“Unlocking a Career as a Certified Public Accountant (CPA): Your Guide to Success”

Introduction

When we think of accounting, the first career that comes to our mind is Chartered Accountant (CA). However, there are many other careers in accounting that one can explore.

Certified Public Accountant (CPA) is one such career. Certified Public Accountants (CPAs) play a crucial role in managing finances, ensuring compliance with laws, and providing valuable advice to businesses and individuals.

A career as a Certified Public Accountant (CPA) is an excellent choice for those interested in finance and business.

Who is a Certified Public Accountant?

A Certified Public Accountant (CPA) is a trusted financial expert who is licensed by the state.

Certified Public Accountants (CPAs) are trained to handle taxes, conduct government audits, represent clients with the IRS, handle bookkeeping, and offer financial planning.They can work for big companies, small businesses, nonprofits, or as independent advisors for individuals and local groups. They are qualified professionals who help people and businesses manage their money. 

Career Scope as a Certified Public Accountant

The demand for CPAs is increasing in India, especially with the rise of multinational companies and the Big Four firms, which need expertise in U.S. GAAP, IFRS, and U.S. taxation.

According to the Bureau of Labor Statistics, accountants and auditors are expected to see job growth of 6% from 2018 to 2028, which is on par with the national average.

CPAs are recognised as top professionals in this field, giving them good job stability and plenty of career opportunities.

Getting a CPA qualification opens up great career opportunities in public accounting firms, corporate finance, and government agencies.

Role & Responsibilities of Certified Public Accountant

A Certified Public Accountant’s primary role is to manage finances by checking clients’ financial status, reviewing documents, preparing reports on money, taxes, and audits, giving advice on bookkeeping, and updating clients about new government rules.

Some of their other responsibilities include:

  • Assess clients’ financial status.
  • Analyse financial papers for accuracy.
  • Create reports on money, taxes, and audits.
  • Guide bookkeeping and financial practices.
  • Inform clients about new government rules and regulations.
  • Help clients with tax planning and filing.
  • Review and verify financial records for accuracy.
  • Discussions with clients to find issues and help them run their businesses better.
  • Provide expert opinions in legal cases like bankruptcies, mergers, or divorces.
  • Guide clients on how to invest their money wisely.

Employment Scope Career Options for Certified Public Accountants

The employment scope for Certified Public Accountants (CPAs) is vast.

They have job opportunities in corporate finance and accounting departments, government agencies, non-profit organisations, financial institutions, IT and consulting firms, manufacturing and retail, telecommunications companies, healthcare organisations, entertainment and media, real estate and construction, energy and utility companies, etc.

Many companies hire Certified Public Accountants to manage finances. Top companies include Amazon, Accenture, Deloitte, PricewaterhouseCoopers (PwC), KPMG, Ernst & Young (E&Y), Flipkart, Wipro, TCS, Infosys, Unilever, etc.

Salary Range

The average annual salary of a Certified Public Accountant in India at the starting level is 6 to 8 lacs. CPAs working outside India can earn 10 to 15 lacs per annum, depending on the country and the company’s pay structure.

The overall package depends on the company size, industry type, location, and experience.

Skills Required to Become a Certified Public Accountant

Certified Public Accountants (CPAs) need a mix of educational background, technical skills, and personal qualities.

A bachelor’s degree in accounting or a related field is essential. This provides you with a foundational knowledge of financial principles and regulations.

Apart from education, strong communication and interpersonal skills, analytical thinking, research skills, attention to detail, problem-solving, organisational skills, teamwork, leadership, integrity, and ethics are also required to excel.

Eligibility Criteria

The requirements for the CPA course are different for U.S. citizens and international candidates. International candidates have specific agreements, testing fees, and ID requirements that differ from those for U.S. candidates.

Listed below are the eligibility criteria:

  • A graduation degree or something similar to apply for the CPA certification program.
  • To get your CPA license, you must complete 150 hours of coursework.
  • Many states also require 1 to 2 years of work experience under a CPA.
  • Indian students should be members of ICAI, ICMAI, or ICSI. They can also hold an MBA or MCom degree.

Exam Structure and Pattern

The CPA exam is a 16-hour test split into four parts, designed to check the skills needed to be a CPA. It’s taken on a computer at testing centers worldwide, and the questions are all in English.

The exam includes multiple-choice questions, simulations, and written sections. You need a score of 75 to pass, and you must finish all four parts within 18 months to get your CPA license. Registration is always open, so candidates can sign up anytime.

The exam includes the following papers:

  • Paper 1 — Auditing and Attestation (AUD)
  • Paper 2 — Financial Accounting and Reporting (FAR)
  • Paper 3 — Regulation (REG)
  • Paper 4 — Business Environment and Concepts (BEC)

 

The exam has three sections: multiple-choice questions, written communication, and task-based simulations. The duration is 4 hours for each paper.

The American Institute of Certified Public Accountants (AICPA) sets the weight for each topic on the exam.

 

Section

AUD

BEC

FAR

REG

Multiple-choice questions (MCQs)

50%

50%

50%

50%

Written Communication Tasks

NA

15%

NA

NA

Task-Based Simulations

50%

35%

50%

50%

 

How to Become a Certified Public Accountant?

The CPA course is a worldwide certification managed by the American Institute of Certified Public Accountants (AICPA). It is one of the most sought-after careers, considering the strong demand for skilled accountants and the diverse job opportunities available in various industries.

Steps to Become a Certified Public Accountant (CPA):

  • Complete Your Bachelor’s Degree: Completing graduation is the first step towards becoming a CPA. You can complete your bachelor’s degree in Accounting, Finance, or a related field. This gives you basic knowledge of accounting and business practices.
  • Pass the CPA Exam: Take and pass the Uniform CPA exam, which has four parts: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and Business Environment & Concepts (BEC). Each part tests your skills in accounting.
  • Gain Work Experience: You usually need one to two years of work experience in public accounting under a licensed CPA before you can get certified. This hands-on experience helps you apply what you’ve learned in school and gain practical skills.
  • Apply for Certification: You can apply for certification once you complete the education, clear the exam, and gain relevant experience. This process includes proving your qualifications, paying a fee, and getting approval from the accounting board.

Subjects and Syllabus

The CPA certification exam has four papers, each covering different topics.

Paper

Topics Covered

Auditing and Attestation (AUD)

•     Identifying potential risks and creating a plan to address them.

•     Drawing conclusions based on the evidence and sharing the results.

•     Understanding and following ethical guidelines and professional duties.

•     Carrying out additional checks and gathering proof to support findings.

Financial Accounting and Reporting (FAR)

•  State and Local Governments

•  Conceptual framework, standard-setting, and financial reporting 

•  Financial Statement Accounts

•  Select transactions 

Regulation (REG)

•  Business Law

•  Ethics, professional responsibilities, and federal tax procedures 

•  Federal taxation of individuals 

•  Federal taxation of property transactions 

•  Federal taxation of entities

Business Environment and Concepts (BEC)

•  Financial Management 

•  Operations Management 

•  Information Technology 

•  Economics

•  Enterprise Risk Management, Internal Controls and Business Processes

Final Thoughts

A career as a Certified Public Accountant (CPA) offers great opportunities for growth and stability in the finance field. With a strong demand for skilled professionals, CPAs can enjoy diverse roles and rewarding experiences. If youre passionate about numbers and helping others manage their finances, pursuing a CPA career can be a smart choice.

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