There are 1.3 million accountants who are certified to serve the public as of 2008.
The first certified public accounting exam was conducted in 1896. Public accounting has grown significantly since this early date: There are around 1.3 million accountants in the United States as of 2008, according to the Bureau of Labor Statistics. While private accounting deals with the internal finances of one company, public accounting is a service that is available to many different businesses and individuals.
Definition
Public accounting is a type of financial recordkeeping offered to a wide range of individuals and businesses. For example, a tax preparation service that is available to anybody is classified as public accounting. In contrast, an internal financial division that belongs to a single company is known as private accounting.
The experts who practice this type of accounting are called public accountants. Because it is important to the public welfare that financial matters such as taxes are handled professionally, states offer certification for public accountants who can demonstrate their specialized financial knowledge. Financial recordkeepers who receive this certification are known as Certified Public Accountants, or CPAs.
Qualifications
Individuals who offer public accounting services must be properly qualified. In most states, the minimum level of education required for public accounting is a bachelor's degree. Many financial companies prefer to hire public accountants who have earned a master's degree in business administration. The exact qualifications for public accountants vary from state to state. Some states allow non-certified accountants to offer financial services to the public, while other locations require all accountants first to be certified.
Certification
Certification allows public accountants to perform services that are off-limits to uncertified individuals. For instance, the Securities and Exchange Commission stipulates that only CPAs can file financial reports for publicly traded companies. As of 2009, all but four states require CPA candidates to complete at least 150 hours of college classes.
Accountants who wish to become certified must also take four-part financial exam that is administered by the American Institute of Certified Public Accountants. According to the Bureau of Labor Statistics, less than 50 percent of candidates pass this exam on their first attempt.
Careers
Twenty-four percent of all public accountants work for tax preparation and bookkeeping firms, while 8 percent of public accountants are self-employed. Between 2008 and 2018, employment for public accountants is projected by the BLS to increase by 22 percent. In the same timeframe, 279,400 new jobs are expected to be available. The median annual wage for all people employed in public accounting is $59,430 as of 2008.
