Do You Have to Be a Bookkeeper to Become a CPA?

One of the common misconceptions about becoming a Certified Public Accountant (CPA) is that you need to start as a bookkeeper. However, this is not necessarily true. While bookkeeping provides a foundational understanding of accounting principles and may be beneficial, the requirements to become a CPA are primarily focused on education, experience, examination, and licensing.

Education Requirements

The journey to becoming a CPA begins with a solid educational foundation. Typically, you need to complete a minimum of a bachelor's degree in accounting or a related field. This degree should include specific coursework in accounting and business.

Experience and Supervision

While bookkeeping experience can be advantageous, most states require you to have a certain amount of professional accounting experience. This experience can come from a variety of roles, not just bookkeeping. It's crucial to gain this experience under the supervision of a licensed CPA to ensure you meet the necessary standards.

Uniform CPA Examination

Passing the Uniform CPA Examination is a significant hurdle on the path to becoming a CPA. The exam tests your knowledge and skills in various areas of accounting and is a standardized tool to ensure you meet the competency requirements.

Licensing Requirements

After fulfilling the education and experience requirements and passing the examination, you can then apply for a CPA license in your state. The exact process varies by state, but it generally involves submitting an application and paying any necessary fees.

Understanding the Role of Bookkeeping

Bookkeeping is a crucial part of accounting, despite not being a requirement for becoming a CPA. A bookkeeper’s duties include entering transactions into the system appropriately, working with various source materials, and maintaining the general ledger. These skills are foundational for any accountant, and a CPA must have a comprehensive understanding of the entire accounting process.

Comparison with Bookkeeper Responsibilities

A bookkeeper's job typically focuses on routine data entry, reconciliations, and general ledger maintenance. While you can enter the accounting field without a degree, having a CPA degree can distinguish you from other candidates and potentially increase your earning potential. The demand for bookkeepers is high, and the application of advanced technology continues to evolve, making a formal education even more valuable.

Personal Insights

From my experience, my first accounting job with a bookkeeping and accounting firm involved using QuickBooks. Our boss, who was a CPA, allowed us to take on a wider range of responsibilities. She managed AP/AR, payroll, franchise taxes, and more. These were roles that are typically outside the scope of a typical bookkeeping firm, further illustrating the broader scope of a CPA's responsibilities.

Bookkeeping is a fundamental part of the daily operations of most small businesses, and bookkeepers often work with smaller, local clients. However, a CPA has a broader skill set, allowing them to take on more complex tasks and work with a wider range of clients.

While you do not have to start as a bookkeeper to become a CPA, the skills you learn in bookkeeping can be invaluable in your journey to becoming a certified professional. Whether you start as a bookkeeper or pursue a different path, the ultimate goal of becoming a CPA remains within reach for those who are dedicated to the field.