CPA FAQs
What is a CPA?
What is the job outlook for accountants?
What salaries can I expect?
What skills do I need to become a CPA?
What are some of my career options as a CPA?
Connecticut CPA Licensing, Certification, and CPA Exam FAQs
What is a CPA?
A CPA – Certified Public Accountant – is a financial professional who speaks the language of business. CPAs provide the advice and information businesses and people need to make important financial decisions. They help their clients make sound financial judgments by analyzing and interpreting data, projecting “what if” situations, and explaining and assisting with compliance of complex laws, rules, and regulations. CPAs help their clients to maximize their profits and make the most of their opportunities.
What is the job outlook for accountants?
According to the Occupational Outlook Handbook, 2006-2007 Edition, U.S. Department of Labor and the Bureau of Labor Statistics:
- Employment of accountants and auditors is expected to grow faster than average for all occupations through the year 2014. An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive growth. In addition to openings resulting from growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation.
- As the economy grows, the number of business establishments will increase, requiring more accountants and auditors to set up books, prepare taxes, and provide management advice. As these businesses grow, the volume and complexity of information developed by accountants and auditors regarding costs, expenditures, and taxes will increase as well. An increased need for accountants and auditors will arise from changes in legislation related to taxes, financial reporting standards, business investments, mergers, and other financial events. The growth of international business also has led to more demand for accounting expertise and services related to international trade and accounting rules, as well as to international mergers and acquisitions. These trends should create more jobs for accountants and auditors.
- As a result of accounting scandals at several large corporate companies, Congress passed legislation in an effort to curb corporate accounting fraud. This legislation requires public companies to maintain well-functioning internal controls to ensure the accuracy and reliability of their financial reporting. It also holds the company’s chief executive personally responsible for falsely reporting financial information.
- These changes should lead to increased scrutiny of company finances and accounting procedures and should create opportunities for accountants and auditors, particularly CPAs, to audit financial records more thoroughly. In order to ensure that finances comply with the law before public accountants conduct audits, management accountants and internal auditors increasingly will be needed to discover and eliminate fraud. Also, in an effort to make government agencies more efficient and accountable, demand for government accountants should increase.
- Increased awareness of financial crimes such as embezzlement, bribery, and securities fraud will increase the demand for forensic accountants, to detect illegal financial activity by individuals, companies, and organized crime rings. Computer technology has made these crimes easier to commit, and they are on the rise. At the same time, the development of new computer software and electronic surveillance technology has made tracking down financial criminals easier, thus increasing the ease with which, and likelihood that, forensic accountants will discover their crimes. As success rates of investigations grow, demand also will grow for forensic accountants.
- The changing role of accountants and auditors also will spur job growth, although this growth will be limited as a result of financial scandals. In response to demand, some accountants were offering more financial management and consulting services as they assumed a greater advisory role and developed more sophisticated accounting systems. Because Federal legislation now prohibits accountants from providing nontraditional services to clients whose books they audit, opportunities for accountants to offer such services could be limited. However, accountants will still be able to advise on other financial matters for clients that are not publicly traded companies and for nonaudit clients, but growth in these areas will be slower than in the past. Also, due to the increasing popularity of tax preparation firms and computer software, accountants will shift away from tax preparation. As computer programs continue to simplify some accounting-related tasks, clerical staff will increasingly handle many routine calculations.
- Overall, job opportunities for accountants and auditors should be favorable. After most States instituted the 150-hour rule for CPAs, enrollment in accounting programs declined; however, enrollment is slowly beginning to grow again as more students become attracted to the profession because of the attention from the accounting scandals. Those who earn a CPA should have excellent job prospects. However, many accounting graduates are instead pursuing other certifications, such as the CMA and CIA, so job prospects may not be as favorable in management accounting and internal auditing as in public accounting. Regardless of specialty, accountants and auditors who have earned professional recognition through certification or licensure should have the best job prospects. Applicants with a master’s degree in accounting, or a master’s degree in business administration with a concentration in accounting, also will have an advantage. In the aftermath of the accounting scandals, professional certification is even more important in order to ensure that accountants’ credentials and ethics are sound.
- Proficiency in accounting and auditing computer software, or expertise in specialized areas such as international business, specific industries, or current legislation, may be helpful in landing certain accounting and auditing jobs. In addition, employers increasingly are seeking applicants with strong interpersonal and communication skills. Because many accountants work on teams with others from different backgrounds, they must be able to communicate accounting and financial information clearly and concisely. Regardless of one’s qualifications, however, competition will remain keen for the most prestigious jobs in major accounting and business firms.
What salaries can I expect?
A career in accounting provides individuals with a competitive entry-level salary and long-term growth potential – particularly those who have earned CPA certification.
According to the 2010 Robert Half Salary Guide,
Public accounting salaries ranged from:
- In public accounting (audit, tax, and management services): $45,750 - $56,750 (small firm) to $50,500 - $62,750 (medium firm) to $56,500 – $69,500 (large firm) for individuals with one to three years of experience. Individuals with graduate degrees and/or professional certifications, such as the CPA certification, generally earn 10 percent more.
- As for long-term growth potential, managers/directors can expect salaries of $84,250 - $113,250 (small firms) to $91,500 - $135,500 (medium firms) to $103,000 - $160,750 (large firms).
- Starting partners in public accounting firms can average about $150,000 - $200,000 with the potential to earn much more over time.
Business and industry accounting salaries ranged from:
- In business and industry (general, tax, and cost accountants): $38,000- $48,750 (small company) to $44,500 - $61,500 (large company) for individuals with one to three years of experience.
- Auditors (Internal, IT): $48,000 - $72,000 (mid-sized company) to $51,750 - $78,750 (large company) for individuals with one to three years of experience.
- Financial, budget, treasury, and cost analysts earn $44,500 – $58,750 (mid-size company) to $48,250 - $64,000 (large company) with one to three years of experience. Those with graduate degrees and professional certifications can generally earn 10 percent more as well.
- In business and industry, chief financial officers, managers, directors, controllers, VPs, and treasurers can expect salaries ranging from $65,250 - $127,000 (in a company with up to $50 million in sales) to $129,250 - $387,000 (in a company with more than $500 million in sales). At this level, bonuses and incentives reflect an increasingly large part of overall pay.
Government accounting salaries ranged from:
Also, according to NACE's Class of 2008 Salary Survey, the average starting offer to accounting graduates was $48,020.
For more information on accounting salaries, click here.
*The salaries offered represent the national average. Salaries can vary according to geographical location.
What skills do I need to become a CPA?
- A successful CPA career begins while you’re still in school. You need to demonstrate superior scholastic achievement and have a well-rounded background in accounting and business education as well as have a good understanding of the humanities and other liberal arts subjects.
- You must have excellent communications skills. A CPA must be able to explain complex financial information in terms that people from different expertise levels can understand. This means you need to have excellent written, verbal and electronic communication skills. Also, in order to communicate well, you need to be a good listener so you can understand what your clients need from you.
- You need to be a problem-solver. CPAs must be able to analyze, compare, and interpret facts and figures. This often requires that you also be a creative thinker who can use the information you have to make sound judgments and to come up with innovative solutions.
- You will need to be technologically savvy. This means you should understand business systems and computers - especially accounting software packages. Also, CPAs are often interpreters between the business and the IT world, so you must be familiar with current technology.
- Although it is not necessary for you to be a math whiz, you should be comfortable working with numbers. It is important for CPAs to be accurate with their figures and to have an understanding of the numerical theories that apply to their area of expertise.
- You need good people skills. Accounting is a service activity and a people-person job. CPAs are highly interactive with their clients and must be able to work with individuals and in a team environment. You will need to know how to effectively work with people from all backgrounds and expertise levels.
- You must have high ethical standards, honesty, and integrity. CPAs help people make important life decisions as the information they provide helps individuals and businesses to make informed financial decisions. Accounting is a trusted profession and you must practice responsible behavior.
What are some of my career options as a CPA?
The CPA credential opens doors in every kind of business and there are many fields available for CPAs from which to choose. And, the best part about being a CPA is that if you don't like the area you've originally chosen, you can always switch to another concentration.
The following are the four major areas of accounting in which a CPA can choose to work in:
- Public Accounting
In public accounting, CPAs work for a firm servicing various clients. Business consulting, tax work, financial planning, accounting, and auditing all fall under public accounting. You can choose to work in a large or small firm, or even start your own firm and be your own boss!
- Education
Be an integral force in inspiring students to pursue the many career opportunities of a CPA – you can make a difference! Some career possibilities include becoming a teacher, professor, dean, or researcher.
- Industry
CPAs in industry work for specific companies or corporations. Careers in industry offer a wide range of potential – be the controller for your favorite sports team, work as an internal auditor of a national corporation, or be part of a team of CPAs charting the financial future of a well-known fashion magazine.
- Government
CPAs are needed in all levels of government – federal, state, and local. You can be the financial expert in a governmental agency, or even work for the FBI!
New areas or niches in accounting open up all the time. Some exciting emerging fields in accounting include:
- Forensic Accounting
Forensic accountants focus on providing the detective work needed to investigate and examine evidence of white-collar financial crimes such as embezzlement and fraud. Often they act as expert witnesses in legal proceedings and prepare evidence to be presented in court.
- Information Technology Services
Businesses often seek individuals who can design and implement advanced software systems for custom needs. CPAs who possess strong IT skills can work with e-commerce ventures and consult with others to determine what decisions are the most financially and technologically sound for a company.
- Environmental Accounting
CPAs involved in environmental accounting look into how companies can be both profitable and environmentally responsible. They can work on everything from environmental compliance audits to setting up preventative systems to ensure compliance and avoid future claims or disputes.
- International Accounting
International accountants help businesses function in a new world economy. They have expertise in the areas of international trade rules and regulations, international mergers, government regulations and tax laws, and overseas transactions. CPAs who work in this area very often travel abroad and have multilingual fluency.
- Assurance Services
CPAs working in assurance services provide information that is designed to improve the quality of information used in making business decisions. CPAs provide assurance to clients about economic issues in areas such as the integrity of the Internet and online purchasing (WebTrust) or advise clients on long-term financial plans for themselves and aging relatives (ElderCare).
- Entertainment
In the fast-paced world of entertainment, accounting knowledge is crucial to financial success. CPAs are valuable resources to the music industry serving as personal consultants to musicians, working with music publishers, promoters, venues, and manufacturers. They can also serve a wide variety of functions in other entertainment outlets such as television and movies, theater, media, fashion, and in professional sports.
- Personal and Financial Planning
Of the variety of services CPAs provide, a key role is that of business advisor. More and more, people are relying on the advice and knowledge of a CPA to manage their finances most effectively and to keep them from making bad financial decisions. CPAs involved in financial planning provide tax and investment advice, retirement advice, help people start and run businesses, buy homes and plan for college expenses.
- Not-For-Profit
Many CPAs make a rewarding career out of working for a cause or group that's meaningful to them. Non-for-profit groups don't generate large budgets, so they need to maintain a strict financial balance. A CPA can work from within the organization or as an outside consultant, on anything from assisting in a fund raising campaign to creating a new budget resource.
- Consulting Services
Consultants may provide any number of specialty services for a company, including performance management (using broad business knowledge to consult on improving a company's operations, both financial and strategic), corporate financial planning, and creating strategy and operations plans for new e-businesses. Often CPA consultants have their own firms and businesses.
Find more information on CPA career paths.
What is the Connecticut State Board of Accountancy?
The Road to Becoming a Connecticut CPA
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