[illinoisguy]

I’m hoping I’m in the right place and can get some advice on whether or not I should try taking the CPA. I’ve been trying to decide now for about a month but I’m torn. Here’s a little background info on myself:

– I’m 40 years old, married and have two kids.

– I work for an engineering company as a project accountant. I’ve been at this company for 9 years.

– I have my MBA in accounting from a local private college

– I’ve been out of graduate school for about 5 years. I feel like the accounting education I received wasn’t the greatest and I sometimes struggle with accounting concepts that some of peers seem to have a better grasp of.

So my question is should I:

1. Dedicate myself to studying and taking the CPA exam. I don’t think it would really help in my current position (except it might help in my overall grasp of accounting that I mentioned earlier). It may help if I look for a new job but at this point in my career I don’t really have any desire to work 90+ hours a week at a public accounting firm.

2. Use the time I would be spending on studying for the CPA to work on my resume, apply for jobs and/or start a small bookkeeping company. Last year I worked 5 to 10 hours a week for a bookkeeping company doing data entry into QuickBooks (this was a side job to my project accounting job). I’ve often toyed with starting a bookkeeping business.

This is a huge decision for me and I’m having a difficult time deciding what I should do. Any and all advice/opinions will be greatly appreciated. THANKS IN ADVANCE!

[Missy]

At this stage in the game you should have a fairly clear career goal. If not, figure that out first. When I got my CPA I was 42, married with 2 kids, masters degree in finance. But I knew I wanted to be controller/cfo for a small to medium sized manufacturing company preferrably one that dealt with govt contracts. The people who held similar jobs to what I was seeking had their CPA so I figured it was to my benefit to get one.

If your career goal is not heavily populated by CPA's, you may be better off to seek a more relevant designation than CPA.

Also does your current experience satisfy the experience requirement for licensure in your state? In MA I would have needed audit experience in public accounting except that was waived with a masters' degree so I went that route.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Tncincy]

You don't have to have a cpa for career advancement at your current company, but it's a notch in the belt. It doesn't take long to work on a resume, but the exam is not a cake walk, so dedication must be decided up front otherwise you'll not only waste time but a lot of money. I would go for it. You have nothing to lose, and everything to gain at this point in your career. Besides, you don't have to be a bookkeeper, you'll be a CPA.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Hello2016]

Resume doesn't take you that much time, you can apply for jobs while studying CPA, Opening a small bookkeeping company seems like a good idea also, but it is much more risky. I think it all end up to your personality, and how much time you want to spend on your career and your family? Good luck with your decision.

[nadroj]

It all depends on your goals. At 40 you're only half way through your career, maybe less.

For example, if your mid-term goal is to move into a controller position, and all/most controllers in your company/industry are CPAs, then it's probably a good idea.

On the other hand, if you like what you do now, and nobody in the org chart between you and the CFO is a CPA, it's probably not worth the investment of time and money. There may be other certifications that would be more valuable.

Also, taking a relevant accounting class or two at a local college may be worthwhile, especially if you do so as an opportunity to learn the subject, rather than check a box. A lot of people chase certifications, or degrees, thinking that will get them a great job. They may open some doors, but without actual knowledge, skills, and experience, they're only paper tigers.

[illinoisguy]

Thanks all for the responses. To be honest I'm not exactly sure where I want to go from here. I like my current position but it doesn't pay nearly enough. I wouldn't say accounting is a passion of mine…..more of a job. I do like building things (both physical and conceptually) but that doesn't apply to this profession.

[illinoisguy]

Thanks all for the responses. To be honest I'm not exactly sure where I want to go from here. I like my current position but it doesn't pay nearly enough. I wouldn't say accounting is a passion of mine…..more of a job. I do like building things (both physical and conceptually) but that doesn't apply to this profession.

[Anonymous]

@mla11692 – I am in the exact same situation as you were. I'm working full-time, am 42 years old, have a wife, two kids, a dog, a house, a large yard, and two vehicles. My primary problem seems to be that I cannot seem to find enough free time to study like I need to. Our two kids are very busy with school and sports and they both have important events off and on that I do not want to miss and/or for which I feel like I need to be in attendance and showing my support for them. So, what is your secret to getting the CPA done despite having all of these responsibilities and/or duties??? Thanks in advance.

[Missy]

aTM it meant sacrificing some sleep temporarily and multitasking everything. By the time I finished all the kids stuff like cheer and scouts it was after 9. I'd do my homework (grad school) from 9-10:15 and cpa until midnight. Several two hour blocks on the weekend early am and late pm. Get the audio and listen while you're mowing the lawn or walking the dog.
You'd be surprised by how all the stolen moments add up, I think most people underestimate the time they have available. If you sit waiting 5-10 minutes every time you pick up your kids that alone is an hour or more per week of time you'll never miss. I listened to audio at work, while I was falling asleep, at football games. I studied in line for space mountain lol. Not a second of the day was idle.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Tncincy]

Well I can answer the participation part. I have four children in college, during their high school years I was studying for my masters in accounting, two were in band and two were playing basketball, during the season and aau basketball off season (which required a lot of out of state traveling) so I took my laptop to the events, spiral note books, headphones, hot spot (for internet), and my lawn chair with the swing arm for band competition. I studied, read, took notes, and did homework while attending events. Up early and went to bed late. It can be done, just be determined to get it done without excuses, and you won't have to miss anything. My husband did not go to most of the events due to work. So I did notes in the car and I found seats near an outlet for my laptop, I even had a portable charger for my laptop. I am a little different situation now, but I still have to arm myself with my laptop, notebooks, chargers,hot spot, headphones, and lawn chair if needed. I have not passed a part yet but I have no reason to skip studying because of events. Something is better than nothing. I saw one lady at the band competition with her wiley book (extra thick, probably a million pages) doing questions. So I said to myself, if she can do it, I made myself do it.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[illinoisguy]

Thanks again everyone for the kind responses. I was wondering just how much practical information did you learn by studying? Is it “memorize and forget it” or dI'd you actually increase your understanding of accounting?

[Missy]

I remember a few things (like less than a dozen four years out) but there's a saying ” CPA means couldn't pass again”.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[illinoisguy]

Makes sense. Assuming I want to start and build my own business, what would be the first step? Should I try to take the CPA first? Or start the business (starting with basic bookkeeping services)? In my situation, what would be the path you'd take?

[Anonymous]

Being a CPA will allow you to charge more in your own business and make you automatically earn an extra measure of respect from your clients. Without the CPA, people will wonder what makes you any different than their brother-in-law who has never learned a thing about accounting but is a know-it-all that thinks he knows about everything, including accounting. Granted, the CPA doesn't necessarily make you any better (*gasp* how can I say that? – hey, I'm a CPA, I can say that haha), but it makes people think you're better. So, I would say at least give it a good shot at the CPA first, cause it will give you more clout in the eyes of strangers.

That being said, you can run a successful accounting business without being a CPA. You can't do auditing or attest services and the IRS has at times tried to limit the ability to provide tax services (some states also limit those abilities), but the IRS has failed to limit them on a national level (at least last I heard – tncincy can probably provide more current insights), and bookkeeping is always available for non-CPAs. My first accounting job was in public accounting, employed by a fairly successful non-CPA accountant. He'd owned the firm for 25-ish years, had a loyal customer base, etc., but he'd had to work hard in the beginning to earn it. tncincy, who commented in this thread earlier, has her own accounting firm (or at least that's what I've gathered on here 🙂 ), and from what I can tell is fairly successful. There's tons of other success stories across the country, too, of people who have their own successful accounting practices without ever being a CPA.

However, tncincy has decided now that having the CPA would really help her out (she can explain her reasons – I just know she's trying to get it now! 🙂 ), and my former boss said if he was starting out in business now, he would have gotten the CPA, because the environment now makes it more useful now than it was when he was starting out. So, I'd suggest trying to get the CPA license now while you don't have the added work and stress of running your own business. At least give it a good shot. Maybe dedicate a year to it, and promise yourself that come May of next year, you'll re-assess. If you've got 3 parts passed and 1 to go, then you'll start working on a business plan and include passing the last part as part of your pre-launch plan; if you've got no parts passed, then maybe you do the business plan without including the CPA. But, I'd think give it a try at least.

All that being said…I'm just a random poster on the internet. 🙂

[Missy]

Before doing anything else make a business model. I seriously considered starting my own business, wanted to have as much after taxes and insurance as my take home now. Turns out I would have needed ~180k in gross revenue to maintain my current lifestyle (I carry our medical and dental insurance as my husband is self employed, then self employment tax is about 8% more than a W-2 employee's tax, etc.). I figured out how many clients I'd need for that income and what I'd need to bill per hour. I realized at first at least half my time would be spent attracting clients and not billable,etc. You also have to consider the competition in your area, what they're charging, and if the market is saturated with bookkeepers who charge $25/hour with just a high school education and experience its going to be a hard sell for a small business to pay more than that to someone who is a CPA.

Not trying to discourage you, because you may find what you need as income is a fraction of the above, or you may feel the opportunity is there for $250k in gross revenue and is perfectly achievable. But that is the first consideration. Then I'd very strongly consider what if anything a CPA license brings to the table with bookkeeping services. If a company already has a CPA for their tax prep, theres very little value added. I'd look into becoming a quickbooks pro advisor becuase it can be a marketing tool.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[illinoisguy]

Thanks mla. I put together a business plan for a bookkeeping service approximately 5 years ago so I'll have to dig it up. My wife is a teacher so we could go on her insurance if need be. My plan is to start part-time while maintaining my full-time job.

[Author]

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