We write a lot about CPA salaries, CPA skills, CPA specializations and the CPA exam here, but what about the basics? What is the CPA, what do CPA jobs actually entail and how can you become one? Read on to find out.
The CPA is a certification held by more than 650,000 accountants, according to the National Association of State Boards of Accountancy (NASBA). Informally, a CPA, or certified public accountant, is also the person holding the certification.
CPAs are accountants who have met strict educational, testing and on-the-job requirements. They are certified to occupy financial positions at organizations ranging from startup ventures to nonprofits to multinational corporations. As the business environment grows in complexity, so does the demand and the career options for these trusted advisers.
CPA jobs and specializations
On the most basic level, CPAs keep and inspect financial accounts for companies, governmental entities and individual clients. The CPA license isn’t required for corporate or private accountants, but it is for public accountants, who work either solo or for companies that provide accounting services to others.
Some CPAs choose to specialize in areas such as these:
- Financial analysis — The job of a financial analyst is to support business growth by analyzing financial data, preparing reports, interpreting data affecting investment programs and helping management make informed decisions.
- Internal auditing — Internal auditors analyze and report on company financial records and operations by examining risk management issues, financial data and operations, and control processes. Many employers favor a CPA certification for this role, but the globally recognized certified internal auditor (CIA) designation is more likely to be required.
- Information technology auditing — Combining the IT and accounting disciplines, IT auditors examine the technological infrastructure of companies, testing systems to ensure security, accuracy and compliance with regulations.
- Tax accounting — Duties of a tax accountant range from maintaining tax records and completing tax returns to guiding companies in tax strategies, compliance, and tax laws and regulations.
- Management accounting — Accounting managers prepare budgets and financial documents, evaluate and refine accounting procedures, and consult with a company’s management teams to help them make good business decisions.
First steps to becoming a CPA
Most simply, becoming a CPA requires specific education and passing a state CPA exam. Regulations vary by state, and the requirements for each jurisdiction are different, but most state boards of accountancy call for 150 semester hours of instruction, which is 30 hours beyond a typical four-year bachelor’s degree. Some states also stipulate advanced coursework in subjects such as financial reporting, taxes, auditing and other non-accounting business areas.
For those who plan to pursue CPA jobs, at least a bachelor’s degree is required, typically in accounting, finance or business. But it doesn’t have to stop there. Many CPAs earn a master’s degree in business administration or pursue an accelerated five-year accounting program.
Before you pursue any of the many CPA jobs, read these blog posts:
- Private vs. Public: Choose Your Accounting Career Path — The demand is great for both types of accounting, with salaries on the rise. But as you’ll read in this post, there are differences between the two, from the daily routine to job titles to salaries.
- CPA vs. CMA? Which Is the Best Certification for You? — It’s not a matter of which certification is better, but which one fits your career path. Discover the differences in requirements, exams, perks and salaries in a side-by-side “CPA or CMA” summary in this blog.
- 3 E's to Excellence on the Career Path to CPA — Before accountants add those three letters to their names, they should learn about the three E’s that will guide them to a career as a CPA: Education, Exam, Experience.
