Why Should I Become a CPA?

Why Should I Become A CPA?

Becoming a CPA is no easy task. It demands a higher education commitment than most other career paths. To qualify for certification, you must meet the requirements of the state or jurisdiction where you wish to practice.

Becoming a certified public accountant entails the successful completion of the following: (a) 150 credit hours of college-level education, which translates to five years of college and graduate level work; (b) achievement of passing grades on all four parts of the Uniform Certified Public Accountants Exam (the CPA exam); and (c) the requisite amount of accounting work experience as mandated by each state, often two years or so.

Why Should I Become a CPA?

We'll talk about the requirements for becoming a CPA in more detail later, but first, you might be asking yourself, "Why should I go through all of this? Can't I be an accountant without being certified?"

What you can do without becoming a CPA

You most certainly can perform accounting functions without being certified, and there are many successful people in the profession who have taken this route. Non-certified accountants are not required to fulfill the five-year requirement; they aren't even required to have a degree in accounting (although, obviously, it helps). A traditional four-year degree is all that is necessary to be a non-certified accountant. The actual functions of an accountant are not, as the saying goes, rocket science, and complicated mathematics is rarely needed; thus, advanced certification might not seem necessary. Internal auditors, management accountants and tax personnel may all practice their professions without the CPA or any other professional designation.

What you can't do

However, not being certified has a few significant drawbacks. Foremost among these is that it can be career limiting - most public accounting firms will not promote an auditor above a certain level without at least passing the exam. There are a couple of important reasons for this. First, only a CPA may sign an audit opinion. This signature is crucial, as it signifies that the auditor believes that the financial statements reasonably represent the company's actual financial position, giving the users of these statements more confidence that they can rely on them to make their decisions. Thus, an auditor without a CPA cannot perform one of the most important activities of the profession.

Furthermore, a failure to pursue certification is often interpreted by public accounting firms as a lack of commitment to the profession, and few firms are willing to invest resources in someone who might leave the profession altogether (especially when there are so many others out there who are willing to pursue certification).

Another downside of not having a CPA is that you would miss out on the credibility that the certification carries. As with other advanced professional certifications, the CPA tends to give the stamp of "expert" in the eyes of the public and thus more perceived confidence in the accountant's abilities. Such credibility could mean the difference to a recruiter who's deciding between two otherwise comparable job candidates. One final, ever-so-important downside of not having a CPA: you'll make less money. According to the staffing agency Robert Half International, the CPA can, on average, increase a candidate's base salary by 10 percent, with specialized fields (such as forensic accounting) commanding even higher salaries.

Now, this is not meant to scare you into pursuing the CPA, nor is it meant to suggest that you are a slacker. However, pursuing the CPA opens you up to many more opportunities and can only help a career in accounting. Thus, plans for certification should be seriously considered by anyone looking to break into the accounting field.