What Does a CPA Do?

If you’re considering a career as a Certified Public Accountant (CPA), you’re probably wondering what the journey looks like, what CPAs actually do, and whether it’s all worth the effort. Becoming a CPA opens doors to countless opportunities in accounting, finance, and beyond, but it’s not the easiest path.

Trust me, I’ve been through it. I remember staring down the pile of study materials for the CPA exam and wondering if I’d ever get through it. Spoiler alert: I did, and it was worth every late night.

But here’s something you might not know…

According to the Bureau of Labor Statistics, CPAs typically earn 10-15% more than non-certified accountants over the course of their careers, which can vary by location, industry, and position, with more experienced CPAs getting into triple figures. That’s a pretty solid reason to keep going when the process gets tough, right?

I’m going to break down exactly what CPAs do, give you some insight into what it’s like to go through the process of becoming one, and help you decide if this career is right for you. Let’s dive in!

Key Takeaways

• CPAs Are More Than Accountants: They handle tax planning, auditing, financial consulting, and more.
• The CPA Exam Is Tough but Rewarding: Passing it leads to higher earning potential compared to non-certified accountants.
• Diverse Career Opportunities: CPAs can work in public accounting, corporate finance, government, and other fields.
• Becoming a CPA Takes Commitment: You’ll need at least 150 credit hours (requirements vary by state), relevant work experience, and a solid exam prep plan.
• CPAs Must Continue Learning: Continuing education is required to maintain your license and stay updated on tax laws, accounting standards, and industry changes.

What Exactly is a CPA?

So, what is a CPA? Simply put, Certified Public Accountants are licensed financial professionals qualified to offer accounting services to the public. But it’s more than just a title. CPAs are trusted advisors known for their deep expertise in accounting, tax law, auditing, and business strategy. They work in all sorts of industries—public accounting firms, private companies, government agencies, and non-profits.

Here’s the kicker: getting your CPA license means you’re part of an elite group of accountants. The CPA designation opens doors to higher responsibility, more career options, and better salaries. According to the Bureau of Labor Statistics (BLS), CPAs typically earn higher salaries compared to accountants who don’t hold a CPA license.

The Road to Becoming a CPA

If you’re wondering what it takes to become a CPA, you should know it’s not a quick or easy process. However, the good news is that it’s totally achievable if you’re willing to put in the work. Here’s a quick breakdown of the steps you’ll need to follow:

• Education: Complete at least 150 credit hours of education, depending on your state, and a bachelor’s degree.
• Work Experience: Gain 1-2 years of relevant accounting experience under a licensed CPA.
• CPA Exam: Pass the CPA exam, which includes four sections: Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), Regulation (REG), and a specialized discipline section of your choice (Business Analysis and Reporting, Information Systems and Controls, or Tax Compliance and Planning).
• Licensing: Meet your state’s licensing requirements, which may include additional ethics exams or ongoing education.

Now that we’ve touched on the path to becoming a CPA let’s dive into what CPAs actually do in their day-to-day roles.

What Do CPAs Actually Do?

Now that you know what it takes to become a CPA, let’s talk about what CPAs do on a day-to-day basis. Spoiler: It’s not all about tax preparation (though tax season can be pretty intense).

1. Tax Planning and Compliance

Taxes are a major part of a CPA’s job, but it’s not just about filing tax returns either. CPAs offer tax planning services, helping both individuals and businesses develop strategies to minimize tax liabilities. They stay updated on the latest tax laws to ensure clients remain compliant while taking advantage of potential deductions and credits.

2. Auditing and Assurance Services

If you’re interested in validating the financial accuracy of organizations, auditing is your field. CPAs conduct audits for public companies, private firms, and non-profits to ensure their financial statements are in line with Generally Accepted Accounting Principles (GAAP). Auditors play a key role in maintaining their financial records for transparency and building trust in the marketplace.

3. Financial Consulting and Business Strategy

CPAs are often brought in as trusted financial advisors. Whether it’s assisting a company in making strategic decisions, analyzing potential investments, or guiding a business through mergers and acquisitions, CPAs help organizations navigate complex financial landscapes. Their expertise is especially valuable during critical financial planning stages.

4. Forensic Accounting

Have an interest in uncovering financial crimes? CPAs who specialize in forensic accounting are like detectives, analyzing various financial documents and data to find discrepancies that could point to fraud, embezzlement, or other illegal activities. Forensic CPAs often collaborate with law enforcement and legal teams to investigate and resolve financial disputes.

5. Management Accounting

For accounting professionals or those who prefer working within companies, management accounting might be your calling. CPAs in this role focus on internal financial operations, helping organizations manage costs, create budgets, and improve profitability. They provide data-driven insights that support decision-making and long-term business strategy.

6. Compliance and Risk Management

In highly regulated industries like banking, healthcare, or insurance, CPAs often serve as compliance officers, ensuring that their companies follow industry laws and regulations. They assess risks, design controls, and create systems that help organizations avoid costly legal issues or penalties.

CPAs in Different Industries

One of the best parts about becoming a CPA is the diversity of industries you can work in. Here are just a few examples:

• Public Accounting: Work for accounting firms that offer auditing, tax, and consulting services to a variety of clients.
• Corporate Accounting: Manage internal finances, budgeting, and forecasting for large corporations.
• Government Accounting: Ensure public funds are managed correctly and help government agencies meet financial regulations.
• Non-Profit Accounting: Help non-profits manage their donations and ensure they comply with tax-exempt regulations.
• Forensic Accounting: Work with law enforcement or in the legal field to investigate financial crimes.

Is Becoming a CPA Right for You?

Deciding to become a CPA is a serious commitment, but it can also be one of the most rewarding career moves you’ll ever make. So, how do you know if this is the right path for you? Here are some things to consider:

• Do you enjoy working with numbers and analyzing data? Being a CPA involves a lot of number-crunching, so a natural affinity for mathematics and financial analysis is a must.
• Are you detail-oriented? CPAs deal with highly sensitive information, and even small errors can have significant consequences. If you have an eye for detail, this career might be a good fit.
• Do you like problem-solving? Whether it’s finding tax-saving strategies or figuring out why a company’s books aren’t balanced, CPAs are constantly faced bewith challenges that require creative solutions.
• Are you ready for a long-term investment in education and exams? Becoming a CPA isn’t a quick process. You’ll need to invest time in your education and prepare for one of the most challenging exams. However, the payoff—both financially and professionally—can be well worth the effort.

What Should You Do Next if You Want to Become a CPA?

If you’re committed to becoming a CPA, now’s the time to map out your strategy. While you’re aware of the formal path to becoming a CPA—earning 150 credit hours, passing the CPA exam, and gaining relevant experience—there are additional ways to prepare and ensure success. Here’s a list of actionable steps to help you get started on the right foot:

1. Research State Requirements: Each state has its own CPA licensing requirements, so start by reviewing the criteria in the state where you plan to work. This will help you understand what’s expected, from education to work experience.
2. Focus on Accounting Skills Now: Strengthen your accounting fundamentals, like financial statement analysis, taxation, and auditing principles. Consider taking additional coursework or certifications to boost your knowledge before diving into CPA-specific topics.
3. Get Relevant Work Experience: Internships or entry-level jobs in accounting can give you hands-on experience and help you build valuable industry connections. Many CPA candidates start as junior accountants or audit assistants to get a feel for the field.
4. Find a Mentor: A seasoned CPA can offer guidance, answer questions, and provide insight into what the career really looks like. Having a mentor can also keep you motivated through the long process.
5. Start Networking: Join local or national accounting organizations like the American Institute of Certified Public Accountants (AICPA). Networking can help you stay informed about the profession and even open up job opportunities.
6. Create a Study Plan: The CPA exam is very difficult, especially on your first attempt. Begin studying with CPA exam prep courses or study guides early on, and make a study plan that works for you. Consistency and planning are key to passing the exam.
7. Stay Organized: Keep track of deadlines for applications, CPA exam sections, and continuing education requirements. Creating a timeline or checklist will help you stay on top of everything as you move through the process.

Conclusion

Becoming a CPA is a challenging but highly rewarding career path. If you’re passionate about numbers, problem-solving, and helping others navigate the financial world, this profession could be the perfect fit for you. The journey to becoming a CPA takes time, dedication, and a love for learning, but the career opportunities and personal satisfaction that come with it make it all worth the effort.

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