Home > More Stuff

FAQs

1. What is accounting, and why is it important?

Accounting is often called the "language of business" because it deals with interpreting and communicating information about a company's operations and finances.

Accounting is extremely important to any company because the financial information, as interpreted by CPAs, allows executives to make informed business decisions-decisions that help those companies become more successful.

Economic events are measured and described by accounting. Everyone works with and uses accounting ideas, whether they're managing a business, investing money, or just deciding how to spend their paycheck.

In business, accounting links the past with the future. It provides decision-makers information about recent financial activity, as well as information and recommendations useful for forecasting future events.

2. What is a CPA, and what does one do?

A CPA, or Certified Public Accountant, is a trusted financial advisor who helps individuals, businesses, and other organizations plan and reach their financial goals. Whatever those goals-saving for a new home, opening a new office, or planning a multi-billion dollar merger-CPAs can help.

Getting your CPA certification opens the kinds of doors that can fast-track you into influential jobs in every industry. Whom do you think the FBI recruits to investigate criminal fraud? What profession is often a stepping-stone to holding positions like Chief Financial Officer (CFO) and Chief Executive Officer (CEO)? Who helps rock stars manage their money, and avoid going broke?

3. What is the difference between public and corporate accounting?

In public accounting, the CPA owns his or her firm, or works as part of a firm, composed of CPAs and other professionals; and either performs audits and provides assurance services or consults with many different clients as a business advisor.

Public accounting is a great introduction to the world of business. CPAs are exposed to many different industries, and that experience can be translated into any number of careers. You could end up working with a pro sports team, your favorite television network, or as the company's Managing Partner - you could even start your own business.

Auditing, management consulting, tax and financial planning are the core activities of the public accountant, but these skills can be applied to new specialty areas, such as forensic accounting and information security and integrity.

Corporate accounting (sometimes known as "managerial" or "private" accounting) puts the CPA inside a business enterprise. CPAs use critical thinking skills to provide innovative solutions that help companies run their operations better and also help grow their business.

The career path of a CPA working successfully in corporate accounting often leads to a leadership position, such as Controller or CFO.

4. What kinds of career opportunities are available for CPAs?

From the smallest start-up to the largest government agencies, every business or organization requires the skills of a CPA. The CPA credential is highly regarded. To a potential employer it means high ethical standards, as well as measurable experience, education, and skills.

CPAs work mainly in public accounting, business and industry (corporate), government, not-for-profit, and education.

5. Are CPAs and accountants the same thing?

Yes and no. All CPAs are accountants but all accountants are not Certified Public Accountants. The principal differences between accountants and CPAs are education, experience, and opportunity. Becoming a CPA is a challenging goal, but one very much within your reach.

In order to become a CPA, there are education and experience requirements you'll need to fulfill, and a uniform exam that you must pass. Receiving your CPA certification distinguishes you from other business professionals - you will benefit from increased trust, opportunities, and financial rewards.

6. Why should I get my CPA certification?

The CPA credential is a symbol of trust and professionalism in the world of business. It's a highly challenging professional track, but the reward is that CPAs are considered the most trusted advisors in business.

In addition to completing business and accounting courses in college and passing a comprehensive national exam, CPAs continue to maintain and update their skills as part of their commitment to a truly dynamic profession.

7. What do I have to do to become a CPA?

Before you do anything else, get your college degree. In addition, to receive your CPA certificate, you will be required to complete and pass the national CPA exam. There are other educational and professional experience requirements for CPA certification that vary from state to state.

8. What kind of education will I need?

To keep pace with new developments in business and technology, a majority of states require 150 credit hours of education at an accredited college or university as a prerequisite to CPA certification.

Here's a question about education that comes up again and again: "Do I need my Master's degree?" The short answer to that question is "no." However, many of the 150 credit hour programs lead to a graduate degree, such as an MBA (Master of Business Administration), MACC (Master of Accountancy) or MST (Master of Science in Taxation), which CPAs have found to be helpful in creating the kinds of career opportunities and salaries they seek.

Reprinted with permission from the American Institute of Certified Public Accountants 2004.