You can be an accountant without being a Certified Public Accountant, but earning a CPA license adds a valuable credential to your resume. It means you’ve passed a nationally recognized what is public accounting test that has been modified to reflect your state’s regulations. It opens the way to jobs that other accountants can’t take on, such as performing audits of public companies.

• Every year, INSIDE Public Accounting ranks the top 500 CPA firms in the nation based on net revenue, from the multi-billion-dollar Big 4 to No. 500.
• To become a CPA, you’ll need a bachelor’s degree in accounting, which typically encompasses 120 hours of semester coursework.
• This sustained participation allows IPA to continue to provide the most comprehensive examination of the accounting profession.
• Other examples of goals include managing an accounting team, working for a large accounting firm, or starting your own business as a CPA.
• Building on your knowledge, developing new skills, and staying up-to-date on laws and regulation are a key step in how to succeed in public accounting.
• But there are many ways to set yourself up for success and make building your career exciting, rather than overwhelming.

What is a CPA? What does a Certified Public Accountant do?

Advisory services offered by CPAs encompass financial planning, risk management, and even forensic accounting, where they uncover financial irregularities and fraud. Between having more freedom to work independently in financial accounting, audit and taxation, as well as having proven knowledge and expertise, CPAs are more sought after than non-licensed accountants. Not only do firms, government agencies, and private companies want to bring CPAs on to their staffs, CPAs can also open their own business, providing services to individuals, businesses and non-profits.

Increased career opportunities

Arthur Andersen company executives and CPAs were charged with illegal and unethical accounting practices. Accountants who are CPAs are licensed by their state’s Board of Accountancy after passing the Uniform CPA Exam. If you want to learn more about the CPA Exam, download our free 2024 CPA Exam Guide.

How do I become a CPA?

State CPA exams are created under guidelines issued by The American Institute of Certified Public Accountants (AICPA). The Uniform CPA Exam can only be taken by accountants who already have professional experience in the field and a bachelor’s degree. Partner level is coveted since only about 2 percent of all persons entering CPA firms will reach this plateau. The Partner normally purchases equity in the firm and therefore shares in all profits.

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Embracing tools like CPA Automation is part of this evolution, enabling more efficient and strategic financial management. Public accountants, often referred to as CPAs, are the architects of financial clarity. They are professionals who have undergone rigorous training and successfully passed the CPA exam, a challenging rite of passage.

Download our FREE 2024 CPA Exam Guide

Experienced CPAs share what they wish they knew at the beginning of their career and how they turned challenges into opportunities. The Master of Business Administration (MBA) is an academic degree in management. If you are interested in starting or running a business, the MBA program will help you prepare.

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A CPA is required to complete continuing education requirements and uphold a standard of professional ethics. The AICPA established accounting standards until 1973 when the Financial Accounting Standards Board (FASB) was launched to set standards for private companies. CPAs prepare reports that accurately reflect the business dealings of the companies and individuals that hire them. Many prepare tax returns for individuals or businesses and advise them on ways to minimize taxes.

Technological disruption – challenges and opportunities

Some CPAs specialize in areas like forensic accounting, personal financial planning, and taxation. Since the Sarbanes-Oxley Act passed in 2002, accountants have been subject to tougher restrictions concerning their consulting assignments. The CPA designation became more important after the Sarbanes-Oxley (SOX) Act of 2002, which was passed partly in response to corporate financial scandals like the Enron affair.

• Partner level is coveted since only about 2 percent of all persons entering CPA firms will reach this plateau.
• Besides, they have to grapple with the advent of blockchain technology and cryptocurrencies.
• This shouldn’t be set in stone – be flexible to new opportunities and keep an open mind.
• Financial planning involves helping businesses create budgets, forecasts, and financial models to make informed decisions and allocate resources effectively.
• Armed with this certification, they join the ranks of elite professionals who are entrusted with the financial well-being of businesses and organizations.
• Public accountants also play a crucial role in assisting companies with mergers and acquisitions, offering insight into the financial health of potential partners or targets.

These individuals possess a deep understanding of accounting principles, taxation, and auditing, making them indispensable in the world of finance. 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).