Becoming a CPA is challenging. It’s difficult to meet the various state requirements, and passing the test is one of the most challenging obstacles you will encounter. Said my former co-worker: “It was the worst experience of my life.”
I’m not here to tell you that becoming a CPA is easy. Some people don’t have hundreds of hours to pour into studying because of family life, work, or other reasons. Others simply seem have intellectual strengths in other areas. It’s not for everyone.
But if becoming a CPA is in your future, you are in luck.
The financial benefits for a CPA are clear. CPAs often make more money for the same job than they would if they did not hold the license, and it routinely enables them to secure jobs they would not be able to get without it. According to the AICPA, CPAs earn 10-15% more than non-CPAs working in accounting-related jobs. Other studies have shown the gap as high as 41% between the certified and un-certified. “For younger job applicants in particular, meeting the requirements to become a CPA represents discipline and initiative to me,” says Doug Rebok, Senior Vice-President and Chief Financial Officer of Adventist Health, a health-care provider with approximately 19,000 employees. “CPAs are often more apt to do a good job for what I’m hiring them for and a have a greater likelihood and ability to advance within the organization.”
Regardless of what area of accounting you go into, the CPA title will, above all other designations, separate you from the rest of the field. If you work in public accounting, you will absolutely get preferential treatment for being a CPA. Many titles and levels in your firm will be unattainable without it, and as a result your pay will have a much lower ceiling.
If you choose not to go into public accounting, the benefits of being a CPA could be even greater. Being a CPA instantly gives you credibility, arguably more so than its three-letter counterpart—the MBA. The CPA title speaks not only of your work ethic and professional experience, but of a certain level of mental aptitude. The vast majority of the population is capable of earning a business degree, but the same cannot be said for earning the Certified Public Accountant designation.
Whether you are applying for a role in finance, accounting, marketing, production, or administration, being a CPA is a sign of intelligence and expertise. For companies trying to determine the best applicant, it gives them an objective measurement of your capabilities where question marks exist for your competition. In addition, companies desperately want and need the counsel of CPAs for tax and legal advice, and the opportunity to employ one in-house can be very attractive. The result? Excellent job security, good pay, and plenty of respect from both co-workers and friends.
Becoming a CPA is not for everyone. But if better pay, a more desirable position, and job security are important to you, I recommend you grab a book and start studying.
Andrew Lee operates the website www.CPAreviewmaterials.com. Contact him at andrew@CPAreviewmaterials.com or follow him on Twitter @CPAstudy.
FAQs
The financial benefits for a CPA are clear. CPAs often make more money for the same job than they would if they did not hold the license, and it routinely enables them to secure jobs they would not be able to get without it. According to the AICPA, CPAs earn 10-15% more than non-CPAs working in accounting-related jobs.
Can you be a member of the AICPA without being a CPA? ›
AICPA Membership - Affiliate. This membership is for those who do not possess a CPA license but have deep involvement in accounting or finance.
Should I be an AICPA member? ›
When you join the AICPA, you'll have access to the latest news, technical insights, quality CPE, partner offers, volunteer opportunities and advocacy. Most importantly, you'll be connected to more than 696,000 of your peers who broaden prosperity and drive the profession forward.
Can AICPA revoke CPA license? ›
No. The AICPA cannot revoke a member's license, only the applicable state licensing board can.
What is the difference between a CPA and AICPA? ›
The American Institute of Certified Public Accountants (AICPA) is a non-profit professional organization representing certified public accountants (CPA) in the United States.
What are the benefits of joining the AICPA? ›
AICPA Benefits Include
- Insurance and discounts. Savings and options for insurance, 401(k) plans, travel, tech, office supplies, shipping and more.
- News and publications. Magazines and newsletters about the latest developments in the accounting profession.
- Professional development. ...
- Community. ...
- Advocacy.
BPC section 5079 permits minority ownership of a public accounting firm by individuals who are not licensed CPAs or PAs. The number of licensed partners as owners must be greater than the number of unlicensed persons. The only exception is that a firm with two owners may have one owner who is a non-licensee.
Is being a CPA impressive? ›
The CPA credential alone will separate you from non-CPAs with well-earned knowledge and expertise. By completing years of academic training, rigorous testing, and extensive work experience, CPAs are considered the gold standard of accounting.
How hard is the AICPA? ›
About half of the individuals who take the CPA Exam don't pass on their first attempt. According to the AICPA, the national average pass rate is 45-55%.
How much does it cost to join the AICPA? ›
Advance (Partner) tier: $999 annual dues
This membership is for CPAs who hold a current and valid license or who previously held a license in good standing.
Under ET Section 1.000. 020, the CPA's responsibility to maintain the confidentiality of client information would not allow disclosure of the suspected fraudulent activity to third parties unless the client consents.
Does AICPA issue CPA license? ›
The California Board of Accountancy is the state agency in charge of licensing CPAs.
Can a CPA be a whistleblower? ›
The AICPA Code does allow whistleblowing by the CPA and permission to comply with an enforceable subpoena, applicable laws, or with AICPA or state society obligations. It is important to note that because the Dodd-Frank Act is a federal law it takes precedence over state laws and confidentiality restrictions.
Can you be a member of the AICPA if you are not a CPA? ›
In an increasingly competitive marketplace, giving your employees every edge possible is more important than ever. The AICPA understands this. For the first time, all financial, accounting and law professionals can unlock new opportunities by becoming AICPA Non-CPA Associate members.
How prestigious is a CPA? ›
A CPA license is considered very prestigious: The CPA license is the most widely recognized professional credential in the accounting industry.
Does the AICPA grade the CPA Exam? ›
The AICPA uses scaled scoring to evaluate candidate performance on the CPA Exam. A scaled score is only used when there is a chance of differences in difficulty in various segments of the exam.
Can you be called an accountant without a CPA? ›
Not all accountants are CPAs (certified public accountants), but all CPAs are accountants. Typically, an accountant has achieved a bachelor's degree in accounting. A certified public accountant earns this designation after completing specific educational and work requirements and passing a CPA exam.
How do you qualify for AICPA? ›
A baccalaureate degree or higher conferred by a degree-granting college or university (or foreign equivalent evaluated by a California Board of Accountancy-approved foreign academic credentials evaluation service) accredited by a United States regional institutional accrediting agency or national accrediting agency.
Is AICPA for public or private? ›
The AICPA was founded in 1887 and upon its creation, established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, licensing status and a commitment to serving the public interest.
How to obtain AICPA? ›
To become a licensed Certified Public Accountant (CPA), you must meet the education, examination, and experience requirements. All candidates must pass the Uniform CPA Examination ® (CPA Exam), which consists of three four-hour Core sections and one four-hour Discipline section of your choice.
