Benefits of Being a CPA
September 16, 2022 (Investorideas.com Newswire)
What is a Certified Public Accountant?
A Certified Public Accountant (CPA) is a professional accountant, which one qualifies by completing coursework at an accredited university and passing the four-part Uniform CPA Examination. The CPA exam is designed to test your knowledge of business management, accounting principles, and financial reporting. While the CPA exam is considered one of the hardest professional exams, it is doable. You'll feel confident about your abilities after passing the CPA exam as you will have mastered the standards set forth by the Financial Accounting Standards Board (FASB), auditing standards by the American Institute of Certified Public Accountants (AICPA), as well as tax regulations by the Internal Revenue Service (IRS). It is critical that you register for a CPA review course that fits your learning style.
As a CPA there are a variety of specializations that one can choose from. The CPA exam is changing to tailor the materials tested so that they align with these specializations. Some of the most common specializations within the accounting profession consist of:
Financial statement analysis
CPAs are held in high regard within the financial community and are equipped to work in any industry, public or private, as well as in nonprofits and for NGO's. The CPA profession offers a variety of benefits and can potentially cover every sector of the business world, making it a great profession for those looking for stability, upward mobility, and dynamic work.
Benefits of a CPA License
Certified public accountants (CPA's) are the most qualified professionals to manage businesses' income and expenses. While the CPA exam is hard, it challenges accountants to have the skills, knowledge, and experience to offer value to their clientele. For many people, getting a CPA license is one of the best decisions that they can make when it comes to career growth.
Having a CPA license demonstrates that you can help businesses solve their problems through financial analysis, or help individuals manage their finances by analyzing their spending habits and personal finances. You can also ensure that they are compliant with tax laws, which can help them avoid penalties and interest on unpaid taxes and other fees. As the economy continues to grow, many companies are hiring CPAs because they need someone who is familiar with the tax code, as well as financial statements and auditing standards. It means that you get paid for finding solutions for others, which can be challenging and even fun for the detail-oriented.
A key benefit of being a CPA, and one that often draws young people towards the profession, is that you will be able to work in an environment that is stable and growing. Accounting is a well-respected industry and has been for some time now. This field is one that provides a great deal of job security, allows for flexible hours, and many public and private firms offer the opportunity to work from home. Having the CPA certificate differentiates you from non-certified accountants in the eyes of a recruiter or employer and increases one's leverage and value throughout the hiring process.
In addition to providing more job options, a CPA certification opens doors to higher earning potential and higher salaries. In fact, according to the Bureau of Labor Statistics (BLS), those with a Master's degree in accounting had average annual salaries of $73,000 as compared to those with only a bachelor's degree who earned $54,000. The BLS also found that accountants who earned Ph.D.s had even higher salaries: $108,000 for those without any college experience or $95,000 for those with some college experience but no bachelor's degree.
The amount of money your clients pay you depends on how much they trust you and how much they value your services. If they trust your work and feel like they're getting their money's worth out of it, they may be willing to pay more for it. And not only is becoming a CPA often accompanied by employer incentives like bonuses, but it paves the way for promotions and greater upward mobility than those who are unlicensed.
CPA's also enjoy some of the most exhaustive benefits packages. Most CPAs get healthcare coverage through their employers or choose to take advantage of insurance plans available through the American Institute of CPAs (AICPA) and other professional organizations. The AICPA also offers retirement plans through its Employee Benefit Plan Service Center, which provides access to more than 1 million investment options in 401(k) plans and 403(b) plans at more than 2,900 financial firms nationwide. While benefits packages are often more specific to ones employer, having the CPA license gives you options, and allows you to create the benefits package that works best for your unique situation. But regardless of whether you choose employer sponsored benefits, or that through the AICPA, due to the high need for new CPA's in both public and private accounting firms, packages are often substantial to begin with.
CPAs that work in public accounting firms also enjoy great workplace benefits and perks for being in office. These firms are known for hiring young, ambitious accounting students and creating a workplace culture that celebrates accomplishments, certifications, and promotions as much as it does hard work. CPAs in these firms can quickly move upwards into management positions, strengthening their resumes and creating a path for one day becoming a partner of a larger and already established accounting firm, or moving into the private space to become a partner at a smaller firm.
Benefit to working as a CPA is that it will give you the opportunity to meet new people from all walks of life-business owners, corporate executives, and government officials-and make new friends! You can also share your knowledge with others by participating in continuing education courses or conferences throughout the year. CPAs have numerous networking opportunities that connect you to a greater community of like-minded individuals, which makes it a great choice to enhance your social-business life as well.
You'll be able to put your skills and qualifications to use in just about any industry, which will give you additional experience and boost your resume when applying to new positions or promotions in the future. And you get to use your analytical skills to solve real-world problems. Whether you work in the private sector or the public sector, you will be using your skills to help clients improve their operations and increase their efficiency. There are over 5 million CPA professionals in America today, and demand for more has sustained over time, making certification a smart move for any individual interested in the accounting profession.
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