An Introduction to the CPA Exam

If you run a business or have complicated household finances, you may already know what a Certified Public Accountant (CPA) does.  You may rely on your CPA to manage everything from taxes to payroll calculations – so it's important to know that they're fully qualified for their jobs.  As with doctors and lawyers, CPAs must meet a minimum standard of quality in order to practice their trade which is demonstrated through the CPA exam. 

Individuals that Must Take a CPA Exam

If you want to be a CPA, you must take and pass this exam.  However, bookkeepers, payroll clerks, and many other accounting professionals don't need to sit for the CPA exam, so it's important to be clear about your career aspirations before signing up for the exam.  In many cases, you'll find that a CPA will either join an established practice or start their own after gaining their license.  If the exam seems overwhelming, know that most accounting firms will also hire a number of un-credentialed bookkeepers and other clerks to perform a variety of services supervised by the CPA.

Education and Background Requirements

In order to take a CPA exam, you'll have to demonstrate sufficient education and experience in the field of accounting.  At a minimum, you must have a bachelor's degree in accounting and several years of work as a junior accountant under your belt before you can apply for your CPA license.  If you're currently in school and thinking about pursuing your CPA license, talk to an advisor about all the different requirements you'll need to meet before taking the exam.

Career Paths Open to CPAs

Even though it may take time to become eligible to take the CPA test, it's well worth your effort to take the exam.  Among other things, you'll be able to command a higher salary and find work in more prestigious firms.  In some cases, obtaining your CPA license may open the path for you to become a partner in the firm, or give you the qualifications necessary to open your own accounting practice.

You may also decide that you want to specialize in a particular type of accounting.  For example, you may find you're more interested in auditing than you are in tax accounting.  Once you pass your CPA exam, you may want to offer your services to local businesses.  You may also want to branch out and move to another area of accounting by opening a brand new practice.   While it may take a number of years to establish your accounting firm, you'll be able to dictate your own working hours while providing a valuable service to your community.

Without question, if you're looking to advance your career in the accounting field, becoming a CPA will be of immense help.  Unfortunately, in many cases, you'll find that CPA exam requirements are fairly stringent.  On the other hand, if you have taken other types of accounting exams, you should be reasonably familiar with the terminology and question types.  That said, you'll also find that the CPA exam pass rate is not as high as for some other types of standardized exams.  Therefore, before you commit to taking this exam, be sure that you can set aside enough study time to help you prepare.