The Importance of Becoming a CPA

What is it about passing the CPA exam that draws so much attention?

Your name typically gets published in the local paper saying you passed the exam. You are immediately solicited by organizations to join them. The company you work for typically regards you as having achieved a higher professional level. Finally, you are congratulated by friends and family, and you are now harassed at every cocktail party for tax advice that usually you know nothing about.

Why?

The CPA exam is not an easy exam. It shows intelligence, endurance, knowledge retention, the ability to handle pressure, the ability to focus, time/exam management, the ability to juggle multiple tasks (exam preparation and work) and the ability to achieve the minimal level of acceptable knowledge of the accounting field to perform as a Certified Public Accountant.

The exam is two days of testing, requires you to have knowledge about many aspects of the accounting profession, and is standardized nationwide so it can be measured. Some people say it is harder than the Bar exam. Even after passing it, you still cannot practice as a CPA unless you fulfill experience requirements in most states, and pass an additional test called the ethics exam.

It also typically takes 4-5 months to prepare for it and, except for a few states, cannot be taken until you graduate college and are usually experiencing your first real job out of school. So here you are, subjected to all the stress of entering the work world, and you have the additional pressure of this exam hanging over you that you know you must pass. In Public Accounting, there is also additional pressure to either pass the exam by your Senior level (typically 3-5 years) or leave the firm.

There is nothing that helps keep ethics solid in the CPA profession more than the fear of losing your CPA credential and having to go through this experience again!

Private Industry

What about private industry? While you must have the CPA credential to practice as a public accountant, individuals entering private industry sometimes question the need for the CPA credential.

The truth is that the benefits of the CPA credential are just as great in private industry. Though not required, you may find that the promotion track will level off at some point without it. Furthermore, passing the exam ensures that you gain a breadth of knowledge about accounting that may serve you well throughout your career.

Taking The Exam

Prepare yourself for the exam, but don't worry about it. All CPAs go through it and somehow survive it. It's much easier to take the exam right out of school while your knowledge is still fresh. It becomes much harder to pass the longer you wait after leaving college. However, once its done, the weight is off your shoulders and this is a credential you can carry the rest of your life! It's worth it! You will see all kinds of doors open up for you, from job opportunities to potential promotions. If you are at a firm that doesn't appreciate the value of this credential, then maybe it is time for a change.

One word of caution. Your certification is certainly valuable, but has its limits. The CPA is a ticket to more opportunities, but is not a substitute for performance, communication skills, leadership or technical competence. These qualities along with the CPA will ultimately determine your success in the marketplace.