Every college student faces one big question: what’s next after graduation?
If you’re an accounting or finance major, congrats! You already know you’ve set yourself up for success once you earn your diploma. But there’s one thing that can take your career to the next level: adding the CPA license to your game plan.
What is the CPA License?
A CPA (Certified Public Accountant) license is issued by your state board of accountancy, a governing body that oversees licensing and regulations for the profession. Having the license says you’ve met all the requirements to practice as a CPA, including education, professional experience and passing the CPA Exam.
Why Do I Need a CPA License?
In practical terms, a CPA license authorizes you to perform certain job functions that accountants can’t.
For example, CPAs have the authority to represent clients to the IRS if they have an issue. They’re also legally granted the authority to certify financial documents at an organization and work on audits for a public accounting firm.
But outside of the practical reasons, there are PLENTY of other reasons why the CPA license can be transformative for your career.
The CPA Salary
It’s no secret: having a CPA license translates into a higher earning potential over the course of your career. While the starting salaries for CPAs and non-CPA accountants can be relatively close together, as you progress in your career you will make more money with the CPA license.
“Having a CPA license translates into a higher earning potential over the course of your career.”
Becker reports the overall average salary for a CPA is $75,000, while the average for an accountant is $52,000. Top salaries for CPAs, especially those who enter prestigious CFO and other executive-level positions, can pay well into the six figures. While accountants can potentially earn six figures, most won’t surpass more than $100,000 per year.
The CPA Prestige Factor
People know having a CPA license takes a lot of hard work and dedication, which translates into prestige and respect from clients, peers and companies where you might want to work.
It also means a certain level of trustworthiness—especially since the license requires continuing education, oversight and ethical standards. While accountants can—and should!—continue to learn throughout their career, it’s not a requirement. Being a CPA is a sign to others you’re dedicated to being the best you can be and are on top of your game.
CPA Job Security
Recessions are a part of our modern economic system. There’s no way around it. The good news? Accounting is well-known as a recession-proof field.
Accountants are everywhere: school systems, government agencies, your favorite television network, the manufacturer down the road. If these companies and organizations don’t have an accounting team in-house, they certainly work with an accounting firm that needs talent to lead audits, help solve complex business challenges, guide clients through tax season, consult on technology and more.
These are needs that don’t disappear with the whims of the economy, and with a projected 130,000 open accounting and auditing jobs each year, a CPA license would put you at the top of the list as a desirable candidate. This means you can drive your career in any direction you want.
But Isn’t Getting a CPA License Hard?
As the saying goes, nothing worth having comes easy! Earning the CPA license takes work, focus and determination. It currently requires 150 hours of education, meaning additional time in the classroom after you complete your bachelor’s degree. You’ll also have to pass the three core sections of the CPA Exam, plus one additional discipline section of your choice.
But the few years of work you put into earning your license can literally impact the rest of your life! You’ll be regarded as a leader and business expert and have the salary to match.
Here’s what a few INCPAS members have to say on why earning your CPA is worth it:
“There is so much you can do with a CPA license. You ultimately decide what you want to do with your career, including where you work, how much you travel, how busy you want to be, and even who you want to work for. Something worth working for isn’t going to always be easy, but at the end of the day, all your efforts will come to fruition.”
—Cynthia Williams, Internal Audit Analyst – JPMorgan Chase & Co., INCPAS Scholar Indianapolis 2018–19
“The CPA designation has always meant a higher level of quality and professionalism. The weight of having ‘CPA’ behind my name has offered me many opportunities in my career, from professional development to volunteer opportunities and everything in between.”
—Melanie King, CPA, CFO – The Hagerman Group, Former INCPAS Board Vice Chair
“Earn your CPA license and focus on delivering quality work. It’ll only help grow your own confidence along with others’ confidence in you.”
—Parker Collignon, Audit Senior – Deloitte
“A big part of the reason I became a CPA was that my dad told me it was a safe, secure job. Then I fell in love with being a CPA once I started working with clients who inspired me on a daily basis…I love taking the stress and scariness out of the financial part of owning a business.”
—Amy Northard, CPA, Owner – The Accountant for Creatives
Ready to explore the next steps to becoming a CPA? We have you covered!