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CPA
What is a CPA?
CPA is an acronym for Certified Public
Accountant. CPA's are also euphemistically referred to as "bean counters." To become a CPA, you first must meet the educational requirements (basically 150 semester hours) for taking the CPA Examination.
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| The Uniform CPA Examination is fourteen hours long and consists of four parts. After passing the CPA Exam, you apply for your CPA Certificate with the Board of Accountancy in the state where you live. Most States require two years of actual accounting experience before you can receive the CPA Certificate. Some states are requiring an ethics exam before becoming licensed as a CPA. Check with the National Association of Boards of Accountancy for the web site of your state's Board of Accountancy.
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So, to summarize: to become a CPA you need an accounting education, two years of accounting experience and a passing grade on the rigorous Uniform CPA Examination. It may seem intimidating when you consider all three of the requirements. Just focus on the end result, take each step seriously and the process won't seem so daunting. One word of encouragement. When taking your accounting courses keep in mind that what you learn in the classroom will help you to pass the CPA Exam. So, please do your best in the classroom because you will be preparing
yourself not only for your accounting degree, but also for a professional accounting career as a CPA.
What does a CPA do and where do they work?
You will find CPA's in Public Accounting, private industry, government and education. Only a CPA may perform an audit of financial statements. The Securities and Exchange Commission requires all publicly held corporations to have an annual audit of their financial statements. The CPA Audit report will be found in the
Company annual report to stockholders. The Audit Report contains a statement indicating whether the financial statements fairly represent the results of operations for the past fiscal year. The CPA profession has seen its image tarnished by Arthur Andersen's audits of ENRON and MCI.
CPA-Public Accounting
A CPA in public accounting will typically be engaged in either auditing, consulting, income tax planning or income tax preparation. The clients of a CPA in public accounting can range from a small mom and pop operation to a fortune 500 company like Microsoft. Typically, the big four CPA firms represent publicly owned businesses. Although after the Enron fiasco, it is not uncommon for a medium sized CPA firm to have a few publicly owned clients. Auditing involves a review of the company's financial statements (Balance Sheet and Income Statement) resulting in the CPA
firms opinion as to the fairness of the financial statements .
Most medium and small size CPA firms derive more than 50% of their income from income tax planning and tax preparation. The period from January 1 through April 15th is usually referred to "busy season." If you are a salesperson looking to sell anything to a CPA, try to make your sale in March, April or May because that is when the CPA has most of their annual income.
CPA-Government
Almost every governmental agency has accountants working in some administrative capacity. Some governmental accountants may be CPA's, but it is usually not required. There were very few CPA's in the IRS Audit Division in Atlanta where I worked as a Revenue Agent
(Field Auditor). During my tenure with the Atlanta IRS office, most Revenue Agent's who passed the CPA Exam left the IRS shortly thereafter. It's quite rare, but you may find a CPA working in a State or County Government office.
You can search for a Federal Government job in your state at: fedworld.gov/jobs/jobsearch.html and also at: jobsearch.usajobs.opm.gov . You will find a 2005 Federal GS Pay Rate Schedule at: opm.gov/oca/05tables/pdf/gs.pdf and the Law Enforcement Officer General Schedule at: opm.gov/oca/05tables/indexLEO.asp
The Standard Form 171 (SF-171) is the application form used in applying for most Federal Government jobs. The SF-171 provides an overview of your educational and work history and highlights your skills and abilities. Federal employers use the SF-171 to determine your eligibility for a position. You can get SF-171s at most Federal agencies.
While I loved the challenge of auditing tax returns and dealing with CPA's who represented their clients, it was the stifling bureaucracy and an atmosphere that discouraged individual initiative that I found unacceptable.
CPA-Private Industry
The Controller's department of a major corporation is where the CPA in private industry will be employed. For those looking to escape the pressure of billable hours, private industry may be for you. From cost accountants to tax accountants to internal auditors to accounts payable to general accounting, there are lots of opportunities in private accounting for a CPA.
I would recommend contacting a headhunter
if you are considering working in private industry. It may be possible to bypass the dreaded Human Resources department by using a headhunter.
CPA-Education
At major universities and small colleges, accounting professors may have become a CPA and attained a doctoral degree. In my opinion, there should be a rule that requires anyone seeking to obtain a PhD in accounting have at least five years of experience in a CPA firm.
Accounting is an accumulation of Generally Accepted Accounting Principles and interpretations, with no soul, that can be committed to memory by anyone who is inclined to learn straight from a textbook. Anyone can acquire the technical expertise to become a CPA and teach accounting but not everyone can look a client or their boss in the eye and tell them they owe income tax or that they have to restate their earnings.
Summary
A dues paying CPA may expect to receive support from his/her State Society of CPA's and the American Institute of CPA's (AICPA), through inexpensive insurance, technical support and free use of a library. However, it's been my experience to observe these organizations serving their own selfish purposes rather than promoting the services of their membership.
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Call for immediate help: 770-969-9850
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CPA
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| ©2010 Michael Johnston, CPA. All Rights Reserved. |
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