What You Would Like to Know About CPAs?
Just because you have a degree in accountancy doesn’t mean that you’re already a certified public accountant. In order to become a CPA, you must pass a licensure exam administered by the American Institute of CPAs as well as examinations handed out by the state where you want to practice. That means if you want to be called a CPA on another state, you’ll need to take another exam. You will also need to have enough experience as an accountant in order pass certification.
Some people who may pass the exam but do not have the required on-job experience are tagged as “CPA inactive” which means that they cannot practice their profession as a certified public accountant. Also, in order to retain your license, you must take at least 120 hours of continuing education every 3 years. Because of the rigorous process for the attainment of a CPA license, many accountancy graduates never become CPAs – they may perform a variety of accountancy roles but they are unable to perform specific tasks assigned to a CPA.
The main function of a certified public accountant is to provide public auditing services. Also referred to as attestation services and financial audit services, the CPA has to “attest” to the accuracy of a financial statement, and determine whether it meets the standard principles in accounting (or GAAP).
Despite the term “public” in the designation, a CPA can be employed by a private corporation to perform function in the financial department. Some of the positions that a CPA can handle includes that of a finance manager, a chief financial officer or even as chief executive officer. For many CPAs, one of the best offices to work for is the Federal Bureau of Investigation because of the attractive pay and benefits. Regardless of the role they are assigned to, in the corporate setting, CPAs are expected to do research so as to find different methods to help the company save on their costs. They may be required to develop financial plans in order to make the corporation to become attractive to foreign and local investors.
The benefit of becoming a certified public accountant is that you can perform in almost any area of the finance industry. You can serve as a business consultant – one who performs financial analysis and planning. You may be hired to detect and investigate financial frauds in the corporate setting. You may prepare income tax for small to medium industries or you can do all of these functions if you wish.
If there’s disadvantage in becoming a CPA Sacramento and another city, it’s the fact that practitioners have to pass different state requirements in order to offer their services on another state. Despite the electronic age, practice mobility is still a problem especially since each state has its own rules, regulations and requirements concerning certification. While several groups are already making moves towards an inter-state practice, several states are still hesitant. The good thing is that there are already some states which grant temporary practicing rights to an out-of-state CPA the number of places offering such benefit is still limited.