When it comes to careers with numerous paths and consistently high demand for talent, the Certified Public Accountant (CPA) ranks among the top professions. Many personal bankers, investment brokers, financial advisors, and bookkeepers have taken the next step in their careers by becoming certified public accountants.
CPAs are formally educated professionals who help maintain and analyze financial records while possessing in-depth knowledge of tax issues. A professional accountant becomes a Certified Public Accountant only after passing the rigorous four-part CPA Exam. This exam reflects not only additional educational and experience requirements but also a comprehensive understanding of accounting principles, practices, laws, and regulations.
Job Outlook and Salary
According to the U.S. Bureau of Labor Statistics (BLS), the job growth rate for accountants and auditors is projected to reach 16% through 2020. CPAs, in particular, command an average salary of $73,800—nearly $24,000 more than the $50,500 average salary of accounting graduates.
Differences from Other Financial Roles
CPAs should not be confused with other financial professionals, such as:
- Loan Officers: Facilitate personal or business loans.
- Personal Bankers: Help clients manage their assets.
- Financial Advisors: Offer financial counsel and advice.
State Licensing Requirements
Each state has its own requirements for qualifying for a CPA license, which typically includes maintaining a certain amount of professionally logged continuing education credits. Most states require candidates to have a minimum of 150 hours of post-secondary education from an accredited institution, often including both a bachelor’s and master’s degree in accounting or taxation. Additionally, two years of relevant work experience is a standard requirement.
Despite varying state requirements, a CPA license from one state is applicable across all states and the District of Columbia. This mobility reflects the need for CPAs to conduct business across state and international lines.
Growing Opportunities for CPAs
The demand for CPAs is increasingly varied due to the growing complexity of the operating environment for organizations of all sizes. The evolving tax landscape has created a need for CPAs in several niche areas:
- Assurance Services: Providing independent opinions that reduce information risk, alongside traditional audit services.
- Consulting Services: Offering objective advice and assistance to individuals, businesses, nonprofits, and government entities on financial and strategic matters.
- Information Technology (IT) Services: Helping design and implement advanced systems tailored to business needs.
- Forensic Accounting: Investigating accounting records for evidence of financial fraud, often in the criminal justice system.
- Environmental Accounting: Conducting compliance audits and designing preventive systems for environmental regulations.
- International Accounting: Navigating international trade laws and regulations in a global economy.
- Tax and Financial Planning: Assisting individuals and companies with financial planning, investments, taxes, mergers, and acquisitions.
Conclusion
Despite the growth in niche opportunities, the immediate demand for CPAs is likely to focus on those who can develop strategies to handle tax changes aimed at stabilizing the economy. The recent compromise legislation has led to various provisions affecting households differently, from payroll taxes to income taxes, with the wealthiest experiencing the most significant increases. As policymakers continue to decide on tax actions, CPAs who understand the implications of these changes will remain among the most sought-after professionals in the business arena.