Becoming a Certified Public Accountant
A Certified Public Accountant, or CPA, is an accountant who has obtained a state license in accounting by completing the requirements for accreditation. Accountants in general maintain and audit financial records for organizations or individuals. They can specialize in any number of different areas. They can be bookkeepers or tax experts, for example, government auditors, or top-level financial planners for multinational corporations among many other occupations. Accountants essentially oversee the budgets and financial management of a company, a business, or any organization that requires financial responsibility and accountability. Accountants ensure that the financial records of an organization are precise and that all revenues, investments and expenditures are tracked and reported without discrepancies.
Education, Training & Degrees for Certified Public Accountants
A course of study in accountancy that leads to a bachelor's degree usually includes studies of certain key subjects which form an integral part of the discipline of accountancy. These include such subjects as basic arithmetic, bookkeeping, tax law, economics, marketing, finance, economics, financial statements, financial reporting, tax law, managerial accounting, and other related subjects. Depending on the school and the focus of the bachelor's degree, the program might also include courses in topics such as international business, financial forecasting, information systems, regression analysis, mergers and acquisitions, compensation, forensic accounting and bankruptcy, among many other potential special areas of study.
A bachelor's degree in accounting is usually the basic qualification for entry into the field in a professional capacity. Some companies prefer the applicant to possess a master's degree in accounting, or a master of business administration (MBA) degree with a concentration in accounting. A bachelor's degree is in virtually all cases a prerequisite for pursuing either an MBA or Certified Public Accountant (CPA) licensure.
In order to become a CPA, most states require that candidates possess a minimum of a bachelor's degree. In addition to this four-year degree, the potential CPA must complete 30 additional hours of coursework for a total of 150 hours of college coursework. Many schools offer a master's degree in conjunction with this 150 hour requirement. Once this coursework is completed, the candidate is required to take a two-day, four-part Uniform CPA Examination prepared by the American Institute of Certified Public Accountants (AICPA). Additionally, most states require CPAs to renew their licenses periodically by completing a certain number of hours of ongoing education.
Job Responsibilities and Desired Skills for CPAs
Following the attainment of a Certified Public Accountant certification, the CPA is legally allowed to perform services such as audits, reviews, or compilations of financial statements. CPAs often work independently or on a contractual basis. They can perform a broad range of accounting, auditing, tax, and consulting activities for their clients, which may be corporations, governments, nonprofit organizations, or individuals.
Accounting is a wide field which encompasses a number of functions, so most accountants choose a specialization in which to practice. Specific job tasks vary widely among the major occupations within the discipline, as well as in the area of practice, which could be the individual clients, the private sector, small businesses, the corporate environment or a government department or branch.
To key to a successful career in accounting begins by acquiring the multiple skills and core competencies used in the discipline. These range from an in-depth understanding of accounting and business concepts to effective leadership and communication skills. Those who wish to become CPAs should also develop a broad business perspective, in order to better assess the internal and external factors that can influence a business both in the short term and in the long run. They need to possess an inclination towards mathematics while also being able to communicate this information effectively, translating numbers into concepts, facts, trends and projections on which their clients can base sound financial decisions. Practical knowledge of computers and relevant software, and their applications in accounting and auditing, is not just an asset for accountants, but a necessity, both for those employed in the accounting field and for those seeking to enter the field.
Salary Range and Employment Outlook for Certified Public Accountants
The U.S. Department of Labor reports that about 1.2 million people were employed as accountants or auditors in the year 2004. Approximately ten percent of these people were self-employed. The Department further projects that growth in the accountancy field is expected to be better than average well into the next decade.
A career as an accountant provides individuals with a competitive entry-level salary and excellent long-term growth potential. These prospects are even better for CPAs. According to figures released by the U. S. Bureau of Labor Statistics, median salaries for CPAs range between $33,750 and $42,500 in small firms, and between $41,000 and $51,250 in larger businesses for individuals with at least three years of accountancy experience. Within the corporate field, accountants who possess a master's degree and CPA certification can earn up to ten percent more.
