How to Become a Certified Public Accountant
When you become a Certified Public Accountant (CPA) you join the ranks of other highly respected working professionals in a position that enjoys the perks of an impressive salary combined with the benefit of secure and stable employment. It is important, however, to mention that earning a CPA licensure is a particularly lengthy process that demands both determination and perseverance to achieve. The rigorous CPA exam is considered one of the toughest professional exams to pass in this country.
While the specific requirements to become a Certified Public Accountant do vary from state to state, almost every state has education prerequisites that require each CPA candidate to have a Bachelor’s degree with a certain number of accounting classes. Additionally, each state requires its candidates to complete other business-related courses such as business law and management, ethics, and/or auditing. Therefore, the importance of learning your state’s education requirements before taking the CPA exam is paramount.
Only once a CPA candidate has fulfilled his or her state’s education requirements, may they apply to sit for the CPA examination. First the candidate must select a jurisdiction and apply through their State Board of Accountancy; there is a Board for each state. The Accountancy Board will then notify the candidate of their resident state requirements for both the CPA examination and licensure. In most cases, to sit for the CPA exam, each candidate must apply and provide transcripts of the state-required coursework, submit any work-related accounting experience, complete the application, and pay the exam fee to their State Board of Accountancy. Once an application has been approved the Accountancy Board, they will send each candidate a Notice to Schedule (NTS.) The NTS will list a number of locations, dates, and times available to take the CPA exam in your jurisdiction.
The CPA examination is comprised of four sections: Auditing and Attestation (AUD); Business Environment and Concepts (BEC); Financial Accounting and Reporting (FAR); and finally the Regulation (REG) section. Frequent changes and updates to the CPA test can revise requirements come exam time, so be sure to have a current Content Specification Outline (CSO) which will inform you of any changes and outline each section of the CPA exam in detail. A candidate is not required to take all four sections of the CPA examination at one time. He or she may elect to take any remaining sections at another date. However, each candidate is given an 18-month window to complete and pass all sections of the exam. Candidates are encouraged to enroll in CPA exam review courses and to diligently prepare prior to taking any and all sections of the exam. Because of the exam’s high level of difficulty, it is important to note the current pass rate for all sections of the CPA exam hovers around 50 percent.
After you’ve passed all four sections of the CPA examination, you will have to take the Ethics Examination. This test is considerably easier than the CPA exam as it is an open-book test. The Ethics exam requires a minimum score of 90 percent to pass.
The final step toward earning your CPA accreditation (again the requirements vary from state to state) is generally one to two years of relevant work experience in an accounting-related field. Be advised that many states require CPA candidates to work only in a public accounting capacity to acquire the proper work experience, but all states require your work must be supervised by a licensed CPA. Once you have fulfilled the required work hours, the State Board of Accountancy will finally issue your CPA license.
Now that you are a practicing CPA you will be required to complete Continuing Professional Education (CPE) courses in order to both maintain and renew your CPA license in the coming years. CPA’s are expected to attend seminars and self-study to earn the proper amount of credit hours required by each state come renewal time.
The road to become a licensed CPA may be quite arduous and take a number of years to accomplish, but once you become a CPA, you’ll have earned the respect of your peers and the chance to make a handsome living. CPA’s are in high demand even in the current tight job market plus you have the flexibility of either working for yourself or as part of an accounting firm. If you are interested in this pursuit the numbers do add up.
