Steps to Become a CPA
CPAs often make a lucrative salary package and are in high demand in the employment market. All sizes of businesses require their services. As a result, CPAs are free to pursue advanced positions that suit their inclinations.
A CPA is a certified professional who provides accounting and financial management services. Their primary responsibilities include preparing financial statements and tax reports, conducting audits, and counseling companies or clients on financial decisions.
The path to becoming a CPA begins with a bachelor’s degree and culminates in obtaining a CPA license. Candidates must pass a rigorous four-section examination called the Uniform CPA Examination. This guide discusses the complete CPA journey in detail.
Steps To Become a CPA
There are three major requirements to become a CPA: a certain degree of education, work experience, and passing the CPA exam.
These three essential requirements are called the “3 E’s.”
1. Education
2. Experience
3. Exam
Step 1 ( Complete a Bachelor’s degree): Applicants require a bachelor’s degree and a minimum of 150 credit hours of coursework for CPA certification. If you major in another topic, your state’s accounting board will require you to complete a minimum number of accounting-related credits.
Step 2 (Consider Postgraduate Study): A master’s degree could increase your chances of passing the CPA exam. The CPA Journal reports that first-time test applicants with master’s degrees have significantly greater pass percentages than those with only bachelor’s. According to data from 2019, 58.3% of first-time test-takers with graduate degrees passed their exams. In contrast, 48.8% of bachelor’s degree holders passed the exam.
Step 3( Complete the CPA Exam): All U.S. jurisdictions require candidates to pass the American Institute of Certified Public Accountants CPA examination (AICPA). The examination has four sections. In most states, applicants must pass the remaining three 18 months after passing the first portion.
Step 4(Obtain Your License): The post-exam procedures for getting a CPA license vary by state. In many jurisdictions, accountants who have passed the CPA exam must have at least one year of professional experience. In addition, several state accounting boards need specific expertise, such as auditing.
Step 5( Renewal and Maintenance of Licensure): States often mandate that CPAs renew their licenses every one to two years. Continuing education is typically a prerequisite for renewal. In many countries, continuing education programs must incorporate a certain percentage of professional ethics-related material.
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