Certified Public Accountant

What is a certified public accountant (CPA)?

A Certified Public Accountant (CPA) is a  given to qualified accounting professionals. The CPA license is granted by each state's Board of Accountancy, and resources for earning the license are given by the American Institute of Certified Public Accountants (AICPA). This designation ensures high professional standards in the accounting industry.

Who are certified public accountants (CPAs)?

Not all accountants are CPAs. The CPA credential signifies a commitment to excellence, expertise, and skill, distinguishing its holders. CPAs perform various accounting tasks, such as creating accurate financial reports for organisations and individuals and managing tax filings. They also provide advice on tax strategies and ways to maximise profitability for both individuals and businesses.

To become a CPA, you need a bachelor’s degree in business administration, finance, or accounting. Additionally, you must complete 150 hours of education and have at least two years of public accounting experience. Passing the Uniform CPA Exam is also required to earn the CPA certification.

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Benefits of being a CPA

The CPA designation is the most widely recognised professional accounting credential, offering numerous career opportunities and several benefits:

  1. Higher Earnings: CPAs typically earn more than non-CPAs with similar training and experience. For example, CPAs with one to three years of public accounting experience earn an average annual salary of $70K+, compared to $50K+ for their non-CPA counterparts, according to Glassdoor.
  2. Increased Job Opportunities: CPAs have access to a range of employment opportunities in public accounting firms, for-profit organisations, private companies, and government institutions.
  3. Sense of Accomplishment: Passing the CPA Exam is a significant achievement, demonstrating that you have the skills and knowledge to succeed in the field. The exam is challenging, with only about 52% of first-time test takers passing all four sections.
  4. Credibility: As a CPA, you gain credibility as a trusted financial and business advisor. This credibility reassures clients of your expertise and builds their confidence in your judgment.

Key points

  • A CPA is a professional title for qualified accountants.
  • Becoming a CPA requires passing the rigorous Uniform CPA Exam.
  • Candidates need a bachelor’s degree in business administration, finance, or accounting, 150 hours of coursework, and at least two years of public accounting experience.
  • CPAs often hold executive roles, such as controller or chief financial officer (CFO), in both public and corporate accounting sectors.

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Fun fact about CPAs

Did you know that the CPA credential dates back to 1896 in the United States? New York was the first state to issue CPA licenses, setting the standard for accounting excellence and integrity that continues to this day.

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