Sets_You_Apart

What Sets You Apart?

"Are you a CPA?"

It is a questions many accountants are asked right after they reveal their profession. And it is one question that the majority of working accountants wish they could answer with a “yes.”

And yet, more accountants than ever are winding up working without having the certificate these days, according to Ira Solomon, head of the Department of Accountancy and R.C. Evans Endowed Chair in Business at the University of Illinois at Urbana-Champaign. He says that while most students still sit for the Uniform CPA Exam, there has been a drop off, one factor for which is that the Illinois Board of Examiners no longer allows students to apply to sit until their 150 hours are posted to their transcripts. This means that, as a practical matter, they cannot take the test until well after they have left campus. “And given that the exam is largely an academic exam, that poses problems,” he explains.

There are plenty of reasons students and professionals choose to move ahead with careers rather than stopping to sit for the Uniform CPA Exam. Some students don’t want to commit the time, effort and expense of fulfilling the 150-hour requirement, preferring instead to simply get a degree and begin working. Others get their hours, but still don’t feel they have the time to study for the exam while taking their college courses. Then they discover they’re even more busy once they’ve landed their first job. Some people don’t think they need certification, knowing their employer doesn’t require it, only to later realize they could benefit from having it.

But if a professional is finding success out in the workplace, perhaps even in a job that doesn’t noticeably reward those with the certification, how necessary is the CPA credential, anyway?

In terms of promotion and career enhancement, very necessary. “Potential promotions, job offers and higher salaries may be lost without the CPA credential,” says Marcia Lucas, chair of accounting at Western Illinois University in Macomb. “Young professionals need to realize that in getting their CPA, they are making an investment of both time and money which will have a high return over their lifetimes. With continuing education, the CPA designation is something they will have for the rest of their lives.”

Many firms will hire accountants without a certificate, but moving up is another matter. “Any accounting firm would require, at some point, for its employees to have the CPA,” says Tim Reierson, assurance partner in the Chicago office of PricewaterhouseCoopers, LLP. The company is one large employer that will not promote an accountant to the manager level in its assurance practice unless he or she has a CPA certificate. Reierson actively encourages his employees to pass the exam well in advance of the time for promotion, so that they won’t be held back. It has happened. “It breaks my heart,” he says, adding that, “I can understand the pressures of trying to take and pass the exam while working. But it’s very important that accountants not put the test off until the last moment.”

Strictly speaking, the reason so many people are working without the CPA designation is that they have a choice. Unless they are going to perform public company audits, accountants can pursue their careers without plans to become certified. Entry-level positions normally do not require a CPA certificate. But that may be an outdated view. “I think perhaps a more useful way of looking at the certificate today is that it is a designation of accomplishment and competency that lots of employers in lots of fields value. I tell students today that even if they never intend to work on a single public company audit, they still should strongly consider pursuing the CPA certification,” says Reierson.

Solomon points out that it’s becoming increasingly rare for a person to remain with the same employer for a lifetime, and that having the certification is a way to help ensure flexibility and future job success. But he notes that it is still important to demonstrate to your current employer that “you have the discipline, knowledge and skills to do the job, and that you understand the professional obligations of being a certified public accountant is something very valuable. It could signal to the employer that you are somebody that is able to get a job done. It could signal that you have specific knowledge and skills that could be useful to the employer in other job titles that could involve promotions and so on,” he explains. He also suggests that having the certification is a signal that an employee has accountabilities and responsibilities that extend well beyond the immediate employer to society at large.

And yet, “Some new accounting graduates fear the exam is too difficult for them,” suggests Lucas. “Many have told me they plan to sit for the exam after they become acclimated to their new career. But then they become busy with their new job and life and delay sitting for the exam. After several years of procrastination, the individual often feels his or her knowledge is no longer current and the effort to update will be too much.”

Solomon concurs, feeling that many professionals who decide to wait a while find that by the time they’re able to carve out some of their work day to prepare for the exam, the material has gotten past them. “I would say that’s the greatest risk for people who are studying accountancy,” he contends.

But with the long-term rewards of having that certification, of being able to answer “yes” to the inevitable question, “Are you a CPA?” going back to sit for the exam may prove a worthwhile endeavor. As Lucas puts it, “We should always remember the old phrase, ‘It’s never too late.’ Although it’s true that the longer you’ve been out of school, the more you’ll need to study, the time spent would be well worth the extra effort to update.”