CPA full form is Certified Public Accountant in the accounting profession. It is a professional accountant license in the United States that has been certified by a state board of accountancy. Becoming a CPA is a sign of credibility and skill in accounting.
CPAs have many job opportunities in the financial sector. They can operate as dependable financial counselors, business consultants, accountants, auditors, and tax specialists because of their comprehensive understanding of accounting and ethics. They are eligible to hold high-level executive roles.
The CPA credential instills confidence and trust in the corporate sector. CPAs earn higher pay, are more widely accepted in the global economy, have more career prospects, have more job security, and are highly regarded by the public.
Prerequisites for Getting a Certified Public Accountant Certificate in 2022
To obtain the popular CPA license or accreditation, you need to initially:
- Pass the Uniform Certified Public Accountant Examination. This examination is regulated by the American Institute of Certified Public Accountants (AICPA) in cooperation with the National Organization of State Boards of Bookkeeping (NASBA).
- Fulfill the educational needs established by your state’s board of book-keeping.
- Complete the professional experience required by your state’s board of accountancy.
7 Easy Steps to Becoming a CPA Certified Public Accountant in 2022
The CPA Exam is just one of the most challenging examinations to analyze a candidate’s ability to practice accountancy.
As previously stated, the AICPA conducts it in collaboration with NASBA.
Given the low qualifying rate for the CPA test, we may conclude that only the most hardworking and motivated persons qualify for this exam. So, do you want to be among a fortunate couple who pass this four-section tough exam? Allow us to walk you through the 7-step process of becoming a CPA.
1. Verify your eligibility
Each state board of accountancy has its own set of eligibility standards. As a result, aspirants regularly inquire about becoming to be a CPA in their respective states, such as Florida, California, Texas, or Colorado, to name a few. You will not be able to take the test unless you fulfill the jurisdiction criteria in the jurisdiction where you intend to register as a licensed CPA.
Please go here (NASBA or AICPA) and choose your state or jurisdiction to determine your eligibility. You will find relevant information including educational prerequisites, transcripts to be provided, and your state board’s residence requirements.
Before applying, please check that you satisfy all of the prerequisites. If the state board determines that you are unqualified, your application will be rejected.
The following are some requirements shared by most state boards:
– A bachelor’s degree or a minimum of 120 to 150 credit rating hours of research from an approved and recognized university.
– A minimum of 24 credit scores hours in audit, as well as business-related courses, is required.
International applicants can use the NASBA’s Internal Evaluation Services to determine their eligibility. Choose a jurisdiction that engages in international administration.
2. Submit your application and your transcripts.
After confirming your eligibility with the applicable state board, you can begin the CPA application procedure. Please remember that you can’t take the CPA examination in more than one state simultaneously.
*Send your application along with the application cost ($150) using NASBA’s certified public accountant Central website.
- Decide which state or jurisdiction you want to exercise as a CPA.
- Submit your scholastic records to your state board of education. Please mention all kinds of universities, private institutes, and area colleges you have ever participated in.
3. Obtain an Authorization to Test (ATT) and a Notice to Schedule (NTS)
You will receive an ATT after the board has approved your application. The state board issues the ATT to NASBA and the qualifying applicants
The ATT allows applicants to sit for certain CPA test portions. It is suitable for 90 days.
- Choose which CPA test components you want to take.
- Please keep in mind that you can only sign up for the portions you want; you can pay within 90 days.
- After you’ve decided on the exam portions, visit the NASBA website and pay the money.
- The fee structure differs amongst state boards. It will cost you roughly $1100 on average (for all sections). Visit the NASBA website for additional information on the pricing structure. To access the state board’s website, select your jurisdiction. Then, choose Exam Fees.
- Upon receipt of the payments, NASBA gives the Notice to Set Up (NTS), allowing you to schedule the test within 6 months.
- It will take around 3–6 weeks from payment to obtain your NTS
4. Select a testing location and schedule the CPA exam
NTS is the prior permission required to take the exam. After receiving the NTS, you can plan the time and location for taking the test portions (as approved by the ATT) based on your preferences and availability.
- Browse through the Prometric Testing Center site for a listing of examination facilities. To set up the examination, input the jurisdiction, test section ID, choose testing facility location.
- Regardless of where you got your eligibility, you can arrange and take the exam in your preferred state.
- Arrange the exam as soon as you obtain the NTS, however, no later than five days before the test date.
- You can reschedule the exam, however, you must pay a rescheduling charge to Prometric.
- International applicants must check availability before selecting a Prometric location outside the United States.
- You must bring the NTS to the test center on the testing day; otherwise, you will not be allowed to take the exam.
- The CPA Exam Testing Window methodology has been replaced with the continuous testing paradigm, according to NASBA. Unlike the previous screening home window technique, which needed you to take the test only during the designated duration, you can take the examinations throughout the year under this model
Please remember that passing this examination is not called for by all state boards.
5. Prepare well and take the test
Remember one of the United States Founding Fathers, Benjamin Franklin, and his famous quote, “By failing to prepare, you are preparing to fail.” Understand the exam structure and methodology fully to take advantage of it.
6. Pass the Ethics examination
The final stage is to pass the ethics examination. Please keep in mind that passing this exam is not required by all state boards. So, consult with your state’s board of accounting.
- You need to take the principles test within 2 years of your permit after finishing the 4 sections of the CPA test
- The AICPA Professional Ethics self-study course and test are accepted by some state boards. However, many organizations have their own ethics exam, so you’d have to pick a system that meets their standards.
- Take the AICPA Ethics examination, register in the course, as well as obtain a values book. Go through the same process and also take the examination. It is pretty simple in comparison to the significant CPA test.
- You’d be required to answer 40 multiple-choice questions
- Please keep in mind that you only have three chances to pass this exam. The passing grade is 90 points.
7. Obtain the License
Apply for your CPA permit when you have passed your ethics exam. Work experience requirements for obtaining permission vary by state, ranging from 6 months to 2 years.
A licensed CPA must verify the experience credentials.
To sign off as a CPA on your experience need, you can make use of NASBA Experience Verification services. Most states demand at least two years of public accounting experience. Many states recognize experience from non-public accounting professions, but with a greater experience count.
Some jurisdictions, however, have a two-tier system in which the license is granted in stages. While passing the exam will provide you with the request, you will not practice until you have met the experience requirements.
After receiving your permit, you will certainly call on your own as a CPA. The way to become a “CERTIFIED PUBLIC ACCOUNTANT” in 2022 has countless layers as well as sub-layers. Careful preparation, hard effort, and consistency are three things that can help you master this challenging exam.
Certified Public Accountant Test framework
The test lasts sixteen hours (four hours for every area). The four components of the CPA test are as follows:
- Attestation and auditing (AUD)
- Business Concepts and Environment (BEC)
- Financial Accounting & Reporting (FAR)
- Legislation (REG)
Resources
Please refer to the AICPA’s CPA Exam Blueprints to thoroughly understand each portion of the exam’s content, organization, and presentation. The blueprints encompass every aspect, including topics addressed in each segment, skill levels, question styles, score weights, and reference resources to be used.
AICPA provides sample papers for each test segment so that applicants may learn more about the exam methodology. You may also enroll in review classes and use famous CPA preparation materials.
Test grading
To pass the CPA examination, you have to get a score of at least 75 in a range of 0 to 99. Please remember that you must complete all four CPA test components within 18 months. The 18-month timeframe begins from the date you pass the first part test. It may, nevertheless, vary relying on the jurisdiction
How should I approach the exam?
- Create a thorough study plan.
- Make use of current and appropriate study resources.
- Research the test method, requirements, content, and grading system.
- Maintain motivation and confidence throughout the learning process.
- Finally, have faith in yourself.
Maintain clarity about your State Board of Accountancy standards, avoid feeling overwhelmed, and keep your priorities in order. Furthermore, obtaining a CPA license is not the end of the process. You must keep your license current by participating in Continuing Professional Education (CPE). The AICPA and also NASBA will help you in the process.
The route to becoming a CPA may appear long, but it will be well worth it!
For more information on the CPA course and its required skills, please feel free to Contact Simandhar Education @ +91 7780273388 or mail us at info@simandhareducation.com.