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What Training or Educational Degree Do I Need to Become a CPA?
A profession as a Certified Public Accountant is an increasingly popular career option. In fact, Accounting is the third most popular degree option at the undergraduate level. The Bureau of Labor Statistics reports the industry is set to grow by 11 percent from 2012-2022.
Many people are unaware of the various paths available to set yourself up for a career as a CPA. If you are interested becoming a CPA, then please read about the various paths to achieving a CPA below.
Achieving a Degree in Accounting
While it may seem like a degree in accounting is required for prospective CPAs, there is no one particular degree required to become a CPA. Given the discipline of being a CPA, most CPAs have an educational background of a Bachelor's of Accountancy, Economics, Business, Finance, or the like. Another route to becoming a CPA is to pursue an MBA with a focus in accounting, or a Master’s in Accounting.
A strong foundation in accounting education, in addition to thorough business knowledge, is required in order to obtain CPA licensure. The CPA Exam sections (FAR, AUD, REG, and BEC) are complex. Most prospective CPA’s utilize CPA Prep in order to increase their probability of passing the exam sections.
The CPA exams become increasingly difficult each year they are updated, and oftentimes, a relevant Bachelor's Degree alone does not provide the knowledge necessary to take and pass the CPA exam. For this reason, most people either work in the accounting field for a few years after receiving their Bachelor’s Degree, or, they choose to pursue an MBA after completing undergrad.
Step One: From Undergrad to the Office, or to an MBA?
Many people are lifelong students, and automatically prefer to attend a graduate school in lieu of entering the workforce directly after completing undergrad. Another option which lies somewhere in the middle is to enroll in an extended degree in accounting. Extended accounting degree programs typically require five years of studies, but this can be expedited by taking summer courses, or taking extra courses during the academic year.
While the five-year program may be the fastest route to a CPA, there are inherent benefits to achieving an MBA, just as there are benefits to working in the field after completing undergrad.
Most MBA programs are completed in two years. An advantage of this route is that instead of working in the field of accounting for two years after receiving your undergraduate degree, you can go back to school to achieve your Masters of Business Administration. Not only will you have an additional academic degree, but you will have also acquired a thorough foundation in the intricacies of business, both in practice and in theory. Working as a CPA with an MBA, more professional doors may open than if you are just working as a CPA with a Bachelors in a relevant field.
So, it really boils down to your personality and education preferences. Do you learn best by practice? Are you a doer or a thinker? If you prefer to immerse yourself in the field and “get your hands wet” with numbers and calculations, then going from undergrad to working in the field of accounting may be the best route for you. If you prefer to increase your educational degree certifications while at the same time expanding your knowledge of the field (and your student loans, incidentally), then pursuing an MBA or an extended accounting degree may be the better option for you.
There are numerous options for pursuing your education nowadays. You can locate a local Bachelors or Master’s program near you, or enroll in an accredited online program.
Step One, Complete. Step Two: Time to Pass AUD, REG, BEC, and FAR!
Whether you worked in the field for two years, or decided to study to achieve an MBA or an extended degree in accounting, you will end up at the same place: you must pass the CPA exam in order to obtain CPA Licensure. The exam is broken down into four sections: Audit and Attestation (AUD), Financial Accounting and Reporting (FAR), Business Environment and Concepts (BEC), and Regulations (REG).
- AUD: covers all auditing and assurance services performed in public accounting. It tests the AICPA professional code of conduct, reviews, audit process, attest engagements, and compilations.
- FAR: tests the most information out of any exam section– and many people consider it the most difficult section by FAR! This section covers every aspect of financial accounting and reporting. These topics include US GAAP rules, financial statement preparation, the FASB framework, and IFRS rules.
- BEC: tests topics like cost accounting, micro and macroeconomics, information systems, and management. BEC takes a comprehensive look at the environment in which a business operates.
- REG: the only CPA section that doesn’t explicitly cover accounting topics. REG focuses on business and individual taxation, ethics, and business law.
When you begin studying for the CPA exam, you will see that the test is divided quite evenly between the disciplines of accounting and business, so a degree in either (or both!) field(s) is beneficial. The ultimate choice is this: do you learn best in a classroom, or on the field?
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Tutor the People (TTP's) is an online and in person tutoring and test prep company that works with students one-on-one. TTP's CPA tutors have passed all of the CPA sections, and create a unique study approach with each student, based upon the student's existing strengths and weaknesses within the material. Some students use TTP just for a couple of sections, and some students use TTP for all four CPA sections. Lessons are both didactic and strategy focused. Tutors work to (re)teach fundamental concepts within the material, while at the same time, sharpening the student's skills of recalling the information, applying it to complicated practice questions, and utilizing test taking strategy to effectively perform. Click here for more information.