knowledgable about the accounting for the company they work for. This makes an accomplished corporate accountant valuable to her company and companies that sell similar products and services. However, public accountants frequently serve many clients, sometimes in different industries. This gives them a breadth of knowledge about accounting issues at a variety of companies. This makes public accountants valuable to companies that are looking for employees with a large base of knowledge. Stability Public accountants may serve a different client each week or even travel to different client sites in the same day; corporate accountants will work for the same employer all year. If you are looking for a job where you have a desk or office and want to interact with the same people each day, public accounting is not for you, and corporate accounting may be better suited for your personality. However, if you are interested in seeing how different businesses operate and do not mind bouncing among clients, public accounting might be a better fit.

http://education-portal.com/articles/What_Does_a_Public_Accountant_Do.html Public Accountant Job Duties General responsibilities shared by all public accountants include preparing and verifying vital financial documents, analyzing budgets and planning finances. Public accountants give advice and provide basic financial information to a range of clients, from individuals to corporations. They also perform bookkeeping, consulting and auditing tasks. However, the duties of a public accountant vary by individual concentration; for example, some public accountants specialize in tax issues. Their responsibilities involve working with income tax returns and filing taxes in accordance with rules and regulations. Another specialty is forensic accounting, a branch that involves investigating financial fraud. Employment outlook public acs. The U.S. Bureau of Labor Statistics has projected employment growth for all types of accountants, including public accountants, to rise at a rate of 22% between 2008 and 2018 (www.bls.gov). Job prospects should be good for accountants; however, CPAs should have better job prospects than their non-certified counterparts, due to their additional training and experience. Public Accountant Salary Information PayScale.com reported in July 2010 that public accountants earned salaries ranging between $41,920 and $58,520. Annual salaries ranged from $47,901 to $71,173 for Certified Public Accountants. This wage difference can be attributed to the added requirements CPAs must meet in order to earn their distinction. Education (private acc) A private accountant generally requires a four-year degree with an emphasis in accounting, business, economics or a related field. Courses in administration, business organization management, and business policies and procedures are also helpful. Some organizations and businesses prefer accounting candidates with a master's degree. Certification is also available for specific job functions, such as in payroll. Certification provides credibility for the individual's training, skills and experience. Duties and Responsibilities The private accountant performs a variety of tasks depending upon the size of the organization for which she works. In larger structures, private accountants are usually assigned to specific areas, such as general ledger -- the master record of all accounts and transactions -- accounts payable, accounts receivable, payroll or taxes. Accounts payable involves bills that need to be paid, while accounts receivable deals with income and invoice creation for clients. The private accountant's job in her area of specialty is to ensure that financial transactions are accurate and current. She might review financial statements, provide analysis of data and create reports. Earnings and Benefits Private accountants typically work a 40-hour week as exempt employees with a salary. The U.S. Bureau of Labor Statistics lists the median annual wage for all accountants in 2010 at $61,690 in May. The top 10 percent can earn more than $106,880 per year. Most private accountants receive vacation pay, sick leave, and health and dental benefits. Some organizations offer 401k benefit plan or retirement plans for accountants after the accountant meets internal vesting requirements. Career Opportunities and Outlook The bureau reports that accountant jobs are expected to grow as fast as most occupations, at 16 percent from 2010 to 2020. Private accountants can work as cost accountants in manufacturing or companies with product lines, as accounting supervisors, payroll accountants or accounting analysts. After gaining on-the-job experience, private accountants are often promoted to positions of management. Accountants with graduate degrees can be promoted to controller or executive-level management positions. “At present, there are approximately 28.5 million private companies in the United States and approximately 14,000 public companies. Public companies have financial reporting requirements to the Securities and Exchange Commission (SEC) pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.” “Many of the private companies in the U.S. are very small businesses and thus have no reporting requirements other than filing income tax returns. There are, however, significant number of private companies that prepare financial statements in accordance with U.S. GAAP because such financial statements are required by lenders, other creditors, bonding and credit-rating agencies, regulators, business owners, and others. Many private companies preparing U.S. GAAP financial statements must issue audited, reviewed, or compiled financial statements.” Most individuals who understand the basics of financial reporting are familiar with the phrase generally accepted accounting principles (GAAP) and will readily identify the Financial Accounting Standards Board (FASB) as the standard-setting body in the United States responsible for establishing accounting principles for nongovernmental entities. However, some may not be aware that there is no single reference source for GAAP because these principles are derived from a variety of sources. For example, although the FASB is responsible for issuing FASB Statements of Financial Accounting Standards, Interpretations, and Technical Bulletins, the American Institute of Certified Public Accountants (AICPA) issues Statements of Position, Audit and Accounting Guides, and Practice Bulletins, and the FASB Emerging Issues Task Force (EITF) issues EITF Abstracts. It may seem that accounting principles could be generally accepted because of popular vote or consensus of opinion. However, generally accepted accounting principles is a technical accounting phrase defined in Accounting Principles Board (APB) Statement No. 4, Basic Concepts and Accounting Principles Underlying Financial Statement of Business Enterprises, as "the conventions, rules, and procedures that define accepted accounting practice at a particular time." GAAP includes not only broad guidelines of general application but also detailed practices and procedures that provide a standard by which to measure financial presentations. For the most part, in financial reporting, generally accepted implies substantial authoritative support.

http://work.chron.com/private-accountant-16137.html Education (private acc) A private accountant generally requires a four-year degree with an emphasis in accounting, business, economics or a related field. Courses in administration, business organization management, and business policies and procedures are also helpful. Some organizations and businesses prefer accounting candidates with a master's degree. Certification is also available for specific job functions, such as in payroll. Certification provides credibility for the individual's training, skills and experience. Duties and Responsibilities The private accountant performs a variety of tasks depending upon the size of the organization for which she works. In larger structures, private accountants are usually assigned to specific areas, such as general ledger -- the master record of all accounts and transactions -- accounts payable, accounts receivable, payroll or taxes. Accounts payable involves bills that need to be paid, while accounts receivable deals with income and invoice creation for clients. The private accountant's job in her area of specialty is to ensure that financial transactions are accurate and current. She might review financial statements, provide analysis of data and create reports. Earnings and Benefits Private accountants typically work a 40-hour week as exempt employees with a salary. The U.S. Bureau of Labor Statistics lists the median annual wage for all accountants in 2010 at $61,690 in May. The top 10 percent can earn more than $106,880 per year. Most private accountants receive vacation pay, sick leave, and health and dental benefits. Some organizations offer 401k benefit plan or retirement plans for accountants after the accountant meets internal vesting requirements. Career Opportunities and Outlook The bureau reports that accountant jobs are expected to grow as fast as most occupations, at 16 percent from 2010 to 2020. Private accountants can work as cost accountants in manufacturing or companies with product lines, as accounting supervisors, payroll accountants or accounting analysts. After gaining on-the-job experience, private accountants are often promoted to positions of management. Accountants with graduate degrees can be promoted to controller or executive-level management positions.

http://web.ebscohost.com.ezproxy.frederick.edu/ehost/detail?sid=da5295c6-e05b-4280-b61c-3227edfd7f4a%40sessionmgr110&vid=5&hid=127&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=82156411 “At present, there are approximately 28.5 million private companies in the United States and approximately 14,000 public companies. Public companies have financial reporting requirements to the Securities and Exchange Commission (SEC) pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.” “Many of the private companies in the U.S. are very small businesses and thus have no reporting requirements other than filing income tax returns. There are, however, significant number of private companies that prepare financial statements in accordance with U.S. GAAP because such financial statements are required by lenders, other creditors, bonding and credit-rating agencies, regulators, business owners, and others. Many private companies preparing U.S. GAAP financial statements must issue audited, reviewed, or compiled financial statements.”

http://go.galegroup.com.ezproxy.frederick.edu/ps/i.do?id=GALE%7CCX1552100147&v=2.1&u=fred30208&it=r&p=GVRL&sw=w Most individuals who understand the basics of financial reporting are familiar with the phrase generally accepted accounting principles (GAAP) and will readily identify the Financial Accounting Standards Board (FASB) as the standard-setting body in the United States responsible for establishing accounting principles for nongovernmental entities. However, some may not be aware that there is no single reference source for GAAP because these principles are derived from a variety of sources. For example, although the FASB is responsible for issuing FASB Statements of Financial Accounting Standards, Interpretations, and Technical Bulletins, the American Institute of Certified Public Accountants (AICPA) issues Statements of Position, Audit and Accounting Guides, and Practice Bulletins, and the FASB Emerging Issues Task Force (EITF) issues EITF Abstracts. It may seem that accounting principles could be generally accepted because of popular vote or consensus of opinion. However, generally accepted accounting principles is a technical accounting phrase defined in Accounting Principles Board (APB) Statement No. 4, Basic Concepts and Accounting Principles Underlying Financial Statement of Business Enterprises, as "the conventions, rules, and procedures that define accepted accounting practice at a particular time."

http://www.vault.com/wps/portal/usa/vcm/detail/Career-Advice/Job-Search/Public-Accounting-Career-Path?id=1527&filter_type=0&filter_id=0 Staff auditors perform the meat of an audit, engaging in the often mentioned "ticking and tying" activities, i.e., analyzing and verifying the information contained in the myriad ledgers and statements provided by the client. Under the supervision of an audit senior, they will work with the client to obtain information and determine the validity and accuracy of the accounting records. It is the staff accountant's responsibility to investigate specific accounts assigned to them and to identify, resolve and document any material issues. Staff auditors will often start to direct small audits (and will be referred to as the "acting senior" on the engagement) in their second years. Tax Staff (year 1-3). Like their audit counterparts, tax staff personnel perform the meat of the tax work. They prepare tax returns, research tax issues and counsel clients on tax matters under the supervision of a tax senior and/or tax manager. Generally, tax staff do not have as much direct client contact as their audit counterparts. This level encompasses a significant amount of learning and training as the tax staff gets up to speed regarding basic aspects of income tax reporting, compliance and analysis.

essay 2 - what I need to know

What i need to know

• Which accounting tasks are exclusive to private accountants and to public accountants?
• which accounting tasks do both types do?
• What certifications do each of them need?
• What are the work environments like for each type?
• What is the work hours/schedule of a public accountant vs. a private accountant?
• What is the career progression like for both types of accountants?
• Is one type of accounting more preferable?
• is there a large difference in pay between public accountants and private accountants?

essay 2 - what I already know

I am doing my compare and contrast essay on private accounting and public accounting.

what i already know:

• Private accountants work for private firms and corporations
• Public accountants work for the government, different firms, or many individual clients
• Each do different types of work (accounting)
• there are some accounting tasks that both do
• being certified helps in each
• work environments are different
• public accountants do auditing, private accountants do not
• both must follow the generally accepted accounting principles 

essay 1 - Second Draft

Scott Johnson                                                                                                                                     

 Professor Kerr       

 EN101

 16 February 2013

Becoming a C.P.A.

In the field of business, an accountant is a profession that will always be in demand. Many people study accounting or business and obtain a degree in the field, but do not attempt to take the next, more difficult, step of becoming a C.P.A. or a certified public accountant. According to the Georgia society of Certified Public Accountants, “A CPA -- Certified Public Accountant --is a financial professional who speaks the language of business.” (“What is a CPA”). CPA’s are highly valuable members of any business and are in high demand because of their expertise (“What is a CPA”). The Georgia society of Certified public accountants summarizes what a CPA does as “Basically they analyze how money is used by businesses, non-profit organizations, governments and individuals. If it's about money, it starts with accounting.” (“What is a CPA”). The requirements to become a certified public accountant are slightly different depending on the state or jurisdiction, but they must be met in order for someone interested to even take the CPA exam (“What is a CPA”). In order to become a successful C.P.A. an accountant must focus on education, experience, and passing the C.P.A. exam.

To be successful, a C.P.A. must focus on education before and during their career. According to the Georgia society of certified public accountants, “Candidates must have at least 150 semester hours or 225 quarter hours of college education including a baccalaureate degree awarded by an accredited college or university.” (“what is a CPA”). Beyond this educational requirement, candidates must study accounting beyond the introductory levels at an accredited college or university in order to obtain at least 30 semester hours or 45 quarter hours in accounting subjects (“What is a CPA”).  Many accountants and CPA’s must continue professional education during their entire career (“AICPA Membership”). The American Institute of Certified public accountants state that, “From January 1, 2001, forward and for each three-year reporting period thereafter, all AICPA members shall complete 120 hours or its equivalent, of continuing professional education.” (“AICPA Membership,”). Some CPA’s may be in a position where they do not need to continue professional education, but can still benefit from it. According to the article “How much money does a certified public accountant make?”, CPA’s in the corporate world can become controllers, senior auditors, and executives if they have the required accounting and managerial education (Decker).

A successful C.P.A. must have experience in the workplace and in general accounting practices. According to the Georgia society of CPA’s, “An applicant who meets the general, educational, and examination requirements will be issued a CPA certificate upon presenting evidence that such applicant has attained two years of continuous experience in public accounting or five years, of continuous employment in the accounting field in business or industry, government or college teaching.” (“What is a CPA”).  The four major types of accountants are management accountants, internal accountants, government accountants, and public accountants, but only some require a certification (Kaczor). Accountants that work in a public firm have a fairly predictable career, starting out doing low level work in the office and then moving up to higher level accounting positions (Kaczor). The article "Which Kind Of Accounting is Right For You?” states that “Moving up in the field almost always requires passing the CPA exam and getting certified, after which public accountants can open their own firms, move on to different types of accounting, or move up the corporate ladder in larger firms.” (Kaczor).

Passing the C.P.A. exam is vital for any accountant looking to move up to a higher position or start their own practice. According to the Georgia society of certified public accountants, “In order to become a CPA, candidates must past all four sections of the exam (Business Environment and Concepts, Auditing and Attestation, Regulation, and Financial Accounting and Reporting).” (“What is a CPA”). The CPA exam testing structure includes multiple choice, written communication, and simulations on all four sections of the exam (“CPA Examination Content”). Passing the CPA exam is a must for accountants looking to separate themselves from the rest of the field (Lee). The article “Why become a CPA” states that, “According to the AICPA, CPAs earn 10-15% more than non-CPAs working in accounting-related jobs. Other studies have shown the gap as high as 41% between the certified and un-certified.” (Lee).

The road to becoming a CPA is difficult and challenging, but it is extremely rewarding in the long run. Meeting the many requirements is difficult and in the article “why become a CPA”, the author’s co-worker states that the CPA exam was the worst experience in his life (Lee). The article “How Much Do Accounting Firms Pay CPA’s?” states that, “with one to three years of experience, an accountant at an accounting firm earns $42,250 to $54,250 a year, as of 2012. If this accountant was a CPA, however, she’d earn an annual salary of $44,363 to $59,675.”, which shows the salary difference between CPA’s and non-credentialed accountants (Severson). Once an accountant has become a certified public accountant, they have opened the door to be successful by advancing to a higher position in a company or starting their own firm.

Works Cited

 "AICPA Membership CPE Requirements Q & A ." aicpa.org. American Institute of CPA's, n.d. Web. 16 Feb 2013. <http://www.aicpa.org/Membership/Requirements/CPE/Pages/default.aspx>.

"CPA Examination Content." aicpa.org. American Institute of CPA's, 15 Feb 2013. Web. 16 Feb 2013. <http://www.aicpa.org/becomeacpa/cpaexam/examinationcontent/pages/default.aspx>.

Decker, Fred. "How much money does a certified public accountant make?." Chron.com. Hearst Communications inc., n.d. Web. 16 Feb 2013. <http://work.chron.com/much-money-certified-public-accountant-make-2034.html>.

Kaczor, Kamilia. "Which Kind Of Accounting is Right For You?." Experience.com. Experience Inc., n.d. Web. 16 Feb 2013. <http://www.experience.com/alumnus/article?channel_id=accounting&source_page=breaking_in&article_id=article_1183638648255>.

Lee, Andrew. "Why Become a CPA?." ThiswaytoCPA.com. The American Institute of Certified Public Accountants, n.d. Web. 16 Feb 2013. <https://community.thiswaytocpa.com/allgroups/profession/b/articles/archive/2012/12/28/why-become-a-cpa.aspx>.

Severson, Dana. "How Much Do Accounting Firms Pay CPAs?." Chron.com. Hearst Communications inc., n.d. Web. 16 Feb 2013. <http://work.chron.com/much-accounting-firms-pay-cpas-11340.html>.

"What is a CPA." gscpa.org. GSCPA inc., n.d. Web. 16 Feb 2013. <http://www.gscpa.org/Content/StudentsEducators/Students/HighSchool/CPA.aspx>

Essay 1 - first draft and sources

Scott Johnson                                                                                                                                     

 Professor Kerr       

 EN101

 16 February 2013

Becoming a C.P.A.

In the field of business, an accountant is a profession that will always be in demand. Many people study accounting or business and obtain a degree in the field, but do not attempt to take the next, more difficult, step of becoming a C.P.A. or a certified public accountant. “A CPA -- Certified Public Accountant --is a financial professional who speaks the language of business. Today's CPA is in high demand as one of the most valued members of any business team. CPAs are valued professionals who are running major corporations, starting exciting entrepreneurial endeavors and developing their own practices that handle much more than tax returns. CPAs do many things for businesses and individuals. Basically they analyze how money is used by businesses, non-profit organizations, governments and individuals. If it's about money, it starts with accounting.” (“What is a CPA”). “To become a CPA, you need to meet the requirements of the state or jurisdiction in which you wish to practice. These requirements, which vary from state to state, are established by law and administered by the state boards of accountancy.” (“What is a CPA”). In order to become a successful C.P.A. one must focus on education, experience, and passing the C.P.A. exam.

To be successful, a C.P.A. must focus on education before and during their career. “Candidates must have at least 150 semester hours or 225 quarter hours of college education including a baccalaureate degree awarded by an accredited college or university. At least 30 semester hours or 45 quarter hours obtained must be in accounting subjects beyond the elementary level at a four-year accredited college or university.” (“What is a CPA”). “Statistics from the BLS are useful for those whose job description still includes the term "accountant," but it doesn't capture the potential for CPAs with ambition and management skills. The incomes of CPAs operating their own accounting businesses are limited only by their ability to network and market themselves effectively. These CPAs are paid fees based on the work they do for clients, such as producing monthly, quarterly and annual financial statements. In the corporate world, CPAs can advance to become senior auditors, controllers and even executives.” (Decker). “From January 1, 2001, forward and for each three-year reporting period thereafter, all AICPA members shall complete 120 hours or its equivalent, of continuing professional education.” (“AICPA Membership,”).

A C.P.A. must have experience in the workplace and in general accounting practices. “An applicant who meets the general, educational, and examination requirements will be issued a CPA certificate upon presenting evidence that such applicant has attained two years of continuous experience in public accounting or five years, of continuous employment in the accounting field in business or industry, government or college teaching.  Work experience must be immediately preceding the date of application for the certificate.” (“What is a CPA”). “There are four major kinds of accountants: public accountants, government accountants, internal accountants, and management accountants. Oftentimes they can be certified in more than one field, and switching is common.” (Kaczor). “Internal accountants keep their own company's financial records accurate and in order. They evaluate their company's efficiency to make sure that all of the numbers add up. Internal accounting is becoming increasingly important since the passing of the Sarbanes-Oxley Act in 2002, which requires the chief executive and financial officers of accounting firms to sign off on and take responsibility for their firm's business. With this increased pressure and accountability, firms are hiring more internal accountants to ensure against malfeasance. Internal accountants can also become certified as CIAs, or Certified Internal Accountants. The requirements for this certification are very similar to those for becoming a CPA. A bachelor's degree, successful completion of a four-part exam, and experience are required for both. Accountants may have multiple certifications and designations, especially if they switch between the four different types of accounting throughout their careers.” (Kaczor). “accountants that work for firms that provide various accounting services to corporations and individuals. They perform a variety of tasks which include auditing, tax preparation, and consulting. Moving up in the field almost always requires passing the CPA exam and getting certified, after which public accountants can open their own firms, move on to different types of accounting, or move up the corporate ladder in larger firms.” (Kaczor). “The career path for a public accountant in a large firm is fairly predictable. Often, newly employed accountants will spend the first year or so doing fairly menial work and getting adjusted to the office. After that, he or she can move up to become a senior accountant. If the promotions continue, a public accountant can hope to become a high-level manager or even partner in the firm.” (Kaczor). “Public accountants who decide to open their own firms will have to run a business and build an independent client base. But the advantage of running your own firm is the flexibility and independence to set your own hours and work from home.” (Kaczor).

Passing the C.P.A. exam is vital for any accountant looking to move up to a higher position or start their own practice. “In order to become a CPA, candidates must past all four sections of the exam (Business Environment and Concepts, Auditing and Attestation, Regulation, and Financial Accounting and Reporting).” (“What is a CPA”). “Examination content refers to CPA Examination questions – multiple-choice, written communication, and simulations – reflecting the subject matter eligible to be tested, as specified in the Content and Skill Specification Outlines (CSOs/SSOs).” (“CPA Examination Content”). “According to the AICPA, CPAs earn 10-15% more than non-CPAs working in accounting-related jobs. Other studies have shown the gap as high as 41% between the certified and un-certified.” (Lee). “Regardless of what area of accounting you go into, the CPA title will, above all other designations, separate you from the rest of the field. If you work in public accounting, you will absolutely get preferential treatment for being a CPA. Many titles and levels in your firm will be unattainable without it, and as a result your pay will have a much lower ceiling.” (Lee). “Becoming a CPA is challenging. It’s difficult to meet the various state requirements, and passing the test is one of the most challenging obstacles you will encounter. Said my former co-worker: ‘It was the worst experience of my life.’.” (Lee).

The road to becoming a cpa is difficult and challenging, but is extremely rewarding in the long run. “The Bureau of Labor Statistics (BLS) tracks salary data for accountants and auditors, as it does for hundreds of other occupations. According to May 2011 from the BSL, accountants earned a median income of $62,850 per year. The lowest 25 percent of accountants reported annual incomes of $48,920 or less, while the top 25 percent earned $109,870 or more. The American Institute of CPAs (AICPA), on its student-oriented This Way to CPA website, states that accountants with a CPA credential can expect to make 10 percent to 15 percent higher wages than their non-credentialed peers.” (Decker). “Salaries typically depend on experience, and accounting firms are no exception. With one to three years of experience, an accountant at an accounting firm earns $42,250 to $54,250 a year, as of 2012. If this accountant was a CPA, however, she’d earn an annual salary of $44,363 to $59,675. With three to five years of experience, CPAs can expect earn $55,388 to $75,350 a year, while those with more than five years of experience earn anywhere from $67,467 to $88,825.” (Severson).

Works Cited

 "AICPA Membership CPE Requirements Q & A ." aicpa.org. American Institute of CPA's, n.d. Web. 16 Feb 2013. <http://www.aicpa.org/Membership/Requirements/CPE/Pages/default.aspx>.

"CPA Examination Content." aicpa.org. American Institute of CPA's, 15 Feb 2013. Web. 16 Feb 2013. <http://www.aicpa.org/becomeacpa/cpaexam/examinationcontent/pages/default.aspx>.

Decker, Fred. "How much money does a certified public accountant make?." Chron.com. Hearst Communications inc., n.d. Web. 16 Feb 2013. <http://work.chron.com/much-money-certified-public-accountant-make-2034.html>.

Kaczor, Kamilia. "Which Kind Of Accounting is Right For You?." Experience.com. Experience Inc., n.d. Web. 16 Feb 2013. <http://www.experience.com/alumnus/article?channel_id=accounting&source_page=breaking_in&article_id=article_1183638648255>.

Lee, Andrew. "Why Become a CPA?." ThiswaytoCPA.com. The American Institute of Certified Public Accountants, n.d. Web. 16 Feb 2013. <https://community.thiswaytocpa.com/allgroups/profession/b/articles/archive/2012/12/28/why-become-a-cpa.aspx>.

Severson, Dana. "How Much Do Accounting Firms Pay CPAs?." Chron.com. Hearst Communications inc., n.d. Web. 16 Feb 2013. <http://work.chron.com/much-accounting-firms-pay-cpas-11340.html>.

"What is a CPA." gscpa.org. GSCPA inc., n.d. Web. 16 Feb 2013. <http://www.gscpa.org/Content/StudentsEducators/Students/HighSchool/CPA.aspx>

essay 1 - Outline

  Intro

 Thesis:

   In order to become a successful C.P.A. one must focus on education, experience, and passing the C.P.A. exam.

·         “A CPA -- Certified Public Accountant --is a financial professional who speaks the language of business. Today's CPA is in high demand as one of the most valued members of any business team. CPAs are valued professionals who are running major corporations, starting exciting entrepreneurial endeavors and developing their own practices that handle much more than tax returns. CPAs do many things for businesses and individuals. Basically they analyze how money is used by businesses, non-profit organizations, governments and individuals. If it's about money, it starts with accounting.”

·         “To become a CPA, you need to meet the requirements of the state or jurisdiction in which you wish to practice. These requirements, which vary from state to state, are established by law and administered by the state boards of accountancy.”

·         From January 1, 2001, forward and for each three-year reporting period thereafter, all AICPA members shall complete 120 hours or its equivalent, of continuing professional education.

Topic 1:

To be successful, a C.P.A. must focus on education before and during their career.

·         “Candidates must have at least 150 semester hours or 225 quarter hours of college education including a baccalaureate degree awarded by an accredited college or university.  At least 30 semester hours or 45 quarter hours obtained must be in accounting subjects beyond the elementary level at a four-year accredited college or university.”

·         “Statistics from the BLS are useful for those whose job description still includes the term "accountant," but it doesn't capture the potential for CPAs with ambition and management skills. The incomes of CPAs operating their own accounting businesses are limited only by their ability to network and market themselves effectively. These CPAs are paid fees based on the work they do for clients, such as producing monthly, quarterly and annual financial statements. In the corporate world, CPAs can advance to become senior auditors, controllers and even executives. Consulting firm Robert Half's 2012 salary guide for accounting careers includes salary ranges for

·          

Topic 2:

A C.P.A. must have experience in the workplace and in general accounting practices.

·         “Work Experience: An applicant who meets the general, educational, and examination requirements will be issued a CPA certificate upon presenting evidence that such applicant has attained two years of continuous experience in public accounting or five years,  of continuous employment in the accounting field in business or industry, government or college teaching.  Work experience must be immediately preceding the date of application for the certificate.  Effective July 1, 2009, Georgia law will change to allow those with one year of experience in either public practice or private industry to meet the experience requirement.You must contact the Georgia State Board of Accountancy at 478-207-1400 to receive an application.”

·         “There are four major kinds of accountants: public accountants, government accountants, internal accountants, and management accountants. Oftentimes they can be certified in more than one field, and switching is common.

·         Internal Accounting                                                                                                        Internal accountants keep their own company's financial records accurate and in order. They evaluate their company's efficiency to make sure that all of the numbers add up. Internal accounting is becoming increasingly important since the passing of the Sarbanes-Oxley Act in 2002, which requires the chief executive and financial officers of accounting firms to sign off on and take responsibility for their firm's business. With this increased pressure and accountability, firms are hiring more internal accountants to ensure against malfeasance. Internal accountants can also become certified as CIAs, or Certified Internal Accountants. The requirements for this certification are very similar to those for becoming a CPA. A bachelor's degree, successful completion of a four-part exam, and experience are required for both. Accountants may have multiple certifications and designations, especially if they switch between the four different types of accounting throughout their careers.

·         Accounting                                                                                                               Public accountants work for firms that provide various accounting services to corporations and individuals. They perform a variety of tasks which include auditing, tax preparation, and consulting. Moving up in the field almost always requires passing the CPA exam and getting certified, after which public accountants can open their own firms, move on to different types of accounting, or move up the corporate ladder in larger firms.

·         The career path for a public accountant in a large firm is fairly predictable. Often, newly employed accountants will spend the first year or so doing fairly menial work and getting adjusted to the office. After that, he or she can move up to become a senior accountant. If the promotions continue, a public accountant can hope to become a high-level manager or even partner in the firm.

·         Public accountants who decide to open their own firms will have to run a business and build an independent client base. But the advantage of running your own firm is the flexibility and independence to set your own hours and work from home.

·         Want to put white-collar criminals behind bars? A special area of public accounting is forensic accounting, which investigates potential fraud and illegal financial activities. Forensic accountants often work with law enforcement officials and present their findings in court. With new government crackdowns on public accounting firms, these special accountants are becoming increasingly in-demand.

Topic 3:

Passing the C.P.A. exam is vital for any accountant looking to move up to a higher position or start their own practice.

·         CPA Exam: applicants must have the above requirements to be eligible to sit for the Computer Based Uniform CPA Exam.  In order to become a CPA, candidates must past all four sections of the exam (Business Environment and Concepts, Auditing and Attestation, Regulation, and Financial Accounting and Reporting). 

·         Examination content refers to CPA Examination questions – multiple-choice, written communication, and simulations – reflecting the subject matter eligible to be tested, as specified in the Content and Skill Specification Outlines (CSOs/SSOs).

·         According to the AICPA, CPAs earn 10-15% more than non-CPAs working in accounting-related jobs. Other studies have shown the gap as high as 41% between the certified and un-certified .

·         Regardless of what area of accounting you go into, the CPA title will, above all other designations, separate you from the rest of the field. If you work in public accounting, you will absolutely get preferential treatment for being a CPA. Many titles and levels in your firm will be unattainable without it, and as a result your pay will have a much lower ceiling.

·         Becoming a CPA is challenging. It’s difficult to meet the various state requirements, and passing the test is one of the most challenging obstacles you will encounter. Said my former co-worker: “It was the worst experience of my life.”

Conclusion

·         “The Bureau of Labor Statistics (BLS) tracks salary data for accountants and auditors, as it does for hundreds of other occupations. According to May 2011 from the BSL, accountants earned a median income of $62,850 per year. The lowest 25 percent of accountants reported annual incomes of $48,920 or less, while the top 25 percent earned $109,870 or more. The American Institute of CPAs (AICPA), on its student-oriented This Way to CPA website, states that accountants with a CPA credential can expect to make 10 percent to 15 percent higher wages than their non-credentialed peers.”

·         “Salaries typically depend on experience, and accounting firms are no exception. With one to three years of experience, an accountant at an accounting firm earns $42,250 to $54,250 a year, as of 2012. If this accountant was a CPA, however, she’d earn an annual salary of $44,363 to $59,675. With three to five years of experience, CPAs can expect earn $55,388 to $75,350 a year, while those with more than five years of experience earn anywhere from $67,467 to $88,825.”