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The CPA or Certified Public Accountant is a professional certification that is considered the ‘gold standard’ of certifications in the finance world. Obviously, it does not come easy. After studying for over 100 hours and completing an exam in 4 parts, it is disheartening for students to hear that they are not licensed CPAs. Why does this happen? In this article, we at Orbit Institutes look into the difference between a CPA certificate and a CPA license.

Who Certifies a CPA?

The CPA is offered by multiple countries across the globe. However, in this article we will refer to the US CPA which is globally recognised and offered by every state in USA.  

The US CPA exam is administered by the American Institute of Certified Public Accountants (AICPA).  Eligibility varies across each state and though a CPA is licensed only in the state they have applied from, multiple reciprocity laws allow them to practice in other states and countries as well.

CPA Certification vs. CPA License

The reason these two concepts exist is because each state in the USA follows their own -system of declaring a person a CPA.  Largely states follow either a one-tiered system or a two-tiered system.

In a one-tiered state the terms ‘CPA certificate’ and ‘CPA license’ are used interchangeably. Meaning that a student becomes a licensed CPA the moment they clear the CPA exam.  

In a two-tiered state however, a student must not only clear the CPA exam, s/he must also clear additional work-experience, ethics or educational requirements. When students complete the CPA exam, they are given a CPA certification. This document signifies that one has completed the first step to becoming a full-fledged CPA. These certificate holders can only work under the supervision of an already licensed CPA and cannot publically advertise themselves as CPAs. Once they complete the states work requirements they are given their CPA license, which allows them to work unsupervised and run their own CPA firm if they wish.

CPA Eligibility for Foreign Students

The CPA eligibility varies for non- US citizens across each state. For Indians the minimum qualification is generally 15 years of education which could include B.Com/ CA/CS/ICWA/ M.Com or MBA (Finance). Even the college or university you attended needs to be recognised by the AICPA.

While some states also require 1-2 years of fresh work experience under a licensed CPA, there are others which will grant a certificate on the basis of past work experience evidence. Similarly, some states require applicants to be residents of USA while others do not.

Test Centers for Foreign Students

Foreign students can attempt the CPA from a number of other countries. However, in order to do so they first need to select a participating US jurisdiction and contact its’ Board of Accountancy.  Once the student has completed the formalities s/he will receive a Notice to Schedule (NTS). This gives them permission to take the exam at an International location.

Indian students have a lot to cheer about in the year 2021. Earlier, in order to take the CPA, Indians were required to travel to either the US or the Middle East. However, due to the pandemic, Indians will now be able to take the CPA exam from multiple cities within the country.

As you can see, becoming a full-fledged CPA is no easy feat. Depending on your future plans, you will need to decide if you wish to get only the CPA certification or the CPA license as well. However, before you get overwhelmed by the process, remember that being a CPA brings with it a great degree of prestige & respect. It opens the doors of opportunity as CPAs are not limited to any one industry or job function. And most importantly, you can rely on Orbit Institutes to guide you on the best way to acquire your CPA.

They say your plan B should always be a way to reach the goal of plan A. And we at Orbit Institutes couldn’t agree more. A career in accounting has scope for opportunities & growth both financially and personally. But to make the most of any career you need a good plan. In this article we, guide you aspiring finance professionals with your career plan.

How do You Define Success?

Defining success appears simple, yet it has many different connotations. For some success revolves around prestige for others it is purely financial. For some it could be about having a good work-life balance and for others it could involve giving back to society. However you define it today, remember that your perspectives on success may change tomorrow.

So, apart from understanding your version of success, you also need to understand what motivates you. To do this, speak to those within the industry. Try and understand what you like about their field. You could also seek advice from recruiters or mentors.

Before you begin though, think about where you are and where you wish to be eventually. For example, do you have an idea of the kind of money you wish to earn within the next few years or do you see yourself retiring from a certain designation. Evaluating your long-term goals will help you make short-term goals in the right direction.

Career Opportunities in Accounting

The deeper you enter the field of accounting, the more you realise how vast it actually is. There are a number of paths you can choose to advance your career. One of the earliest steps you should take is to arm yourself with information. Understand the nuances of each career opportunity. We share a brief introduction to help you get started.

Accountants come in many forms. Tax accountants focus on just that. Forensic accountants investigate financial crimes. Financial accountants help a single company convey their financial status to stakeholders and other external parties. Managerial accountants in contrast work with internal parties, helping companies improve their profits. Auditors need to be aware of all compliance laws and ensure companies follow through on them. Public accountants help companies achieve their long-term financial goals. A financial planner works with individuals helping them develop & achieve their financial goals. You could also opt for a career in investment banking, commercial banking, insurance, hedge funds, stock broking or portfolio management.

Some of these career options are available to both experienced professionals and beginners. So, no matter where you are in your career, examine the opportunities you could have.

Work Environment Can Improve Career Success

Fortunately or unfortunately, we cannot always choose our bosses & colleagues. What we can do however, is choose the kind of environment we would enjoy working in. Accountants have the ability to work across sectors in various sizes of organizations. It is up to you to decide what work environment you and your career can thrive in. For example would you be happy in the corporate world or would an NGO be a better fit for you? Do you wish to have a variety of clients or would you prefer working for one company? If you have identified the accounting field you wish to enter, these questions are easier to answer.

Working Towards your Goals

With these answers in mind, you can now take concrete steps towards them. You can begin by planning the level of education you need or are willing to get. This will also help you plan your future finances. A bachelor’s degree is usually a minimum requirement for an accounting career, however some form of specialisation will be required if you want to do well going forward. You will need to choose between a CPA, CMA, MBA and so on and so forth depending on the path you wish to take. Each of these specialisations comes with their own pros and cons, costs and duration.  Keep in mind that the course you choose should also assist you in your long-term goals.

For a career plan to work it needs to be realistic, flexible and at the end of it all, fulfilling. At Orbit Institutes we have a constant inflow of students looking for a path that suits them. We help these students identify paths that they have both the attitude and aptitude for. Because remember, if plan A fails, there will always be a plan B.

For those who enjoy playing with numbers, finance is perhaps one of the most high-paying, prestigious fields available. Many who have the aptitude don’t necessarily acquire the qualification. However, given that finance is a highly competitive field as well, a simple qualification can take your career a long way. We at Orbit Institutes guide you on how to choose the best finance course for yourself.

Where to Begin

The world of finance is vast. You could join the banking sector, insurance, stocks, investment banking and so on and so forth. So, to begin choosing your finance course first try and pin-point what aspect of finance you enjoy the most. Once you have an idea of that, think about the kind of environment you would like to work in. Finance is required in every business, so you could choose to work in a multinational company, an NGO or even a start-up. Having answers to these two aspects will help you narrow down the kind of course you need to do.

How Far can You Afford to Go?

A finance qualification can be acquired both at the graduate and the post graduate level. However, they require a fair amount of time and money. Depending on how much you can spend initially, you will be able to decide how long you can realistically study for. Take for example if you are an undergraduate student. You could look towards earning a bachelor’s degree in a relevant field such as economics, accountancy etc., a diploma or even a professional certification. After that you could also think about doing a Master’s program. Your long-term goals will give you clarity on the path you need to take.

What to Look for In a Finance Course?

Now that you have a rough idea of what you want your career path to look like, you need to begin sifting through the courses available.

The Curriculum

Look out for courses that give you details of the curriculum you will study, such as those at the Orbit Institute. There are different courses for different levels. Some will cater to finance students others will be more for professionals and some will be for those who have never done anything related to finance at all. You need to go through the curriculum in detail to see what you stand to gain from the course.

The Duration of Study

Some choose to be full-time students while others study while they work. The course you choose should give you a rough idea of how much time you will need to put in. That way you can plan your studies without hampering other aspects of your life.

The Reputation of the Course

Who is conducting the course? What is the certification you will receive at the end of it? What do the alumni of the course say? As with anything else in life, you must do your research well before joining a course.

Are You The Right Fit For the Course?

Everybody learns differently and unfortunately any course you do will require you to pass a test at the end of it. So before jumping into a course (even if it interests you and serves your career goals), try and understand the format of the exam you will need to pass. Think about whether it is a format that is doable for you. Yes all exams are difficult and certainly you will be trained as per the format, but despite that, understand if you are suited to learning the way the course demands.

We hope this guide helps you choose a finance course that suits you. However, if you are still unsure, you could contact us and we will help guide you to a course you will enjoy and excel in. With carefully selected and continuously evaluated trainers, we are dedicated to success of every individual who walks through our doors. To know more visit our website.

Stunning views, open spaces, free basic healthcare, high-quality education, unemployment insurance, social welfare schemes and of course maple syrup! These are just a few reasons why the quality of life in Canada is rated amongst the best in the world. But this is not a piece by the immigration authorities trying to convince you to move. In this article, we at Orbit Institutes take a closer look at the Canadian CPA and why Indian should take advantage of it.

How are Indians allowed to Enrol for the Canadian CPA?

In 2018, the Institute of Chartered Accountants of India (ICAI) signed a Memorandum of Understanding (MOU) with the Chartered Professional Accountants of Canada (CPA Canada) regarding reciprocal membership arrangements. Apart from other things, this MOU opened up a number of employment opportunities for Indians choosing to qualify themselves to work in Canada. Further, CPA Canada has signed a number of MOUs with other countries as well. Therefore, someone with the CPA Canada qualification has the option to work globally.

But it will take Me Years to Go to Canada!

If that is the only thought holding you back, guess what you’re in luck! You can begin preparations for the Canada CPA from India itself. In fact you can do the entire course without crossing any borders. The only time you will need to visit Canada will be for the final 3 day CFE examination. On average most students take around 6 months to prepare for the CFE, so you will have plenty of time to plan your trip to Canada.

Even then, an International Trip is Expensive!

You’re right to be worried about the cost. But, the good news is you don’t need to spend all your time studying. While you prepare for the Canada CPA, you can continue working full-time! This will allow you to save for your trip. And remember, the Canada CPA will pay off in the long run.

Okay. What exactly does the Canada CPA Exam Entail?

For Canadian students, the CPA course requires them to complete two Capstones before attempting the final exam. These capstones involve a large case study and a few practice cases. Though Indians are exempt from these capstones, at Orbit Institutes our syllabus integrates alternative capstones, so you are up to speed with your Canadian counterparts.

The final exam is called the CFE or Common Final Exam. It is held twice a year, in May & September.  This is the exam for which you will need to be present in Canada. It is a 3day process, where the exam duration varies from 4 to 5 hours per day. The paper on day 1 is evaluated separately. Day 2 & 3 papers have a combined evaluation.

The CFE covers are 6 technical areas including financial accounting, management accounting, auditing, tax, finance & governance. Off these parts of the financial accounting section & the section on Canadian tax will be much different from what you may have already learnt in India. With our expansive resources at Orbit Institutes, you should be able to easily pick-up these new topics.

Alright! So, how do I get started?

At this point the only course preparing students for the Canadian CPA in India is the one provided by us at Orbit Institutes. We have tied up with the Professional Accounting Supplementary School (PASS), an acclaimed CPA Review provider in Canada. To register for the course you need to log on to www.orbitinstitutes.com. Once registered, you will have unlimited access to a large library of technical videos along with a binder, practice cases and live online classes. You can watch these classes on schedule or even view their recordings at a later stage.

That Sounds Great, But isn’t It Difficult to Immigrate to Canada?

 Actually, it’s not. The Canadian government has a special program called the FSW or Federal Skills Workers Stream. Under this Indian CAs or those who have passed the CFE have an express entry option which should take just around 7 months to process. Applicants do not need to have employment in Canada in order to apply for this express entry option.

The Canadian CPA is one of the world’s most respected designations. And with the MOU, Canadian CPAs are in great demand in areas such as Europe, Asia & the Caribbean.  As you can see, the Canada CPA opens many doors of opportunity both for work & travel for the Indian accountant.

There’s so much information about the CPA certification online that sometimes it’s difficult to sift out the most relevant parts. For aspiring students this can be problematic and confusing. Not to worry. We at Orbit Institutes have created this guide specifically for you. What exactly does a CPA certification entail? Read our ready reckoner to clarify all your doubts about it. 

The CPA Examination: The Certified Public Accountant(CPA) examination is a computer-based test that comprises four sections. The four sections are:

1. Auditing and Attestation (AUD)
2. Financial Accounting and Reporting (FAR)
3. Regulation (REG)
4. Business Environment Concepts (BEC)

Syllabus of the CPA Examination: Each section of the examination is designed to test ones expertise in different aspects of finance.

1. Auditing and Attestation (AUD):  These are one of the most important aspects of a CPAs job. Simply put, auditing is the process of examining a company’s financial statements. While attestation is the process of declaring that financial statement as accurate and reliable.

To do an audit one needs to understand how the client’s business functions & the internal checks and balances they have in place. The auditor must also provide an opinion on the basis of certain procedures. The AUD section of the exam, tests all of this. Below is a table that details the areas tested and their weightage.

You will be allotted a total of 4 hours to complete this section. To prepare for this section you need to memorize everything from your audit opinion letter to the internal controls.

2. Financial Accounting and Reporting (FAR): This section of the exam is considered the widest. It covers subjects such as aspects of financial reporting, the differences between the GAAP & the IFRS basis and the compilation, evaluation and analysis of financial statements amongst others. The below table broadly shows the weightage given to each section.

The FAR section is 4 hours long. The syllabus is vast and often candidates don’t give themselves enough time to prepare between the other examinations. On average one should schedule 7-8weeks of preparation time before attempting the FAR. To prepare for the FAR make sure you are well-versed with your journal entries.

3. Regulation (REG): This section of the CPA is designed to test you on federal taxation, business ethics and business law. It broadly covers tax concepts, your ability to understand legal responsibilities, tax issues and tax implications. The content area and weightage is as follows:

Remember, the ethics & taxation sections are equally important in this paper. It is important you don’t underestimate either section.

4. Business Environment Concepts (BEC): This section of the CPA tests the candidates understanding of business concepts and their understanding of their responsibilities while making business decisions. The BEC exam covers subjects such as corporate governance, financial management and operations management etc. Below is a detailed table.

The fact that the BEC section of CPA is perhaps the least technical shouldn’t make you underestimate its difficulty. There are also far less task-based simulations & multiple choice questions in this section as compared to the others, making it tough. This section also has a different question format i.e. – Written Communication.

As you can see, the Certified Public Accountant (CPA) examination is not just one exam,rather it consists of 4 different exams. Cracking this exam involves detailed planning & time management which Orbit Institutes can help you with. No matter how one chooses to approach it; the advantage of this certification is that you could achieve it within just a year.