A Certified Public Accountant (CPA) is a very prestigious designation and requires hard work. A CPA is a financial advisor that provides financial assistance and advice to individuals, businesses or any other type of organization. A CPA is an accountant, but all accountants do not have the CPA designation. Becoming a CPA requires specific degrees, study and examinations. Each of the states and five jurisdictions have specific exam requirements that have been set by the state’s Board of Accountancy, so a person interested in becoming certified in their state should check the CPA exam requirements where they reside. The person interested in how to become a CPA should know a few basics.

Certified Public Accountant

There are several steps a person has to take before earning a CPA designation. The State Board of Accountancy wants to ensure that the individual has attained levels of competency in areas such as education, knowledge of accounting, training, experience, ethical practice and exhibiting a commitment to being an accountant.

CPA Requirements – Education

In every state except Delaware, a person must have acquired a minimum of a Bachelors degree to be able to take the CPA examination. Delaware will allow a person with an Associate degree take the examination. Some states require that the person have a Masters degree as a prerequisite for becoming a CPA.

Not all states require the person sitting for the examination to have a degree in accounting, but most suggest that the person have accounting classes. Most states require a minimum of 150 semester hours of college courses. Again, Delaware requires only 21 semester hours of basic accounting courses for CPA exam requirements. Several states require accounting degrees, and some states also look for completed coursework in business law, ethics and auditing.

The minimum age requirement to take the CPA examination is generally between 18 and 21 for most states, and a few states want the person taking the exam to be a US citizen and resident of that state.

Taking the CPA Exam

The CPA exam is one of the hardest examinations for professional designations, and only around 50 percent of the people taking it will pass it on the first try. Even though the rules for CPA exam requirements can differ by state, the same examination, called the Uniform CPA Examination, is used by every state. The exam is administered by an accounting professional organization, AICPA, and consists of four parts. A person intent on becoming a CPA can take the entire test at once, or can take each section separately in any order.

•Auditing and Attestation – this section is 4.5 hours long

•Business Environment and Concepts – this section is 2.5 hours

•Financial Accounting and Reporting – this section is 4 hours

•Regulation – this section is 3 hours

The examination is computer-based, and is very comprehensive, covering law, taxation, business and other areas of accounting rules and regulations. Many people join study groups and review courses to increase their chances of passing the exam. In order to qualify for a CPA designation, all portions of the examination must be passed with a minimum of 75 percent correct answers.

Ethics Examination

Once the individual passes all sections of the CPA exam, they must also take an Ethics Exam. The majority of states will allow a person to take the Ethics exam before they pass the CPA exam. New York does not require the exam, and other states may have different rules, so it pays to check in advance about the requirements state by state. Most states use the same AICPA organization to administer the Ethics exam and though it is not very difficult it does require a 90 percent score to pass.

The coursework can be taken online or as a correspondence course and focuses on a Code of Conduct for the industry. The course is 11-hours and comes with practice tests. It is beneficial to go through the entire course since skipping areas could result in failing the course since such a high correct percentage is required. Take time to complete the coursework and the test. The actual exam consists of 40 questions that can be submitted online or through the mail. A person is allowed three chances to pass the exam. For more information, the state where a person resides should be contacted. They will address the timing of the test and other pertinent information according to specific state regulations.

CPA Requirements – Work Experience

The really hard part of obtaining a CPA designation is over if the person has passed all the tests, but the process is not completed yet. Now the pending CPA must obtain relevant work experience in order to be awarded their CPA certificate or license.

Most states will want the CPA candidate to obtain one to two years working experience under the oversight of an actual licensed CPA, not just a person who has a CPA certificate. Check with the state to determine what types of employment qualifies, as some states only recognize experience in a public accounting firm. If the person has passed all their required tests, finding suitable employment should not be difficult, especially since a CPA is a highly desired, difficult to obtain certification.

Public accounting firm jobs can be very stressful and do require excellent skills working with people. They also require great public relations and marketing skills in order to build the clientele. The hours are long but the exposure is excellent. People in public accounting work on a variety of tasks and different projects each day, and the knowledge obtained enhances a resume.

Continuing Education Classes

Like most professional designations, a person with a CPA certificate or license is required to take continuing education classes to keep their licenses up-to-date. Again, each state will have their requirements about how many hours of continuing education will be required and what length of time a person has to complete the study.

How to Become a CPA

A Certified Public Accountant is viewed as highly skilled as a doctor or lawyer. People who understand the criteria to obtain such a designation hold the highest respect for CPAs. A person that is good with numbers and loves helping people with their financial goals can only enhance their education and knowledge by obtaining the designation. A licensed CPA can either work in a large organization or start their own independent, successful business.