Question

Certifications in accounting may be obtained to prove your knowledge and make you more vaulable in the worplace. The Certified Public Accountant and Certified Management Accountant are two certifications for accountants. Discuss the qualifications of obtaining either of these certifications. How does one obtain the certifications? What are the benefits of having either of these certifications?

Answer 1

Certified Public Accountant

Step 1: Complete a Degree Program in Accounting Most states require aspiring CPAs to complete at least 150 semester hours of study to become licensed. Students generally accrue 120 hours via a traditional bachelor's degree program. To earn the required 150 hours, some schools offer the option of a combined 5-year bachelor's and master's degree program in accounting. Coursework generally begins with fundamental topics in accounting theory and advances to cover more complex topics like cost accounting.

Step 2: Consider Graduate Degree Options Next, consider completing a graduate degree program. A graduate degree is usually not required to become a CPA, but for students who have only completed a traditional 4-year bachelor's degree program, it may help them meet credit hour requirements to become a CPA. Options include a Master of Science in Accounting, Master of Arts in Accounting or Master of Business Administration (MBA) with a specialization in accounting. Although coursework varies depending on the chosen program, most curricula cover advanced topics from tax planning to financial controls.

Step 3: Enter the Workforce The next step is to begin working in the field. Prior to taking the certification examinations, state boards typically require accountants to complete at least two years of work experience. Aspiring CPAs may find work with public and private accounting firms or in an accounting department of any type of company. Duties may range from verifying financial documents to preparing tax returns and may include implementing financial measures to reduce mismanagement of products and services. The U.S. Bureau of Labor Statistics (BLS) estimated that accountants and auditors will have a 11% job growth in the years 2014-2024. In 2015, these workers earned an average annual salary of $75,280, according to the same source.

Step 4: Take the Exams Once education and work experience requirements are met, step four is to take the certification exams. The American Institute of Certified Public Accountants (AICPA) has developed four exams that must be successfully completed in order to earn the CPA designation. The exams test candidates on accounting aspects like attestation and financial reporting. Upon completing the first exam, candidates must complete the rest within 18 months. Those who pass all exams within the allotted time earn their license and become CPAs.

Step 5: Continue Education Your final step is to participate in continuing education. In order to stay current with laws and practices, most states mandate CPAs to renew their licenses. CPAs may meet renewal requirements by completing continuing education coursework. Some states may require CPAs to include ethics courses as part of their continuing education. To become a certified public accountant, you must complete 150 hours in a degree in accounting, gain practical experience, complete all four exams, and participate in continuing education to keep your license valid.

Benafits of Obtaining certification

1.Recognition. There really is no arguing that CPA is the title most people associate with the accounting industry in general. Therefore, a CPA designation on your resume will be noticed immediately.

2.Career security. Over the last several years there has been a shortage of professional accountants entering the market. This means someone with a CPA is far more likely to retain a position than someone without.

3.Earning potential. Money isn’t everything but it is certainly essential to a successful career. A CPA earns 10% more than their non-certified professional counterpart. You may also have access to additional benefits.

4.Job satisfaction. A CPA isn’t pigeonholed in just one aspect of accounting. They have experience in conducting audits, consulting, information technology, financial reporting, taxes and many other aspects of the industry.

5.Career development. For an entry level accounting professional, the CPA designation on a resume will offer the opportunity to grow within a firm. You may be hired at the ground floor but your certification will earn you the ability to transform your career.