'Follow the money' is a common directive in today's world. This is essentially the function of a CPA. Becoming a CPA entails considerably more study than just majoring in accountancy, as earning the credential requires a certain level of postsecondary education, professional experience, and passing an examination.
Certified public accountants (CPAs) perform tax advising, auditing, financial consulting and other accounting services. They're typically self-employed or work for accounting firms, and their clientele can include individuals, government agencies, corporations and nonprofit associations. CPAs are the only accountants allowed to audit publicly traded companies. They need a bachelor's degree in accounting, plus at least 150 credit hours of additional college coursework. All states require that CPAs be licensed, which mandates passing the national CPA exam and maintaining skills through continuing education programs.
|Required Education||Bachelor's degree in accounting, plus at least 150 additional credit hours|
|Licensing||Must obtain license from state board of accountancy; requirements vary, but all states require passing the Uniform CPA Exam|
|Median Annual Salary (May 2018)*||$70,500 (for all Accountants and Auditors)|
|Job Growth (2018-2028)*||6% (for all Accountants and Auditors)|
Source: *U.S. Bureau of Labor Statistics
CPAs must obtain licensure through their states' boards of accountancy. Eligibility requirements vary by jurisdiction, but all states require that applicants meet education standards and have a minimum amount of professional public accounting experience determined by the state.
Qualified applicants may sit for the Uniform CPA Exam administered by the American Institute of Certified Public Accountants (AICPA). Used by all states and jurisdictions, this 14-hour exam is divided into four parts that assess proficiency in auditing and testimony, financial and reporting, business concepts and regulation. After passing the exam, candidates receive CPA certification from the AICPA and may obtain licensure through their states. CPAs must maintain licensure by completing continuing education courses.
CPA Education Prerequisites
Most licensing boards require that CPAs complete at least 150 hours of postsecondary coursework in accounting, which is generally 30 hours more than required for a bachelor's degree. Some students fulfill this requirement by earning master's degrees after undergraduate school; however, some simply take extra courses after completing bachelor's degree programs. Additionally, some colleges and universities offer accelerated 5-year accounting programs that lead to master's degrees.
Bachelor of Science in Accounting programs equip students with the auditing and financial analysis skills necessary for careers as CPAs. They also prepare students for the business and management aspects of the occupation. Courses may include tax planning, auditing, operations management, information systems, business law and ethics, cost management and marketing. Curricula may also include internships in the accounting field.
According to the U.S. Bureau of Labor Statistics (BLS), employment of accountants was expected to increase 6% from 2018-2028. Job growth will be caused by stricter financial laws and regulations, as well as the ongoing globalization of business in general. CPAs are expected to see the greatest employment prospects among all accountants and auditors.
National employment opportunities for CPAs are projected to increase faster than the average in comparison to all other occupations. As a rule, you must complete 150 postsecondary hours, which may be accomplished by earning a master's degree after finishing bachelor's-level coursework. Meeting education and practical experience requirements can qualify you to sit for the Uniform CPA Exam, which is used by all states as a qualifying device for state licensure.