ACCOUNTANTS DEFINED

Accountants are defined in several categories as follows:

• Duties carried out
• Education level

 Education: level:

                Accountants can possess a designation obtained by passing examination given by recognized professional accounting bodies such as CPA, CA, CMA, CGA. Also, a minimum experience level is required to receive a designation. Continuing education is also required to maintain a high level of competence and knowledge.

                Accountants can also not possess any designation, but have attained knowledge and skills through study of accounting  materials and practical experience.

Duties carried out:

                An accountant analyzes accounting records, financial statements, makes any necessary adjusting journal entries, prepares financial statements, calculated related taxes and completes tax returns. The accountant will prepare business plans, cash flow schedules, tax planning and generally interpret the financial statements for management.

                A Bookkeeper enters the transactions into the accounting records; reconciles the bank accounts, payables, receivables and may make a few adjustments to the ledgers. Normally accounting software is used to maintain the accounting records.  The accountant take over after the bookkeeper has finished entering the transactions.

Certified Public Accountant (CPA) (other accounting bodies have a similar format)

The CPA designation indicates an endorsement of proficiency by the Institute of Public Accountants. It means a CPA has passed the CPA exam, attained an experience level, licensed to practice public accounting and is accountable to the governing bodies in terms of conduct and continuing education.

In general, state boards require the following:

       A total of 150 semester credits from a college or university whose accreditation is accepted by the state (Colleges and universities typically offer a curriculum designed to meet the 150-credit requirement.)

       A minimum of a bachelor's degree

       A specified number of accounting courses

       A specified number of business courses

Colleges and universities with quality accounting degree programs will offer both a bachelor's degree in accounting as well as the more ambitious 150-credit degree, the latter one meeting the state's requirements for sitting for the CPA Exam. If you want to become a CPA, you will choose the 150-credit program. Within those 150 credits you will most likely earn the bachelor's degree in accounting.

You should know from the outset that college accounting courses are difficult—they demand an ability to understand and manipulate complex financial concepts. You will be expected to attain above average grades in an environment known for high grading standards.

Less than half of the students who enroll in a bachelor's degree program in accounting will succeed. The same is true for those who intend to earn the 150-credit degree. Of those students who succeed in qualifying to sit for the CPA Exam, less than half of them will successfully pass this difficult exam.

Learn more about the difficulty of the CPA Exam

If your goal is to become a CPA, you should prepare early. While still in high school, be sure to enroll in courses that are part of the "college track." Completing one or more of the advanced placement (AP) or post-secondary enrollment option (PSEO) courses in high school will give you an advantage.

Meeting the Educational Requirements in Different Ways

Generally, colleges and universities will establish an accounting curriculum that guides students through the entire 150 college credits needed to sit for the CPA Exam. That being said, state boards of accountancy sometimes allow a measure of flexibility. Here are a few examples of people who took a different qualifying route to the CPA Exam:

       Obtained a bachelor's degree in accounting from a college or university noted for its outstanding undergraduate program. The student then attended a prestigious graduate school to earn an MBA degree.

       Obtained a bachelor's degree in accounting from a college or university noted for its outstanding accounting program. The student then moved on to another exceptional university and earned a graduate degree in taxation.

       Graduated from college in only four years with the 150-credit degree. This is because the student had a "head start" coming into college due to the AP (or PSEO) credits earned in high school.

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