I just don't have the nerve to be a CPA

[OldJack]

However, like many of us, he's much more interested in tax work than in auditing, so taking the time to get those letters after his name does not make economic sense.

There is a common misconception that CPA's are more interested in auditing than tax work and even a misconception that CPA's are *not* competent to do tax work. All CPA's that I know are interested, they study continually, and successfully practice both activities. With most business entities, audit type work is necessary in order to have accurate numbers to properly prepare tax returns. Blindly accepting taxpayer numbers and filling out a business tax form is not professional tax preparation and does not usually result in an accurate tax.

The main reason CPA's get the certification is to let the public know they are qualified professionals. Therefore, most of us do not need one size larger underwear.

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[Booger]

There is a common misconception that CPA's are more interested in auditing than tax work and even a misconception that CPA's are *not* competent to do tax work. All CPA's that I know are interested, they study continually, and successfully practice both activities. With most business entities, audit type work is necessary in order to have accurate numbers to properly prepare tax returns. Blindly accepting taxpayer numbers and filling out a business tax form is not professional tax preparation and does not usually result in an accurate tax.

The main reason CPA's get the certification is to let the public know they are qualified professionals. Therefore, most of us do not need one size larger underwear.

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AMEN, Old Jack (couldn't have said it better myself).

[kcjenkins]

There is a common misconception that CPA's are more interested in auditing than tax work and even a misconception that CPA's are *not* competent to do tax work.

I did not mean to in any way imply that CPAs are not competent to do tax work. Many are, although we all know that some concentrate on audit work and do not attempt to keep up to date on taxes. Just as some concentrate on taxes and do little or no audit work.

I guess I just assumed that everyone here was familiar enough with Tom to understand that my point was that, FOR HIM, AT HIS POINT IN HIS LIFE, it makes no economic sense for him to try to get the CPA, when he already has his tax business growing at a healthy rate, so getting the Masters in Taxation made much more sense for him. I would advise any beginner just out of school to go ahead and get those letters. I'm sorry that I did not do that when I could have. Frankly, it was the $$$ [that I did not have for the test] that stopped me. I wish I had, just for those people who put more value on the letters after a name than anything else. But I still point out that tax is a tiny portion of the CPA exam, and unless anyone keeps studying tax all year, every year, they will not know a thing about taxes within a couple of years, no matter how many letters they can claim behind their name.

[OldJack]

and unless anyone keeps studying tax all year, every year, they will not know a thing about taxes within a couple of years, no matter how many letters they can claim behind their name.

And like EA's all CPA's must have a certain number of study hours each year in order to retain their state license to practice. Most of the study seminars are tax seminars and as I understand it some states require the CPA to study a certain percent of time on taxes regardless if they only do audit work.

Only CPA's working for the huge-large CPA firms have the luxury of not doing tax work and those represent only a small portion of the CPA's in public practice. Those CPA's that only do audit are usually beginners, first-time hired, for the specific detail audit purpose and don't know diddle-squat about taxes and don't attempt to do taxes until later in experience. Yet these beginner CPA's are pointed to, by some ignorant people, as the reason all CPA's don't know much about taxes. As to "claiming letters" after the name, those letters are *required* by law to be disclosed after the name in order to practice as such.

edit: True that tax is only a portion of the CPA exam, but the test is easy if one knows basic accounting and taxes. Every tax preparer should be able to pass and it only takes a short time to answer the questions. It is hard to understand why a tax professional does not want to "claim the letters after their name" so the public knows their qualifications. EA's also understand and know the importance of the letters.

[joanmcq]

test is easy??? I'm sorry, but I am one of those CPAs that did enough auditing to get the letters and that's it. The audit section was, therefore, a bitch. And you need intensive financial accounting, audit as in FS audit, GAAP, FASBs (none of which I've kept up with in the least), biz law...

or are you saying the tax part is easy? Yeah, for a tax pro it would be. Strangely enough though, partnership tax was the section of the whole test I did the worst on, and that includes the managerial accounting part that I took educated guesses on two questions, and blindly filled out bubbles on the rest! got an 80% on random fills somehow....

[OldJack]

test is easy???

Oh Joan! You did good and just want to impress us that it was hard. lol

And I was not just talking about the tax part, but that would be especially easy for those that have experience doing taxes . Don't you think? And by the way I don't claim to be a tax pro and I also still sometimes have problems dealing with partnerships technicalities. Oh well...

[jainen]

>>I also still sometimes have problems dealing with partnerships technicalities<<

I think she was talking about professional issues--leave your love life out of this!

[OldJack]

>>leave your love life out of this! <<

No problems there... it just gets better and better with age!! :)

[taxxcpa]

I thought the tax part of the CPA test was the easiest part of the test. I had taken tax courses about 20 years before I took the CPA test, and about the only thing I'd studied about taxes since then was done when I prepared my own return.

The main advantage of being a CPA is that in order to pass the CPA test you have to develop a way of looking at things that enable you to understand the rationale of the tax rules as opposed to just memorizing the rules and following them. I've noticed that engineers also seem to be good at dealing with tax rules that would baffle most nonprofessionals.

I'm willing to concede that Tom might be able to become a CPA and that it might be of no value to him. But I do not think his insulting comment about CPAs is appropriate any more than making a broad negative generalization about any group of people based on their profession, race, religion or other classification.

[kcjenkins]

I truly think he meant it in a joking manner, Atticus. He's too nice a guy to have intended as a real insult to the profession. Please grant him a little slack.