One of the most well-respected professional qualifications an accountant may achieve in the UK is becoming a Certified Public Accountant (CPA). Earning a CPA requires years of education and professional experience in accounting, which may have a significant impact on your career's success.
In this post, we'll go over everything you need to know about becoming a Certified Public Accountant, including job qualifications, typical income, and other commonly asked questions.
What Are The Responsibilities Of A Certified Public Accountant?
A certified public accountant (CPA) is a trusted financial advisor who has met all the requirements set by their state Board of Accountancy. They are authorised to perform tax preparation, government audit preparation, IRS representation, bookkeeping, and financial planning.
In the UK, CPAs can work for major corporations, small enterprises, non-profit organisations, or private practices, serving individuals, small groups, and local businesses.
Is CPA The Right Career Path For You?
It may seem obvious, but you should start by assessing whether becoming a CPA is the best career path for you. If it isn't, then you can choose a career path that doesn't require a CPA or even involve accounting. You can opt for other professions instead, such as financial analyst, financial manager, or budget expert. These career paths will fulfil your passion for working with numbers without the added complexities of accounting.
If you decide that accounting is the right field for you, then there are various roles you can pursue, including becoming a junior accountant, tax advisor, auditor, or financial consultant. Many entry-level positions enable young accounting professionals to enter their chosen fields. With this experience and further education, potentially including a CPA qualification, they can advance to senior roles like senior accountant, CFP, or controller. For individuals interested in public accounting, there are opportunities to progress within the ranks of the firm.
Average Salary Of A CPA In The UK
Certified Public Accountants (CPAs) in the UK typically earn an average salary of £47,094 per year. Their salaries can range from £20,000 to £100,000, depending on factors such as education, experience, geographic location, employer, and job position. Additional compensation, such as overtime pay, can also influence their overall earnings.
Criteria For Becoming A CPA In The UK
The basic requirements for becoming a CPA in the UK include:
- Being at least 18 years old.
- Having a social security number.
- Possessing good moral character.
- Demonstrating exceptional maths skills.
- Having excellent communication abilities.
- Possessing strong organisational skills.
- Being proficient in accounting software and Microsoft Office.
- Exhibiting strong analytical ability and attention to detail.
- Understanding tax rules and regulations at the municipal, state, and federal levels.
- Completing the relevant academic requirements to get licensed in your state.
- Meeting the minimum experience criteria for licensure.
- Obtaining your CPA licence in the UK.
What Does It Take To Become A Certified Public Accountant In The UK?
To become a CPA in the UK, you must follow these steps:
Find out your state's requirements
Before jumping straight into a CPA qualification, you should understand the specific requirements your state might want from you. Research the minimum criteria to be eligible for the CPA exam, and while you're in college, consult your state's licensing board to ensure you choose the most suitable major and coursework for you.
Obtain a diploma
You'll need a bachelor's degree in accounting or finance to become a CPA in the UK. Some states allow candidates with degrees in related fields to take the CPA exam, but this varies from state to state. Typically, you'll need core credit hours in accounting, auditing, taxation, and business-related courses like finance, management, and law.
Most states require candidates to complete at least 150 college credit hours, which is 30 hours more than a typical bachelor's degree. Many aspiring CPAs fulfil this requirement by pursuing a master's degree. However, some undergraduate programs offer additional coursework to meet the credit hour criteria.
Gain useful work experience
Typically, your state's Board of Accountancy determines the amount and type of work experience needed. Most states require at least one year of full-time bookkeeping experience, while others need two years under the supervision of a CPA.
Apply for the CPA exam
You must first apply with the state board before taking the CPA exam. The application cost varies by state, but it usually costs between $50 and $200 and is non-refundable. Once approved, you'll receive a Notice to Schedule (NTS), which you'll use to book your exam appointments. You need to complete all sections of the exam within 18 months.
Study for the CPA exam
There are four sections in the CPA exam:
- Auditing and attestation.
- Financial accounting and reporting.
- Regulation.
- Business environment and concepts.
Each section lasts 4 hours. Since it's a difficult exam, you'll need to study each section thoroughly to ensure you're ready to take it, focusing on one or two sections at a time.
The test is graded using a weighted scoring system, which means the level of difficulty will increase as the questions get harder, earning you more points. There will also be a written exam, putting your communication skills to the test.
Obtain and maintain your licence
After passing the CPA exam and the ethics exam, you'll need to apply for your licence. It usually involves paying a fee and demonstrating you've met all requirements. Once you're licensed, you must complete continuing education courses each year to maintain your licence.
Key Skills For Success
To be successful in their jobs, accountants must have a mix of hard and soft talents. Some of the most common accounting skills required for an accounting job are as follows:
- Communication Skills: Effective verbal and written communication is essential for interacting with the accounting team, senior accountants, and other departments.
- Detail-Oriented: Precision is crucial in preparing and reviewing financial documents.
- Time Management: Balancing and prioritising tasks ensures timely completion of work and maintains work-life balance.
- Computer Skills: Proficiency in typing, system use, and software applications like Microsoft Office and QuickBooks is necessary.
- Accounting Skills: Accounting qualification requires a mix of strong quantitative, logical, and analytical abilities required for generating and auditing financial accounts and records.
Conclusion
Becoming a Certified Public Accountant (CPA) in the UK involves a lot of hard work but offers great career opportunities. You'll need to complete your education, gain work experience, and pass the CPA exam.
As a CPA, you'll help ensure that finances are accurate and comply with regulations. With a clear understanding of what's required and by developing the right skills, you can successfully become a CPA and enjoy a rewarding career in accounting.
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FAQs
Q.1. What is the duration to become a certified public accountant UK?
CPA candidates must finish the first five years of college before accomplishing this prerequisite.
Q.2. What is the quickest method to become a certified public accountant in the UK?
Finding a CPA review course that fits your study style, price, and schedule is the quickest way to pass the exam.
Q.3. What is the difficulty level of the CPA Exam?
The Uniform CPA Examination is one of the most challenging professional credentialing exams, with national pass rates hovering around 50%.