Is Becoming a CPA Worth It? (2024)

The advantages of earning a certified public accountant (CPA) license dwarf the required effort and sacrifices necessary to acquire it. First, job flexibility increases for those who hold a CPA license. Second, promotions arise earlier in the career. Third, with a CPA license, salaries surge.

Since a CPA license is more desirable to employers like accounting firms and other business organizations who look for employees with accounting backgrounds, job opportunities grow. Openings to move within the current organization can afford the chance to try a different aspect of the accounting field, such as a move from audit to tax. Additionally, a CPA license can help an accountant transition from public accounting to an industry-specific business. This change allows finding work in a field that more closely aligns with personal interests. Lastly, working in a remote setting becomes more attainable as each accountant has established a professional image. The perk of this option is that it can increase a work-life balance.

Through a displayed ability to effectively take on more responsibilities, licensees can experience promotions faster. With most mid-size and larger accounting firms, it is becoming a requirement to have a CPA license for an upgrade to a manager position. According to a survey, approximately “44% of CFOs are CPAs”(Amato, 2022). While it is not a requirement to have a CPA license to become a CFO, the correlation is evident that having CPA credentials increases the chances of being promoted to some of the highest positions within a company.

Because of advancements, or new positions offered to those with a CPA license, salaries increase exponentially. “CPAs, on average, make 10-15% more than unlicensed accountants and often start at a higher salary and receive higher pay increases over time while unlicensed CPAs tend to reach a ceiling” (Why Become A CPA?, 2023). The salary difference between a licensed CPA and an unlicensed accountant throughout a career could be hundreds of thousands of dollars. Moreover, the license is so desirable that accountants can use it as leverage for raises outside the typical pay raise windows.

Becoming a CPA has numerous benefits. The assortment of jobs available for licensed CPAs increases substantially, progression through the ranks at companies happens faster, and the accompanying salaries reflected from these advanced positions increase. Although obtaining a CPA license comes with challenges, the benefits extended from acquiring the license make the efforts worthwhile.

References

Amato, N. (2022, January 14). Diversity Continues to Rise Among CFOs and CEOs, Survey Shows. Retrieved from Journal of Accountancy: https://www.journalofaccountancy.com/news/2022/jan/diversity-rises-cfos-ceos-crist-kolder-report.html

Why Become A CPA? (2023). Retrieved from North Carolina Association of Certified Public Accountants: https://www.ncacpa.org/why-a-cpa/