What Does a CPA Do? Tasks, Skills, and How to Become One

Modern CPAs must develop a comprehensive skill set that extends far beyond traditional accounting knowledge. The profession demands both technical expertise and strong interpersonal capabilities. As a CPA, it’s very rewarding to be able to make a direct and positive impact on a business client, especially with a not-for-profit that makes a real difference in our community. I also really enjoy the client education aspect of my work when I can help client accounting team members learn additional skills or be a resource to answer questions and resolve problems. I received my bachelor of business administration in accounting at the Isenberg School of Management at the University of Massachusetts Amherst. The teachers there are wonderful and really prepared me well for a future in accounting.

Our ranking methodologies use data from the National Center for what is a cpa what does a certified public accountant do Education Statistics, education providers, and reputable educational and professional organizations. An advisory board of educators and other subject matter experts reviews and verifies our content to bring you trustworthy, up-to-date information. Certified public accountants (CPAs) have always had to meet specific requirements to qualify for licensure, but new changes to state licensing requirements provide an alternate pathway for some aspiring CPAs. A degree is often required to be an accountant, and the same holds true for CPAs. Some CPAs choose to earn their master’s degree either independently or as part of a combined program with the bachelor’s, which satisfies the additional 30 credit hours.

What industries hire the most CPAs?

May 2024 Bureau of Labor Statistics salary data for Accountants and Auditors reflect state and national data, not school-specific information. More important than your grades in school or how many hours you spend at a desk is whether this type of work interests you. If you don’t mind analytical work, managing complex projects, or thinking strategically about financial challenges, then becoming a CPA might be the right career choice for you. Potential work environments include nonprofit groups, companies, and government agencies. I am an extrovert, which many people don’t think of as a typical characteristic of an accountant, but I find it helpful in establishing a bond with my clients.

Generally, requirements include at least 2,000 hours of professional experience. In many states, you must also accrue those hours within a specific time frame. This designation allows you to certify financial statements for the SEC, represent clients before the IRS and sign off on audits.

CPAs can also improve their earning and leadership potential with professional certifications, such as the certified fraud examiner, certified internal auditor, or certified management accountant credentials. All states require at least one year of accounting experience to obtain licensure. Again, you’ll want to check with your state board of accountancy to see what type of experience you’ll need, the exact amount of hours and if part-time work is accepted. All CPAs must have a bachelor’s degree and 150 semester (225 quarter) hours. However, the specific amount of upper-level accounting courses, business courses, and other requirements are left to individual states.

• After meeting the education, examination and work experience requirements, you can apply for CPA licensure with your state’s board of accountancy.
• CPAs are required to take continuing education courses every year to keep up with changing tax laws, regulations, and accounting standards.
• May 2024 Bureau of Labor Statistics salary data for Accountants and Auditors reflect state and national data, not school-specific information.

Business Valuation & Financial Planning

I have been lucky to have a lot of long-standing, wonderful client relationships. As a CPA, I find it can, at times, be challenging to manage various competing projects and deadlines. Also, especially during the unusual COVID-19 times, it was challenging to find the optimal balance between personal and professional priorities.

The process of becoming a CPA typically begins with earning a bachelor’s degree in accounting. To become a CPA, you need more education, experience, and credentials, which makes it more time-consuming and costly than becoming an accountant. However, CPAs can pursue higher salaries and more advanced professional opportunities than accountants. It typically takes about 5-8 years to become a CPA, including four years for the bachelor’s degree, possible 1-2 years for the extra credits, and 1-2 years for the experience component. Every state has its own licensing guidelines in regards to professional experience, but they typically require 1-2 years worth of full-time experience within a three- to five-year period of time.

The following organizations can help you as you work toward CPA licensure and move throughout your career. Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact… Some states require CPA candidates to be at least 18 to 21 years old, and a few require that you’re a citizen or permanent resident. NASBA has unveiled a new system to assist candidates in the Exam process. This new system was brought online to assist with the future changes to the CPA Exam with Evolution.

• Yes, CPAs can work internationally, though additional certifications or qualifications may be required depending on the country.
• A CPA offers audit and review services to ensure proper financial and accounting data is captured and reported.
• After completing his master’s in English at York University, he began his writing career in the higher education space.
• A CPA can prepare and file tax returns at local, state, and federal levels.
• Before joining the Forbes Advisor team, his work was regularly featured on Red Ventures’ higher education websites, including NurseJournal.com, BestColleges.com, and Psychology.org.

The 2023 average CPA salary was $96,7523, though the average range is between $60,874 to $150,6124. Accountants without a CPA license tend to earn less with an average range between $47,138 and $82,167. Whether you need to obtain your initial CPA license or are a licensed CPA needing to practice in a new location, we’ve outlined the steps you need to take.