How to Determine the Cost of Becoming an Accountant

Difficulty: Moderate

Instructions

Step 1

Decide on whether you would like to start in an administrative or accounting clerk position and work your way up, or if you prefer to study, get your degree and then work.
Step 2

Determine whether you have the necessary administrative experience to start in an entry-level position as an accounting clerk, such as in accounts receivable, accounts payable, payroll, inventory or others, and receive on-the-job training to work your way up into higher positions.
Step 3

Find out your company's policy on helping employees finance their further education.
Step 4

Consider whether you want to get all your education before starting work, or if you could work and study at the same time.
Step 5

Evaluate the possibility of starting with an associate's degree. This will get you started, but you will eventually need a bachelor's degree.

Step 1

Go to the Web sites of the colleges you are interested in attending and look up the costs of tuition and fees, room and board and other costs of attendance.
Step 2

Keep in mind that out-of-state tuition is much higher than tuition for residents of the state.
Step 3

Use the budgeting feature in the financial aid section of the college or university's Web site.
Step 4

Apply for financial aid.
Step 5

See how much of your education will be financed by you and/or your family and parents, how much you will receive in scholarships, how much you can pay through a work-study program and how much will be financed through loans.
Step 6

Compare the costs of different types of loans in terms of interest rates and terms.

Step 1

Evaluate the cost of study materials or a course to prepare you to take the CPA exam.
Step 2

Read the Journal of Accountancy article “Practice Makes Perfect–Brush up for the CPA exam with a review course” on the AICPA Web site, for guidance and costs of different options.
Step 3

Look up the fees for taking the CPA exam on the Web site of the National Association of State Boards of Accountancy. There is a search feature by state.
Step 4

Find out the cost of other types of certification.
Step 5

Look up the fee for the process to become a Certified Management Accountant on the Institute of Management Accountants Web site.
Step 6

Visit the Institute of Internal Auditors Web site to find the fees for becoming a Certified Internal Auditor (CIA), a Certified Government Auditing Professional (CGAP), a Certified Financial Services Auditor (CFSA) or to receive Certification in Control Self-Assessment (CCSA).
Step 7

See the Web site of the Accreditation Council for Accountancy and Taxation (ACAT) to find the fees for an Accredited Business Accountant (ABA), Accredited Tax Advisor (ATA), or Accredited Tax Preparer (ATP).
Step 8

Take into consideration the cost of continuing professional education.
Step 9

Go to the AICPA's Web site to find information on the costs of continuing professional education courses and self-study products.
Step 10

Use the Web site of your State Board of Accountancy to find links to CPE courses and prices.

Step 1

Compare the legal costs of setting up your practice as a sole proprietorship, partnership or professional corporation.
Step 2

Refer to “Forms of Business Ownership” on the Small Business Administration Web site for an overview of different legal structures.
Step 3

Consult with an attorney about the costs of setting up a partnership or professional corporation.
Step 4

Read “Start Your Own CPA Practice” on the Monster Finance Web site.
Step 5

Go to your local library and bookstore, and search online for books on starting an accounting practice.
Step 6

Draft a business plan. Use the guidance provided on the Small Business Administration Web site.
Step 7

Prepare a budget for start-up costs, including office space, staffing, computer equipment and software, supplies, commercial license, insurance, advertising and marketing. Include an estimate of working capital requirements until your practice begins to generate sufficient cash flow to finance your expenses and render a profit.

Comments