Can Finance Majors Get a CPA? Your Guide to Achieving the CPA Certification

 

Introduction 

Probably one of the most respected and recognized credentials in the field of accounting and finance, the Certified Public Accountant designation empowers finance majors to pursue new career opportunities. But one of the most common questions is whether or not finance majors can obtain a CPA. The simple answer would be yes; finance majors can absolutely pursue a CPA certification, and it could potentially turn into a strong tool in career building.

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In this article, we explore how finance majors can become CPAs: the steps involved in getting certified, with actionable tips to help you successfully navigate this career path. The guide will be an important read whether you're still in school or working, as it gives you valuable insight into whether this is a good move for your professional goals.

Introduction: Why Finance Majors Should Consider a CPA

Although a finance degree will lead to many open opportunities in the field, becoming a CPA will add an additional element of qualification and expertise that perhaps places a candidate above others. In particular, the CPA designation is particularly helpful in looking to work in positions which deal with accounting, auditing, tax, or financial management.

For many professionals in finance, getting a CPA license allows them to add greater value with counsel on finances, enables them to command much better salaries, and opens up opportunities hitherto unexplored, including forensic accounting and public accounting. But how do you, being a finance major, make this jump into becoming a CPA from finance?

1. Understanding the Requirements for CPA

Because the certification is handled by the state's Board of Accountancy, the details will differ slightly depending on where you plan to practice. There are general eligibility requirements shared by most states, and these will give you an idea of what additional steps you might want to take as a finance major.

Here's what most states require:

Education: The usual requirement is 150 semester hours of college credit, which happens to be 30 hours beyond what a typical student usually needs to graduate with a bachelor's degree.

Accounting Coursework: Most states have a minimum requirement for the number of credit hours one has to take in purely accounting classes. Finance majors would have to go through extra accounting classes to meet the educational requirements of their state.

Work Experience: Most states require 1-2 years of applicable work experience under a licensed CPA.

CPA Exam: Lastly, the candidate has to pass the Uniform CPA Examination, which is divided into four sections: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, Regulation.

Tip: Before plunging in, check with your state's Board of Accountancy for specific CPA requirements in your state.

2. Do Finance Majors Need Extra Courses to Qualify?

The most pressing question that finance majors have is, will they have to take extra accounting classes to meet the CPA qualification requirements? Since a finance degree puts more focus on classes like investment analysis, corporate finance, and financial markets, you might not have enough accounting credits to qualify for the CPA exam right after graduation.

Most states require about 24-30 credit hours in specific, accounting-related topics such as but not limited to:

Financial Accounting

Auditing

Taxation

Managerial Accounting

If these areas were not covered in-depth in your finance curriculum, additional accounting course work will be required to meet these requirements. Almost all finance majors consider these courses as their free electives during undergraduate study or after their graduation via post-baccalaureate programs, online courses, or even a master's degree in accounting.

Example: Suppose you are a finance major with only 9 accounting credits from introductory courses. You will, in such a case, have to complete an additional 15-21 accounting credits to meet the educational requirement for the CPA exam.

Tip: Many universities offer bridge programs or flexible courses to help finance majors meet CPA education requirements. You can also consider online options that fit around your current job or academic schedule.

3. The CPA Exam: What to Expect

The CPA exam has the reputation of one of the hardest professional certification exams there is, and for good reason-it tests a wide range of technical knowledge and practical skills. Having said that, as a finance major, some sections of the test may feel more comparable to others, but each section is worth preparing for.

Here's a quick overview of the four sections of the CPA exam:

Auditing and Attestation (AUD): This section covers the basics of auditing: the preparation and process of auditing, assessment of risks, and governmental compliance. Business Environment and Concepts (BEC): This section includes topic matter such as corporate governance, economic concepts, and financial management. BEC tends to be a favorite for finance majors because much of the material is review from their studies.

Financial Accounting and Reporting (FAR): This area deeply discusses the respective sets of financial reporting standards, accounting principles, and government accounting. This would necessitate strong knowledge of the rules of accounting, which may be somewhat foreign to finance majors.

Tip: If you want to pass the CPA exam on your first try, consider joining a CPA review course. These courses provide you with studying plans, practice exams, and expert help to make sure you master each section.

4. Work Experience: How to Get Ahead

In addition to passing the exam, most states require that CPA candidates have relevant work experience under the supervision of an active licensed CPA. For finance majors this can generally be satisfied by work in corporate finance, financial analysis, or auditing, providing you are working in an accounting-related capacity.

If you are already working in a finance capacity, discuss with your employer how you may be able to obtain the accounting experience needed for the CPA designation. Many companies have internal opportunities to shift employees into positions that will meet requirements of a CPA such as corporate accounting, internal auditing, and tax analysis.

Example: You work for a company as a financial analyst but express interest in taking on additional accounting responsibilities, like preparing financial statements or working with the independent auditors. This will satisfy the experience that you need to qualify for the CPA work requirement.

Hint: Those just entering the profession would do well to seek out internships or even entry-level positions with accounting firms. These types of positions are ideal ways to be exposed to the world of accounting and help you meet the requirements of your CPA work sooner.

5. Benefits of a CPA for Finance Majors

The pathway towards becoming a CPA, though a finance major, may require additional effort in both course and study preparation. However, the advantages derived therefrom are well worth such effort. Indeed, a CPA designation opens a wide array of career opportunities not only in accounting itself but also in financial planning, auditing, forensic accounting, and even in executive leadership positions.

Below are some key benefits derived from acquiring a CPA licensure as a finance major:

Higher Earning Potential: CPAs generally earn a higher salary than non-CPAs, particularly for positions such as financial controller and above, or CFO. Career Flexibility With a CPA certification, you will be able to shift from accounting to finance and vice versa with better ease, expanding your career opportunities. Professional Credibility What the CPA license most assuredly stands for is a very high level of expertise and commitment; hence, you will be more attractive to a potential employer in the field of finance and accounting.

Example: Many CPAs go on to become Chief Financial Officers CFOs or partners at major accounting firms, roles that combine financial management with in-depth accounting expertise.

Conclusion: A CPA is Within Reach for Finance Majors

Therefore, can finance majors get a CP A? Absolutely. The road might require a few more steps to take more accounting courses or gain some work experiences in that specific field, finance majors absolutely can get a CPA. The CPA degree is going to add, not only points to your professional credibility but also opens up wide scope for handsome earning opportunities.

All it takes to make a successful transition from finance major to licensed CPA is understanding what the educational requirements are, preparing well for the CPA exam, and acquiring relevant work experience-and, in doing so, you will unlock a whole world of possibilities.

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Frequently Asked Questions

1. Must finance majors obtain a master's degree in order to get a license as a CPA?

Not necessarily. While a master's degree may help you fulfill the 150–hour requirement, it is also possible to take additional undergraduate or post-baccalaureate coursework to complete the credit-hour requirement.

2. How long does it take to become a CPA?

It usually takes an additional 1–2 years beyond the time it takes to complete the extra course work and pass the CPA exam and complete the work experience.

3. Can the CPA be taken before work experience?

Absolutely! You can, in most states, take your CPA in advance of completing your work experience; you will not become licensed until you have completed all the requirements.

 

4. What are the benefits of being a CPA in finance?

The designation in finance, just like a CPA, adds higher levels of competence in the areas of financial reporting and auditing, improves earning potential, and provides opportunities for senior positions such as CFO or financial director.