Scholarships, grants, loans and work-study options are available, so talk to a financial aid advisor to determine what’s available to you. Certified public accountants (CPAs) are responsible for the financial records of a department or an organization. They compile, analyze and verify financial data to ensure efficiency and compliance with federal and state regulations. Accountants prepare written reports for their clients or for the management of an organization. Accountants use their findings to guide management via different ways to streamline operations, reduce costs and improve profits. Since 1996, the Uniform CPA Exam has been a confidential examination.

• So please, read the following advice about what to do after you pass all four CPA exams.
• California is one of the more expensive states to take the exam, so we use it as a baseline example so you can plan your finances accordingly.
• Some states allow candidates to sit for the CPA exam before they have graduated from college.
• CPA is a license awarded by the state you want to work in, which allows you to practice as an advanced accountant.
• Also, accountants with a CPA certification tend to advance to positions of more responsibility within one to two years and often are promoted to senior-level jobs within a few years after that.
• While consulting at Enron, Arthur Andersen CPAs did not maintain independence and performed both consulting services and auditing services, which violates the CPA code of ethics.

For example, states have different requirements for the number of hours of ethics CPE you’ll have to do, and accept various types of education. It’s always best to check your state’s rules and regulations before starting your CPE. As an aspiring CPA, you might want to consider an online accounting degree program, which offers convenience and flexibility, especially when working full time while going to school. Online programs may also provide a flexible or accelerated format. You might like to consider the Online Master’s of Accounting (iMSA), offered by the University of Illinois Urbana-Champaign. The CPA Exam includes four tests, and you must pass all four within an 18-month period.

Requirements to Take the CPA Exam

According to the AICPA, the majority of U.S. jurisdictions offer licensure paths to candidates with two years of relevant professional experience. Most states accept general accounting experience acquired in roles open to all accounting professionals. Many other states only require 1 year of work experience, whether it be in academics, general accounting, or public accounting. But in some states, the CPA experience requirements are laxer than in others.

• The US BLS also tracks the metropolitan areas with the largest number of accountants and auditors.
• Not only is this a requirement to become a CPA, but it’s also a great place to gain valuable knowledge and experience.
• Once you are verified for the CPA exam, you must pass all four sections of the test within that window.
• Most CPA candidates spend 200 to 400 hours of time studying for the CPA Exam.
• Some CPA candidates complete the 150-hour requirement as undergraduates, while others take the additional hours they need through graduate school programs.

Although the IRS issues most refunds in less than 21 days, the IRS cautions taxpayers not to rely on receiving a refund by a certain date, especially when making major purchases or paying bills. The easiest way to check a refund’s status is by using Where’s My Refund? IRS Free File will open Jan. 12, 2024, when participating software companies will accept completed tax returns and hold them until they can be filed electronically with the IRS. IRS Free File Guided Tax Software, available only at IRS.gov, is available to any taxpayer or family with Adjusted Gross Income of $79,000 or less in 2023. People should report all their taxable income and wait to file until they receive all income related documents. If a taxpayer receives Forms 1099-K, they should visit What to do with Form 1099-K to help them determine if that money should be reported as income on their federal tax return.

To avoid delays in processing, people should avoid filing paper returns whenever possible. “As our transformation efforts take hold, taxpayers will continue to see marked improvement in IRS operations in the upcoming filing season,” said IRS Commissioner Danny Werfel. “IRS employees are working hard to make sure that new funding is used to help taxpayers by making the process of preparing and filing taxes easier.” Taxpayers will continue to see helpful changes at the IRS following ongoing transformation work. The IRS expects more than 128.7 million individual tax returns to be filed by the April 15, 2024, tax deadline.

Salary and career outlook

All candidates must pass the Uniform CPA Examination ® (CPA Exam), which consists of three four-hour Core sections and one four-hour Discipline section of your choice. The Core sections are Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). The Discipline sections are Business Analysis and Reporting (BAR), Information Systems and Control (ISC), and Tax Compliance and Planning (TCP). Most states require CPAs to complete continuing education credits annually to maintain their certification.

Diversity in the Accounting Profession

Forensic accountants work in white collar crime divisions of law enforcement usually. The Enron scandal is an example of CPAs not adhering to such a code. Arthur Andersen company executives and CPAs were charged with illegal and unethical accounting practices. Federal and state laws require CPAs to maintain independence when performing audits and reviews.

Practice Exams and Study Resources

All persons involved with the Uniform CPA Exam, including candidates, must sign a confidentiality agreement not to disclose the contents of specific questions asked. Given how easy online education makes this process, fewer accounting students ask “how long does it take to become a CPA? Truth be told, it can now take much less time than most people think. Fortunately, with advances in education, this is much simpler now. A plethora of online classes and degrees, including in accounting, allow students to continue their education even while they’re working. These classes give them an opportunity to work toward a specialization in accounting, while they work around their work schedules.

What’s New About the CPA Exam in 2024?

They often limit lower-level accounting classes and require more upper-level (junior-level and above, 300+) courses. Other states make the 150-hour rule part of their CPA test requirements. These states might make similar provisions for those who are close to acquiring how to calculate working capital turnover ratio 150 credit hours. Yes, some states let you sit for the exam with less than 120 credit hours if you’re close to graduating. Since each state enforces distinct CPA requirements, earning the CPA license from certain states might be easier for you than from others.

As a lifelong learner herself, Amy enjoys researching and writing about colleges, degrees, and careers to help others navigate their educational paths. The CPA exam and bar exam are both known for their challenging content. However, based on the passing rates for each, the CPA exam generally appears more difficult to pass than the bar. Depending on the jurisdiction, the July 2023 bar exam saw pass rates ranging from 58% to 92%, according to the National Conference of Bar Examiners. The highest cumulative passing rate for any section of the CPA exam during the first two quarters of 2023 was 59.22%. AICPA hosts a database of CPA exam preparation resources, including costs and user ratings for each to help you narrow your options.

Like the male/female balance, it seems that the accounting profession is slowly becoming more diverse as more Asians, Blacks, and Hispanics are entering the field in the US. Universities are seeing more racial and ethnic diversity in accounting programs. For example, according to the AICPA, the number of Hispanic or Latino new college graduates who went to work for a CPA firm increased by 2% from 2016 to 2018. The percentage of minorities who work in the field or become CPAs are also increasing, although 91% of CPA USA firm partners in 2018 were white. In the past, CPA firms have had a much larger percentage of male employees than females. But now, that trend is slowly starting to change as more women pursue professional accounting careers.

Plus, according to the AICPA, university enrollments in accounting programs have been decreasing. The US BLS also tracks the metropolitan areas with the largest number of accountants and auditors. The cities with the most accountants in 2018, in order, were New York; Los Angeles; Chicago; Washington, DC; Dallas/Fort Worth; Houston; Boston; Philadelphia; Atlanta; and Miami.