Requirements for an Entry-Level CPA
Entry-level Certified Public Accountants (CPAs) assist individuals, companies and not-for-profit organizations with finance related matters, including tax preparation, payroll, budgeting and dispensing financial advice. They typically work 40 hours per week, and much more during tax season. According to the Bureau of Labor Statistics, CPAs earn an average of $59,430 annually.
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Education
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Entry level certified public accountants are required to have a minimum bachelor's degree from a state-approved or nationally accredited college or university. Although bachelor's degrees are typically granted after students have completed 120 credit hours of college-level coursework, all but four state boards of accountancy (Colorado, California, Vermont and New Hampshire) require CPA applicants to submit official transcripts verifying completion of 150 hours of undergraduate and/or graduate education. Some schools offer five-year bachelor degree programs to help students complete the additional credit hours; other students complete a traditional bachelor's degree program and then earn a master's degree to acquire the extra 30 credits. CPA applicants usually earn their undergraduate degree in business, accounting or a finance-related major. Regardless of what subject students earn degrees in, they will be required to complete specific classes in accounting and business management, as specified by their state's board of accountancy.
Examination
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Entry level CPAs must pass the Uniform CPA examination compiled by the American Institute of Certified Public Accountants as a licensing prerequisite. The examination is lengthy and difficult, lasting a total of 14 hours. According to the Bureau of Labor Statistics, less than half of examinees who sit for the exam pass on their first try. The four sections of the exam are Regulation, Auditing and Attestation, Business Environment and Concepts and Financial Accounting and Reporting. Applicants are not required to take the exam sections in any particular order but must pass the remaining three portions within 18 months of completing the first section.
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Experience
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As a licensing prerequisite, most CPAs are required to fulfill an experience requirement as determined by the state's board of accountancy. Experience requirements typically include one year of accounting, management, advisory or consulting experience under the direct supervision of a Certified Public Accountant. Most states ask applicants to submit a signed letter from their employer verifying the CPA candidate has satisfactorily completed the experience requirements and adequately performed a specific list of accounting skills.
Ethics
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Most state boards of accountancy require entry level CPAs to fulfill an ethics requirement in addition to education, experience and the CPA exam. Some states require applicants to take state-approved classes or pass a state administered ethics test. Other states require CPA applicants pass a self-study ethics course provided by the American Institute of Certified Public Accountants.
Fees
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Entry level CPAs must pay certain fees associated with application and licensure. Application and exam fees vary by state; candidates will have to check with their state's board of accountancy for details. According to CPA-Exam.com, as of 2010 the American Institute of Certified Public Accountants reported the "average cost for a typical candidate" was $533.
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References
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