career as a cpa

8/7/2019 Career as a CPA

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CAREER AS A

CERTIFIED PUBLIC

ACCOUNTANT

CPA


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Institute Research Number 103ISBN 1-58511-103-1DOT Code 160.162-018O*NET SOC Code 13-2011.01

CAREER AS A

CERTIFIED PUBLICACCOUNTANT

CPACRUNCHING THE NUMBERS AND ADVISINGBUSINESSES AND INDIVIDUALS ON HOW TO MANAGETHEIR FINANCIAL AFFAIRS

BOOKKEEPING, TAXES, BUSINESS ADMINISTRATION; TRACKING DOWN CRIMINALS,

socializing with the rich and famous, testifying as an expert witness;teaching, consulting, training becoming a certified public accountant(CPA) will open a world of career opportunities to you.

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You could open your own practice and become an accountant formany small businesses and individuals. You could find a job at a smallbusiness, or at a large corporation. Your responsibilities could includeevery aspect of the finances, or might be specialized so that you focuson only one aspect of your employers financial situation.

You might become a financial advisor to movie stars or sportslegends, or travel the world helping international companies complywith international trade laws and regulations. Perhaps yourcertification as a public accountant will be a stepping stone to a careeras an FBI agent, or in politics, or as a university professor. Maybe youllgo on to use your financial expertise to branch out as an entrepreneurand start your own successful business. Or you could become aconsultant and offer all-encompassing advice to business owners.

Your expertise will transfer into your personal life, making yourown financial record-keeping easier and more straightforward than itis for many non-accountants.

Whether youre most concerned about excellent earnings, havingthe leisure time to pursue your other interests, or having plenty ofopportunity for career advancement, working as a certified publicaccountant can fulfill your needs. No matter how or where you choose

to practice, you can feel proud that you are fulfilling an absolutely vitalfunction.

Accountants ensure that businesses run efficiently, that they keeptheir public records accurately, and that they pay their taxes in full andon time, thus ensuring that the government and its various servicescontinue running smoothly. Accountants prepare, analyze, and verifyfinancial data but thats just part of their responsibilities. Read on tofind out what a career as a CPA might mean for you.

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HOW TO BEGIN YOUR CAREER SEARCH

SO YOU THINK WORKING AS A CPA MIGHT BE THE PERFECT CAREER FOR YOU?

Before you invest time and money earning a bachelors degree inaccounting or studying for the CPA exam, there are many things you

can do to make yourself feel a bit more certain that this is the rightfield for you to pursue.

Reading this job report is a good first step in making a firmdecision about becoming a CPA. This report will give you some solidbasic information about the career. The aspects which sound mostinteresting are areas where you can do some additional research. Findout if the fun parts are really as much fun as you think they would be,and if the less interesting parts are really as dull as they sound.

How can you do that? Try reading up on accounting fromaccountants perspectives. Surf the Web for sites that can inform you:personal Web sites for CPAs, Web sites for various states CPAassociations, or national CPA associations.

Look at some accounting journals and magazines. While many ofthe articles will probably be quite technical, referring to very specifictechniques, projects, and even legislation that affects CPAs, you may

find other, more general articles that will help you understand what itis like to have a job in this field.

Try talking to some accountants, too. Maybe you have a relativewho works in finances, or maybe you have a friend-of-a-friend whowould be willing to spend an hour or two answering your questions.

If you dont know any CPAs, try looking up local accountants inyour yellow pages directory. We dont recommend contacting any

accountants or CPAs early in the year February through May is theseason when many accountants are very busy working on tax returns but during the other months, you could try contacting one of theselocal accountants, explaining your interest in the field, and making anappointment for a brief interview with this person about what thecareer is really like.

Prepare a list of questions before you talk to an accountant aboutworking in the field. You want to make sure that you cover all the

subjects youre especially interested in learning about, and you alsowant to make sure you dont waste the persons time by trying toremember questions that you didnt write down.

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Hard facts can only take you so far in your investigation, though.Even if a career as a CPA sounds great to you, you need to make surethat you would be a good fit in this career.

You can help decide that by doing some brainstorming activities.

What are you looking for in an ideal career? Make a list of thecharacteristics of your perfect job, and then look over that list and seehow many of those characteristics are related to accounting.

Take a personality test to see if youre suited to be a CPA. Thewww.careers-internet.org Web site has a basic interest assessmenttest. You can also ask your school counselor for a copy of a test likethe Myers-Briggs Type Indicator Test.

Then, after youve gathered all the facts you need and have

determined whether this career would be a good fit for you, you canmake a well-informed decision about pursuing a career as a CPA.

HISTORY OF ACCOUNTING

WHILE THE CERTIFIED PUBLIC ACCOUNTANT DESIGNATION MAY BE RELATIVELY

new, accounting has been around since ancient times. You can even

see depictions of accountants in ancient Egyptian tombs. Egyptiansprepared their accounts on papyrus, keeping track of corn or dates orother crops. Other accountants kept track of tax payments, made notin currency but in the form of linen or oil.

In Mesopotamia, more than one banking firm employed standardmeasures of gold and silver. They even extended credit on occasion. Allof this required keeping accounts. The Mesopotamian accountant wasa scribe who held a prestigious position, writing up transactions and

also ensuring that merchants complied with the laws of the time.

In Sumeria, it was thought that rulers held land and animals intrust for their gods, adding a special reason for accurate recordkeeping. The legal codes even penalized the failure to keep track offinancial or business transactions.

Accounting focused on different purposes in different ancientcultures. In China, accounting evaluated the efficiency of

governmental programs and the civil servants in charge of them, whilepublic accountants in Greece allowed the people in the fifth centuryBC to have some real authority over their governments finances. Tenstate accountants, selected by a lottery, were overseen by the Athens

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popular assembly, controlling the receipt and the spending of publicmonies. Greek bankers also kept account books, changed and loanedmoney, and arranged for cash transfers through affiliate banks inother cities.

Roman citizens were required to turn in statements of their assetsand liabilities on a regular basis. These household accounts were usedas a basis for taxation and, even more importantly, for determiningeach citizens individual civil rights.

Ancient Rome also saw the introduction of the annual budget.This budget not only coordinated the Empires finances, it restrainedspending in accordance with anticipated revenues, and levied taxesaccording to the citizens abilities to pay them.

During the Middle Ages, accounting centered around the feudalmanor, allowing those at the top of the financial food chain tomonitor those lower down.

The birth of modern accounting is said to haveoccurred during the Renaissance (from the 14th to the

16th century) in Italy.The Italians were the first to use Arabic numbers rather than

Roman numerals to track business accounts. This was also the timeand place of the origin of the double entry method, which keeps trackof where money comes from and to which account it goes, with theinput and outgo balanced.

Interestingly, the basics of bookkeeping methods have changedlittle over the ensuing centuries. The biggest differences are merelyrefinements to the process made necessary by the larger size andcomplexity of contemporary businesses, and computer technology tostore and manipulate data.

A big step in the history of accounting as a profession happenedin Scotland in the mid-19th century, when the Edinburgh Society ofAccountants chose the title of Chartered Accountant for its members,when the first royal charters were granted to the Society. At the same

time, the demand for accountants in England was growing rapidlybecause of the Industrial Revolution. In 1880, the Institute ofChartered Accountants in England and Wales joined together theaccounting organizations in both countries.

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Gradually, chartered accountants from these organizations madetheir way to the United States to audit American companies in whichBritish investors had a financial interest. Several contemporaryAmerican accounting firms can trace their inception back to thismigration.

In 1887, the American Association of Public Accountants wasformed. The first American national accounting society, it later evolvedinto the American Institute of Certified Public Accountants.

The first CPA Examination was administered just a few years later,in 1896, as a result of the first CPA law, which was passed by the stateof New York. The law provided for public accountants certificationupon passing the examination. There were still no education

requirements for accountants, though, since most of them trainedthrough apprenticeships. So more than a century ago, all the pieces ofmodern accounting were in place. The changes that have occurredover the past decades (the introduction of the computer, for example,and changes in law and regulations) have not affected the basic goalof accounting: to maintain records of financial transactions,something accountants have been doing for millennia.

Accountants may not use papyrus or receive payments in the form

of textiles or agricultural products, but their function is the same as itwas centuries ago. If you decide to become a certified publicaccountant, you will be joining a profession with a long, respectablehistory, and you can be assured that since the time of ancientcivilizations, accountants have been recognized as professionals fillinga function vital to the survival of a civilization.

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WHERE ACCOUNTANTS WORK

THERE ARE CERTAIN TOOLS OF THE TRADE THAT EVERY CPA REQUIRES:

computers, calculators, paper and pencils, staplers and Post-Its,reference materials and the proper forms for the various assignments

they undertake.

Thats why most CPAs work in a well-equipped office. They may beemployed by a Big Five company (one of the five major accountingfirms: Arthur Andersen, Deloitte & Touche, Ernst & Young, KPMG, andPricewaterhouseCoopers). They may have a cubicle in an Internetstart-up or run their own accounting office. In any location, mostCPAs work in an office environment that centers around the deskwhere most of their materials their computer and calculator, aboveall are located.

Some accountants those who telecommute and those who areself-employed, for example may be able to do some or all of theirwork at home. Despite the change in geographical location, though,the actual work space will probably look remarkably similar to that ofan accountant who must drive to work every day.

If you use your expertise to teach in a college or university, then

you will prepare for classes in your office either at home or at school and teach in one of the college classrooms.

CPAs employed by public accounting firms and governmentagencies may travel quite a bit outside their offices. They may have toperform audits at clients places of business or meet in the clientsoffices. They may even have meetings in restaurants or coffeehouses,places where they can chat comfortably with their clients and alsocollect any paperwork receipts, for example that theyll need in

order to complete the work.

Accountants who work with international firms may travel evenmore from country to country, rather than from city to city meeting with the executives of different companies to make sure thatthose companies are operating legally, and that their financialsituations are solid.

In the end, though, every CPA must return to an office base, a

quiet place containing the necessary equipment and resources tocomplete the assignment. So no matter where a CPAs office is located,the furnishings of that office will be fairly standard.

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If you use your certification to act as a consultant, you may findyourself outside of your office rather often, and inside other peoplesoffices, or conference or meeting rooms. If you are working in amerely advisory capacity, you may not put your hands on hardnumbers at all. Chances are, though, that no matter how you use your

public accounting certification, you will be working with figures, andusing a computer and a calculator to do that work in your office wherever that office may be.

A CPAs DUTIESACCOUNTING COMES DOWN TO ONE BASIC TASK: CALCULATION AND

manipulation of numbers. But CPAs do much, much more than merelyadd and subtract.

Public accountants may offer services in the fields of accounting,auditing, taxes, and consulting. Their clients may be anyone from anindividual to a nonprofit organization to a corporation to the

government itself.Depending on areas of expertise and clientele base, accountants

may concentrate on tax issues, preparing tax returns, and advisingcorporations and individuals about advantages and disadvantages ofvarious business decisions. Or they may focus on the area ofcompensation and employee healthcare benefits, or on accountingand data processing systems. They may even help their clientssafeguard their assets.

Many CPAs concentrate on forensic accounting. Forensicaccountants investigate and interpret bankruptcies and other financialtransactions. They look for clues as to whether funds have beenmishandled, regulations violated, or even laws broken.

When you study accounting and then earn your certification, youare prepared to launch your career in a number of different directions and the direction you choose has everything to do with the job

responsibilities you will carry. What you will do in your career dependsupon the specialty in which you decide to practice.

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For example, a CPA could become the manager of businessservices for a school district. As such, the accountant could beresponsible for:

Overseeing other accountants

Preparing the annual budget for the school districtAttending board of education meetings

Explaining the financial status of the school district

Helping determine which services to pare down if overspending hascaused the budget to falter

A CPA who goes to work for the government isnt automaticallyassigned to the Internal Revenue Service perhaps the most

well-known employer of accountants in the country. Actually, there area number of federal, state, and local government positions foraccountants who maintain and examine the records of thegovernment agencies or who focus on the private businesses andindividuals whose activities are subject to government regulations.

CPAs who own their own firms may choose to concentrate in anyof these specialized areas, but most small one-person accounting firmsoffer services for small businesses and individuals. They may keep a

businesss books, entering information like payments received anddebts paid, and make sure that the accounts are all balanced. Theymay prepare tax returns for these small businesses and individuals,and offer financial advice to help the businesses remain profitable forthe long term. They may help plan strategies for the client to affordthe big-ticket items theyre saving for college education for theirchildren, new cars, houses, or retirement.

CPAs can also use their education and experience to help educate

future CPAs. They can teach accounting or business math in highschool, or accounting courses at the college level. Some accountingeducators also maintain another job, either their own accounting firmor a position with an accounting or other type of firm. They teachbecause they enjoy helping the next generation of accountants to geta good foothold on their future careers.

With a knowledge and understanding of international trade lawsand regulations, you could go into international accounting.

Depending on your specialty, you may travel the world, going fromcompany to company as a consultant, or you may land a job with onecompany perhaps in the United States or perhaps abroad and workonly for that company, ensuring that it is operating within the limits of

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international law and practices. International accounting is anotherarena where its easy to see that accounting is about more than justmath. If you have a facility for languages and can converse in one orseveral foreign languages, it will make you that much more attractiveto potential employers when you start applying for jobs.

Sometimes public accounting firms offer services that are quitedifferent from what youd expect. One Virginia firm, for example, doesbasic accounting, taxes, and auditing for its clients. It also offers Website development and maintenance, Internet services like securetransactions and online program enrollment, hardware and softwareinstallation and training (the programs are accounting- ordatabase-related), and network administration. If you land a job witha company that offers a similarly diverse slate of services to clients,

and you have the appropriate experience or training, you might findyourself working less with numbers and more with computers, or lesswith computers and calculators and more with individuals who needtraining in order to utilize the services you can offer them.

You could even go into environmental accounting, which focuseson environmental issues. Environmental CPAs conduct complianceaudits and design preventive systems to ensure compliance with thelaws, helping to protect the health and safety of our environment forgenerations to come.

In other words, your job responsibilities will depend on a numberof variables, including your employer, the needs of your clients, andyour personal interests and other skills.

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CPAs TELL YOU ABOUT THEIR CAREERS

I Have My Own Independent Practice Im not surewhen I decided I wanted to be an accountant. I didnt have a big

revelation or anything it just made sense to me. Accounting is asecure field, and I always liked math, so not only would I have agood career, but Id have a pretty easy time climbing thecorporate ladder.

My college was a small, private one with a very active alumniorganization, and thats how I landed my first job. My guidancecounselor gave me the names of a few alumni who were working

with major accounting firms, and I gave them a call. I hadnt givenmuch thought as to where Id end up working, but the idea ofbeing with a nationally-known company was exciting.

The excitement continued, to a certain extent, after I washired. I even got to attend the Academy Awards one year, becausemy firms clients included several of the nominees. I never in amillion years thought Id end up practically rubbing elbows withmovie stars!

But the longer I stayed with that firm, the more I thought Iwasnt really a good fit there. I got tired of socializing with ourclients, and I felt like working toward a promotion was kind ofpolitical. The other accountants all seemed happy there, but Iguess I wasnt as ambitious as they were or maybe I was justambitious in a different way!

After a couple of years there, I left to start my ownaccounting firm. It didnt seem like a big risk at the time, butlooking back on it now, Im impressed with my courage! There area lot of accounting firms out there, and a one-person operationcould easily not survive. I was lucky, though. I was well-known inmy community Id grown up there, and so had my parents andI had my alumni organization to fall back on. I put out the wordthat I was opening an accounting office, and soon I had a small

roster of regular clients.You cant just rely on friends to keep you going, though. If

you want to run a successful accounting office, you have to be

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good at what you do. Fortunately for me, accounting is justsomething Im good at. Im a people-person, I guess, because Ilove talking with my clients and finding out how I can help them.It is hard for me to tell them bad news, though, like the one clientwho owed hundreds of thousands of dollars in back taxes.

Numbers are easy for me to work with, and I like workingthrough mazes of them to find out what my client needs to know.And running my own business is another challenge finding newclients, networking a little bit around town, hiring associates,bookkeepers, and office assistants.

The toughest part for me is keeping my personal life separate

from my work. I have to admit that, during tax season especially, Ican work some pretty long hours. And for me, tax season runsfrom New Years through May!

But I earn a very good living, my clients appreciate what I dofor them, and Im still having fun on the job. What more could aperson ask for?

I Value My Personal Life Leavethe Work at the Office! Math was always myfavorite subject in school, so I figured that would be my majorwhen I got into college. I enjoyed my classes for the most part.They were tough, but the challenge was kind of fun. By mysophomore year, though, I was already starting to worry aboutwhat I would do with a degree in math. I didnt particularly wantto teach, and it seemed thats what a lot of my fellow math

majors were planning to do.

When I signed up for a basic accounting class, though,everything changed. I realized that accounting provided the samemathematical puzzles I enjoyed, but with an extra dimension people! People do some strange things with their money, andaccountants have to help them figure out how to fix the messesthey get themselves into, and where to go from there. I made it

through the semester before changing my major to accounting Iwanted to make really sure I was doing the right thing and sincethen, I havent looked back.

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I earned a bachelors degree in accounting. It wasnt hardfinding a job, and I thought it was a good one, too. It wasnt witha Big Five company, but then my career ambitions werent to workat a Big Five. I just wanted to be a successful accountant, earnenough money to support myself and someday, a family, and helpmy clients. I also wanted to make sure that when I left work, I leftwork there, if you know what I mean. I knew that sometimes Iwould probably have to bring work home with me, but I didntwant to make it a habit.

In my interview with the company that hired me, Iemphasized how much I valued my personal life, and my employeragreed with me that leisure time was important. But that was

before I started working there. It wasnt long before I was beingroped into all kinds of outside activities. Once, they even called meon a Saturday to pick up some doughnuts and deliver them toclients! That was the last straw.

Id gained the experience I needed and passed my CPA exam,so I was free to look for a different position.

About the CPA exam is it as hard as everyone says it is? Well,lets just say that I walked out of that test session absolutelypositive that I failed. I felt down for a few days, and then I startedto cheer myself up. I knew my material, and I enjoyed the work. If Ididnt pass the test on the first time, that wouldnt really be sucha big deal. Id just study even harder, take it again, and pass. Youcould have knocked me over when I found out that Id actuallypassed the exam on the first try.

But now I faced another challenge: where would I go fromthere? Before I hired on at another company, I investigated it reallycarefully. I even talked to some of the current employees. Thiscompany walked the walk. Once the workday is over, staff is freeto live their own lives. No more Saturday doughnut-runs forclients! I accepted their job offer, and became a staff accountant.Ive moved up from there, but the philosophy is still the same. Mypersonal life is my own, and my workdays belong to my clients.

Thats the way I wanted it!

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Im an Accountant for a RecordCompany If it hadnt been for a friend of mine

dragging me into the high school counseling office, I probablynever would have even thought about applying for an internship.

To be honest, I wasnt even sure what an internship was until Ifound myself in that office, listening to my friend ask questionafter question about work experience opportunities around town.

Thanks to that friend, I got an internship myself, working at arental car agency a few blocks away from my house. The workwasnt that exciting, but it was great to be treated like an adultand to be given real responsibilities. When I saw everything thatwent on behind the scenes, I started thinking about being abusiness major in college.

But once I got to college, I found that business was just toobroad an area for me. I had to specialize, and I didnt have a clueabout what to specialize in, until I took a basic accounting class. Isigned up for it just to fulfill a requirement, but it ended up beingpretty interesting. I figured that after that class, I already knewmore about accounting than about the other business arenas I

could focus on, so I decided to stick with it.

Then a friend hooked me up with a local accountantsassociation. I attended a couple of events as a guest, and then Iended up signing up for a student membership. Thats where mycareer really started to take off even though I didnt even have adegree yet. The people I met gave me contacts that I continue touse today. The stories they told me opened my eyes to the

possibilities within accounting. And the advice they gave me reallyhelped me to make better-informed choices when I got out ofcollege.

Then I had to find the perfect job for me something thatwould allow me to use my accounting skills, but that wouldengage more than just the mathematical part of my brain! Andthats exactly what I found when I applied for a job at a recordcompany. (See what I mean? There are definitely possibilities inthis field!) Its a huge company, but I feel right at home. Imfriends with the talent scouts, Im friends with the creative teamthat designs record covers. Ive attended parties for our talent and

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gotten to meet musical artists I really admire, and to chat withmovie stars and athletes and other musical artists who admirethem, too.

The CPA exam was very tough, but Id prepared for it, and it

showed. I passed on the first try.

The challenges continue. Every day is something different. Imay compare sales record numbers to the accounting numbers,and make sure there arent any differentials. I may oversee artistsbudgets to make sure theyre staying on track. I even keep an eyeon first-week debuts to see if the actual numbers match ourfinancial forecasts.

I feel like I really earn every penny of my paycheck but I havefun doing it!

I Love the Human Dimension ofAccounting Its Not Just Numbers When I came

to the United States, I figured I wouldnt have any trouble at allfinding a job as an engineer. Unfortunately for me, at the time I

immigrated, things were much more difficult than they are now inmany fields, and my degree and work experience didnt transfer. IfI wanted to work as an engineer, I learned, I would have to go toschool all over again and earn another degree in engineering froman American university.

I thought about it. Even though it would have felt like I waswasting my time, since the material wasnt any different, and even

though I really needed a job, I didnt want all my education in myhomeland to have been in vain. But the more I thought about it,the more I realized that I didnt even like engineering that much.After talking with some of my friends and making a visit to acounselor at the local community college, I decided thataccounting might be the perfect fit for me.

I already knew that I had the technical kind of mind thatmany accountants have. Math was never difficult for me. I would

be able to use some of my education in this new field. Best of all,it would be so much more interesting than my old engineering

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job, because I would be working with people all the time, insteadof constantly staring at a computer screen.

I started at the community college and my teachers weregreat. Some of them let me test out of certain requirements, and

others advanced me to higher level courses when they saw howeasy the work was for me. Because of their willingness to workwith me, I was soon able to transfer to a four-year university.

At the university, I majored in accounting. It was a tough timefor me, since I was not only still adjusting to life in a new country,but I had to work full time as well as attend school. But I figured itwould be worth it to work very, very hard for a short period of

time and then find a job I liked.After two years at the university, I graduated with my

bachelors degree in accounting. It didnt take me long to find ajob at a wholesale business, as manager of the Accounts Payabledepartment.

In a way, I was still in school, though. I had to study so I couldtake the CPA exam. I studied most evenings and just about every

weekend, trying to prepare myself for this test Id heard so muchabout. When the time for the exam finally rolled around, I waspretty nervous, and when I walked out of the exam room at theend of the second day, it felt like Id probably failed all foursections. But I was too tired to care!

When I got the test results, though, I was thrilled to see thatId passed. I was one of the lucky 25% who make it the first time.

I stayed on at my old job for a couple more years, and thenfound a position with a local school district. The work ischallenging every bit as challenging as my work as an engineer plus I have that human dimension Id been searching for. Ofcourse, working with people can be tough sometimes. They arentalways understanding when I try to explain why certain programshave been cut, or why more staff cant be hired. But Id ratherhave this kind of challenge than a boring job!

I know I made the right decision when I changed my careerpath.

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PERSONAL QUALIFICATIONS

IS MATH YOUR FAVORITE SUBJECT IN SCHOOL? DO YOU KEEP A CLOSE EYE ON

your own finances, making sure you save some money from eachpaycheck or allowance distribution? Do you budget for big purchases?

Do you love to organize things your schedule, your locker, your roomat home? Then accounting might be the ideal career for you.

Its important for accountants to enjoy math, and to be good at it.After all, virtually the entire job of a CPA revolves around numbers. Ifyou have a hard time working with numbers and dont enjoy it, thiscareer would probably not be a good choice for you.

If youre computer savvy, you are way ahead. If you cant find your

way around a keyboard or a computer desktop, you can learn how todo what you need to do as an accountant. But if computers seemoverwhelming or mysterious to you, and if you would much ratherbalance your checkbook by writing the sums on a scrap of paper thanby using a calculator or an adding machine, accounting may not bethe best choice for you.

Because accuracy is so important in a CPAs work, its importantthat you be an organized person. You have to know not only which

drawer you keep the paperclips in, you have to be able to look backacross a printout of your calculations and be able to spot where youmight have made a mistake, or where your calculations differ fromyour clients.

But dont get the wrong idea. CPAs dont deal exclusively withcold, hard facts. Actually, its important for accountants to have goodpeople skills too. For one thing, if you arent personable and friendly, itmight be difficult for you to find a job, or to keep one once you find it.

People skills are especially important for CPAs who decide to opentheir own firms. A friendly, helpful accountant will find it much easierto attract new clients and to keep longtime clients than a curt, rudeaccountant.

Its also helpful if youre able to explain your work in laymansterms particularly if you decide to open your own business. Your

clients dont want their finances to be a total mystery, so youll have toexplain to them how you reached certain results, why they owe acertain amount in taxes, or why they have to cut back on newpurchases for the next quarter.

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The most important characteristics of a good CPA are based inhandling the facts: an ability to work accurately with numbers and tomaintain an organized workplace. But even the best CPAs couldntkeep clients or jobs if they werent able to get along well with others.

ATTRACTIVE FEATURES

ACCOUNTING IS A CAREER WITH MANY ADVANTAGES AND AS A CERTIFIED

public accountant, you would certainly enjoy your share of them.

Perhaps the greatest benefit of a job as a CPA is the job securityyou will enjoy. As long as other businesses exist, you will always havethe opportunity to practice your trade. Businesspeople will always

require the services of a trained, professional accountant who cankeep a close eye on their books, advise them, and help them to keeptheir business profitable. Although changes in the business climatehave affected and will continue to affect CPAs, these changes may beboth positive and negative.

For example, while many people will no doubt turn to accountingcomputer software to try to manage their own personal and businessfinances, they will still find a need for a trained CPA. Perhaps theaccountants role will not be as a tax preparer or bookkeeper, but assomeone who can offer training on how to use accounting softwareproperly. Or perhaps a CPA could act as a consultant, offering adviceon issues too big and complex for one individual who is not trained tohandle alone.

Along with job security comes an excellent salaryand good benefits. Accounting is also a field that offersopportunities for personalized work schedules flex-time, for example, or telecommuting. You will alsoenjoy the prestige of working in a well-respectedprofession.

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CPAs have a tremendous feeling of job satisfaction when theyhave completed a job or a project, and their figures have come outcorrectly. It is also immensely satisfying to help people. Job satisfactionisnt a feeling everyone enjoys, so its important to note thataccountants certainly do!

If you are a person who enjoys math and working withcomputers, you will enjoy your work as a CPA, too. The interest factoris also high. Even if your primary responsibilities are doing taxes orkeeping books, youll always be doing something different. Youll beworking with different clients, or youll focus on the changing needsof those clients. The human element will prevent your calculationsfrom becoming too routine, and the variety of job responsibilities youwill carry will prevent you from ever feeling bored.

Perhaps the most attractive feature of a career as a CPA is thecareer potential youll enjoy. Of course you can use your accountingskills at any number of companies, including your own CPA firm, butyou can also use your knowledge to establish a completely differentkind of business, to join the FBI, or to do a variety of different jobs. Anaccounting background could give you a start in the job of yourdreams.

UNATTRACTIVE FEATURES

CPAs OFTEN CARRY VERY HEAVY WORKLOADS. THIS MEANS THAT YOULL NEVER bebored on the job, but scheduling social events may be rather difficult.For example, an accountant who manages the finances of a schooldistrict may be unable to take vacations during the summer, when thenew fiscal year is getting underway and the new annual budget must

be prepared. CPAs who operate their own businesses may findthemselves getting very busy at the start of the calendar year, andgetting busier every week until May or even June, preparing taxreturns for their clients. This hectic schedule means that accountantshave to consider very carefully when they are going to take theirvacations. It also means that they may feel like theyre under a greatdeal of stress, which can take a physical, mental, and emotional toll onthe accountants themselves, and can also be difficult for the

accountants families to live with.CPAs who run their own businesses may deal with the additional

challenge of having too much work and too little time to do it! Afterall, their job not only includes accounting, but management, client

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services, even maintenance of the office. Being self-employed can beincredibly rewarding, but its definitely a lot of work. Self-employedCPAs have to watch out for signs of working too much, and be sure tomaintain some leisure time during which they can relax.

The work itself can also start to feel like a grind after a few years.Even individuals who enjoy math may start to tire of the endlesscalculations. CPAs who are feeling dissatisfied with their jobs willprobably bring their unhappiness home with them, perhaps strainingfamilial relations.

The important thing to remember in this field, as in any otherfield, is that time off is essential. Accountants need time to relax andescape the daily grind, even during their busy season. Rest and

relaxation will not only help them fight off sickness, it will help themto feel refreshed at the start of each workday, and to enjoy their jobseven during stressful times.

If CPAs feel particularly unhappy with their jobs perhaps theyvebeen working for the same company for many years, and are startingto suffer from a sense of monotony they can look for a different jobthat will utilize their accounting skills. Accounting skills are applicablein any number of work arenas. If CPAs arent happy with their current

jobs, it shouldnt be too difficult for them to find a different job thatutilizes their skills and sparks their interest.

EDUCATION AND TRAINING

YOUR PRECISE PATH TO A CAREER AS A CPA WILL DEPEND ON THE STATE IN

which you hope to work. You have to investigate the requirements established by law, and administered by the state boards ofaccountancy of the state where you plan to practice as a CPA. Youcan get a good start by doing an Internet search for your states CPAassociation. You might find a link to your states CPA association atthis Web site:

www.aicpa.org/yellow/ypascpa.htm

A Web site might just get you the information you seek aboutbasic CPA requirements in a particular state. If you have trouble

navigating the site, contact the association directly by writing a letteror phoning.

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College The first step toward landing a job as a CPA anywhere isgetting a college degree, preferably in accounting. The AmericanInstitute of Certified Public Accountants recommends at least 150semester hours of college in order to develop the basic knowledgeyoull need to work as a CPA. Thats 30 hours more than the standard

bachelors degree requires. Most states have put this recommendationinto legislative form, meaning that its a legal requirement for futureCPAs to put in those 150 hours. Many colleges and universities havealtered their curricula to help accounting students meet thatrequirement. Thats why its important for you to examine carefully theaccounting curriculum at your chosen college and to compare itsrequirements with the requirements of the state in which you hope topractice. Make sure the two match up.

Some employers prefer to hire individuals with masters degrees inaccounting, or a masters degree in business administration with aconcentration in accounting. If theres a firm you particularly hope towork for, look at its Web site for job postings and check out what thatfirms job requirements are. Knowing those requirements in advancewill make it easier for you to prepare yourself and easier to land a jobthere!

Some states allow individuals to substitute a certain number ofyears working in public accounting for a college degree. Depending onwhere you want to work, you may not be required to earn a degree inaccounting in order to become a CPA. Chances are, though, thatearning that degree will shorten your journey toward certified publicaccounting.

If you have an opportunity to do an internship while youre inschool, take it! That job experience may help you land the perfect

full-time job after you graduate. Its also a good idea to beef up onyour computer expertise, since chances are youll be using computersextensively in your work as a CPA.

Work ExperienceAfter earning your degree, youll be well on your way to becoming acertified public accountant, but the next step is a critical one: findingthe perfect job. Most states require applicants for the CPA certificateto have some job experience, so youll want to look for a job where

you can practice the skills you learned in college, and where you canlearn new skills that will not only make you a better accountant, butthat will help you to pass the CPA Examination more easily.

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Taking the CPA Exam The final step to becoming a CPA is takingthe exam. All 50 states use the four-part Uniform CPA Examinationdeveloped by the AICPA. Ask any CPA about the exam and, no doubt,youll hear about how tough it is! Only about 25% of test-takers eachyear pass each part they attempt.

The four parts are:

Business Law & Professional Responsibilities

Auditing

Accounting & Reporting

Financial Accounting & Reporting

These four parts a mix of multiple choice and essay questions

are spread over two days, and the test is offered twice each year. Youdont have to pass all four parts at one time, but most states requirethat you pass at least two parts at once for partial credit, and that youpass all four parts within a certain period of time. The AICPAs UniformCPA Examination Candidate Brochure can provide you with moredetails about the exam. Check out the Web site for more information:

www.aicpa.org/edu/index.htm

Continuing EducationEarning your certification does not mean that youre finished withyour education! On the contrary, almost every state requires CPAs tocomplete a certain number of hours of continuing professionaleducation. If they dont, their licenses cannot be renewed. Variousaccounting associations offer courses, seminars, workshops, and otherstudy programs to help their members meet this educationalrequirement.

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EARNINGS

WHEN YOU THINK ABOUT IT, IT MAKES SENSE THAT CPAS EARN GOOD SALARIES.

After all, not only are they dealing with money all the time, they helptheir clients to protect their own earnings and investments.

The median annual earnings of accountants and auditors areabout $40,000. The top 10% of accountants and auditors earn morethan $75,000.

A recent salary survey conducted by Robert Half International, astaffing services firm specializing in accounting and finances, foundthat accountants with up to three years of experience earn salariesranging from $30,000 to $40,000. Senior accountants earn between

$35,000 and $50,000, while accounting directors earn between$60,000 and $90,000.

This range of salary results from a number of variables, such as thesize of the employing company and the geographical location. To getan idea of the salaries commanded by CPAs working in your state, tryan Internet search for your states CPA association.

State Web sites are filled with current, detailed information about

working as a CPA. Here is a specific example.On the site for the California Society of Certified Public

Accountants www.calcpa.org, youll find information like the fact thatgraduates with accounting degrees can expect a starting salaryranging from $35,000 to $50,000 in California. Getting a CPA licensewill bump California accountants up to salaries of $55,000 or more.And as California CPAs progress in their careers, their salaries willincrease. Partners in accounting firms or accountants at top-level

management or executive positions can anticipate earning $150,000or more.

Naturally, that figure will vary depending on the business type,size, and location. CPAs in the Midwest or in small towns, for instance,might earn smaller salaries than these, but the cost of living in thoselocations will probably be lower, too.

The field in which accountants work also affects the salary, ofcourse. For example, median salaries in the industries employing thelargest numbers of accountants varies rather widely. Accountantsworking in commercial banks earn an average annual salary of$35,000, while those employed by the federal government earnalmost $45,000.

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Unlike some careers, accounting offers the opportunity for recentgraduates to start earning a good-sized salary right away. A NationalAssociation of Colleges and Employers survey found that bachelorsdegree candidates in accounting receive starting offers averaging$35,000 a year. Masters degree candidates typically receive starting

offers averaging $37,500.

Salary isnt everything, though. There are other benefits toworking as a CPA. A career as a CPA can provide you with remarkableflexibility. Many businesses offer flex-time and telecommuting options.Combine that with the opportunity to earn bonuses and otherincentives (one firm helps employees with their down payment for ahome), in addition to the opportunities for educational andadvancement opportunities, and youll see that a career as a CPA will

offer you initial financial stability and room to grow as you move upthe career ladder.

OPPORTUNITIES

ACCOUNTING IS ONE FIELD WHERE QUALIFIED JOB APPLICANTS DONT NEED TO

worry too much about finding a job.

Employment will continue growing, and thousands of additionaljob openings will be created when already-employed CPAs retire orleave their current positions to work someplace else. So with theproper education, you should be able to choose the job that best suitsyou. With a few extras on your resume, like an internship, youll besure to go to the top of the list of applicants.

There are three main employment sectors for you to consider:accounting firms, other types of business, and self-employment. As abeginning CPA, you are most likely to seek a position with anaccounting firm, or as an accountant or bookkeeper for anotherbusiness. After you have gained some experience and acquired somepotential clients, you may decide to open your own accounting office,where you can contract to do services for businesses and individuals.Thats a pretty wide range of choices. About 25% of accountants work

for accounting firms and about 10% are self-employed.

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A growing economy will mean an increase in the number ofbusinesses and that means an increase in the number of jobopportunities for you! As legislation governing taxes, businessinvestments, financial reporting, and mergers becomes increasinglycomplex and changeable, more and more laypeople will require the

services of a CPA to help them successfully navigate the labyrinth offorms and calculations.

Remember to think creatively. You are not limited to thetraditional employment sectors. You might take your certification andbecome an FBI agent (25% of FBI special agents are CPAs), or decide toopen your own company something other than an accounting firm.Or you might become a consultant and advisor who focuses not onreporting financial data, but on analyzing operations to make your

clients business more successful.

That flexibility will probably be even more important to you as youprogress in your career. Your skills will allow you to find a job easily.CPA skills are applicable in many different arenas, so unemploymentwill probably never be a problem for you if you enter this field. Yourability to take advantage of all these opportunities will depend onhow well you fill the requirements of becoming a CPA, by getting asolid education and passing the CPA Exam. After that, you candetermine your own future course.

GETTING STARTED

NOW THAT YOU HAVE BEGUN YOUR OWN PERSONAL CAREER RESEARCH, YOURE

one step farther along on the road toward becoming a CPA. If youreinterested, there are many things you can do to find out more, and to

help determine that this is the career for you.

First, conduct additional research on your own. Try your locallibrary for books about accounting, and for accounting and CPA

journals. Do an Internet search for your states CPA association, orcheck out the Web site for the American Institute of Certified PublicAccountants www.aicpa.org.

You may want to investigate the possibility of purchasing a

student membership in an accounting association, where you can getto know some people already employed in the field, listen to theircomments about the profession, and ask them questions aboutreal-world work.

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In fact, talking to CPAs is probably one of the best ways for you togather the information you need to decide on a career as a CPA. If youdont know a CPA or dont have access to an association, try your localChamber of Commerce; ask for the name and phone number of amember who is a CPA, and contact that accountant to make an

appointment for an interview. Or try the yellow pages to get somenames of CPAs.

After your decision is made, you know what you have to do: earnyour accounting degree, land a job, and pass the CPA Exam. Each ofthese steps will be challenging, and each of them will take a majortime investment. But if you invest your time wisely, particularly intrying to obtain your first job, you will find that it pays off some bigdividends.

An internship could prove invaluable in finding that first job.Perhaps the internship will turn into a paid position once you haveyour degree in hand, or perhaps the CPA who oversaw your work asan intern will know of a job opening, or talk to some colleagues aboutyour excellent work habits and abilities, leading to the official start ofyour career. Make sure you stay in touch with the staff of the businesswhere you intern, particularly your advisor or supervisor. When youstart job hunting, let them know; ask if they have any advice.

Before you actually apply for any of these jobsyouve heard about, youll need to make sure yourrsum is ready. You can find many tips for writingattention-grabbing rsums in books, online (try doing asearch for write a rsum), and even in your localoffice supply store, where you can probably findsoftware to help you format your resume in an attractiveway. Dont spend a lot of time working on fancygraphics for your rsum. The most important thing isthe information you put in your rsum, and that theappearance of that page or two of paper is clean and

attractive.

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With a finished rsum, you can confidently applyfor the positions you find through your contacts,through your college career center, or through theclassified ads. Make sure you keep a record of the

people you send your rsum to, and when you send it.After a week or two, you might want to phone thepotential employer to make sure that your rsumarrived safely, to ask if there is any other informationthey need to see, and to demonstrate your peopleskills by chatting in a friendly but professional manner.

After that, all your preparation ought to take youwhere you want to go. And remember: as a certifiedpublic accountant, you can go just about anywhere!

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ASSOCIATIONS

American Accounting Association

American Assembly of Collegiate Schools of Business

International Association for Management Education

www.aacsb.edu

American Institute of Certified Public Accountants

www.aicpa.org

Association of Latino Professionals in Finance and

Accountingwww.aahcpa.org/scholar.htm

The Institute of Internal Auditors

www.theiia.org

Institute of Management Accountants

www.imanet.org

National Society of Accountants and the Accreditation

Council for Accountancy and Taxation

www.acatcredentials.org

A partial list of state CPA associations can be found at

www.aicpa.org/yellow/ypascpa.htm

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PERIODICALS

Accountancy Age

Accountants Liability Quarterly

Accounting Education News

Accounting Horizons

The Accounting Review

Accounting Today

Bylaws

CPA Client Bulletin

The CPA Letter

Code of Conduct

Exposure Drafts

Journal of Accountancy

The Practicing CPA

The Tax Adviser

COPYRIGHT 2006 Institute For Career Research CHICAGO

career as a cpa

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