5 tips for employers to boost cpa exam test-taking
chicago [kaplan cpa education news release] — the number of certified public accountants is at a standstill — from 639,628 in 2003 to just 646,520 in 2006 — an increase of a little over 1%, according to data from the national association of state boards of accountancy (nasba). at the same time, the need for accounting professionals is greater than ever, thanks to sarbanes-oxley and other changing financial laws and regulations passed in the last few years.“the accounting field is hot, and the number of new accountancy hires has grown tremendously in the past year,” said laura riley, cpa and director of kaplan cpa education. “however, employees who want to grow in the profession need to pass the cpa exam. it takes considerable time and energy.”
the u.s. bureau of labor statistics projects that the employment of accountants will grow by 10-20% over the next 7 years nationally.
experts agree that success on this rigorous licensing exam requires a serious commitment of time. kaplan recommends 250-400 hours of study to be properly prepared for the entire cpa exam — approximately 60-100 hours for each of the four individual parts.
and even though the number of cpas is at a standstill, the national pass rate for the exam has actually increased. the pass rate for each of the four parts is roughly 43%, which is a 10% rise since 2004, when the exam became computerized and more user-friendly by separating the sections and providing windows of time for each part.
so, the problem is that candidates are simply not taking the exam.
“it can be difficult when a cpa candidate is working 60-plus hours a week and trying to fit in study time on the side,” riley said. “smart employers will provide the tools — a time and place to study, and company-sponsored classroom test prep — to help their cpa candidates succeed.”
when more candidates take the test and become cpas, accounting firms will have a bigger pool of talent.
“the top two problems today in the accounting and financial industry are recruiting and retaining employees,” riley continued. “when there is a shortage of talent, the workload on the existing cpas increases, and many leave the industry. it becomes a downward spiral where it is difficult to attract — and then keep — talented professionals.”
kaplan has some tips for employers who are incubating tomorrow’s cpa test takers:
tip #1: provide support — host company-sponsored cpa review courses. if there is no time during the day, host the review courses at night or on weekends. allow employees the time to study, and pay for his/her materials and exam fees.
tip #2: designate a study area — provide a quiet, distraction-free area, free of phones and talking. candidates can “escape” to this area before and after work, weekends, and any time in-between.
tip #3: set up a mentoring program — develop a mentoring program where a cpa alum works directly with a candidate to provide industry insight, tips and encouragement.
tip #4: develop a cpa study community — foster a “team effort” in passing the cpa exam. provide free lunches or dinners at work for employees who want to utilize their meal times to get in extra study time. keep the conference rooms available on weekends. and award incentives when specified study goals are achieved. it is often more effective to have periodic rewards for study time than it is to have one big reward after success has been attained.
tip #5: praise him/her on a job well done — provide a congratulatory award, a day or two off, or a nice gift to candidates that pass the cpa exam. they’re on their way to further success — hopefully with your company!