A CPA licence indicates that an accountant has the contemporary skills fundamental for the preparation and conversation of financial records and reports. For instance, legally any accountant who files reports with the Securities and Replace Comission must be a CPA. Most organizations desire a CPA for managerial accounting and for supervisory positions. Generally, CPAs either effort for accounting firms or own their own businesses. They cater accounting services to organizations and individuals ranging from preparing or auditing financial records to levy preparation to consulting on financial planning.
Features
A man who is a Certified Habitual Accountant is one who has had the required practice and passed the state-approved certification exam. Many citizens who office in the fields of accounting, bookkeeping and auditing are not CPAs, however those who earn a CPA title accept preferable profession opportunities. A CPA licence is legally required for some functions.
Function
Requirements for fitting a CPA are establish by exclusive states and there is some variation. At least a bachelor's measure in accounting or the equivalent is all-important. Forty-six states (as of 2008-09) thirst for at least 30 hours of graduate glance at or the completion of a proficient's measure in accounting. All states convenience a four-part exam prepared by the American School of Certified Popular Accountants. Moreover, most states instantly require some experience and continuing education. See links in Resources to check the requirements for individual states.
Types
CPAs specialize in several areas, including public, managerial and internal accounting and auditing. Specific coursework is needed moreover to a general curriculum that includes accounting, auditing and economics. Public accountants usually take additional courses in tax preparation or auditing. Persons wishing to specialize in managerial accounting need courses in financial analysis. Internal auditing requires courses in fraud detection and forensic accounting.
Time Frame
Academic preparation following a bachelor's degree is essentially the same as for a master's degree in accounting---about two to three years full time. Normally, prospective CPAs take he CPA exam by the time they complete their graduate work. The certification exam is divided into four parts.
Considerations
In today's business and organizational environment, meeting the requirements for a CPA is virtually a prerequisite for career advancement into management. Moreover to the completion of formal requirements, those wanting a CPA should develop good communications and mathematical skills. Finally, because computerized accounting plays a central role a thorough understanding of information technology is important.
