The Difference Between an Accountant and a CPA
Colloquially, many people use “accountant” and “CPA” without much thought, but there is a difference. Not only do CPAs have to pass a rigorous course load in college, but after gaining a year’s worth of real-world work experience, they must prepare for a four-part exam that covers a myriad of topics. The work is not over when the exam has been passed. Once the title of a CPA has been earned, those individuals must adhere to the highest standards of ethics and conduct, as well as regularly complete continuing education classes to ensure they understand changes in regulations and reporting principles.
Opportunities Offered by Becoming a CPA
While becoming a CPA may seem like a lot of work, it can also open doors of opportunity for those who successfully complete the education and exam. In high demand, CPAs provide valuable and practical assistance for every type of business. Small businesses, in particular, look to their CPAs for not only tax advice but also systematic business strategy, financial advice, and assistance with investments. Clearly, becoming a CPA offers a much broader base of duties than simply calculating the amount of money earned and spent by an organization.
Preparing for the CPA Exam
One of the best ways for an accountant to become familiar with the responsibilities of a CPA is to adequately prepare for the CPA exam. Approximately 400 to 500 hours are required to prepare for the exam, which covers a broad range of topics that encompass every aspect of accounting, from reporting to regulations. During the exam preparation, CPA candidates are tested on the following subjects, representing the four sections of the test:
- Auditing and Attestation
- Financial Accounting and Reporting
- Regulation
- Business Environment and Concepts
Gaining Knowledge Through CPA Review
For currently employed accountants, many of these topics may represent new concepts to learn. Though many of these subjects may have been covered during college coursework, accountants working in the field may have had little or no contact with some of the theories covered in the exam, depending on their individual specialty. In this case, a CPA review will provide additional information and expertise that will help the CPA candidate not only on the exam but also in their work as a new CPA in the real world.
Financial Benefits of Obtaining a CPA Credential
Obtaining the CPA credential does much more than simply add three letters to the end of a name. In fact, it increases your salary potential by more than $20,000. Additionally, CPAs are considered trustworthy, critical business advisers for organizations in every industry. Though there will be additional education required, coupled with 400 to 500 hours of exam preparation, current accountants stand to gain immensely by passing the Uniform CPA Exam.
