My Decision to Take the CPA Exam

The CPA exam is an extremely difficult exam to pass. The national pass rate percentage for each part of the exam tends to fall between 45% and 50%. So why did I decide that in a few years I am going to put myself through this extremely difficult examination? The simple answer is that having a CPA is worth all the hours of studying that will be required to pass all 4 parts. What makes a test worth the CPA worth all of that time and effort?

There are plenty of reasons that make the CPA worth the over 400 hours of studying that is usually done. One of the reasons is job security. The U.S. job market is becoming more and more competitive every year. Potential employees have to work extremely hard to make sure that their resume stands out from the rest. One way for accountants to impress their potential employers is by having a CPA. Employers hiring accountants cannot ask for much more. A CPA shows that you have a very good understanding of many of the complexities that an accountant could have to deal with.

Being a CPA looks excellent on the resume of someone applying for a job, but it is also extremely advantageous for accountants that are trying to move up in their company. Some companies set a ceiling on how high they will let non CPA accountants go. In these companies the importance of a CPA is extremely evident. If you want to get to a certain level, you need to be a CPA. However, not all companies have this ceiling. Nevertheless, it is a very nice safety net to be able to fall back on the fact that you are a CPA. In 2011, the overall unemployment rate was 9%; however, the unemployment rate for accountants was only 3.5%. For those with a CPA, it is even less.  Even when everything else is looking bleak, there is still an extremely high demand for accountants that know what they are doing.

Although job security is a nice benefit, the most popular reason for taking the CPA exam is the ability to make more money. According to Becker Professional Education, the average CPA entry level position earns 10% more money than a non CPA entry level position. This number might be around $7,000 at first, but as the employees move higher up the corporate ladder the salary difference could grow to around $50,000! That kind of difference in salary makes the 400 hours of study well worth it in my opinion.

Passing the CPA exam is tough work. The 400 hours that they suggest that you study might seem to be daunting. However, if you sit down and do the math you will find that those 400 hours are well worth it. According to the Becker Professional Education the difference in salaries between non-CPA accountants and CPA accountants can end up translating into over 1 million dollars over your career! That means that during those 400 hours of studying you are earning roughly $2,500 an hour if you are able to pass the test on your first try. In my opinion that kind of money and job security are more than worth the time and effort of studying for the CPA exam.