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What is a CPA?
Certified public accountants (CPAs) are finance professionals who have passed the Uniform Certified Public Accountant Examination. The American Institute of Certified Public Accountants (AICPA) administers the exam.
To start working as a CPA, you must meet specific requirements, including passing an exam and completing a certain number of hours of experience in accounting or auditing.
What Do People in CPA Jobs Do?
People in CPA jobs work in various settings, including public accounting firms, corporations, government agencies, and nonprofit organizations. They may perform a variety of tasks depending on their role and employer.
For example, CPAs working for public accounting firms may be responsible for preparing financial statements, conducting audits, providing tax advice, or providing consulting services.
Certified public accountants working for corporations may be responsible for financial reporting, budgeting, forecasting, risk assessment, or internal auditing.
CPAs working for government agencies may be responsible for auditing government programs or investigating fraud.
Finally, CPAs working for nonprofits may be responsible for financial reporting, grant writing, or providing consulting services.
Where Do People in CPA Jobs Work?
People in certified public accountant jobs work in every state in the United States. Other CPA jobs are available in other countries. Most CPAs work in offices for their employers, but some may travel to meet with clients.
Other certified public accountants may decide to work from home. Typically, a CPA working from home does so after deciding to work as a self-employed individual.
What Degree is Required to Become a CPA?
To start working as a certified public accountant, you must meet specific requirements, including passing an exam and completing a certain number of hours of experience in auditing or accounting. The degree requirement depends on your jurisdiction. However, most states require at least a bachelor’s degree.
A bachelor’s degree is the starting point to becoming an auditor or accountant. All states require 150 college course hours to become licensed as a certified public accountant. These hours represent 30 additional hours to a 4-year bachelor’s degree.
Each state’s Board of Accountancy licenses CPAs. Some states will allow accountants to use a certain number of years of public accounting work experience instead of the 30 additional hours of coursework. Every U.S. state requires a CPA to maintain their license by taking annual continuing education classes.
How Much Money Does a CPA Earn?
The median annual wage for CPAs is approximately $73,000. The top ten percent of earners made more than $128,000, while the bottom ten percent made less than $45,000.
Here are the median annual income amounts for CPAs in the highest-paid industries.
- Government: $72,000
- Bookkeeping, tax preparation, payroll services, and accounting: $73,000
- Management of enterprises and companies: $76,000
- Insurance and finance: $78,000
The average CPA works a full-time schedule of at least 40 hours per week. During tax season, or when quarterly audits occur, a certified public accountant may need to take on additional hours.
CPA Job Requirements
To begin working as a certified public accountant, you must possess various hard and soft skills. A certified public accountant may obtain these skills through academic coursework, work experience, or a combination of both. Some key skills include the following.
- Critical thinking and analysis: CPAs must be able to think critically and analyze financial information to make sound decisions.
- Financial accounting: Understanding and interpreting financial statements is a critical aspect of working as a CPA.
- Auditing: Via professional standards, CPAs need to plan and perform audits of financial statements.
- Taxation: CPAs need to have a strong understanding of tax law to provide tax planning and compliance services.
- Technology: In today’s business environment, CPAs must stay up-to-date and remain proficient in the use of technology, including computerized accounting systems and spreadsheet software.
- Business acumen: CPAs should understand how businesses operate and make sound business decisions.
- Problem-solving: Solving complex financial problems is a key part of working as a CPA.
- Time management: CPAs need to be able to manage their time effectively to complete all required tasks.
- Organization: A CPA will need to organize and manage multiple tasks simultaneously.
- Attention to detail: A keen eye for detail is critical when working as a CPA. It helps to spot errors and potential problems before they cause major issues.
- Communication: CPAs must be able to communicate effectively, both in writing and verbally. They often need to explain complex financial information to non-financial professionals.
CPA Career Path
The certified public accountant career path typically starts with working as a staff accountant or auditor. From there, you may progress to positions such as controller, chief financial officer, or partner at a public accounting firm.
CPAs can move up the ladder in their current organization, switch to a different type of accounting job, or even start their own business. No matter what direction they choose, CPAs have the potential to make a good living and have a rewarding career.
The future of the certified public accountant industry looks bright. The rate of growth inside the industry sits at about average when compared to all other occupations. It’s projected that employment for CPA positions will continue to rise by 7% through 2030.
A complex tax environment, a growing economy, and globalization will support this growth. Employment growth for CPAs is also directly tied to overall economic health. As businesses expand and become more complex, they will need CPAs to help manage their finances.
Globalization offers the possibility for CPA job growth to outpace the projected 7% growth. Increased demand may enter the market as mergers and acquisitions bring more international opportunities for companies. The global expansion adds more complexity to tax situations, requiring the help of qualified certified public accountants.
CPA jobs offer a high level of job satisfaction. They are well-paid, have good working conditions, and provide plenty of opportunities for advancement. When looking for a challenging and rewarding career in accounting, becoming a CPA is a great option to consider.