NorthStaracademy - Accounting in bengluru, karnataka

What is the US CPA certification?

Let’s start by first knowing a little about the US CPA certification. US CPA is the highest accounting credential in the United States, and it is awarded by the American Institute of Certified Public Accountants (AICPA), which is said to be the largest accounting body in the world. The CPA designation is recognized as leading accountants in many countries, such as the US, Canada, Australia, New Zealand, and Hong Kong.

The US CPA course provides a great deal of knowledge of US GAAP, IFRS, GAAS, and US Federal Taxation & Business Laws, which comes in handy when working with a US company or an MNC dealing with US markets. There is a lot of demand for CPA professionals all around the world. Many companies prefer accounting professionals with the CPA designation because of the tremendous value they bring in.

Because of this demand and global recognition, a CPA can find a better place to work nearly anywhere in the world, with a 30-40% higher salary than other Accounting Professionals.

The CPA certification is said to be a Global Passport to a better place to work and earn much more money.

How to become a CPA – Steps

Applying for the US CPA is often quite confusing because the whole process of “how to become a CPA” can be complicated for many. Moreover, each of the 55 state boards of the United States has its own different steps and requirements, which makes the whole process more complex.

Let us simplify this overly complicated process in a few steps. Here are the most important steps for becoming a CPA.

CPA Eligibility Criteria

Checking whether you are qualified/eligible to take the exam or not is one of the first steps how to become a CPA USA.

The eligibility requirements for the US CPA can vary according to the state boards. To become an accountant with a CPA designation, the candidates must fulfill the eligibility criteria according to their respective state boards of Accountancy. There are 55 states which are members of the National Association of State Boards of Accountancy (NASBA). Any of these 55 state boards can award the US CPA license.

Most of these states require a bachelor’s degree in a related field like accounting or business with certain credit hour requirements and certain coursework requirements. The candidates must gain at least 120 credit hours (a bachelor’s degree + 30 extra credits from a Master’s degree) to take the exam and 150 credit hours for the CPA licensure. US CPA education requirements can be briefly explained as follows:

To take the exam, you need to complete your graduation + 1 year of post-graduation (which will give you 120 credit hours)

To get the License, You need to complete both your graduation and post-graduation (which will be counted as 150 credit hours)

For an Indian candidate, who wants to know how to become a CPA USA, you must possess any of the following qualifications.

MBA degree

Master of Commerce

Member of the Company Secretaries in India.

Member of the Institute of Cost and Works Accountants in India.

Member of the Institute of Chartered Accountants of India.

CA’s with B. Com is also accepted in some of the 50 states of the US.

Steps explaining how to become a CPA USA include acquiring the required work experience. In order to become a CPA, one must also cover at least 2,000 hours of work experience (2 years of professional experience) in any of the relevant fields of work under a licensed CPA or equivalent level accountant (for example:- Indian CA or ACCA).