- This topic has 13 replies, 7 voices, and was last updated 7 years, 9 months ago by Missy.
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April 7, 2017 at 11:01 am #1530159AnonymousInactive
Curious, how has passing the CPA exam helped you perform in the real world on the job? Do you find times in your career where your awareness of the content and material from the exam has helped you in the real world? If so, can you give specific examples?
Or do you find employers mostly tell you all the information you need to do a good job (and little actual accounting knowledge required since there are templates and PY workpapers to guide your work, etc.) and the only benefit the CPA license has provided for you is job marketability and a bit of a bump in pay?
And what about the ethics portion? Have you encountered any situations in which knowing the ethical standards and code of professional conduct particularly helped you?
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April 7, 2017 at 1:11 pm #1530210AnonymousInactive
Back in undergrad, there was virtually no IFRS taught. The exam taught me about IFRS treatment on a whole bunch of stuff I actually had to apply with one of my clients.
I also had to put together research on technological feasibility for an internally generated item. That's in addition to lease treatment (there have been plenty of changes over the years), goodwill impairment (people in industry still seem to think it can be amortized), prepaid rent schedules, and more.
Most of this stuff is taught in undergrad / grad school these days, but many of the listed items were either not emphasized or taught at all in my experience. Studying for the CPA shouldn't be anything “new,” but when you have never touched bond amortization or pensions since Intermediate I or II, it may as well be.
Depending on what career path you choose, you may apply a lot (or very little) of CPA material to your job. I happen to apply about 75% of BEC, 50% of FAR, and maybe 10% of REG and AUD. That can shift at any given point.
April 7, 2017 at 1:17 pm #1530213ForgottenOneParticipantA wise man once said “study it, pass it, and then forget it”, quoted from Peter Olinto from Becker CPA Exam Review.
As for Ethic, this does more harm than good. Who will more likely to be allowed to claim “ignorance” (I am just following orders) in court? CPA or Non-CPA
A wise woman once said “they can't suspense your license if you have none”, quoted from my cousin.
April 7, 2017 at 1:25 pm #1530217AnonymousInactive@ForgottenOne Yeah Peter's right about that. So is your cousin.
Bottom line is, you can't win if you don't play. Most license suspensions and revocations are due to CPE lapsing or not paying annual fees. Other than that, it generally requires something pretty egregious.
April 7, 2017 at 1:43 pm #1530223CPYayParticipantShort answer. Yes it helps.
Long answer… While studying, I definitely came across problems at work that I was able to apply the knowledge to and bring concerns to management's attention.
Example #1: FAR. We weren't amortizing intangibles when we should've been doing it over 15 years.
Example #2: FAR. The prior accountant didn't prepare the deferred rent schedule correctly. I corrected it based on what I studied.
Example #3: AUD. Many instances during our annual audit where I was able to assist the auditors moreso than I could in previous years. Helped understand the audit report and assist with reviewing our financial report before the final print.Generally: My team asks me a ton of questions now. Management values my input. Real world is definitely different than the exams though, so there are a lot of gray areas which require research.
Ethics: Definitely. Just knowing that making a decision because it's the right thing to do leaves little room for worrying about running into fines/penalties down the road. It also puts more responsibility in your lap because it's expected of you. No more “I don't know”.
I'm fortunate enough to work for a company that is growing, so my input and creativity is valued. I get to create processes, fine-tune procedures, and implement my ideas. It's rewarding.
The problem is, there's so much material and a lot of it doesn't apply to certain industries (I'm in service/retail, so manufacturing doesn't apply). Also, a lot of the content on the exam was either not covered as deeply as I need for my job or I forgot the material because I grazed over it to pass the exams.
Hope that provides some insight.
April 7, 2017 at 1:50 pm #1530234MissyParticipantI've always said the exam teaches you to know what you don't know. Real world application: my husband became self employed. Before I took the exam I might have figured we needed to sock away the income taxes on his earnings. Because I took the exam I realized there was “something about” self employment taxes. I didn't know the specifics but at least knew I had to look it up. As I was researching that I also remembered a lot of things were deductible but didn't know exactly what, just that it was something to look into.
Happens at work all the time, I'll know there was something about a situation, transaction, etc just enough to pull out a book or website when I otherwise might have entered something improperly.
Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR ManagerApril 7, 2017 at 6:33 pm #1530367Small4ParticipantIn tax, so really dont have full grasp of accounting knowledge, just basic stuff to know which to adjust for tax purposes…..the CPA forced me to really at least learn on a basic level accounting concepts and ideas and why they do and don't do certain things. For the most part, i always think CPA is helpful to one's career not because he/she is smarter than someone without one, it just makes the person a little more well rounded and can “show” that they have the effort and persistence to pass, fail, pass, and finish a very difficult exam.
BEC - 68,70,72,75 5/15
AUD - 78(expired), 77 8/15
REG - 29,58,65,77 1/16
FAR - 56,68,73 - retake October hopefully (last shot)Been doing this since 2007 on and off...
April 8, 2017 at 2:51 pm #1530649AnonymousInactiveInteresting. So no one has really received on the job training in regards to business law, contracts, ethics, and things of that nature? These things tend to be understandable from the perspective of an exam, but to see it in practice and how it actually “physically” and constructively works in practice is different.
I feel like this kind of knowledge/training is important in order to be given a managerial or partner role.
Are these pertinent matters typically the focus and covered material in CPEs at least?
Appreciate the responses by the way.
April 8, 2017 at 3:11 pm #1530658MissyParticipantRegarding business law and contracts my experience is in small companies they're always consulting with attorneys and in the one large company I worked for there was someone with a JD or had passed the bar to receive contracts. I don't think in industry I've ever run into a manager who signed contracts or made legal decisions without some type of guidance.
Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR ManagerApril 8, 2017 at 3:37 pm #1530667NYSCPAParticipant“I feel like this kind of knowledge/training is important in order to be given a managerial or partner role.”
Just because you feel something doesn't make it true. Any decent professional, in this case CPAs, knows his/her limitations especially when it comes to offering clients legal advice in which you know they will rely upon. Even for most Attorneys, unless they specialize in the particular field of inquiry (defense, contracts, matrimonial, etc.) they will refer you to a different attorney specializing in that field.
“Are these pertinent matters typically the focus and covered material in CPEs at least?”
No, if you want such knowledge Law school and the BAR might be an option for you?
April 8, 2017 at 9:50 pm #1530808AnonymousInactiveIdk. Most partners I have come across are more well-rounded and have in depth knowledge and experience. Not just debits, credits, and accounting standards. The most respected and established professionals that I aspire to tend to be very established in both accounting, law, and management.
I personally would like to challenge myself to be more of a professional than just knowing the debits and credits and also I am planning on making the transition to B4 within the next year or so from a small firm managerial role to a probably B4 senior role. So I would just like to know how to better prepare myself and what is expected out of B4 seniors and managers basically.
It sounds as if there is no formal training basically and if you want to make it to manager or partner in larger firms, you just kinda have to pick up skills as you go and wing it basically…
April 9, 2017 at 8:25 am #1530892MissyParticipantCan you give a specific example of something you've personally seen a partner demonstrate in depth knowledge of that you're wondering how said knowledge was obtained?
Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR ManagerApril 10, 2017 at 8:10 am #1531254AnonymousInactiveTraining staff, building a culture, attending and navigating networking events, client holiday parties and conferences, attending GALAs, the bidding process and on boarding of new clients, negotiating office lease terms and business structure for legal purposes and tax optimization, creating and building relationships with the banks, vendor, schools and community just to name a few.
The list goes on.
April 10, 2017 at 12:05 pm #1531333MissyParticipantHere's my real world input specific to industry (whether its manufacturing, service, sales, retail I've been in all) and I realize there are some differences in public accounting but not as much as most would imagine.
Regarding networking, social events, customer functions, yeah definately its a learn as you go thing. You may get a heads up from a manager or peer on a few specifics (like “Hey if Joe is there, he'll talk your ear off about the stock market but then he's good for 2-3 customer leads) but there's not much in the way of handholding for those things. Most managers I know go, watch and take their lead from what they observe, client A's social event can be 180 degrees from client B's so there will never ever be a broad rule of thumb.
Regarding training staff and building a culture, generally management tells HR what their needs are, HR does the legwork and comes back with a plan. Manager wants everybody to have training on new software they take it to HR say this is what we need. If a small company that there is no HR, its going to be play it by ear. If a manager at a small company is entrusted with that kind of responsibility they have the aptitude to go search, find resources, etc. Regarding culture, unless you're stepping in during the start up phase of a business its well established before a manager accepts a role and just a matter of observing and duplicating. If an established company needs to change the culture for some reason, its either done by bringing in new management with professional experience in the new type of culture they seek, or a consultant with experience in changing a culture. Even if a company has an HR department many use the resources available externally like HR Brokers or PEO. I am sure it “looks” like I do the legwork for our health insurance but I get lists/comps from a broker and simply pick which one serves our staff best.
Office leases are a no brainer really, unless you own the company as a sole proprietorship there are meetings and goals and many people with input into the where, how big and how much. Even in my very small company there are meetings and meetings about how much office vs industrial space, what we're willing to pay per square foot, ideal locations for employee commutes then I have paramaters to go “shopping” for space, come back with 3-5 alternatives then a series of meetings.
Regarding business structures etc unless a manager practices that primarily as a service for clients, they're seeking outside counsel. Even if just emails and not seeing attorneys come in to visit trust me the emails are flying hot and heavy. My business is in process of several acquisitions and I am working with 3 different attorney offices and 2 CPA firms by email. Nobody in my company except me and the CEO has any idea how many players are involved in this and it may “appear” to others as if I have some expertise because the only face they see to these transactions is mine and they don't realize I'm emailing attornies overseas at all hours of the night from home.
Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager -
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