How Should You Prepare for Becoming a CPA? Three Important Facts
Did you know that New York State first issued the exam for becoming a Certified Public Accountant in 1896? Today, this exam is standard, and a requirement for anyone who wants to become a public accountant in the country. If you are thinking about becoming a cpa, there are several things you should know about what you need to do, and what to expect from the job. Here are three important facts that everyone should be aware of.
1. CPA Certification Requirements
With the exception of California, all states require anyone who wants to take the exam to have at least 150 hours experience with accountancy. This usually translates to a master’s degree in accounting. The exam itself then tests on the laws of contract and agency, federal laws, and general principles of state laws. Many states then require work experience before one can practice accounting with their license. Most state boards also now require applicants to take an examination on ethics, which amounts to about a fifth of the exam. Of all the CPA requirements, the test is often the most difficult part, as more than 50% of those taking it end up failing.
2. What Exactly Does a CPA Do?
The majority of CPAs work in public accounting. This means conducting compliance audits, offering advisory services, or auditing financial statements. CPAs often help people with tax preparation and advice, and they will often be sought out for their expertise in this area. There are many other areas that Cpas might be needed, such as in international accounting, forensic accounting, and information technology. CPAs are trained to organize financial information quickly and effectively.
3. Are You Completely Finished After School?
Nope, CPAs require ongoing training for every year they remain certified. In most states, accountants are required to take 120 years of CPE, or Continuing Professional Education, every year, with at least 20 hours taking place each year. This requirement can be completed in multiple ways, including live seminars, self study, or webcast seminars. CPA training might also take the form of more courses in ethics, as is required in many states, although not all.
How far along are you with CPA requirements? Let us know in the comments Check out this website for more.