What Does a CPA Do? Tasks, Skills, and How to Become One
Certified Public Accountants (CPAs) are required in various roles, including tax preparation, bookkeeping, consulting, assurance services, and more. A CPA can assist businesses with financial decisions such as cash flow management, taxes, and budgeting. Once you have completed your post-secondary education, most states require aspiring CPAs to pass the Uniform CPA Examination. The exam consists of four sections, covering topics such as auditing and attestation; financial accounting and reporting; regulation; and business environment and concepts. The exam takes approximately 14 hours, but you can take each section at your own pace. CPAs are knowledgeable in taxation, accounts management, internal controls, and cost accounting, among other fields of expertise.
You can advance to become a senior auditor, accounting supervisor, or tax manager, according to Zippia 3. A CPA is a natural career progression after you have gained experience as an accountant and have prepared to seek state licensure. One important quality in being a successful CPA is genuinely caring about your clients and their businesses.
So… is the CPA financially worth it?
You are a shoo-in to work with the Big 4 — Deloitte, EY, KPMG and PwC. With them, you get to work with the biggest global clients, handle complex projects and gain recognition and respect in the industry. Other companies know you have strong technical skills, ethical standards and deep expertise. A Certified Public Accountant (CPA) is more than just an accountant; they are trusted financial advisors, auditors, tax specialists, and business consultants.
I’ve met plenty of great accountants who don’t have a CPA, but in my experience, having the credential really helps to advertise your expertise and makes a what is a cpa what does a certified public accountant do difference in your compensation and career options. There are some workplaces that don’t want to consider someone for an accounting role who is not a CPA. I received my bachelor of business administration in accounting at the Isenberg School of Management at the University of Massachusetts Amherst. The teachers there are wonderful and really prepared me well for a future in accounting.
Non-Profit Organizations
Some CPAs choose to earn their master’s degree either independently or as part of a combined program with the bachelor’s, which satisfies the additional 30 credit hours. A qualified CPA typically works in corporate accounting (business/industry), public accounting, not-for-profit organizations, or education. Certified public accountants have the best career opportunities in their field. Every business or organization needs the knowledge and skills of a CPA. However, an accounting master’s degree can help students meet the CPA education requirement of 150 credits since most bachelor’s programs only require 120 credits.
If you’re on the fence about pursuing it, chances are you’ve heard at least one of these. So even if CPA isn’t your first move, it could still play a role later in your career. You don’t necessarily need a full master’s to reach 150 credits, but many people go that route because it can also boost job prospects. The truth is that just like with a lot of qualifications, there isn’t a one-size-fits-all answer.
This basically means they examine your finances with a fine-tooth comb and verify that everything checks out. The CPA profession has been around for over 100 years and is essential in today’s society. Those interested in becoming a CPA must complete specific education and experience requirements before being eligible to take the Uniform CPA Examination.
- The CPA designation became more important after the Sarbanes-Oxley (SOX) Act of 2002, which was passed partly in response to corporate financial scandals like the Enron affair.
- For instance, if you need a lawyer or financial planner, a local CPA can probably refer you to a reliable person or firm near your home.
- Each state sets specific requirements for the Uniform CPA exam eligibility, so it’s important to review what’s expected in your state.
What Does a CPA Do in Private Industry Accounting?
- At first, you must complete an accounting study program at university/college.
- The first state boards of accountancy are established, providing government oversight to the accounting profession.
- More important than your grades in school or how many hours you spend at a desk is whether this type of work interests you.
- CPAs use their public accounting and financial knowledge to help clients save money and avoid breaking the law.
For example, they can provide guidance on how to reduce future tax burdens. A certified public accountant has access to numerous career paths in different industries. It’s versatility allows accountants to work in many different fields and environments.
Are We Training Accountants for a Job AI Will Mostly Do?
In the United States, the CPA is a license to provide accounting services to the public. It is awarded by each of the 50 states for practice in that state. Additionally, all states except Hawaii have passed mobility laws to allow CPAs from other states to practice in their state. Public accountants can work for individuals, companies, nonprofits, or the government. They may specialize in areas like taxation, financial reporting, consulting, auditing, and forensic accounting. They frequently work overtime during busy times of year, including tax season.
We and our partners process data to provide:
After becoming certified, ongoing continuing education requirements are mandated by individual state boards, such as courses related to topics like ethics/professional standards/technical updates, etc. These courses must be completed often at the expense of candidates and any applicable fees. The accounting field provides many career paths beyond crunching numbers all day.
For example, a company’s annual tax return might be in great shape, but it needs an expert to review quarterly financials and recommend operational improvements. Forensic accounting is a growing field, as businesses seek to prevent and investigate financial fraud in an increasingly digital economy. Once these requirements are met, candidates receive their CPA license and can officially practice as Certified Public Accountants. Understanding what a CPA is, how they earn their designation, and what responsibilities they hold can provide insight into why this credential is highly valued in the financial industry. This content has been made available for informational purposes only.
CMAs are recognized experts in applying accounting principles to guide business growth and optimize operations. Accounting.com is committed to delivering content that is objective and actionable. To that end, we have built a network of industry professionals across higher education to review our content and ensure we are providing the most helpful information to our readers. The Certified Public Accountant (CPA) is a license for working accountants that signals a degree of professional expertise. If you are an accountant or want to be one, it’s a valuable tool to help you move up the ladder. The CPA exam is a 16-hour exam consisting of four sections, each of which must be completed in four hours.
Emerging CPA Specialty Fields
Bookkeepers and CPAs both provide financial expertise to organizations or individuals. However, bookkeepers focus more on administrative tasks like recording data related to payroll and invoices. CPAs may perform some bookkeeping duties but also focus on bigger issues like tax preparation and financial advice. For many years, I worked in public accounting as an auditor and consultant. I really enjoyed working on various types of projects with different clients.
