CPA is a major license to be attained in the accounting field. It has gained a good reputation and is regarded as an essential qualification that opens up better career prospects. In this section, a detailed outline on steps to become a CPA is presented.
Understanding the CPA license
The CPA designation signifies high expertise and professionalism in the field of accounting. CPAs are known for the capable performance of such engagements like auditing, preparation of returns, consulting, and financial planning. Achieving this designation denotes a commitment to the profession, helping to further your career.
Meeting the educational requirements
Primarily, this is done by meeting the educational requirements, which usually entail the possession of a bachelor's degree in accounting or a related field from an accredited institution. Because most states require candidates to have completed 150 semester hours of college coursework-more than the usual 120 hours a student actually needs to attain a bachelor's degree-one would normally, therefore, have to pursue additional graduate-level coursework or obtain a master's degree in accounting.
Gaining relevant work experience
Besides qualification of education, relevant work experience has to be achieved. Nearly all states necessitate that the candidates achieve at least one to two-year experience professionally in services under the supervision of a CPA who has achieved licensure. This working experience is vital for achieving those skills that will be needed when undertaking the CPA examination and also while discharging the duties of a CPA.
Preparation for the certification exam
Preparing for the CPA exam involves understanding and studying for the four main sections involved in the test. These include auditing and attestation, financial accounting and reporting, regulation, and business environment and concepts. Each of these sections covers a different aspect of accounting, and thorough preparation for each is what leads to passing this exam. Many candidates seek review courses, study guides, and practice exams to help them study more effectively.
Scheduling and taking the CPA exam
The CPA exam is available year-round at Prometric testing centres. You'll be able to choose from a variety of times that work for you and take one or all sections of the exam at once, based on your preparation and personal preference. The exam is computer-based. It consists of multiple-choice questions, task-based simulations, and written communication tasks.
Passing the CPA exam
There are, in total, four sections in the exam that you have to pass within an 18-month period to get the CPA license. The scaled grades will be there for all these sections, and you must have a minimum mark to enable you to pass it. Passing this exam would prove one's knowledge and competency in accountancy.
Licensure to practice as a CPA
After taking the CPA examination, you will apply for your license in the state in which you wish to practice. Requirements for a CPA license vary from state to state - the additional requirements may be in the form of taking additional ethics exams or even background checks. Make sure that you research all the specific requirements for your state so that you will be able to become a licensed CPA accordingly.
The bottom line
The steps involved in becoming a certified public accountant include fulfilling the educational requirements, accumulating relevant work experience, studying for and passing the CPA exam, and licensure. These steps, if followed and the process understood, will lead you through reaching your goal of becoming a certified public accountant and further your career as an established professional in the accounting field.
