Frequently Asked Questions About Accounting

What is accounting?

Today's CPAs focus on much more than just numbers. They are the information analysts who help businesses and individuals to reach their financial goals. As noted in the Occupational Outlook Handbook, accountants and CPAs help to ensure that the nation's firms and businesses are run more efficiently, their public records kept more accurately, and their financial records and accounts are properly handled. Specific job duties vary widely in the four major fields of accounting (public, business/industry, government and nonprofit). Public accountants perform a broad range of accounting, auditing, tax, and consulting activities for their clients, who may be corporations, governments, nonprofit organizations, or individuals. Others are consultants who offer advice in such areas as compensation or employee health care benefits, the design of financial reporting and data processing systems; and the selection of controls to safeguard assets. Some specialize in forensic accounting -- investigating and interpreting bankruptcies and other complex financial transactions. Management accountants -- also called industrial, corporate, or private accountants -- record and analyze the financial information of the companies for which they work. Other responsibilities include budgeting, performance evaluation, cost management, asset management and strategic planning.

What is the career outlook for accountants?

Evolving business trends have had a most positive effect on the employment of accountants, especially those who have earned the CPA designation. Mergers and acquisitions, legislative changes and technology innovations are areas that call for the expertise of professionals possessing the ability to analyze information, integrity, objectivity and competence. With the increasing need for management and consulting services, CPAs will continue to see a broad range of new job opportunities, especially those who have a master's degree in accounting or business administration.

Why should I earn my CPA?

While most people use the terms accountant and CPA interchangeably, there is a big difference. The CPA credential carries enormous weight in business and financial circles. They are also considered to be among the most trusted advisers, according to a recent survey conducted by the American Institute of CPAs. Specifically, when small business owners were asked how often they rely on outside business counsel, half said that they rely on their CPA "always" or "often" ranking just slightly behind one's spouse or family member. This trust is not surprising considering the strict requirements to enter and stay in the profession. Achieving CPA status takes intelligence, ethics, integrity and lifelong commitment. First, candidates must make it through some of the toughest business courses at their college or university. Then they are required to take a professional exam covering business, auditing and general accounting skills. Once they have earned the CPA designation, they remain committed to maintaining and updating their skills as part of a life-long continuing education requirement. Those who know, know when they see the CPA designation they are dealing with a professional with the intelligence and commitment to make things happen.

What do I have to do to get a CPA certificate?

To take the CPA exam in New Jersey, you first need to obtain 150-hours of education. Once a candidate has passed the examination, he or she then must meet an experience requirement that broadly requires one year of experience in the practice of public accounting or its equivalent under the direction of a licensee that includes intensive and diversified experience in auditing or accounting as determined by regulation of the board. For more information on the experience requirement, see Requirements to Become a CPA.

I'm still in high school, what should I do now?

It is always a great move to start planning your future early and that means taking the right high school classes. While your GPA is important in determining which college you will attend, so are the classes you take. The most important thing about a CPA's education is that it must be well rounded. While math and economics classes are important, so are English, foreign language, history and other liberal arts. CPAs are not just number crunchers, they are communicators, negotiators and consultants. College bound curriculum requirements vary, so talk to your guidance counselor about specific classes you should take. Also don't forget about your SAT, ACT or other admissions tests. Your scores can be a huge factor when colleges and universities review your application. Whether you take an SAT prep course or get a practice book from the library, you should take some time to study and prepare for the exam. Check out these sites for tips on scoring big on admissions tests!

Petersons Online - www.petersons.com
The College Board - www.collegeboard.com
Kaplan Online - www.kaplan.com

Colleges today also look for more than good grades and high standardize test scores; admissions counselors seek well-rounded, civic-minded students to attend their schools. Pick an interest -- whether it be sports, music or something else -- then find a club or start one!

What courses should I take in college?

An understanding of accounting, business and technology are essential for CPA candidates. Accounting education generally encompasses a number of basic areas, including auditing, taxation, financial accounting and managerial accounting. The behavioral sciences also are an important addition for understanding management practices and behavior. CPA candidates also should develop effective communication, team building and project management skills and possess a knowledge of information systems. To provide for a well-rounded and well-trained CPA, the American Institute of Certified Public Accountants has developed a Core Competency Framework to guide students in their education.

How open is the CPA field to women?

The accounting field is an attractive one for women and one where many women, like men, find a variety of options for meeting their professional goals. Today, 56 percent of new accounting graduates are women. Women are drawn to the field for the same reasons men are: It is a field where they can find challenging and interesting work, flexibility and high earning potential.

How open is the field to minorities?

Over the last several decades, increasing numbers of minority students have been drawn to the accounting field. Today, minority students make up about 19 percent of new accounting graduates. Playing an active role in the promotion of minorities in the profession are the National Association of Black Accountants and the American Association of Hispanic Certified Public Accountants. Both organizations provide valuable programs and services to expand the number and influence of minority professionals in the fields of accounting and finance.

Will I need to go to graduate school?

While you can work in accounting without a graduate degree, many find that it makes good sense to invest in a master's degree. With the passage of the 150-hour educational requirement in New Jersey, many state colleges now also are encouraging accounting students to springboard the additional credit requirements into an advanced degree, whether that be an MBA, a MS in Accounting or some other advanced degree. CPAs with advanced degrees generally find themselves better positioned to advance in their careers and to take advantage of new and emerging opportunities. Their salaries also tend to be significantly higher. According to the 200 Finance Executive Compensation Survey, CFOs who hold both an MBA and CPA earn an average compensation of $168,987, while their peers who have not earned such dual designations earn an average of $139,467 - a 21 percent difference.

Where can I find help to pay for an accounting education?

In addition to the federal and state aid and loan programs that are available, you also might qualify for a scholarship through the New Jersey Society of Certified Public Accountants. Learn more about the NJSCPA Scholarship Programs. To learn about federal and state aid and loan programs, click here.

What is the difference between the State Board of Accountancy and the New Jersey Society of CPAs?

The New Jersey State Board of Accountancy is the government agency, under the jurisdiction of the Division of Consumer Affairs, that is responsible for administering New Jersey's public accountancy laws. As such, the board administers the CPA exam, licenses new CPAs, sets the guidelines for continuing professional education, and enforces the ethical and professional regulations for the accountancy profession. The board is comprised of members appointed by the Governor.

The New Jersey Society of Certified Public Accountants is a non-profit, professional organization for CPAs in New Jersey. Since its founding in 1898, the NJSCPA has served - and continues to serve -- as the primary resource and support for CPAs in New Jersey. Today, the increasingly diverse membership encompasses CPAs who work in business and industry, in government, education, and at public accounting firms ranging in size from sole practitioners to large international organizations. From its administrative headquarters in Roseland, the NJSCPA provides members with a broad range of opportunities for their professional development, including informational, educational and networking resources. Learn more about the NJSCPA.


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