AT-502 What Is a CPA & What Does a CPA Do? A Certified Public Accountant Life – Multi Man Moves
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What Is a CPA & What Does a CPA Do? A Certified Public Accountant Life

what is a cpa

Licensed CPAs can perform specialized tasks not allowed for general accountants, like representing clients to the IRS. In 2021, I decided to take the next step in my accounting career journey, and I am now a self-employed accounting consultant and business advisor. I was able to put my technical accounting and client service skills to use in working with my own clients. It’s been really interesting to see accounting from another perspective as part of an internal accounting team. I’ve met plenty of great accountants who don’t have a CPA, but in my experience, having the credential really helps to advertise your expertise and makes a difference in your compensation and career options. There are some workplaces that don’t want to consider someone for an accounting role who is not a CPA.

This page covers important information about CPA careers, including responsibilities and qualifications. Obtaining the certified public accountant designation requires a bachelor’s degree in business administration, finance, or accounting. Individuals are also required to complete 150 hours of education and have no fewer than two years of public accounting experience. To receive the CPA designation, https://www.bookstime.com/ a candidate also must pass the Uniform CPA Exam. To become certified, an accountant must have work experience, pass the Uniform CPA Exam, and meet all state licensing requirements. The exam covers their knowledge of business, accounting, tax and auditing. Additionally, CPAs are required to take continuing education courses throughout their careers to stay up to date on laws and regulations.

Why Get Licensed?

For instance, if you run an e-commerce business, then your accountant should have experience with serving online companies. As you run your business, there may be specific instances when you need a CPA’s expertise. For example, if you receive a letter from the IRS notifying you that you’re being audited, or even if it simply requests additional information about your return, you should hire a CPA to represent you. CPAs have experience dealing with the IRS and can help you respond appropriately, supply the information it needs, and resolve the issue as painlessly as possible.

  • Factors influencing CPA income potential include location, industry, experience, and education level.
  • For senior accountants—those with 8-10 years of experience—the average CPA salary is $94,951.
  • No matter how or when you decide you want to be a CPA, the career is one that offers many opportunities for growth.
  • Taking all four parts of the computer-based exam costs an average of $1,000.
  • CPAs must meet eligibility requirements, obtain state licensure, and follow strict principles established by the AICPA.
  • In Texas, only one year of experience in accounting under the supervision of a CPA is required; such experience does not have to be in public accounting.

For instance, typically 150 credit hours or education are required to meet state regulatory agency education requirements for CPA licensure. To earn the CPA license, accounting professionals what is a cpa must have extensive education—at least 150 hours—pass a rigorous four-part exam and meet experience requirements. One important function performed by CPAs relates to assurance services.

Resources for Your Growing Business

Others become a Certified Fraud Examiner and help businesses and government agencies prevent, detect, and investigate fraud. Some work as financial advisors to help high-net-worth individuals manage their financial affairs.

The New Culture of Accountancy: How CPA’s can embrace the techology revolution – Accounting Today

The New Culture of Accountancy: How CPA’s can embrace the techology revolution.

Posted: Mon, 26 Sep 2022 19:32:00 GMT [source]

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