How to Become a CPA Steps & Certification Requirements

According to the US Bureau of Labor Statistics, the median pay for all accountants was $61,690 in 2010. The top 10 percent of earners in this field made more than $106,880 that year, while the lowest 10 percent made less than $38,940. There are four sections to the exam, and you have 18 months to pass all of them with a minimum score of 75.

You might even take an online course to ensure you’re at the top of your game before applying for accounting jobs or a graduate program. In an unpredictable world, the ability to pivot, adapt and evolve is more valuable than ever. An accounting degree, while rooted in principles and structures, surprisingly offers the flexibility to navigate this changing landscape. Whether it’s launching a startup, spearheading strategic decisions in a multinational or penning down financial narratives, accounting graduates find themselves well equipped. Another beauty of a degree in accounting lies in its versatility.

  • When it comes to the length of time it will take to get your CPA, you should expect to commit about 7 years of time to earn your license.
  • Some states also require age minimums, work experience, and citizenship.
  • Think of pursuing professional credentials like the CPA as a longer-term goal.
  • This can help you better understand the field and make you more competitive in the job market.

Beyond the expected steps of financial analysis and auditing, their soft skills often steal the spotlight. With a flair for problem-solving, they navigate through financial mazes. Their acute attention to detail catches the subtlest of discrepancies, while their analytical skills uncover hidden insights. Start building job-ready skills for a role in accounting with the Intuit Bookkeeping Professional Certificate. Practice interpreting and analyzing financial statements as you work through the phases of the accounting cycle.

CPA requirements vary by state, but in most cases, CPAs must meet strenuous educational requirements, pass a qualifying exam and demonstrate at least two years of public accounting experience. Many states require CPAs to complete continuing education to maintain their licenses. Accountants use these abilities—plus knowledge gained through college-level accounting programs—to provide financial services to businesses and individuals. Accountants and auditors earned a median annual salary of $77,250 in May 2021.

Unpredictable Career Paths: An Accounting Degree Doesn’t Always Mean Becoming An Accountant

You may also find accountants collaborating with each other, particularly in larger firms and businesses with more involved accounting needs. Financial statements are the bread and butter of accounting firms and business operations. Knowledge of how to prepare and report on financial statements is critical to becoming an accountant. An accountant’s everyday responsibilities include creating, tracking and reporting on balance sheets, income statements and cash flow statements. After you have completed and passed all of your educational and testing requirements, you will be able to start working towards obtaining your license. While there aren’t any work requirements prior to taking your exam, you won’t be able to become certified without the necessary field experience.

  • Internships may be paid or unpaid experiences lasting a few months to a year.
  • Internships provide hands-on practice in a real accounting environment.
  • When most people think of an accounting degree, images of ledger books, financial statements and, of course, accountants may spring to mind.
  • Each section takes four hours and includes multiple-choice questions and task-based simulations.
  • Included are an explanation of what accountants do, a description accounting degrees, and a list of suggested steps one might take to get started.

Though there is no specific CPA degree, it helps to get a bachelor’s degree in accounting or something business-related. California CPA requirements, for example, include a bachelor’s degree and 150 semester units of education. Those must include 24 units related to accounting and 24 units related to business. Additionally, many programs offer the
opportunity to specialize in a particular area, such as auditing, taxation, or
forensic accounting. Students unsure which type of degree to pursue can review
the table below to get a better sense of the prospects available at each
level. Lizzette Matos is a certified public accountant in New York state.

You can become a Certified Management Accountant through the Institute of Management Accountants or a Certified Internal Auditor through the Institute of Internal Auditors, for example. Earning one of these certifications shows that you have deep knowledge and experience in your accounting specialty. Employers often search for accountants with specific certifications and pay more to accountants who hold them. On the most basic
level, accountants and CPAs keep and inspect financial accounts for companies,
government groups and individual clients.

Consider what kind of career you want.

So the next time someone says they’re studying accounting, resist the urge to pigeonhole them into traditional roles. The reality is that their career path could be as varied and dynamic as any, with the added advantage of a strong financial foundation to steer them forward. For example, Bob Parsons, the founder of GoDaddy, one of the largest internet domain registrars in the world, began his career as an accountant. Some of Parsons’ first successes (and near losses) were in the field of accounting, and it was the software he created during this time that eventually grew his revenue to over $100 million. Try to gain relevant work experience while you are still in school. Consider internships, co-op placements, or part-time work in an accounting firm to gain practical experience and make professional connections.

Explore the possibilities of accounting career specializations below. As the table indicates, those with a bachelor’s in accounting earn an average annual salary of $72,000. Though a master’s degree increases the average salary slightly, much larger jumps occur with industry credentials such as CPA or CMA certification. Accountants prepare and monitor their organizations’ financial records. Accountants work with other managers, reporting regularly on their companies’ financial status.

Take the AICPA Ethics Exam

The pace you take entirely depends on how much time you are able to invest into the coursework. Accounting boasts high salaries, job security, and career growth. But what is the time commitment needed to earn an accounting absorption variance degree? It usually takes four years to earn an accounting degree at a traditional, in-person college or university. However, there are alternative routes that would allow you to complete your degree even faster.

What’s the Benefit of Accounting?

A certified public accountant, or CPA, deals with public financial documents such as tax filings. They deal with official company reports to investors, clients, and the Securities and Exchange Commission. With accountants needed in a variety of industries across the country, those aspiring to enter the field can take advantage of plenty of choices. Accounting can provide a stable career as increased international business and complicated taxes require more financial professionals. You’ll need to keep up on your accounting knowledge in order to maintain your licensure. Licensed CPAs need to obtain regular Continuing Professional Education (CPE) hours.

These often cost more and are more intensive because you’re fitting two degrees into five years, but by the end you’ll have a graduate degree in accounting. Having a master’s in accounting isn’t required to become a CPA, but it can make it easier for you to get a job and increase your salary. The first step toward becoming an accountant is usually a bachelor’s degree in accounting or business administration bachelor’s degree. Accounting bachelor’s programs teach foundational skills and knowledge to prepare graduates for entry-level jobs or graduate study. How long to become an accountant is also dependent on whether you’re seeking any professional accounting credentials.

At Gwynedd Mercy University, we specialize in providing innovative solutions for aspiring accountants. Our faculty members are dedicated to providing the best learning environment possible to support students’ progress effectively. Knowing the ins and outs of accounting software is crucial to your future as an accountant. Technological advances continue to bring changes to the accounting field. Beyond Excel spreadsheets and the Google Suite, you should be familiar with process automation, artificial intelligence and financial modeling software. Accountants enjoy steady demand, and this evolving field is only becoming more competitive to enter.

Whether you complete these extra studies at the undergraduate or graduate level is up to you. If you’re aiming to become a certified public accountant (CPA), you’re going to take longer to reach this goal than if you wanted only to become an accountant without any specific credentials. Depending on the level of accounting degree you’re seeking, that career might mean a role as an accounting support paraprofessional, an accountant, an auditor or an accounting manager.

An accounting specialization can help candidates stand out among other applicants. To become a certified public accountant (CPA) professionals may be required to select a specific concentration, such as managerial accounting or auditing. Completing this volume of credit hours usually takes one to two years of full-time study. Part-time students will take longer to get an accounting degree at the master’s level. Deciding on a career path is often the next step to becoming an accountant.

Some
financial documents, such as those submitted to the Securities and Exchange
Commission, must be signed by a Certified Public Accountant. Becoming an accountant yields a standard expectation (and requirement by most states) to complete additional courses and certifications. These are solely to stay up to date on new laws, regulations, and programs to help you and your profession. Many accountants will continue their education while working in their career to ensure their state certifications are met while also having the chance to propel their expertise and title. This route is almost a two-for-one deal; you continue your certifications and gain a higher degree. You will be able to find out your states requirements through the college you select to attend.

Accountants can increase their earning potential by pursuing higher education and industry credentials. Explore programs of your interests with the high-quality standards and flexibility you need to take your career to the next level. Our new student and parent forum, at ExpertHub.PrepScholar.com, allow you to interact with your peers and the PrepScholar staff.

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