Steps to Become a CPA

Published February 23, 2010

TAKING THE CPA EXAMINATION: A MAJOR STEP TO CPA SUCCESS

GET THE INFORMATION YOU NEED

Learn About the CPA Examination
You have been studying accounting for a long time and are now prepared to seek CPA licensure. You are ready to focus on the CPA Examination – its content, structure, format, and delivery. Review this website to familiarize yourself with the examination information available to you. Click here to view FAQs on examination topics.

Learn About the CPA Examination Process
Before you do anything else, read theCandidate Bulletin – the official handbook for individuals who plan to take the CPA Examination. As a CPA candidate, you will be required to know what your responsibilities are and how the examination process works. The Bulletin contains this and much other useful information. Click here to download and print a copy.

Prepare Yourself for CPA Examination Changes
Changes in the CPA Examination are made periodically, and major changes are scheduled to take place when the CBT-e project is implemented. Stay up-to-date! Read the Fall 2008 issue of The Uniform CPA Examination Alert for a description of the CBT-e changes to come. Read subsequent issues for project updates. Click here to access all CPA Alert issues. Also, watch for announcements on this website.

Prepare to Take the CPA Examination
Click here to review the “How to Prepare” materials. In addition to knowing your subject matter, you must know what kinds of questions to expect, what tools you will have to work with and how to navigate through the examination. Pay special attention to the information about the CPA Examination Tutorial and Sample Tests.

As a CPA Candidate, you will be required to be familiar with the examination’s functionality, format, and directions before you report to the test center. Failure to follow the directions provided in the tutorial and sample tests, including the directions on how to respond, may adversely affect your scores.

Decide on the Jurisdiction to Which to Apply
Select the jurisdiction (state/territory) in which you wish to qualify as a CPA. Review the eligibility requirements for the CPA Examination and the CPA licensure requirements of the Board of Accountancy in that jurisdiction. Requirements vary from one jurisdiction to another. If you are not certain where you would like to qualify, review the requirements of several jurisdictions before deciding.

To obtain information about Board of Accountancy requirements – jurisdiction by jurisdiction – click here to view a jurisdictional map. After you make your decision, follow online instructions for your jurisdiction to request an application.

APPLY FOR THE EXAMINATION

Submit a Completed Application and Documents/Pay Required Fees
Fill out your application accurately and completely and submit it as instructed. Depending on the jurisdiction to which you are applying, your application may need to be submitted to a Board of Accountancy or to an organization representing the Board. You need to know exactly where and how to submit it. Because fee payment procedures vary by jurisdiction, be sure to follow your jurisdiction’s instructions regarding application and examination fees.

Submit Academic Documents – If Required
If you are a first-time candidate, you will be required to submit official academic transcripts. Follow directions on how these documents have to be submitted. Note that if you completed academic requirements outside the U.S., your Board may require that your credentials be evaluated by an agency approved by the Board.

Submit Request for Special Accommodations – If Needed
If you need special accommodations at the examination under the provisions of the Americans With Disabilities Act (ADA), you must present your request in conjunction with your application so that the Board of Accountancy in your jurisdiction can consider your request. Special accommodations require advance Board approval.

Do you have questions about the application process, the documents you need to submit, the fees you must pay, or your jurisdiction’s eligibility requirements?
Contact the organization to which you submitted your application – either the Board of Accountancy in your jurisdiction or an organization representing the Board.

SCHEDULE THE EXAMINATION

Receive the Notice to Schedule (NTS)
When you receive the Notice to Schedule (NTS), you are officially eligible to take the examination sections for which you applied. Congratulations! You will need the NTS to schedule examination appointments and to be admitted to the examination. First, review the NTS to make sure the information on it is correct and your name on the NTS coincides exactly with your name on the identification documents you will take to the test center.
Read more about this in the Candidate Bulletin.

Do you have questions about your NTS or does your NTS need to be corrected?
Contact the organization to which you submitted your application – either the Board of Accountancy in your jurisdiction or an organization representing the Board

Schedule the Examination
As soon as possible after you verify your NTS, schedule your examination sessions so that you may have the best choice of dates/times and testing locations. Pay attention to the length of time for which your NTS is valid and to the “testing windows” (the two months of every quarter when testing is available) that are coming up. Note also that once you have been determined eligible to take the examination, you can take the examination at any authorized test center – you are not required to take it in the jurisdiction in which you are applying. For step-by-step instructions on how to make testing appointments on the Internet or by phone at Prometric test centers (or at the Guam test center operated by NASBA) refer to the Candidate Bulletin.

Do you have questions about test centers or scheduling examination appointments?
Contact Prometric Candidate Services Call Center at 800-696-2722. If you are applying to take the examination at the test center in Guam, follow the contact instructions provided in the Candidate Bulletin.

TAKE THE EXAMINATION

Report to the Test Center
Come prepared! Before your test date, read the Candidate Bulletin for information about acceptable forms of identification and the rules in effect at test centers with respect to the check-in process, the launch of the examination, and required candidate behavior. On the day of your appointment, be sure to bring your NTS and the necessary acceptable personal identification documents to the test center. Plan to arrive at the test center at least 30 minutes early. Also, remember that your testing appointment is 30 minutes longer than the time allowed for the examination so that you may complete the sign-in process and survey without infringing on your examination time.

Take the Examination
Conform to all test center requirements, follow instructions, plan your examination time, and do a great job when you answer examination questions. Report any equipment/functionality issues to the test center staff without delay. (Report any comments about test questions or examination software after the examination. Test center staff cannot help with such issues.)

Do you have questions about the examination you just took, comments about your testing experience, or any issues to report?
Refer to the Confirmation of Attendance that you received at the end of the examination session. This document contains contact information and instructions on where to turn if you have questions or have anything to report.

RECEIVE SCORE(S)

Receive Your Score Report
Your score report will show the score you just earned as well as any previously earned credit. If you need information about scoring, read “How is the CPA Examination Scored?” available here, and review the FAQs on scoring, available here. If you have questions about the Candidate Performance Report, review the FAQs availablehere. If you have received failing score(s) and have no examination credit, plan to re-take the examination until you are successful. Start studying today!

If you have received passing scores in some sections and have no previously earned credit, remember that you have 18 months to pass all CPA Examination sections. The count-down to the 18 months begins when you pass your first section(s). Plan your testing schedule accordingly.

If you have received failing scores but have previously earned credit, look at your 18-month cycle to determine whether you can still re-take the sections you need to pass without losing credit.

If you have now passed all four sections of the CPA Examination – Congratulations! Your worries are over.

Why Bother Becoming A CPA? A Guest Post From Roger Philipp

By Francine • Mar 18th, 2009 • Category: Pure Content, Your Career

Roger Philipp, CPA, is a Deloitte alum and the founder, CEO, and instructor for Roger CPA Review, a CPA Exam prep course. Roger CPA Review supports re: The Auditors as our first sponsor. I asked him to tell us, in a time of uncertainty, why passing the CPA exam (or whatever certification exam is applicable in your country) is still a great investment.

(I’ll give you one good reason: No one can ever take that accomplishment away from you.)

To begin, we’ll just break down the question itself: Why bother becoming a CPA? The very nature of that question implies that the act of becoming a CPA is a “bother,” or an irritating chore. Why do we see it that way? Common obstacles to getting a CPA license include the difficulty and cost of taking the CPA Exam, itself.

Not surprisingly, these are the main reasons why only about half of accounting students choose to go on to become CPAs. However, neither of these reasons should be enough to hold you back from this exciting and lucrative career choice.

Difficulty: It’s Not As Hard As You Think
Candidates imagine the CPA Exam to be far more difficult than it actually is. That’s not to say that the exam is easy — far from it. In fact, according to the AICPA, only about 47% of candidates pass the CPA Exam. But it’s important to note that the main cause of the low pass rate can be directly attributed to inadequate studying. Furthermore, out of the students who continue their attempts to the CPA Exam, as many as 75% percent eventually pass. In short, with the right commitment and preparation, it can be done. As we at Roger like to say, the CPA Exam is not an IQ test – it’s a test of discipline! If you study, you will pass!

Cost: Earning Your CPA Makes Cents
For many, cost is the decisive factor when a person considers becoming a CPA. There’s no question about it: it’s an expensive proposition. The good news is that you don’t have to shoulder the full cost all at once. The costs arrive in stages, beginning with college tuition and ending with CPA license fees.

Additionally, your initial investment will pay off quickly. Once you are a licensed CPA, your entry level earning potential increases by as much as 15% over uncertified accounting professionals (2008 Robert Half Salary Guide). This gap can continue increasing over the course of your career, eventually adding as much as $11k-$18k more to your annual earnings.

According to a recent report by the Institute of Management Accountants, the average CPA earns $131,726 per year before extra compensation while non-CPAs only earn $98,912. This is a difference of 32,814 or 28.5% higher.
To reinforce the point, let’s perform a cost/benefit analysis of becoming a CPA.

Cost:
Bachelors Degree with 150 hours (in most states)
300-400 hours preparing for the CPA Exam
CPA Exam Fees (more than $1,000 in some states, more if retesting is required)
CPA review course costs ($1,600 – $2,500 depending on course)
Licensure fees (more than $1,000 in some states)

Totals:
Time commitment: 450-550 hours
Financial commitment: $4500 or more, depending on exam success and state fees.

Benefit:
Increased earning potential of up to $18,000 per year. Duration: grows annually
Potential employers perceive CPA’s to be disciplined and committed. Duration: entire career
Potential for advancement opportunities and management or partnership. Duration: entire career
Personal growth and development. Duration: life
Business opportunities not available to uncertified accountants, such as financial consultancy, signing audit opinions, working for the FBI, or providing independent accounting services to the public.

Totals:
As much as $720,000 (assuming a 40 year career, with an 18k of increased annual income)
Inestimable value of other benefits

Many accountants currently working with firms will tell you that they’re driven to take the CPA exam by the prospect for promotions. Because most firms won’t promote uncertified accountants past the managerial level, your ‘promote-ability’ skyrockets once you’ve become a licensed CPA. Of course, with promotions come even more salary increases and bonuses.

As you can see, becoming a CPA enhances your earning potential and upward mobility over the course of your entire career. The question shouldn’t be whether you can afford to become a CPA, but rather can you afford not to?