CPA services you can provide

CPA services? You would be normal if that triggered your “Who cares” senses.

What do you think of when you think of a CPA? A thin middle aged white man? Is he wearing glasses and a dress shirt? Congratulations, you’ve correctly guessed the general perception of what a certified public accountant looks like.

But CPA’s can also be black or female or wear jeans…or even have perfect eyesight. And fortunately, the job market for accountants is projected to steadily increase well into 2028.

This is important to remember when we teach our children they can be anything. Yes, they can be lawyers, doctors, teachers, and presidents. But jobs that have social prestige aren’t the only careers or opportunities for business ownership out there. It’s possible to earn a comparable amount, if not more, owning a CPA firm, as a law firm. Providing CPA services can earn you a comfortable living.

So What do you need to know about the job that no successful business can do without?

What does a CPA do exactly?

A CPA (It stands for Certified Public Accountant) has many duties that they perform in service of their clients. From the tedious and mundane, to the occasional and fascinating.

Firstly, it’s important to understand the difference between a bookkeeper, an accountant, and a CPA (pause for dramatic effect). And yes, there are major differences. Similar to the differences between an uncle who is well versed in law, a paralegal, and a lawyer.

Can a bookkeeper provide CPA services?

Not really. A bookkeeper records financial transactions, looks for inconsistencies and errors, inputs financial information into computers using software, etc. Unfortunately, the Bureau of Labor Statistics projects that the bookkeeping profession will lose approximately 65,000 jobs over the next 10 years. This change is due mostly to automation and computers.

Bookkeepers, also called bookkeeping clerks, can additionally be responsible for sending invoices and payroll.

You don’t need a college degree to do this job and basic math skills with good attention to detail are the some of the most important skills to have. Bookkeepers basically gather financial information, whether for ledgers (books) or reports.

What CPA services do accountants provide?

Accountants can do all the tasks that a bookkeeper does but more. Instead of just gathering financial information, accountants also analyze that information. Also, accountants are financial advisors who can be instrumental in tax planning and management, tax preparation, and financial planning. The overall goal is to help individuals and businesses reach their financial goals.

What services can a CPA Provide?

CPAs can do all the tasks of an Accountant and a bookkeeper, and more. CPA services include being able to provide instrumental advice and bookkeeping.

So in addition to this list of accounting services that a regular accountant performs:

• Ensuring the accuracy of financial documents, as well as their compliance with relevant laws and regulations
• Preparing and maintaining important financial reports 
• Professional accounting and tax services: Preparing tax returns and ensuring that taxes are paid properly and on time
• Accounting and financial services: Evaluating financial operations to recommend best-practices, identify issues and strategize solutions, and help organizations run efficiently 
• CPA Consulting: Providing advice on cost reduction, revenue enhancement, and profit maximization
• Conducting forecasting and risk analysis assessments

Additionally, CPAs have 2 primary functions that a regular accountant cannot do. Namely, they offer corporate accounting services. CPA’s can file a report with the SEC (Securities and Exchange Commission). And CPA’s can prepare reviewed and audited financial statements. The important distinction between a regular accountant and a CPA accounts for the 10%-15% higher income that CPAs enjoy.

What is a CPA accounting salary?

Money matters! A lot. Especially when considering what type of career you want. Luckily, the salary for a CPA can equate to a nice, tidy sum.

The average salary according to the Association of International Certified Public Accountants (AICPA), the average salary of a CPA is $119,000 per year. A beginning CPA n their first year can expect to earn on average $66,000 annually.

Even that average figure varies from state to state. A CPA who earns $66,000 in Oregon or Arizona, would probably earn $83,000 a year in California or Alaska. For more state by state income comparisons for a CPA visit the CPA Salary Guide 2020.

How do I get my CPA

Any profession that is certified has specific requirements to get you certified and becoming a CPA or even taking the CPA exam is no exception.

1. No minors: You have to be at least 18 in order to get your CPA certification.

2. United States Citizenship: There are currently a few states that don’t require US citizenship to become a CPA. Alabama, Louisiana, Hawaii, and North Carolina are the only outliers.

Social Security Number: With the exception of Illinois, Montana, New York, South Dakota, and Wisconsin, every state requires an applicant to have a social security number.

College education: Every state requires a bachelor’s degree or a minimum of 120-150 completed semester hours. Where they vary is what type of bachelor’s degree you can have. Check with your state because they might accept a general bachelor’s degree, or they might require a degree in accounting or finance.

And it doesn’t stop there. No matter what your degree is in, most states want you to have at least 24 semester hours in accounting classes with an additional 20 hours of some other business classes (like finance).

Another reason to check your state requirements? Some states will allow you to take the exam before you finish your degree. Maybe you’ll get lucky.

Next Step

Get your education verified by the accountancy board in your state. Wait for your approval and then… apply to take the CPA Exam. The exam application fee is approximately $150 and you can only apply to take the test in 1 state at a time.

But wait, there’s more!

After you apply to take the CPA exam, you will (if accepted) receive an ATT (Authorization to test) document. Now you get to sign up to take a section of the exam. Unfortunately, the ATT is only good for about 90 days. And, if you haven’t signed up in that amount of time, you forfeit that $150 and have to resend your application and fee.

So after you receive your ATT, you will receive a NTS (Notice to Schedule) between 3 to 6 weeks later. you schedule your exam and send in the exam section fees for the sections you signed up to take. Again, each state is different in the costs but the average range is between $180 – $250 per section. There are 4 sections in total. And you have 6 months to schedule your exam or you lose that fee too. (They are definitely trying to get paid)

You must bring your NTS with you when you to take your exams.

Fortunately, there are 4 Testing Windows you can choose from to better fit your study schedule.

Testing Window: January 1 – through 3/10

Testing Window: 4/1 – through 6/10

And please don’t go unprepared. Indeed, there would be nothing worse than to lose the money you invested and the time by thinking you automatically know what the test questions and structure will be.

Can you pass the CPA exam in 3 months?

Yes! Fortunately for you, it is entirely possible for you to take and pass all 4 exam sections within the same testing window.

Is CPA exam hard?

It can be extremely difficult to pass the CPA exam. In fact, it is one of the most difficult professional accreditation exams to pass. The percentage of people who fail is roughly half. The pass fail rates of each section can be daunting as well.

But why is the CPA exam hard?

The exam is comprised of 4 different sections. The Regulation (REG), Auditing and Attestation (AUD), Financial Auditing and Reporting (FAR) and the Business Environment and Concepts (BEC).

Test-takers are given 4 hours to complete each section. And all 4 sections have to be passed within 18 months of passing your first exam. The recommended order of the tests is FAR, AUD, REG, BEC in order to use your cumulative knowledge to pass each successive exam as painlessly as possible.

According to test-takers, the FAR exam is the hardest…by a lot. It contains the most in depth material out of all the tests and the average passing rate is below half. So that should tell you everything.

How many times can you take the CPA exam

Every section can only be taken once every testing window. But there is no limit t the amount of times you can try. It will get expensive, so I would suggest being as prepared as possible for your first try.

But don’t be discouraged if you do happen to fail a section. The statistics tell us that 8 out of 10 test-takers fail at least 1 section. So study hard, and stay strong. You got this!

Where would you offer your CPA services?

As a CPA, you can use your certification to open an unlimited amount of doors.

Private, Corporate and International Tax Services

Work within a firm, or as an individual practitioner to organize, create, and strategize tax plans for individuals, large corporations, and small businesses. Make sure your clients stay in compliance with tax codes and get them all the allowable deductions and credits you can.

Here are a few things you might be expected to know all about, especially for corporate taxes:

ASC-740-Solutions

FIN 48 Analysis

Section 382 Consulting

Mergers and Acquisitions

DPAD-Section 199

S-Corps, LLPs, LLCs

State & Local TaxesTax Planning & Compliance

R&D Tax Credit and other specialized tax services

Audit, IT Assurance, Risk Assurance and Advisory Services

Business Process Outsourcing, Corporate Finance Consulting, HR and People Services, IT Security Advisory, Managed IT Services, and Technology Solutions

The multiple areas and multiple industries you can work in with a CPA is ever growing. And if you are thinking about joining this profession, you’ve got plenty of options.