Massachusetts - Become a CPA
The Bureau of Labor Statistics estimates that nationwide demand for CPAs will grow by 10% between 2016 and 2026, which is faster than the national average for all professions. The rate of growth is slightly lower in Massachusetts where it's projected to climb by 8% between 2014 and 2024. By that time there will be 42,100 accountants employed throughout the state, earning a median salary above the 2016 estimate of $74,500. This guide shows you exactly how to become a CPA in Massachusetts.
Get the Required Education
The Massachusetts Board of Public Accounting is the governing body that awards and monitors CPA licenses in the state. Anyone who wants to become a CPA must earn and maintain one of these licenses. The first step is typically to complete the education requirements and you will want to start with an Associate’s in Accounting degree, which will lead you to obtaining a bachelor's.
Search for accredited schools with four-year programs in accounting. CPAs are required to have at least a bachelor's degree and complete a minimum of 150 semester hours or 225 quarter hours of college credit. In addition, you must complete one of the following education requirements:
Option 1 – Earn a bachelor's from an accredited school that includes at least 30 undergraduate semester hours in accounting courses. You must take at least 3 semester hours in each of the following subjects – Management, Taxation, Auditing, and Financial Accounting. You must also take at least 24 semester hours of undergraduate business courses including at least 3 hours in each of these subjects – Finance, Professional Ethics, Business Information Systems, Business Law.
Option 2 – Earn a graduate degree in business accounting or law from and accredited institution that includes at least 30 semester hours of undergraduate accounting courses or 18 hours of graduate courses. It must also include 24 hours of undergraduate business courses or 18 hours of graduate courses.
Option 3 – Earn a graduate degree in accounting from and institution that is accredited by the Association to Advance Collegiate Schools of Business (AACSB). The programs are deemed to automatically meet the standard of the Massachusetts Board of Public Accountancy. Programs that are not accredited by the AACSB and do not meet the criteria above must be vetted by the Public Accountancy Board or vetted by an Education Credential Committee the board appoints.
Credits from an Associate's Degree or junior college coursework count towards the 150-credit requirement as long as they are reflected on the transcript from the four-year degree. The same is true of online, pass/fail, and AP courses. Correspondence courses and commercial review courses are not acceptable.
Anyone with an applicable degree awarded outside the United States is required to undergo an evaluation from the Center for Educational Documentation (CED) or the National Association of State Boards of Accountancy (NASBA) International Evaluation Services.
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Take The Required Exam
Every CPA in the country is required to take the Uniform CPA exam, a standardized test covering the concepts and competencies most important to a CPA. It is not necessary to have complete the entire education requirement to sign up for the exam. Applicants must have completed at least 120 of the required 150 semester hours with at least 21 hours in accounting and 9 hours in business. Once that threshold is met, follow these steps to prepare for the exam:
Apply to take the Uniform CPA exam through the CPA Examination Services (CPAES) of the NASBA. It is possible to apply online or by submitting a paper application.
In addition to the application, students must submit an official transcript directly to the CPAES. If the student is still enrolled in school he must submit a Certificate of Enrollment Form certifying that he is enrolled and on track to meet the accountancy requirements.
Students with foreign degrees must submit documentation from an authorized body certifying that the educational requirement has been satisfied.
Students must pay all application and examination fees when submitting the initial application. Payment is possible online or by check, money order through the mail. Be advised that the combined total of the fees is around $1,000.
After receiving the application and all supporting documents the NASBA will take no longer than four weeks to reach a decision. If the application is accepted the Board will issues a Notification to Schedule (NTS) through email.
There are sites throughout Massachusetts that administer the Uniform CPA exam on a regular schedule. Find a time that allows for adequate preparation and a location that is convenient to reach:
Boston
Brockton
Burlington
Lowell
North Andover
West Springfield
Worcester
Study extensively for the exam, and then arrive at the test-taking location ahead of schedule.
Wait to receive notification from the CPAES about the results of the test. If the student has passed the notification will come with information about applying for the CPA license in Massachusetts.
Earn The Required Experience
One you have earned the necessary education and passed the required exam you are eligible to begin working as an accountant in Massachusetts. However, you are not a licensed as a CPA. That is only possible after you gain the required amount of experience to get approved for CPA licensure:
You must complete at least one-year of full-time accounting work that is equivalent to at least 1820 hours. That work can take many forms, but it must include the following components:
At least 1,000 hours of attestation reporting experience in the full disclosure of financial statements. No more than 300 of those hours may be spent on full disclosure compilations.
The experience must be verified by a CPA partner at the firm where the experience was completed. That person must hold a CPA license in Massachusetts, be a partner or shareholder at the firm, and include the details of employment in a letter printed on official letterhead. The letter is mailed directly to the Massachusetts Board of Public Accountancy:
1000 Washington Street, Suite 710
Boston, Massachusetts 02118-6100
Practical work experience is not required if you have a earned a qualifying graduate degree.
Apply for the Required License
It is illegal to work as a CPA in Massachusetts without a valid license. As long as you have competed all of the requirements outline above you should have no problem getting approved for a license. There are several options available:
1. Non-reporting CPA license
It is possible to earn this CPA license without completing the 1,000 hours of practical work experience in attestation financial disclosures. However, these CPAs are not allowed to issue report on financial statements.
Submit the application for this type of CPA license.
If you wish to upgrade to a Full-Reporting CPA license you are eligible after completing 80 hours of continuing professional education (CPE) withing 6 months of receiving the non-reporting license. You must also undergo a peer review after completing to verify that it's adequately in-depth on the subject of attestation.
2. Full-reporting CPA license
If you have met all the previous requirements including all the practical work requirements you are eligible to apply for a full license:
Include the correct complete complete application along with any application fees. Be aware that several pages on the application require notarization.
Include a 2" x 2" photograph of yourself
Include the experience letter from the CPA firm where you earned your practical work experience.
Include 3 character references from people who are acquainted with your work but not related to you.
3. Interstate reciprocal license
If you have a CPA license in another it's possible to transfer it to Massachusetts as long as you meet these requirements:
Have worked as a CPA within 10 years of applying for a Massachusetts license.
Have at least 5 years experience as a CPA and a signed statement from supervisor verifying that experience.
Are licensed in a state with requirements equivalent to Massachusetts. The only states that are not considered equivalent are Delaware, Colorado, Vermont, New Hampshire, the Virgin Islands and Puerto Rico.
Are able to complete the Substantial Equivalency Reciprocal License Application, submit a 2" x 2" photo, and pass a criminal background check.
4. International reciprocal license
If you have a CPA license in another country it's possible to transfer it to Massachusetts as long as you meet these requirements:
If you are a Canadian chartered accountants credentialed through the Canadian Institute of Chartered Accountants (CICA) you are eligible to take the International Uniform CPA Qualification Examination (IQEX) from the NASBA. You must also have your coursework evaluated by an appropriate body.
If you are a licensed CPA in another state you must follow the normal requirements to apply for the Uniform CPA. You must then gain the required practical work experience at firm in Massachusetts.
Pursue Continuing Education
In order to keep CPA skills fresh and current the Massachusetts Board of Public Accountants requires anyone with a license to complete mandatory continuing professional education (CPE) as a condition of renewal:
Every CPA must complete at least 80 hours of CPE every two years. At least 4 of those hours must be professional ethics. Extra hours from one two-year period may not be transferred to the next period.
To earn qualify as one hour of CPE the program must be at least 50 minutes long, require a written outline, and record attendance and participation.
CPE credit is available through a number of outlets and organizations:
Any courses or programs approved by the NASBA or AICPA
Professional development programs offered through state and national organizations
Technical sessions held at accounting association meetings
College or university courses offered for credit. One credit hour equals 15 hours of CPE
Non-credit college or university courses. One hour of attendance equals one hour of CPE.
Publishing articles or books or teaching accounting courses.
CPE records must be kept for at least 5 years and include the school/organization that held the program, the location/title of the course, the dates/description of the course, and the number of hours earned.
Any CPA who is required to sign off on financial statements must also undergo a quality review once every three years. The reviewer must hold a CPA license, have no affiliation with you, and complete official forms noting both strengths and weaknesses.
If you are taking into consideration a profession as an accountant, you will certainly require to recognize what the needs to be an accountant are. The CPA is required by legislation to be registered with the state. Furthermore, the CPA Certificate is a need for many states. Therefore, make sure that you will certainly have the ability to accomplish the requirements before starting a profession as an accountant.
The very first need to be an accountant is that you get the training and also certification required by the state where you wish to work. After that, get your license. This way, you can get the certifications as well as licenses required by the state.
As discussed, there are several types of accounting jobs available for accountants. The Accountant's qualification consists of many different jobs. A CPA normally focuses on 2 areas. They need to have the ability to write reports as well as prepare economic statements.
One of the requirements to be an accountant is that you discover just how to get worked with. Also, you need to comprehend the industry before you get started. If you begin in something that is not connected to accounting, you will certainly need to end up being familiar with accounting and monetary reporting in order to go on.
It is necessary that you study to get right into the field of accounting. This will certainly enable you to understand the work market and the demands to be an accountant. It will additionally allow you to end up being acquainted with the regulations that control auditing.
You should get a great deal of information from different sorts of publications. This will certainly assist you come to be accustomed to the work market, accounting software application, as well as auditing. It will certainly additionally help you come to be familiar with the demands to be an accountant.
A firm requires auditing for a very particular reason. Auditing includes a group of individuals that consider financial documents to identify if they are precise. For instance, if a firm made a huge acquisition, it would certainly hire a group of accountants to go over the purchase and after that examine the records to see if they were precise. When bookkeeping, the person doing the audits is an auditor.
There are different auditing systems. Some auditors are educated to just examine specific kinds of documents. Others audit for a business's assets. There are many types of auditing.
To enter into the area of accounting, you need to learn auditing. The sorts of education needed include accounting training, auditing, and also financial coverage. Make certain that you remain in a university that has a program that educates accounting and bookkeeping.
The initial part of bookkeeping involves training in legal demands for the qualification. The auditor has to enroll and also pass examinations in order to receive the following level of training. The accountant will certainly need to take courses in order to finish and after that to obtain certification.
The CPA needs to research the topic of monetary declarations. The accounting books for a company can differ in number. On top of that, auditing is different. The auditor will certainly need to prepare the economic statements for the firm to figure out if the business is appropriately being managed.
Remember that the educational requirements to be an accountant are rather different from those to be an accountant. Once you get the training, you will certainly be certified to audit corporations. On top of that, you will certainly need to pass tests in order to be qualified to end up being an accountant. Therefore, you ought to look into the education and learning required to end up being an accountant before you start.
Accounting is the third most popular degree selection at the undergraduate level, and likewise with outstanding variables. The Bureau of Labor Statistics reports the sector is read to expand by 11 percent from 2012-2022. Accounting is an eye-catching training option for many. Pupils curious regarding seeking this field have different alternatives supplied to them, including rankings of licensed on-line programs, which are popular for supplying excellent, adaptable accounting education as well as learning.
Pupils not exactly sure which kind of level to seek can evaluate the table listed here to obtain a far better feeling of the prospective customers offered at each level. Desire to operate as an accounting professional however concerned there may not suffice enjoyment? Possibly a profession with the FBI would certainly be of interest rate: the governmental company currently uses over 2,000 special agents focused on book-keeping.
Each degree of degree can bring about particular possibilities for grads, varying from entry-level clerk and also assistant functions to scholastic professorships. Pupils require to determine their objectives in addition to understand specifically just how the final thought of each degree will certainly assist them in fulfilling those aspirations. An evaluation of each type is provided below. An associate level in accounting prepares grads for a selection of placements within the sector and also can be finished in 1-2 years relying on the pupil's choice of component or full time education and learning and learning.