How do I earn a Certified Public Accountant (CPA) designation in the US?

Having "CPA" after your name can increase your earning potential. CPAs earn 15% more than non-CPA accountants on average. Over the course of a career, the average CPA will earn $1 million more than their non-CPA counterparts.

It's a designation that's seen as respectable and credible in the business world. People often say, "I hire a CPA for that," or "I have a CPA do my taxes." These three letters can open doors, making you stand out.

If you're aiming for career growth in accounting, becoming a Certified Public Accountant is worth considering.

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To become a Certified Public Accountant in the US, you need to meet some basic requirements:

• Education: Most states require 150 credit hours, including specific accounting and business courses. A bachelor's degree isn't enough, so many people take extra classes or pursue a master's degree. Consider options like community colleges, universities, or online programs.

• Experience: You'll need verified accounting experience under a licensed CPA — usually one year. This can include areas like auditing, tax preparation, or financial reporting, where your tasks are supervised and documented by a CPA.

These requirements vary by state, so research what's expected where you plan to work.

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The Certified Public Accountant (CPA) exam covers a wide range of topics to ensure comprehensive expertise.

The exam has four sections:

1. Auditing and Attestation (AUD): Focuses on evaluating financial records and assessing risk.

2. Financial Accounting and Reporting (FAR): Covers financial statement preparation and reporting.

3. Taxation and Regulation (REG): Tests knowledge of U.S. tax laws, ethics, and business regulations.

4. Discipline Section (Choose One):

   • Business Analysis and Reporting (BAR): Emphasizes financial reporting and data analytics.

   • Information Systems and Controls (ISC): Focuses on IT governance and cybersecurity.

   • Tax Compliance and Planning (TCP): Covers tax compliance and strategic tax planning.

Exam costs vary by state, so be sure to check with your state's Board of Accountancy..

Create a study routine, use review courses, and practice with mock exams. Think of this as a hurdle you need to clear — it's challenging but worth it for the career opportunities ahead.

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You passed the exam — what's next?

1. Submit proof of your education and work experience to your state board.

2. Pay all of your licensing fees.

3. See if your state requires you to complete an ethics test (some do).

Once everything is approved, you'll officially be a Certified Public Accountant!

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Certified Public Accountants must complete continuing professional education (CPE) hours to keep their license active:

• Requirements: Most states require around 40 hours of CPE each year.

• Options: Take online courses, attend webinars, or participate in in-person workshops to fulfill these hours.

• Why it matters: Failing to meet CPE requirements can lead to license suspension or revocation, which could impact your ability to work as a CPA.

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Having a CPA can put you at the top of the candidate list for jobs.

Certified Public Accountants can work in a variety of fields, including:

• Auditing: Reviewing financial statements to ensure accuracy and compliance.

• Tax consulting: Advising individuals and businesses on tax planning and compliance.

• Forensic accounting: Investigating financial fraud and legal disputes.

• Corporate finance: Managing budgets, financial planning, and reporting for companies.

• Advisory services: Helping businesses improve operations and financial strategies.

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You've got the steps — now it's time to take charge of your future. Whether you're aiming for higher pay, more credibility, or career growth, earning your Certified Public Accountant designation can help you get there.