Accountants

Certification or Licensing

A large percentage of all accountants are certified. Certified public accountants (CPAs) must pass a qualifying examination and hold a certificate issued by the state in which they want to practice. The Uniform CPA Examination, which is administered by the American Institute of Certified Public Accountants (AICPA), is used by all states. Nearly all states require at least two years of public accounting experience or the equivalent before a CPA certificate can be earned.

In most states, a college degree is required for admission to the CPA examinations; a few states allow candidates to substitute years of public accounting experience for the college degree requirement. Currently, nearly all states and the District of Columbia require CPA candidates to have 150 hours of education, which represents an additional 30 hours beyond the standard bachelor’s degree requirement. (Check with the AICPA or your state accounting association for information on requirements in your state.) These criteria can be met by combining an undergraduate accounting program with graduate study or by participating in an integrated five-year professional accounting program. You can obtain information from your state board of accountancy or check out the AICPA Web site to read about new regulations and review last year’s exam.

The AICPA offers other credentialing programs (involving a test and additional requirements) for members with valid CPA certificates. These designations include accredited in business valuation, certified in financial forensics, certified information technology professional, and personal financial specialist. These credentials indicate that a CPA has developed skills in nontraditional areas in which accountants are starting to play larger roles.

Additional certifications are provided by

• Accreditation Council for Accountancy and Taxation (accredited business accountant, accredited tax preparer, accredited tax advisor, and accredited retirement advisor)
• Association of Financial Professionals (certified treasury professional)
• Association of Government Accountants (certified government financial manager)
• CFA Institute (chartered financial analyst)
• Institute for Professionals in Taxation (certified member of the institute)
• Institute of Management Accountants (certified management accountant, certified financial manager)

Contact these organizations for more information about certification requirements.

Accountants who work as tax preparers must be licensed. Licensing requirements for tax preparers vary by state, and you should be sure to find out what requirements there are in the state where you wish to practice.

The Internal Revenue Service (IRS) offers an examination for tax preparers. Those who complete the test successfully are called enrolled agents and are entitled to legally represent any taxpayer in any type of audit before the IRS or any state tax board. (Those with five years’ experience working for the IRS as auditors or in higher positions can become enrolled agents without taking the exam.) There are no education or experience requirements for taking the examination, but the questions are roughly equivalent to those asked in a college course. The IRS does not oversee seasonal tax preparers, but local IRS offices may monitor some commercial tax offices. Those who obtain the enrolled agent status must complete 72 hours of continuing education courses every three years.