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>
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