Best State for CPA License: Industry & Non-Public Accounting

Summary

In this video, Eric thanks Jeff for his Ninja MCQ questions that helped him pass the CPA exams. Now, Eric seeks advice on whether the state he applies for his CPA license matters if he plans to work in industry, not at a CPA firm. Jeff explains the pros and cons of getting licensed, particularly focusing on the relevance and benefits of holding a CPA license when working in industry. He advises Eric to consider the state's requirements and reciprocity and to contact the state board for accurate information. Jeff emphasizes that maintaining a CPA license involves continuous education and costs, which may not be worthwhile if it's only for industry use.

Takeaways

• 📘 Eric expresses gratitude for the Ninja MCQ questions that helped him pass the BEC and FAR sections of the CPA exam.
• 🎓 Having completed the CPA exam, Eric is now considering applying for his CPA license.
• 🏢 Eric is currently working in the industry as a tax accountant and does not plan to work at a CPA firm or sign off on financial statements.
• 🤔 Eric is questioning the importance of the state in which he applies for his CPA license, given his current and future plans.
• 🚫 The transcript suggests that if Eric does not foresee a career in public accounting, there may be little benefit in obtaining a CPA license.
• 💼 The speaker mentions that having a CPA license can act as a career hedge for those who might want to transition to public accounting in the future.
• 📈 The Continuing Professional Education (CPE) requirements for maintaining a CPA license are described as burdensome, boring, and expensive.
• 🔍 Eric is considering applying for a license in a state with less stringent requirements than Texas, such as Arizona or Michigan.
• 📧 The transcript highlights the issue of using the CPA designation in professional emails, which may not be appropriate unless licensed in the state of work.
• 📍 The speaker recommends getting licensed in the state where Eric intends to work or, if planning to move, in the most stringent state for potential reciprocity benefits.
• ☎️ The final advice given is to contact the state board of accountancy to discuss the specifics of licensing and reciprocity.

Q & A

What is Eric's current situation regarding the CPA exam?

Eric has successfully passed his last two CPA exam sessions, BEC and FAR, and is now in the process of applying for his CPA license.

Why is Eric considering applying for a CPA license in a different state?

Eric is considering applying for a CPA license in a different state because he has noticed that the requirements for the license in his current state, Texas, are more stringent than in states like Arizona or Michigan.

What is Jeff's opinion on the necessity of a CPA license for someone working in industry?

Jeff suggests that if Eric does not see a possibility of working in public accounting or signing off on financial statements, there might be no point in getting the license due to the requirements of CPE.

What does Jeff describe the Continuing Professional Education (CPE) as?

Jeff describes CPE as boring, expensive, and something that one might want to avoid if not necessary for their career.

Why might a CPA license be beneficial even for someone not working at a CPA firm?

A CPA license can be a career hedge, allowing one to have an active license in case they decide to transition into public accounting.

What is Jeff's advice on using the CPA designation in internal company communications?

Jeff advises against using the CPA designation in internal company emails if one is not working in accounting, as it may come off as boastful and irrelevant.

What should Eric consider when deciding on which state to get his CPA license?

Eric should consider the state he wants to work in and whether he plans on moving, as well as the stringency of the licensing requirements in different states.

Why does Jeff suggest Eric to get licensed in the most stringent state if he plans on moving?

Jeff suggests this because having a license from a stringent state might make it easier for Eric to meet the requirements of other states through reciprocity.

What is Jeff's recommendation regarding the CPA license and external communications?

Jeff recommends that Eric should not use the CPA designation in external communications, such as emails to clients or vendors, unless he is licensed in the state he is communicating from.

What does Jeff suggest Eric do to get clarity on reciprocity and licensing requirements?

Jeff suggests that Eric should call the state board of accountancy of the state he wants to be licensed in to discuss reciprocity and get detailed information on licensing requirements.