I'm thinking of getting a CPA. I am in the early stages of planning but I am very confused about how things vary for each state. My problem stems from the fact that I did my undergrad in computer science(in USA) and my masters in Finance(in england). Now I feel I need a CPA to get the job I'm looking for. I don't have the accounting credits to get a CPA so far in any state. But Alaska only has a 15 semester credit in accounting requirement. So, does it matter where I take the CPA? Although I right now live in Ohio I intend to move soon to either New York, California or even possibly (but unlikely) Massachusetts. Will it look bad if I take the CPA in Alaska or another state which has a more relaxed requirements? If I move to another state, can I still practice there with my CPA from say Alaska or will I have some problems?
It might. A future employer may need you to be licensed in the state they intend to work you in, and then the issue comes down to - does that state have reciprocity with Alaska? If not, you ain't nothing but an accountant without their CPA.
To practice, and by that I mean physically work, as a CPA in another state generally requires you to be licensed in that state. It may be as simple as filing a form and paying a fee, to having to sit all over again if the state you are licensed in isn't recognized by the state you want to work in.
Now, are you absolutely sure you meet the requirements to sit for the exam in Alaska? I thought they required 150 hours like most all other states.
On 7 Feb 2006 13:35:30 -0800, in alt.accounting snipped-for-privacy@gmail.com wrote in :
Yes. Even states that have reciprocity tend to have rules about how long you have practiced in the state you got your CPA from. You may also want to check to see if Alaska has any experience requirements.
Initially, practicing as a CPA is limited to the state that you have your CPA from. I doubt that any state will give reciprocity if you sat for the test in one state but never practiced there.
If you have qualifying experience in the state that you originally qualified in, most states have reciprocity. If you do not, you may not.
According to my research: You can perform accounting services to the general public without licensure, including preparation of financial statements, tax prep, auditing and bookkeeping. To audit a publically held company or to prepare financial statements for a publically held company you need to be licensed, but most CPAs don't do that anyway.
If you get licensed in another state, you are legally permitted to call yourself a CPA and you are legally permitted to perform functions not requiring licensure. Given all this, I don't see why not just get licensed by the state with the lowest requirement.
Most state boards of accountancy will say you need to be licensed in that state to practice public accountancy, but they don't define public accountancy.
But, you can't use the "CPA", "Certified Public Accountant" or any similar misleading terminology. In other words, you can't hold yoursefl out as a CPA. So someone can do tax work, but not as a CPA without that certificate. AND - without that state license.
If I were to go to another state, and work in that state - AS A CPA - then I have to have that state's license, or a temporary license/permit, or a permit for a foreign CPA, or whatever the terminology is.
Last time I checked, Alaska has a 150 hour rule. Besides, don't you have to fly to Alaska to take the test?
They define within the statute, what you can - and most importantly what you can not - call yourself.
If you are a CPA then you are a CPA where ever you are. You don't have to lie to people and tell them you are not a CPA whenever you cross a state line. And if some high school drop-out can open up a tax prep office, then an out of state CPA can perform the same service next door.
Having out of state licensure shouldn't give you less rights than the high school drop-out, next door. I have yet to see where any board of accountancy has specifically stated that you can't perform the same services, as any other individual and keep your out of state license. But I'm not saying that such a statute doesn't exist.
If any state board of accountancy says you can't claim you are a CPA, when you clearly are, they are violating your basic right of free speech, which they do not have the authority to do.
Sure you are, but you can't call yourself that in a business and/or work AS A CPA without that state's approval.
And if the CPA doesn't have a license from that state and calls themselves a CPA, then they are breaking the law (and risk losing their license in whatever state licensed them) while the high school dropout picks up their clients.
Not having a license gives you the SAME rights as the high school drop-out next door. And both of you have the right to do the work without calling yourselves a CPA.
You want to call yourself a CPA, get the license.
Call myself a CPA while doing accounting or tax work.
If I don't call myself a CPA, I'm not working "AS A CPA", I'd just be a bookkeeper, like the guy next door.
Yes, they do. There are often cease and desist orders handed out, increased to monetary fines, and caps out at felony convictions for claiming to be a licensed CPA when said license does not exist.
You can be a plumber too, but you can't do plumbing work in another state without that state issuing a license.
Chinvat? Does that mean don't know %#&! in French?
States DO regulate CPAs, Lawyers, Doctors, Banks, Insurance just to name a few industries.
You can perform tax work without a CPA license, but you cannot perform any attestation without it. Not just audits of public companies, but audits of any companies.
That is because you just can't sign up online. They offer it everywhere, in every state.
In the old days (actually just a couple years ago), when we took the paper and pencil test, you were approved by the state and the state administered the exam twice a year. No you go through some national clearing house that approves your qualifications based on the state requirements and then you go call the site to schedule your exam. Not sure as I have not had to do it.
However, the plus side is that you can take the exam in any office for your home state. I knew people here in AZ taking the exam for CA since they started in CA and wanted complete their certification there and the apply for reciprocity.
That is because you just can't sign up online. They offer it everywhere, in every state.
In the old days (actually just a couple years ago), when we took the paper and pencil test, you were approved by the state and the state administered the exam twice a year. No you go through some national clearing house that approves your qualifications based on the state requirements and then you go call the site to schedule your exam. Not sure as I have not had to do it.
However, the plus side is that you can take the exam in any office for your home state. I knew people here in AZ taking the exam for CA since they started in CA and wanted complete their certification there and the apply for reciprocity.
Chinvat is the ancient Assyrian accounting god, that kept your life in his G/L. He would debit your good deeds and credit your bad deeds. If you didn't have a positive balance at the end of your life you were damned.
duh
Wrong! Privately held companies can do whatever they want with their books, just as long as they don't try to defraud investors with them and they pay the correct taxes they owe.
If they wanted to they could call their assets bananas and their liabilities cabbages. They could hire a alcholic homeless person to audit the company.
The point of privately held companies using GAAP is that it gives them a clearer understanding of what is going on with their business, so management can make informed decisions, not to conform to any regulation.
That is because you can't practice law without a license. You can practice accounting without a license. That is a big difference.
I realize that the state boards of accoutancy are telling people they can't practice public accountancy without being licensed in their state and I already stated that. I still think they are exceeding their authority and am sure a good lawyer could beat them in court.
If you are a CPA in one state you should be able to call yourself one in another. Where are they drawing the line: at telling people you are a CPA, putting it on business cards or hanging a sign on your door? It just seems wrong to me.
There would be no attempt to defraud the public if an out of state CPA claimed they were a CPA. It strikes me as state government asserting its influence not because it needs to but because it can.
Anyone can do taxes, but state law mandates that one has to be a CPA with a LICENSE to Opine. Do you know what Opine means? Anyways, one can only practice certain aspects of accounting without a license, taxes being one of those areas because for 85% of the people the returns are not complex. Hell, H&R Block can hire high school drop outs. However, I will repeat this one more time because you have your head so far up your ass, only a CPA can issue an opinion on financials being GAAP.
Banks can be private, but 'Joe's Accounting' cannot give an opinion on their financial statements being GAAP. It would be in violation of both state, and in this example, federal laws. Also, many not for profit entities require single audits (know what that is?). The Feds say only a CPA, licensed by the state, can do that. So, one more time, only CPAs can perform audits, or any attestation work, and give an opinion. Both the state and federal gov't uphold that.
Nope. The state board of accountancy can only issue CPA licensure or takes it away. It can't take away licensure from another state and it doesn't make decisions on how your books must be kept. If you doubt this, prove it.
Let me dumb this down for YOU. If little Sally has a lemonaide stand and she asks her older brother to look at her books and tell her if they confirm to GAAP, he is permitted to give his opinion.
As that lemonaide stand grows to a chain, nothing has changed. Her brother can still audit her company. Suppose she decides to get a loan from her grandfather. Her grandfather doesn't need to see CPA audited financial statements and is legally permitted to trust her brother.
And if that chain grows further and she trys to get a loan from the bank? Banks are prohibited from making risky investments, so they wouldn't give the loan in many cases. They could though decide to make the loan on non-audited or non-CPA audited financial statements if it isn't large enough to effect the amount of risk in their loan portfolio.
It is only after Sally goes public, then the SEC steps in and regulates her accounting.
However, I will repeat this one
You are retarded.
Banks are not like normal businesses because the finanancial security of the country depends on a sound banking system. Try taking a basic economics course.
Also, many not for profit entities require
Only ones receiving money from the federal government.
So, one more time, only CPAs can perform audits, or any
No one more time. Sally can do whatever she wants to with the books for her lemonaide stand. It belongs to her. If she wants some smoe to audit her she can. Just as long as she doesn't try to defraud investors and she pays her taxes.
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