Since the requirements have changed to become a Certified Public Accountant; students are left with more options that lead to different paths. The requirements for experience do vary from state to state, however students need 150 credits to become certified. Future CPA candidates may still sit for the exam if they only have 120 credits, but will need to go back to school and obtain another 30 credits.
Students coming from a non-accounting background pursue a master’s in accounting in order to qualify for the CPA exam, while other students with an accounting background tend to pursue a master’s in taxation or auditing. A master’s degree is more precise and makes the student develop a "specialty" towards a subject matter. With a masters degree a student gains a better understanding of a particular field of accounting. Obtaining a master’s degree, especially now, is always a plus to have. It adds value to your education and can help students down the road develop in their professional careers. The benefit of doing that is the student will have a bachelor’s degree and a master’s degree as well, alongside the CPA certification.
A- The first alternate option is a student, after an undergraduate degree, can pursue the successful completion of the CPA exam and then pursue a master’s degree in either accounting or any business related field (finance, economics, etc.).
However obtaining a master’s degree is definitely an added value to your education; there are some negatives that CPA candidates should take into consideration. The time that is needed and required to finish a master’s degree can affect working in an accounting firm. Accounting firms want students who have passed all four parts and are eligible to become certified; therefore they can devote more time to work.
B- The second alternative option is that a student can first go for the master’s degree then pursue the successful completion of the CPA
The biggest benefit of obtaining a master’s degree in accounting helps the student gain a better understanding of the material. Which is crucial since the CPA exam really tests the students understanding and application of accounting principles.
However, graduate classes cost more than undergraduate classes, and as a recent graduate with a bachelors in accounting and no CPA license it can be hard to apply for accounting jobs, especially for big firms(not just the big four), making it difficult to finance the master’s program. Recruiters of big firms (not just the big four) now want students who are eligible to take the exam with 150 credits, rather than 120 credits simply because a student who has obtained 150 credits is not required to go back to college, therefore work longer hours and be able to allocate more time to the firm. Normally starting positions in auditing require a lot of hours which make pursuing a master’s degree difficult.
Keep into consideration that graduate courses are a bit tougher than undergraduate courses and the time it may take to complete a master’s degree will be longer. It may not be one year extra, it could be two or even three years because the programs are intense and require students to maintain a high GPA and prepare for a Comprehensive Exam, which encompasses all the classes in a master’s program.
C- The third alternative option is to mix both of them together. Take the CPA exam during the graduate degree program.
This is a bit risky since graduate courses and CPA exam material can be hard to do simultaneously. A great benefit of doing both together allows you to finish the 150 credits and CPA exam at the same time. There is a ‘research tab’ on every part of the CPA exam; where the test taker is given a scenario and must research where to find the applicable accounting standards that would apply. Graduate courses require students to do the same research required during the CPA exam 'research tab' section. This is helpful and definitely a good practice.
As mentioned above, a lot of the graduate courses offer a better understanding of the application of accounting principles which is useful for students who prepare for the CPA exam; however balancing both can be very hard to do not to mention working in an accounting firm at the same time is even more strenuous since time is a big factor. Studying for the CPA exam and taking graduate courses are both time intensive and working for an accounting firm won’t help students do both.
2- The second option is to extend your undergraduate degree another year and take an additional 30 credits in economics, finance, or any other field that you may be interested in. These thirty credits do not have to be in the field of business, however it is recommended that a student take a minor in economics or finance since information from these courses will show up on the BEC (Business Environment and Concepts) part of the CPA exam.
The biggest benefit aforementioned above, recruiters want to hire students who are eligible to take the CPA exam and do not need to go back to school to become certified. Another reason to take the 150 credit route is not having to pay the graduate prices for these credits. Taking an extra 30 credits, an undergraduate student still pays undergraduate rates. Another benefit is that an undergraduate student can take relatively easy classes and boost up their GPA. Many firms want high GPA’s and accounting classes (especially intermediate accounting) is tough for students and it tends to bring their GPA down, students can take easier classes or electives and boost up their overall GPA.
There are some negatives of having 150 credits before the CPA exam. Even though recruiters want to see students with 150 credits, they also want to see if the student is active and takes part in accounting events and has a high GPA. During these economic times, a master’s degree is essential to have simply because it gears the student to study a specific area of content rather than in a bachelor’s degree where the student studies a very broad range of accounting. So for an accounting student who is an undergrad, he/she will take all the accounting classes and just scratch the surface of auditing, or tax or financial accounting. A graduate student would be required to do more research and obtain a better understanding of the subject matter. This is beneficial for a student who is studying for the CPA exam.
- Here is a link from ThisWaytoCPA that shows all the requirements for each state!
- Here is a link from ThisWaytoCPA that is beneficial for students in the 150 credit track!