A CPA license affords increased career, earning, and responsibility potential in the accounting field. Obtaining a CPA license can lead to opportunities in any industry thanks to the unique expertise, credibility, and trust the designation represents. Public and corporate accounting, academia, and the government sector are the top industries in which CPAs work. They can specialize in specific areas including:
- Personal financial planning
- Information management and technology assurance
- Valuation
- Taxes
- Audit
- Nonprofit
- Assurance services
- Environmental accounting
- International accounting
- Blockchain and Cryptocurrency Accounting
- ESG (Environmental, Social, and Governance) Reporting
- Forensic Technology and Cybersecurity Risk
- Governmental Accounting and Auditing
- Healthcare Accounting and Compliance
- International Accounting
- Real Estate Accounting and Finance
- Sustainability Reporting
- Treasury and cash management
- Private Equity and Venture Capital Accounting
Treasury and cash management and forensic accounting services are comparatively new areas of practice for CPAs.
What Can a CPA Do That Other Accountants Cannot?
All CPAs are accountants, but not all accountants are CPAs. Almost all states require that candidates meet education, experience, and ethical requirements and pass the Uniform CPA Examination before granting a CPA license.
A CPA’s responsibilities extend far beyond basic accounting tasks. Their main role in an organization is to prepare audited financial statements and provide opinions on balance sheets and income statements that are essential for businesses, investors, and regulators. This includes verifying the accuracy and compliance of financial documents, something only CPAs are qualified to do.
Beyond audits, CPAs also offer valuable advisory services to individuals and organizations, helping them navigate complex financial landscapes and achieve long-term success. While accountants can prepare tax returns, CPAs analyze the work, represent their clients in a tax audit, and assist in making higher-level business and tax decisions.
What Does A CPA Do When Working for an Accounting Firm?
In an accounting firm, CPAs help establish financial plans by examining statements, planning taxes, and assessing financial transactions for decision-making. Critical functions include:
- Assurance and Auditing: CPAs working in a firm’s auditing and assurance department conduct audits and assurance engagements — and deliver opinions accordingly.
- Preparation and Tax Services: In a firm’s tax preparation and services division, CPAs conduct tax reviews and planning and generate necessary tax filings.
- Services for Consultation: Consulting services include assisting customers in creating and implementing new financial systems. Some consulting specialties include forensic accounting, financial and estate planning, and litigation assistance.
How To Become a CPA
To become a CPA, you must meet all the criteria set by your state's Board of Accountancy. Requirements for taking the CPA Exam and applying for a license can differ by state. You will need to fulfill requirements related to residency, education, work experience, and ethics.
Required Skills
CPAs work in a wide range of roles in the corporate world today, such as internal auditors, IT managers, forensic experts, tax accountants, compliance officers, and CEOs. Employers often seek candidates with a diverse set of attributes including:
- Analytical research skills
- Interpersonal skills
- Tech savviness
- High ethical standards
- Marketing/client focus
- Project management
- Broad business perspective
Benefits of Becoming a CPA
Among the advantages of being a CPA are:
- Career Advancement: In public accounting, obtaining a CPA license can help you advance your career. If you want to become a manager or partner, the CPA designation will set you apart.
- Broader Scope of Work: Technology, artificial intelligence, cybersecurity, healthcare, energy, sports, entertainment, and government fields offer immense CPA potential.
- Job Security: While accountants are ubiquitous and in high demand, CPAs are more rare, especially in industries where higher specialization is required. This increases job stability and negotiating power during a job search.
- Job Fulfillment: Job satisfaction is a huge career plus for CPAs. They can choose from a range of career choices and have a beneficial impact on the lives of people, businesses, and non-profits.
- Increased Salary: Junior CPAs with 1 to 3 years of experience can expect to earn between $52,000 and $87,000 annually. Average wages range from $66,000 to $110,000 after 4 to 6 years of expertise. A salary of $150,000 or more is achievable for more senior CPAs, particularly those in management, leadership positions, or specialized areas.
Becoming a CPA Around the World
A CPA license in the United States is often equivalent to the title of Chartered Accountant (CA) in Australia, Canada, Hong Kong, and New Zealand.
- USA: Candidates must generally have a bachelor's degree with 150 credit hours and approximately 2,000 hours of job experience in accounting. Most states require candidates to pass an ethics exam.
- Australia: In Australia, Chartered Accountant (CA) is granted by the Chartered Accountants Australia and New Zealand (CA ANZ) body. Candidates typically need to complete an accounting degree, undergo practical experience, and pass the CA program, which includes exams and coursework.
- Canada: In Canada, the Chartered Professional Accountant (CPA) certification involves completing the CPA Professional Education Program (CPA PEP), a graduate-level program. You can sit for the CPA exam in Canada even if you don't have a bachelor's degree. You must, however, show that you have at least 8 years of experience in CPA technical competency areas.
- Hong Kong: The Hong Kong Institute of Certified Public Accountants (HKICPA) is the sole statutory body responsible for registering and granting practicing certificates to certified public accountants in Hong Kong. Candidates must complete the Institute's Qualification Programme (QP), which encompasses professional accountancy education and practical experience requirements.
Frequently Asked Questions (FAQs)
What is the difference between a CPA and MBA?
Certified Public Accountant (CPA) is an accounting credential that confers expertise in the fields of accounting and auditing. CPAs hold accounting licensing requirements for the state in which they practice. A Master of Business Administration (MBA) is a degree that gives you the skills you need for a career in business or management. Most MBA programs include a core curriculum of subjects such as accounting, economics, marketing, operations, and electives.
A CPA and an MBA can complement each other, with many CPAs pursuing an MBA to broaden their career prospects and move into management or leadership positions.
Can I become a CPA without a degree in accounting?
In many states, candidates with a degree in any subject can become CPAs if they meet the educational requirements, which often include specific accounting and business courses. Some states also allow candidates with a combination of education and experience in the accounting field to sit for the CPA Exam.
How long does it take to become a CPA?
It typically takes 4-6 years to meet the educational and experience requirements and pass the CPA Exam. After completing your degree, you will need to gain the required experience before applying for licensure.
Can U.S. CPAs work internationally?
Yes. U.S. CPAs can work internationally, but there are some important considerations. In many countries, the CPA designation is recognized as a high standard of accounting expertise, but it is not always directly equivalent to local certifications such as the Chartered Accountant (CA) designation in Canada, Australia, and the U.K.
Some countries have reciprocal agreements with the U.S., allowing U.S. CPAs to work there more easily.
U.S. CPAs often work for large international accounting firms such as Deloitte, PwC, EY, and KPMG that have offices worldwide. These firms typically recognize U.S. CPA credentials and may facilitate transfers to international offices or assignments abroad.
CPAs who specialize in areas such as international tax, global finance, or transfer pricing are highly sought after by multinational companies that operate across borders.
Are there CPA specialties?
Yes. CPAs can specialize in areas such as tax accounting, forensic accounting, management consulting, environmental accounting, and international accounting, among others. Specializing in a niche area can increase a CPA’s value in the job market and open doors to high-paying opportunities.
CPA Resources
UWorld CPA Review provides guidance and resources to help you get a deeper understanding of the career path, expected salaries, and ways to improve your employment prospects. Additionally, it will assist you in deciding which certification — CPA, CFA®, CMA — is right for you.
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