[tomq04]

Anyone stopped to consider what is required to go from zero to hero? This is ignoring the bachelors degree, I am just considering everything on top.

150 credit requirement, those that finished 4 years with 120 credit, have to go back to school for those 30 credits. I did it through the community college taking Spanish, Technical Writing, and World Music. Work paid for this, but they paid almost $3000. A Master in Taxation at the local fancy pants school is $38,000, or an MBA at my alma mater EWU is still $12000.

Review Course- $1200 for CPAExcel, $3000 for Becker, and many flavors in between. (Can be done cheaper, Thanks Jeff!)

Exams- $1000 minimum just to take 4 sections + application. $~220/retake.

I’ve noticed that the CPA certification requires you be a working middle class to consider it, or be lucky enough to a job that pays for you to go through the process. My current $44k salary could have never gotten me through this with a wife + kid, fortunately I bargained for help when I was being hired.

What are your thoughts on the “difficulty” outside of the required time and effort to becoming a CPA, and is there a better solution?

REG- (1) 76
FAR- (2) 64, (5)74, (7)83 (Over achiever!)
AUD- (3) 70, (4) 75
BEC- (6) 75

[ymmit]

The CPA does cost a lot. 5 years of college plus materials/fees/etc. , I bet the average candidate is paying easily $125,000+ to become a CPA plus countless hours.

Overall this isn't much if you get your CPA sometime in your 20's and have it for around 40 years in the workforce (hopefully less).

From my point of view the cost/difficulty is the best part of being a CPA – it will always limit the amount of CPA's keeping demand relatively high and me more valuable.

Licensed CPA!

[ymmit]

The CPA does cost a lot. 5 years of college plus materials/fees/etc. , I bet the average candidate is paying easily $125,000+ to become a CPA plus countless hours.

Overall this isn't much if you get your CPA sometime in your 20's and have it for around 40 years in the workforce (hopefully less).

From my point of view the cost/difficulty is the best part of being a CPA – it will always limit the amount of CPA's keeping demand relatively high and me more valuable.

Licensed CPA!

[Mayo]

“What are your thoughts on the “difficulty” outside of the required time and effort to becoming a CPA, and is there a better solution?”

Some may disagree, but I'm personally glad we have the 150 hr requirement, CPA exam, experience requirement. They serve as artificial barriers to entry that keeps the candidate quality high, which in turn keeps salaries at their current levels.

My spouse works in a service industry where they had similar educational and experience requirements in order to call themselves professionals. However, they're inability to keep this the status quo enabled a different group with less qualifications and experience to provide almost all the same services at a reduced rate, and at a fraction of the quality.

The result is that more people have access to these type of services, but there's a knowledge gap between client and professional that allows the true value to be obscure. Simply put, clients don't have the expertise or background to realize that the lower priced professionals really do generally offer a lower quality of service. So what happens? People with more experience and education find it necessary to accept lower salaries, but also struggle make ends meet due to higher education costs.

Something similar is happening with the Business Valuation field. You can't swing a dead cat in a linkedin group without finding a post about Valuation quality.

For example: https://www.linkedin.com/groups/Educating-Potential-Clients-About-Using-1782192.S.5847806470271287299?qid=e13ee4cc-bf8f-49bb-ab57-669a758e2866&trk=groups_items_see_more-0-b-ttl

“I've noticed that the CPA certification requires you be a working middle class to consider it, or be lucky enough to a job that pays for you to go through the process. “

Yes, but is this different from other fields such as Medicine or Law School? Besides, there are many scholarships available for top students. Heck, if anything the firms are trying to be more inclusive and assist students from a historically disadvantaged background (i.e. minorities). Look at these scholarships from the Big 4:

https://www.kpmgfoundation.org/foundinit

https://accounting.eller.arizona.edu/master/scholarships/ey.asp

https://www.prnewswire.com/news-releases/103717419.html

https://www2.deloitte.com/content/www/global/en/pages/about-deloitte/articles/iaaer-inaugural-scholarship-program.html

Note: No cats were harmed in the making of this post. https://www.aspca.org/nyc/adoptable-cats

Mayo, BBA, Macc

[Mayo]

“What are your thoughts on the “difficulty” outside of the required time and effort to becoming a CPA, and is there a better solution?”

Some may disagree, but I'm personally glad we have the 150 hr requirement, CPA exam, experience requirement. They serve as artificial barriers to entry that keeps the candidate quality high, which in turn keeps salaries at their current levels.

My spouse works in a service industry where they had similar educational and experience requirements in order to call themselves professionals. However, they're inability to keep this the status quo enabled a different group with less qualifications and experience to provide almost all the same services at a reduced rate, and at a fraction of the quality.

The result is that more people have access to these type of services, but there's a knowledge gap between client and professional that allows the true value to be obscure. Simply put, clients don't have the expertise or background to realize that the lower priced professionals really do generally offer a lower quality of service. So what happens? People with more experience and education find it necessary to accept lower salaries, but also struggle make ends meet due to higher education costs.

Something similar is happening with the Business Valuation field. You can't swing a dead cat in a linkedin group without finding a post about Valuation quality.

For example: https://www.linkedin.com/groups/Educating-Potential-Clients-About-Using-1782192.S.5847806470271287299?qid=e13ee4cc-bf8f-49bb-ab57-669a758e2866&trk=groups_items_see_more-0-b-ttl

“I've noticed that the CPA certification requires you be a working middle class to consider it, or be lucky enough to a job that pays for you to go through the process. “

Yes, but is this different from other fields such as Medicine or Law School? Besides, there are many scholarships available for top students. Heck, if anything the firms are trying to be more inclusive and assist students from a historically disadvantaged background (i.e. minorities). Look at these scholarships from the Big 4:

https://www.kpmgfoundation.org/foundinit

https://accounting.eller.arizona.edu/master/scholarships/ey.asp

https://www.prnewswire.com/news-releases/103717419.html

https://www2.deloitte.com/content/www/global/en/pages/about-deloitte/articles/iaaer-inaugural-scholarship-program.html

Note: No cats were harmed in the making of this post. https://www.aspca.org/nyc/adoptable-cats

Mayo, BBA, Macc

[Kimboroni]

It is definitely an interesting question. It is somewhat cost-prohibitive, but it doesn't have to be a deal breaker.

For education, I got my accounting certificate over a period of about 7 years, chipping away at it while working full-time.

For my review course, my main program is the set of Wiley textbooks that I bought for about $100 for all 4 sections. I've supplemented with some Ninja materials and WTB, but at this point I've only spent just over $500 total, and I have materials for all 4 sections. I plan to spend maybe another $200 on supplementals (I want Ninja Audio for REG and BEC for sure). But that $500 has been spaced out, not all at once.

For section fees, those can also be spaced out rather than paid all at once, For me, that helps a lot.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[Kimboroni]

It is definitely an interesting question. It is somewhat cost-prohibitive, but it doesn't have to be a deal breaker.

For education, I got my accounting certificate over a period of about 7 years, chipping away at it while working full-time.

For my review course, my main program is the set of Wiley textbooks that I bought for about $100 for all 4 sections. I've supplemented with some Ninja materials and WTB, but at this point I've only spent just over $500 total, and I have materials for all 4 sections. I plan to spend maybe another $200 on supplementals (I want Ninja Audio for REG and BEC for sure). But that $500 has been spaced out, not all at once.

For section fees, those can also be spaced out rather than paid all at once, For me, that helps a lot.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[joelseph]

Extra 30 hours Tuition + Books: $9500

Becker: $1800 (won auction through school)

Exam Fees: $1250 (missed one)

Total Costs: $12,550

Salary Increase in May 2014: $22,000*

Not counting the 2.5 years of my time, I almost doubled the cost of acquiring it in one year of salary increase alone. I'd say good investment.

*Results not typical

FAR: 84 on 4/4/13
AUD: 91 on 7/27/13
BEC: 72 on 11/11/13, 82 on 01/03/14
REG: 80 on 02/27/14

[joelseph]

Extra 30 hours Tuition + Books: $9500

Becker: $1800 (won auction through school)

Exam Fees: $1250 (missed one)

Total Costs: $12,550

Salary Increase in May 2014: $22,000*

Not counting the 2.5 years of my time, I almost doubled the cost of acquiring it in one year of salary increase alone. I'd say good investment.

*Results not typical

FAR: 84 on 4/4/13
AUD: 91 on 7/27/13
BEC: 72 on 11/11/13, 82 on 01/03/14
REG: 80 on 02/27/14

[John Tucker]

Depends on what college you are going to, your learning habits and your overall organization.

I have an MBA with 3 bachelor's degrees and a CompTIA Project+ Certification, in terms of CPA Exam Prep I paid $750 for CPA Excel. In total, my college tuition, education and prep fees comes out to just over $52,000 for everything.

I have received just over $53,000 over my time from undergrad to now in scholarships, grants, education tax credits, my high school open house monies, as well as the good ol' Pell Grant I qualified for back then. This technically means all of my degrees and certifications cost me nothing. I do of course have to add in the about $1,200 I will pay in testing fees for the CPA Exam and the CPE I will have to pay for over the next couple of decades. I plan to do CPE online with one of the unlimited providers out there that charge anywhere from $150 – $250 for a 1 year subscription.

But you have to do strategic pre-planning to get these results. For example, MUST you attend a brand name college or would a local regionally accredited and respected college be enough? Depends on your career goals and path, but again that requires long term strategic planning.

* State of MA CPA Exam Candidate
- BEC: Sunday, August 24th
- FAR: Saturday, November 29th
- AUD: TBA for February 2015
- REG: TBA for May 2015

[John Tucker]

Depends on what college you are going to, your learning habits and your overall organization.

I have an MBA with 3 bachelor's degrees and a CompTIA Project+ Certification, in terms of CPA Exam Prep I paid $750 for CPA Excel. In total, my college tuition, education and prep fees comes out to just over $52,000 for everything.

I have received just over $53,000 over my time from undergrad to now in scholarships, grants, education tax credits, my high school open house monies, as well as the good ol' Pell Grant I qualified for back then. This technically means all of my degrees and certifications cost me nothing. I do of course have to add in the about $1,200 I will pay in testing fees for the CPA Exam and the CPE I will have to pay for over the next couple of decades. I plan to do CPE online with one of the unlimited providers out there that charge anywhere from $150 – $250 for a 1 year subscription.

But you have to do strategic pre-planning to get these results. For example, MUST you attend a brand name college or would a local regionally accredited and respected college be enough? Depends on your career goals and path, but again that requires long term strategic planning.

* State of MA CPA Exam Candidate
- BEC: Sunday, August 24th
- FAR: Saturday, November 29th
- AUD: TBA for February 2015
- REG: TBA for May 2015

[dpad124]

@ymmit

What school do you go too? 125k sounds really steep. That comes out to 25k a year which isn't insane, but that also means wouldn't work at all during school to defray the cost or receive any sort of financial aid from parents, federal, or other sources.

BEC Oct2014 - 85
AUD Jan2015 - ??
REG Feb2015 - ??
FAR May2015 - ??

[dpad124]

@ymmit

What school do you go too? 125k sounds really steep. That comes out to 25k a year which isn't insane, but that also means wouldn't work at all during school to defray the cost or receive any sort of financial aid from parents, federal, or other sources.

BEC Oct2014 - 85
AUD Jan2015 - ??
REG Feb2015 - ??
FAR May2015 - ??

[ymmit]

If your work to pay off tuition or your parents pay it doesn't decrease the price, you still have to pay the money in some way. I went to an averagely priced private school in NY.

Just googled average tuition out of curiosity, “According to the College Board, the average cost of tuition and fees for the 2013–2014 school year was $30,094 at private colleges”

Of course you can take all your classes at a community college or cheap online courses but I'm assuming most CPA's don't go that route. Also tuition is definitely cheaper in other areas of the country outside of NY/NJ

Licensed CPA!

[ymmit]

If your work to pay off tuition or your parents pay it doesn't decrease the price, you still have to pay the money in some way. I went to an averagely priced private school in NY.

Just googled average tuition out of curiosity, “According to the College Board, the average cost of tuition and fees for the 2013–2014 school year was $30,094 at private colleges”

Of course you can take all your classes at a community college or cheap online courses but I'm assuming most CPA's don't go that route. Also tuition is definitely cheaper in other areas of the country outside of NY/NJ

Licensed CPA!

[Mayo]

” tuition and fees for the 2013–2014 school year was $30,094 at private colleges”

“Of course you can take all your classes at a community college or cheap online courses but I'm assuming most CPA's don't go that route”

I'd say CC or online courses are definitely not the best decision if you want to really maximize your career in accounting. That being said, at least in my area, private school is not necessary. A well ranked state school with plenty of recruiting activity is more than enough. Not sure what others think. but the private school tuition seems like overkill to me. At least in the accounting field.

Mayo, BBA, Macc

[Author]

Replies