Become a CPA with a Master's Degree for Accountants

The value of an accounting master’s degree extends far beyond education. It's also a great way to ensure future job security and land a high-paying job.

Becoming a Certified Public Accountant (CPA) takes preparation and commitment, and earning a master's degree can empower you along the way. If you're hoping for a long, successful career in accounting, a master's degree is one of the best ways to make it a reality.

Why Become a CPA?

There are several reasons why you might consider becoming a CPA. But what makes CPAs different from other accountants, and how can you know if a CPA career is right for you and aligns with your professional goals? Read on to learn more.

CPA vs. Accountant: Understanding the Difference

When it comes to the difference between CPAs and other types of accountants, think about it like squares and rectangles: all CPAs are accountants, but not all accountants are CPAs. The principal differences, according to the American Institute of Certified Public Accountants (AICPA), are level of education and amount of experience.

CPAs are licensed by their state of residence to perform their duties and typically have more expertise in matters like audits and tax returns. Many CPAs go on to earn a master’s degree after earning their bachelor’s. To become a CPA, you'll first need to pass the Uniform CPA Examination, which tests individuals on topics like financial reporting, attestation, and more.

The Benefits of CPA Certification

Passing the exam and separating yourself from the competition requires study and effort, but the rewards are worth it. CPAs can expect a higher income than accountants—according to Indeed.com, CPAs earn an average annual salary of $93,830, while accountants in general make an average of around $64,000 per year. Even CPAs with less than a year of experience may earn more than other accountants without licensure.

The employment outlook for CPAs is strong, too. CPAs enjoy a faster-than-average job growth rate and stable market demand, according to the U.S. Bureau of Labor Statistics (BLS). Obtaining your CPA license can lead to increased job security and even enhanced career opportunities.

Steps to Become a CPA

While it may differ from person to person, there’s a general process to becoming a CPA. As you prepare, consider the following steps:

•  Earn a bachelor’s degree in accounting, finance, or a similar subject.
• Gain relevant work experience.
• Meet all educational requirements.
• Pass the Uniform CPA Examination.
• Obtain state licensure.
• Maintain CPA certification through continuing education. This typically includes paying a renewal fee, completing a certain number of Continuing Professional Education (CPE) courses, and fulfilling state-mandated ethics requirements.

CPA Exam Requirements

Before taking the CPA exam, be sure that you qualify—that includes researching your state’s particular stipulations.

State-Specific Requirements

Each state has its own requirements to sit for the CPA exam. They include age, citizenship, and residency restrictions as well as educational and experience prerequisites. California, for example, requires CPA candidates to hold at least a bachelor's degree from an accredited institution and to have completed 24 semester hours of accounting coursework and 24 semester hours of business coursework. Massachusetts, on the other hand, requires a bachelor's degree and only 21 semester hours of accounting coursework in addition to 9 semester hours of business coursework.

You should consult with your state accounting board for specific state requirements. You may also refer to the official website of the National Association of State Boards of Accountancy (NASBA) to learn more.

Educational Requirements

Most states require you to complete 120 credit hours for CPA exam eligibility and 150 credit hours for CPA licensure.

Reasons for the 150-Hour Requirement

AICPA offers a few reasons for this requirement:

•  Accounting and auditing procedures have recently undergone significant changes.
• Local, state, and federal compliance laws and business methods have become increasingly complex.
• Accounting firms and other employers are requiring CPAs to become increasingly more specialized within the field.

How a Master’s Degree Helps in Becoming a CPA:

Meeting Educational Requirements

Because many undergraduate accounting programs require students to complete only about 120 credit hours, earning a master's degree provides additional specialized knowledge that can help meet the mandated educational requirement for CPAs. AICPA recommends earning a master's degree in conjunction with your bachelor's degree when possible, or earning an accounting master’s or an MBA after completing your bachelor's program.

CPA Exam Preparation

Earning your CPA is a high honor, but it can also be a challenge. During any given year, only about half of all people who take the CPA exam will pass it. Earning a master's degree from an accredited institution can help you prepare for—and pass—the exam.

In an accounting master’s program, you'll take classes covering advanced managerial accounting, advanced tax concepts, advanced auditing and financial accounting, and more—topics directly relevant to the CPA exam. These courses can confer the knowledge you need for the exam while exposing you to different specialties within the field at large.

Career Advancement

A master’s degree opens doors to more career opportunities like higher-level roles and a higher earning potential. It can enhance job prospects and allow you to stand out to future employers. The various skills you develop during a master’s program will help prepare you for the rigorous day-to-day responsibilities of a CPA. You will also be better equipped to respond to the unique needs of clients.

The CPA Exam: What to Expect

Knowledge of the CPA exam will instill confidence and help you feel more ready before taking it. Below, you’ll find details on the exam’s structure along with exam preparation tips.

Exam Structure

The CPA exam includes three Core sections and one Discipline section of your choosing. The Core sections include Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG). The Discipline sections include Business Analysis and Reporting (BAR), Information Systems and Control (ISC), and Tax Compliance and Planning (TCP). You must pass each section within a period of 30 months.

Exam Preparation Strategies

While the CPA exam will test your knowledge of various accounting principles, it will also challenge you to think critically about how to apply those principles. Before you take the exam, ensure that you’ve put in ample preparation work. Consider the following tips:

• Familiarize yourself with the exam’s structure and application fee so you know what to expect.
• Make a schedule to study for each section and adhere to it—this may involve dedicating a few hours a day or a certain number of hours a week to studying.
• Map out a timeline to complete each section within 30 months. Do your best to realize this timeline while accounting for school, work, and family obligations.
• Sign up for a review course to increase your chances of passing the exam. These courses usually include online lectures and time allocated for personal study. 

Skills Needed to Succeed as a CPA

As you work toward a CPA career, keep in mind the types of skills you’ll need to acquire and cultivate. Some of the most essential skills include the following:

• Strong analytical and problem-solving abilities
• Attention to detail
• Excellent communication skills
• Proficiency in accounting software and technology
• Sound ethical judgment and integrity
• Time management

Preparing for Your CPA Career at WGU

WGU offers online bachelor’s and master’s degrees in accounting that could be just what you need on your path to becoming a CPA. Each program is designed with input from industry experts and can prepare you for both the CPA exam and certification.

Why Choose WGU for Your Accounting Education?

WGU’s competency-based learning model lets you advance through accounting coursework as quickly as you show mastery of the material, so you can potentially graduate faster and save money. Plus, the skills you’ll gain in a WGU accounting program are immediately applicable in the accounting field, including in a CPA role. Here are more reasons to choose WGU:

• Flexible, online program structure with no set log-in times
• Opportunity to earn credits toward CPA eligibility
• Affordable tuition and financial aid options

Learn more today.