In the field of finance, the Certified Public Accountant (CPA) designation stands as a symbol of expertise, integrity, and proficiency. Whether you’re a seasoned professional looking to enhance your credentials or an aspirant eager to start your journey in this field, understanding how to become a CPA is paramount. The path to earning this esteemed designation is not merely a procedural journey; it’s a transformative experience that requires diligence, dedication, and a comprehensive knowledge of the profession’s nuances.
Since financial regulations evolve rapidly and corresponding scrutiny intensifies, the role of CPAs has become increasingly indispensable. They serve as trusted advisors, offering invaluable insights into financial matters, auditing procedures, tax compliance, and strategic decision-making. However, the road to becoming a CPA has its challenges. From navigating complex educational requirements to mastering accounting principles and passing rigorous licensure examinations, you need to tread a path that demands unwavering commitment and perseverance.
If you seek information about how to become a CPA, you’ve come to the right place. This comprehensive guide will explain the entire process to you.
5 Steps to Become a CPA
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Get a Bachelor’s Degree
The foundation of your journey to learn how to become a certified CPA begins with acquiring a bachelor’s degree. While it’s not mandatory to major in accounting or business, it’s highly recommended. Most states require 150 credit hours of coursework at least, with a certain number of credits dedicated to accounting-related subjects. You also need to ensure compliance with your state’s specific requirements outlined by the accounting board.
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Join a Graduate School
The next step to becoming a CPA is to enhance your academic qualifications with a master’s degree. This can significantly increase your prospects of success on the CPA exam. Many first-time test-takers with graduate degrees often exhibit substantially higher pass rates compared to those with only a bachelor’s degree.
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Clear the CPA Examination
The next pivotal milestone in your knowledge of how to become a CPA is passing the CPA exam with flying colors. The exam is administered by the American Institute of Certified Public Accountants (AICPA) and comprises four sections, each demanding a comprehensive understanding of accounting principles, auditing procedures, taxation regulations, and business law. Most states impose an 18-month timeframe for candidates to pass all four sections after clearing the first one.
Recommended Read: All About CPA Exam
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Get Your CPA License
Securing CPA licensure involves going through the post-examination process, which varies across jurisdictions. In many states, individuals who have successfully passed the CPA exam must accrue a minimum of one year of professional experience. Specific types of experience, such as auditing, may be mandated by certain state accounting boards. This is where understanding your state’s licensure requirements can help you chart your path towards becoming a certified CPA.
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Renew and Maintain Licensure
Once licensed, you will be entrusted with the responsibility of renewing your credentials periodically, typically every 1-2 years, as stipulated by state regulations. Renewal requirements often include participation in continuing education programs, ensuring that you stay abreast of emerging trends, evolving regulations, and best practices within the profession. Many jurisdictions mandate that continuing education programs encompass a designated portion of content focusing on professional ethics. This is meant to reinforce the commitment to upholding integrity and ethical standards within the accounting profession.
What are the Educational Requirements to Become a CPA?
- Bachelor’s Degree: You must hold a bachelor’s degree as a foundational requirement for CPA eligibility.
- Additional Credit Hours: Most states mandate the completion of 150 credits, approximately 30 credits beyond a standard bachelor’s program.
- Master’s in Accounting: You can opt for a master’s degree in accounting to fulfill the credit criteria and enhance your academic qualifications.
- Dual-Degree Programs: Some institutions offer five-year dual-degree programs granting bachelor’s and master’s degrees in accounting, providing an expedited path to CPA licensure.
- Graduate-Level Certificates: While not obligatory, you can pursue graduate-level certificate programs to meet credit requirements in a targeted manner.
Also Read: A Complete Guide to CPA Certification
Preparation to Become a CPA Through Accredited Programs
- Earning an accredited accounting degree equips you with the knowledge and skills essential for passing the CPA examination and obtaining licensure.
- You can also pursue a specialization in areas like forensic accounting or tax planning, requiring additional training and credentials.
- Specialized certificate programs offered by professional organizations and educational institutions provide focused training tailored to specific accounting specialities, enhancing career prospects and expertise.
What are the Certifications/Licensure Required to Become a CPA?
- To become a CPA, licensure from your state licensing board is necessary. Certification indicates passing the CPA exam, while licensure involves additional steps and professional development hours.
- While possible to work in accounting roles without a license, there may be limitations on job options and advancement potential. Non-licensed accountants often work in areas like bookkeeping, accounts payable, or under a CPA’s supervision.
- The National Association of State Boards of Accountancy (NASBA) provides valuable information and links to jurisdictional accountancy boards across the United States, aiding accountants in understanding local licensure requirements.
- Many CPAs pursue additional certificates from professional organizations like the Institute of Internal Auditors and the Institute of Management Accountants to enhance career opportunities.
- Most states mandate annual completion of continuing education credits, typically around 40 hours per year, to maintain certification. CPAs can fulfill these requirements through professional organizations and colleges.
How Much Experience Is Required to Become a CPA?
On the path to become a CPA, acquiring professional experience is a crucial milestone following the successful completion of the CPA exam. While the exam itself does not necessitate formal work experience, individuals seeking full licensure must fulfill specific experience requirements outlined by their respective state licensing boards.
According to guidelines provided by the AICPA, the majority of U.S. jurisdictions offer licensure paths to candidates who have accrued two years of relevant professional experience. This experience can be obtained through roles that involve accounting responsibilities and contribute to the candidate’s professional growth and proficiency in the field. While states generally accept general accounting experience acquired in positions open to all accounting professionals, the specifics of what constitutes qualifying experience may vary.
Note: The internships in accounting undertaken during academic studies typically do not count toward the experience-based requirements for CPA licensure. However, despite not directly contributing to licensure qualifications, they offer valuable opportunities for professional development and networking to aspiring CPAs that can enrich their careers in the long run.
FAQs Around How to Become a CPA
Which degree do I need to become a CPA?
To become a CPA, you typically need a bachelor’s degree, although it doesn’t necessarily have to be in accounting or business. However, most states require at least 150 credit hours of coursework, which often translates to completing a bachelor’s degree plus additional credits. You can also pursue a master’s degree in accounting to fulfill these requirements and enhance your qualifications.
How long does it take to start my career as a CPA?
The timeline to kickstart your career as a CPA can vary depending on educational path, exam preparation, and licensure requirements. Generally, it takes around 4-5 years to complete a bachelor’s degree and fulfill the necessary educational prerequisites. After that, passing the CPA exam and acquiring relevant professional experience typically takes an additional 1-2 years, leading to a total timeline of 5-7 years.
Are CPA jobs in high demand?
Yes, CPA jobs are often in high demand, especially for skilled professionals with the CPA designation. With the increasing complexity of financial regulations, businesses, government agencies, and non-profit organizations require the expertise of CPAs for accounting, auditing, and taxation services. As a result, CPAs often enjoy favorable job prospects and opportunities for career advancement in diverse industries and sectors.
Is becoming a CPA very difficult?
Becoming a CPA can be challenging, but you can become one with dedication and perseverance. The process involves:
- Fulfilling specific educational requirements
- Passing a rigorous four-part exam administered by the AICPA
- Acquiring relevant professional experience
While the journey demands time, effort, and commitment, the rewards of earning the CPA designation make it a worthwhile pursuit for many aspiring accountants.
