What Is a CPA and How Do I Become One?

A certified public accountant (CPA) is primarily a United States-based credential referring to an accounting professional who has met the education, exam, and experience requirements for licensure by the State Board of Accountancy. In the United Kingdom, you can be a CPA or pursue more common UK-based credentials. Typical UK qualifications include the Associate Chartered Accountant (ACA), which you can pursue with the Institute of Chartered Accountants in England and Wales; Chartered Accountant (CA) through ICAS, the only European-based organisation to provide the CA qualification; and Associate Chartered Certified Accountant (ACCA) through the Association of Chartered Certified Accountants. 

To become a CPA or gain other qualifications, you must pass an exam to demonstrate your mastery of technical skills like financial accounting, financial reporting, auditing, attestation, regulations, business environments, and business concepts. You will receive training in tax law, auditing procedures, and management practices, making them desirable for businesses and nonprofit organisations.  

Read on to learn more about the process for advancing your accounting career in the UK.

What CPA stands for

CPA, or certified public accountant, is an American designation that indicates an accountant can work in the field. To advertise as a CPA, you must have a license from a state that allows for international applicants. In the UK, those registered with the Association of Chartered Certified Accountants can be called either a chartered or certified accountant.

CPA vs. UK accountancy qualifications

You can pursue the CPA designation from within the UK by following the process US-based accountants go through. However, other options include popular UK-based accounting qualifications such as the following:

• Association of Accounting Technicians (AAT): You can choose from three levels, including the beginner-friendly AAT Foundation Certification. More advanced options include the AAT Advanced and AAT Professional diplomas.

• Association of Chartered Certified Accountants (ACCA): You will need to work in the field for at least three years before you gain membership in the ACCA.

• Association of Chartered Accountants (ACA): You will need a minimum of 450 days of experience and complete three levels of exams: certificate, professional, and advanced.

• Chartered Institute of Management Accountants (CIMA): This qualification is ideal if you want to pursue a career in financial management. You'll need to qualify for 12 papers and have at least three years of professional experience.

How does a CPA prove their certification? 

To prove your certification, you earn a CPA licence from a US state that accepts international applicants where you want to work. To do so, you must pass all four parts of the CPA exam. Once you’ve passed them and met the work experience requirement, you can apply for a CPA licence with your state board of accountancy.

How do chartered accountants prove their standing?

Depending on the organisation you obtain your credentials through and the requirements of the employer seeking verification, you may be able to search online directories with that governing body. Alternatively, you may need to request a Letter of Good Standing that verifies you met all prerequisites, passed the exam, and achieved everything necessary for the qualification. 

CPA vs. accountant

All CPAs are accountants, but not all accountants are CPAs. A CPA is a financial professional licensed by a state board to provide accounting services to the public. CPAs perform duties like tax preparation, auditing, and consulting. An accountant is an individual who professionally practises accounting but isn’t necessarily certified.

Earning your CPA licence demonstrates your knowledge of advanced accounting competencies. Therefore, if you choose to work in the United States, you can fill roles or complete tasks related to the Internal Revenue Service (IRS) and Securities and Exchange Commission (SEC).

What does a CPA or chartered accountant do?

Like most accountants, CPAs and chartered accountants perform accounting, auditing, tax, and consulting work for individuals, businesses of all sizes, and governmental organisations.

Depending on the nature of your work, you may manage records for small businesses, advise corporate clients about various transactions, conduct audits, and prepare statements and reports. Other examples of your daily responsibilities include:

• Providing financial advice and preparing financial documents

• Counseling individuals, teams, and businesses on financial management

• Offering tax planning advice 

• Preparing financial documents

• Monitoring for and detecting financial fraud

• Managing financial irregularities 

• Collaborating with external auditors and other professionals

• Overseeing junior team members

What are the benefits of becoming a chartered accountant?

As a chartered accountant, you have credentials that help validate your knowledge and skills. The resulting prestige and respect can open up new career opportunities. Some of the benefits you may experience include:

• Higher earnings: On average, chartered accountants earn more than non-chartered accountants with similar education and experience. According to Glassdoor UK’s November 2024 data, accountants earn a median base salary of £37,947 [1]. In contrast, chartered accountants earn a median annual salary of £45,072 [2].

• Increased job opportunities: By becoming a chartered accountant, you can pursue many careers in the field. You can work at public accounting firms, private companies, government agencies, and nonprofit organisations. You can also apply for consulting, information technology, education, and financial planning roles, since these sectors rely on financial expertise.

• A sense of accomplishment: Passing the exam(s) necessary to gain your credentials showcases your skills and professionalism. It’s a challenging path. For example, according to the Institute of Chartered Accountants in England and Wales (ICAEW), 5,042 learners took 8,413 exams in September 2024. Amongst them, 3,617 passed all their exams, with pass rates ranging from 59 to 100 per cent [3].

• Credibility: You and your client's success as a trusted business advisor and financial expert depends on your credibility. By pursuing professional qualifications, you’re both talking about and acting on it. Your certification builds trust with clients by giving them confidence in your advice.

What skills do chartered accountants need?

Not all chartered accountants possess the same skills, particularly if you choose to specialise in a specific area. However, some common skills include:

• Familiarity with business operations

• Interpersonal communication and collaboration

• Leadership and ability to work independently

• Numeracy and analytics

• Integrity

• Strategic thinking and decision-making

• Empathy

• Solid work ethic and motivation

• Attention to detail

• Willingness to engage in continuous learning

• Familiarity with the sector you work within

How to become a chartered accountant 

Your career path can look different from that of someone else; however, gaining the proper qualifications is essential. For example, you could begin the process after your first degree or pursue a relevant degree such as a Bachelor of Science in Accounting and Finance. You’ll also need some professional experience before taking and passing the exam(s) set forth by the organisation issuing your credentials. 

Pursue relevant qualifications

You can begin with an AAT qualification but many accountants in the UK opt for a university degree to begin building their knowledge. You can pursue various subjects, with maths, accounting, finance, and economics amongst the chief subjects. As a bonus, getting your bachelor’s or master’s degree may exempt you from some of the exams.

You might also consider an online accounting degree, which offers flexibility when working full-time. Online programmes may also offer an accelerated format. You might like to consider the Online Master's of Accounting (iMSA), offered by the University of Illinois Urbana-Champaign.

Pass the exam.

Each credential has its own requirements. In general, you’ll need to undergo several years of training and pass an exam or series of exams to become a chartered accountant. To become a CPA, you’ll need to take the Uniform CPA Exam. Many require that you hold an undergraduate degree and or 150 hours of university education. Some states require that CPA candidates be at least 18 to 21 years old, and a few require citizenship or permanent residency.

Gain experience.

The years of experience you need before taking your exams will vary, but most call for at least two to three years working in public accounting. Some states will accept experience working in government or industry, but you will usually need more of them. It can be helpful to contact accountancy firms directly to inquire about shadowing or gaining pre-qualification experience. 

Continue your education.

You must complete continuing professional development (CPD) hours, which vary depending on your precise credentials, usually by January 1 every year. The number of hours typically ranges from 20 to 40. You must also comply with your organisation’s code of ethics.

Chartered accountant career opportunities

Once you gain your credentials, your diverse business and technical skills will provide many opportunities. Whilst you may opt to work for private companies, small businesses, or large enterprises, many of the early training opportunities you’ll encounter are in the public sector. 

Salary and career outlook

Industry trends like the adoption of artificial intelligence and rising advisory and consultancy roles continue driving sustained demand for skilled professionals. Additionally, you’ll enjoy solid earning power. Glassdoor UK’s November 2024 data reveals the median base salary of £45,072, with the potential to earn another £2,564 in bonuses and other forms of compensation [2].  

The annual salaries of other jobs that you might pursue as a qualified chartered accountant include: 

• Public accountant: £23,849 [4]

• Management accountant: £37,360 [5]

• Government accountant: £37,703 [6]

• Internal auditor: £38,245 [7]

• Tax advisor: £35,383 [8]

• Forensic accountant: £52,325 [9]

• Personal financial planner: £47,036 [10]

Build accounting skills and knowledge on Coursera

With many potential career paths open to you, accounting credentials like the US-based CPA or UK-based chartered accountant designation can help open the door to new opportunities. Begin building solid knowledge and a robust skill set to prepare for the exams you’ll take and the rigours of the career ahead of you. 

For example, you might consider earning extra semester hours and standing out to employers by obtaining a master’s degree like the Online Master's of Accounting (iMSA), offered by the University of Illinois Urbana-Champaign on Coursera. Or, you could pursue more specialised coursework with options like the Forensic Accounting and Fraud Examination from West Virginia University or the University of Illinois at Urbana-Champaign's Financial Reporting Specialisation.