How to Become a CPA (Certified Public Accountant) in India?

In the skyrocketing world of businesses and the IT sector, the requirement of a professional accountant is top-notch. Candidates, who have a keen interest in becoming an accountant, must check this certified professional course. The primary role of an accountant is to ensure that the company grows beneficially by effective execution of procedures. In simple words, these strategies will help in bringing growth to the enterprises and the same copy will be used for the financial departments. A few steps are mentioned that you should follow before pursuing this course as a career.

About Certified Public Accountant

CPA or Certified Public Accountant is a certified professional who is specially hired by the firm or company to handle the accountancy department by using its higher level of knowledge. Those who possess an MBA degree and have knowledge of the financial department can pursue this course. Additionally, A Chartered Accountant and Company Secretary will also pick this course. These three categories are very much familiar to business strategies, which means the course is too much beneficial for such professionals.

Certified Public Accountant is one of the leading positions in the accountancy field across the world. This CPA certification course is offered by the AICPA or American Institute of Certified Public Accountants, which is the most proficient authority in the field of accountancy. No doubt, a career in the accountancy field brings a lot of career opportunities but as well as it is quite hard to find new strategies for companies. The risk factor is the major aspect of the company. If you have the potential to work under pressure, then it is the right choice for you.

How to become a CPA (Certified Public Accountant) in India?

Roles and Responsibilities of CPA

A company can hire a CPA for their beneficial growth, CPA’s are known as the backbone of the financial department. The CPA plays a vital role in the infrastructure of any firm, organization, or company. He or She has major responsibilities such as-

  • Maintain transaction history of the company
  • Organize and audit transaction reports.
  • Keep eye on the firm’s budget & financial management.
  • Suggest effective methods to save the capital of the firm.
  • Implementation of monetary benefits.
  • Execute tasks like financial planning, advising, financial policies, book-keeping (Physical or technical), prepared government audit, records of taxes, etc.
  • Rectify errors, fluctuations of money, solve fraudulent activities.
  • Collection of taxes, maintain tax records, and ensure that taxes are submitted on time.
  • Construct Budgets and analyze them with records.
  • Update with newly applied financial methods.
  • Aware management of tax consequences of business judgment.
  • Act as an advisory for the company benefits, compensations, and asset safety.
  • Estimate revenue & analyze ledgers.
  • Prepare Balance sheet

Also Read: Top Accounting Courses To Do in India

Steps to follow for becoming a Certified Public Accountant

Those who a keen interest in this course should follow some important aspects like eligibility criteria, qualify CPA exam, training, and other essential requirements as per the company’s rules and regulations.

Step-1 CPA Course Eligibility

As per the state boards, the eligibility requirements are different. To become Certified Public Accountant aspirants need to fulfill the eligibility criteria as per their respective state boards of Accountancy. In India, 55 states are a member of the National Association of State Boards of Accountancy (NASBA). Remember, the state license holder should not work outside India.

Doing jobs at the international level, it is necessary to hold a bachelor’s degree in Commerce. In India, some universities’ prospectus is equivalent to thirty module credits of US education. On the other hand, certain state board’s holds award credit for offering international professional courses like CA and Candidates who possess bachelor’s degree from NAAC –A grade university in commerce along with first division are eligible to take the regular CPA exam. In simple words, an aspirant who is –

  • The Member of the Institute of CA ( Chartered Accountants) in India or
  • The Member of the Institute of CWA ( Cost & Works Accountants) in India or
  • The Member of the CS ( Company Secretaries) in India or
  • A Masters degree holder with Commerce subjects or
  • An MBA degree holder
  • Are considerably eligible to apply for the CPA exam.

Few states of the US welcomed Indian CA’s who have B.Com degrees. So the criteria may depend upon the state board. Moreover, the candidates must attain 1 or 2 years of experience by doing an internship under a qualified CPA.

Step – 2 CPA Exam Pattern and Syllabus

CPA Exam Pattern is divided into four sections. Each subject has its topic. Candidates must be proficient in each subject. The four division of the CAP exam are as follow-

  • AUD – Auditing and Attestation
  • FAR – Financial Accounting and Reporting
  • REG – Regulation
  • BEC – Business Environment Concepts
  1. Syllabus of Auditing and Attestation (AUD)

The area I Professional Responsibilities, Ethics and General Principles – Allocation 15 to 25%

Area II Assessing Risk & Developing a Planned Response – Allocation 25 to 35%

Area III Obtaining Evidence and Performing Further Procedures – Allocation 30 to 40%

Area IV Reporting and Forming Conclusions – Allocation 10 to 20%

  1. Syllabus of Financial Accounting and Reporting ( FAR)

The area I Conceptual Framework, Financial Reporting, and Standard- Setting – Allocation 25 to 35%

Area II Select Financial Statement Accounts – Allocation 30 to 40%

Area III Select Transactions – Allocation 20 to 30%

Area IV State and Local Governments – Allocation 5 to 15%

  1. Syllabus of Regulations ( REG)

The area I Federal Tax Procedures, Professional Responsibilities, and Ethics – Allocation 10 to 20%

Area II Business Law – Allocation 10 to 20%

Area III Federal Taxation of Property Transactions – Allocation 12 to 22 %

Area IV Federal Taxation of Individuals – Allocation 15 to 25 %

Area V Federal Taxation of Entities – Allocation 28 to 3%

  1. Syllabus of Business Environment Concepts (BEC)

The area I Internal Controls, Business Processes, and Enterprise Risk Management – Allocation 20 to 30%

Area II Economics – Allocation 15 to 25 %

Area III Financial Management – Allocation 10 to 20%

Area IV Information Technology – Allocation 15 to 25%

Area V Operation Management – Allocation 15 to 25%

CPA Exam Pattern: The CPA exam involves total 4 parts each part consists 4 hours to complete

  1. Auditing and Attestation ( AUD) – Duration: 4 Hours, 72 MCQs & 8 Task-Based Simulation
  2. Financial Accounting and Reporting (FAR) – Duration: 4 Hours, 66 MCQs & 8 Task-Based Simulation
  3. Regulations (REG) – Duration: 4 Hours, 76 MCQs & Task-Based Simulation

An individual has been judged accordingly to the pattern that we above mentioned. Through this exam, candidates are tested that how much he or she has educational knowledge, he or she can understand the major concepts of financial and accounting field.

Step- 3 Earn License

To work as a Certified Public Accountant, professionals need to themselves as CPA. Some international enrolment institutions have required accreditation degrees from recognized universities. Aspirants who have passed the above mention all sections will go for the next stage namely the AICPA Ethics exam. Shortlisted candidates are undergoing the training. After the completion of training, candidates are officially enrolled for the CPA license. On doing the payment, you can just collect your license and work as a professional. The National Association of State Boards of Accountancy overlooked the eligibility rules of CPA. Let’s discuss the CPA license requirement

  1. Some states priorities the 150 credit hours in particular courses from any recognized university/ accredited institute under the National Association of State Boards of Accountancy.
  2. An Aspirant must have passed the Ethics test.
  3. The candidates must work at least 2000 hours and possess experience by doing accounting, taxation, consultancy, and auditing.
  4. He or She should have 18 years of age.

Cost of Certified Professional Accountant Course in India

  1. Application Fee – The application fee may varies from state to state, approximately fee of the exam is Rs. 3600- 14,500.
  2. Examination Fee – For each section, the exam fee is approx Rs. 14,100.
  3. Registration Fee – The fee may charge accordingly state or may depend upon the number of sections that you can choose. In simple words, if you can pick 1 section at a time then you should pay approx 4,600 Rs; if you can pick2 sections at a time then you should pay approx 5,900 Rs; if you can pick 3 sections at a time then you should pay approx 7,200 Rs; if you can pick 4 sections at a time then you should pay approx 12,900 Rs.
  4. Ethics Fees for the CPA exam – To attain licenses you should clear the ethics exam as per your state. The approx ethics fee is Rs .10, 900 to 14,500.
  5. CPA Licensing Fees – On the completion of the ethics exam, students are considered eligible for receiving a CPA license. The approx fee is around $ 50 to 500 per year. It may vary from state to state. It will be paid every year.
  6. Systematic Professional Education for CPA – The approx fees for this CPE are $ 800 and increasing up to $5000.

Career Opportunities

On the completion of the CPA exam, professionals can seek jobs in various firms such as Research Firms, Auditing firms, and Accounting Firms, Mutual Funds, Commercial Banks, Equity Firms, Acquisition and Merger, Banks, etc.

Future Scope

The best thing about this course is that you can do jobs along with institution learning. Certain International institutions that offered job potential and experienced training. The CPA course is way more advantageous for candidates who have pursued courses M.Com, CA and Commerce degree and certificate. The course is quite similar to the Indian Charted Accountant course but the job opportunities are far better than the CPA course. A CPA has attained knowledge of US Federal Taxation, Business Laws, US GAAP, GAAS, and more. These professionals are trained to do jobs in national and international firms.

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