Before considering what a typical day for a Certified Public Accountant (CPA) might look like, perhaps it’s best to first consider what a CPA looks like. The most common traits of a CPA are: they organize sequentially, they like detail-oriented work, and they make logical, objective decisions. If you’re considering a career as a CPA and this sounds like you, read on.
A Typical Day for a CPA Varies by Job Sector, Company, and Personality
Depending on the workplace environment, the typical day for a CPA can be routine, determined by the monthly accounting cycle, or can be immersed in audit activities day after day. For the most part, a CPA’s job depends upon the particular office and position. For example, a public accountant’s responsibilities include auditing, tax and management services, and consulting. In the public setting, CPAs provide objective insight for the clients they serve. Business and industrial positions are found in any size privately owned company or public corporation. The CPA is part of the accounting staff that supports that business. Government CPAs perform many of the same financial reporting and management accounting activities, but can also conduct performance audits, financial audits, compliance audits and investigative audits. Not-for-profit organizations need a CPA to set-up an internal control system, solve tax problems, prepare financial reports and budget resources.
Work in any of these sectors determines the day-to-day activities of a CPA, and the work can vary greatly. For more in-depth information on CPA careers, the AICPA (American Institute of CPAs) is a great resource.
There is, However, a Monthly Accounting Cycle That All Businesses Follow
A CPA at a business or industrial position will ensure accuracy and timeliness in following the sequence of events/reporting required each month. The eight steps in the monthly accounting cycle include: transactions, journal entries, posting, trial balance, worksheet, adjusting journal entries, preparation of financial statements and closing the books for the month.
Accounting software has made the job faster, easier and more accurate. The basic process of the cycle is a carryover from the days of manual bookkeeping and accounting. Once the books are closed for the month, the cycle begins all over again.
In a sense, it can be said that there is a typical month in the life of a CPA.
Tax Season Happens Twice a Year, Disrupting the Comfortable Monthly Accounting Cycle
The first wave of activity comes from February 15 to April 15. The second wave is from August 1 to October 15.
Tax returns for calendar year corporations, usually S-corporations, are due March 15, but they can be extended six months to September 15. Tax returns for individuals and calendar year partnerships are due on April 15, but can also be extended six months to October 15. During the second busy tax season of the year in large accounting firms, everyone pitches in to work on tax returns during September and October.
An accountant’s day can also change in a moment, like if a client requests an audit which requires fast turnaround. Depending on the area of specialization, the typical work day of an accountant can look quite different. Many CPAs are self-employed, which offers flexibility and additional opportunity along with added responsibility.
Conclusion
While a typical day for a certified public accountant varies by job title, work environment, and client list, CPAs are dedicated to producing thorough audits, accurate tax returns, and detailed financial management. If you are looking for steady employment and stimulating, varied work, perhaps accounting is for you. For information on online accounting degrees, check out 10 Best Online Accounting Schools.
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FAQs
Accountants spend the majority of the work day analyzing, collecting, compiling, and evaluating financial data. Accountants also prepare a variety of reports and financial statements, from daily cash flow statements for small companies to annual financial reports for large organizations.
What is the daily life of a certified public accountant? ›
A CPA's average day may be predictable and based on the monthly accounting cycle, depending on the workplace, or it may be packed with auditing tasks every day. The majority of a CPA's work is dependent on the specific office and role. For instance, the duties could include consulting, tax, and management services.
What does a CPA do day to day? ›
Certified Public Accountant Duties. Examine Financial Records: CPAs analyze financial records to prepare tax returns, create budget reports, and conduct audits for their clients. These accountants ensure that financial records comply with federal, state, and local laws and regulations.
Is being a CPA a big deal? ›
Endless opportunities
As an accountant, especially a CPA, professionals have the opportunity to work in finance functions in businesses of all sizes and across sectors, in the government, in academia or at a firm like PwC. And the types of jobs available to CPAs offer just as many possibilities.
What is the difference between a CPA and a CAA? ›
Scope of Work: Chartered Accountants are experts in auditing, financial reporting, and strategic business advice, catering to a global audience. Certified Public Accountants specialize in US tax and accounting standards, which are crucial for roles that demand a thorough understanding of US financial regulations.
What are disadvantages of being a certified public accountant? ›
The Top 10 Cons of Being an Accountant
- Fierce competition. It is true that there's an ever-growing need of accountants – but there is also an ever-growing number of job-seeking accounting graduates. ...
- Hard work. ...
- Lengthy education. ...
- Additional certifications. ...
- Continuing education. ...
- Work hours. ...
- Tedious work. ...
- Office work.
Overall, becoming a CPA opens the door to an incredibly stable, lucrative, and secure career path. To be eligible for a CPA license, you must meet state-specific education, work experience, and residency requirements, pass the Uniform CPA Exam, and fulfill continuing education obligations.
How stressful is a CPA job? ›
One of the main stressors for accountants is dealing with clients, but also the pressure to meet deadlines. With the constant stream of tax deadlines, year-end reports, and other financial obligations, accountants are under a lot of pressure to get everything done on time.
How many hours a week is a CPA exam? ›
Students, recent graduates, and people with plenty of time to study should aim to sit for and pass 4 sections of the CPA Exam in about 6 months. This would have you taking an exam every 6-7 weeks and studying about 22-26 hours each week.
Is a CPA better than an accountant? ›
Certified public accountants (CPAs) and accountants are both finance professionals who work with numbers and finances for individuals and businesses. CPAs are generally considered more qualified to perform certain tasks than accountants because of their advanced credentials and fiduciary standards. CPAs have additional qualifications and certifications, such as meeting rigorous licensing requirements and completing yearly continuing education. This allows them to perform a wider range of services and to represent clients before the IRS, such as preparing audited financial statements. CPAs are also often specialists in taxation, auditing, or consulting. CPA vs. Accountant: Answering 5 Questions For Future Accounting ...
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Accountants, on the other hand, can provide valuable financial advice and help with tax preparation, but may not possess the same level of expertise or legal standing as a CPA. Accountants manage financial records, audit records, and offer financial planning for both individuals and organizations. CPA vs. Accountant: What Are the Main Differences?
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The choice between a CPA and an accountant will depend on your specific needs and the complexity of your financial situation. CPAs typically make more money than accountants, with an average salary of $92,795 per year compared to $61,480 per year for accountants. However, both salaries depend on the candidate's level of education, company, job location, and industry. CPA vs. Accountant: What Are the Main Differences?
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While the average CPA Exam candidate is just 29 years old,3 there are no age limitations on who can become a CPA. In fact, if you're mature in your career, there are many benefits of earning your CPA license later in your career.
Can CPAs make six figures? ›
With the right amount of experience, being a certified public accountant can mean an eventual position as a chief financial officer (CFO) or a highly-paid tax accountant. A CPA's salary usually reaches the high five figures while senior CPAs in management can earn a six-figure salary.
Is the CPA harder than the bar? ›
Yes, the CPA Exam is harder than the Bar Exam.
Both the CPA Exam and the Bar exam are notoriously difficult exams that require months of rigorous study and cover very different material. However, if you look at just the exam pass rate for first-time takers, then the CPA exam is harder, with only a 14 - 20% pass rate.
What is the highest accounting qualification? ›
A chartered accountant qualification from ICAS is one of the most prestigious accountancy qualifications. More than 80% of FTSE 100 organisations employ ICAS chartered accountants.
What is higher than CPA? ›
The EA credential, which is the highest credential that the IRS awards, is recognized in all 50 states. Although CPAs and attorneys can also represent clients before the IRS for tax-related issues, these professionals gain their licenses at a state level, whereas the federal government grants EA licenses.
Is CPA considered prestigious? ›
Both the CPA and CFA are prestigious designations that show skill and competency.
Is public accounting a stressful job? ›
Accountants often face tight deadlines, resulting in long hours, including evenings and weekends. This work-life imbalance can lead to increased stress levels and limited personal time.
How many hours do you work in public accounting? ›
With fixed-hour schedules, accountants can expect to work a traditional 40-hour workweek. If an accountant specializes in a sub-field like forensics or corporate tax preparation, they may occasionally work longer than their fixed 40 hours.
What is the most lucrative activity of public accountants? ›
Experts have been vetted by Chegg as specialists in this subject. The most lucrative activity of public accountants typically is: Business consulting.
Is CPA a respected profession? ›
CPAs are considered the most trusted advisors in business. In fact, according to a survey conducted by Applied Research & Consulting, LLC, 75% of business decision-makers say they would be more confident in a job done by a CPA than if it were done by an accountant who is not a CPA.
