Navigating the labyrinth of fiscal codes, dissecting complex financial transactions, and ensuring compliance with dynamic regulations - the life of an accounting professional is anything but mundane. It's like a never-ending race, where the finish line keeps moving further away, fuelled by the pace of change in the financial world.
CPE in accounting is more than just an educational pursuit; it is a strategic tool that equips you with the knowledge and skills to tackle any changes head-on. Whether it's a new tax regulation, an update in accounting standards, or the emergence of a new financial technology, CPE prepares you for it.
Why CPE is Non-negotiable for Accounting Success
CPE in accounting is the bridge between the theoretical knowledge you get during studies and the practical know-how you need for the real world. As the name suggests, it's an ongoing process, focusing on the long-term professional development of accountants, auditors, and financial managers.
The requirement for CPE isn't arbitrary; it is mandated by most professional accounting bodies, including the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA). These organizations require professionals to undertake a certain number of CPE hours each year, to ensure that the accounting field's collective knowledge remains fresh and relevant, creating an environment that promotes accuracy, transparency, and trust.
In today’s context, where digital transactions are the norm, AI and automation are clearly taking over the business landscape by storm, and compliance becomes more and more complex, being updated is non-negotiable not just to give the best possible service, but to actually do the basic work.
What is the difference between CE and CPE credits?
CE, or Continuing Education, is a broad term that encompasses all professions and industries. CPE is specific to accounting and related financial professions. While both CE and CPE aim at continuing education, CPE credits are particularly designed to address the specialized requirements of the accounting field.
Now, why is there a need for continuing education to hold a position in accounting? The world of accounting is dynamic, shaped by the shifting sands of regulatory changes and emerging technologies. Without continuous learning, an accountant can quickly become outdated, losing their competitive edge in the market. CPE ensures that accounting professionals remain relevant, knowledgeable, and proficient.
Different states in the U.S. have varying continuing education requirements for CPAs. For instance, the continuing education requirements for a CPA in Florida include 80 hours of CPE every two years, with a minimum of 20 hours per year. Out of these 80 hours, 4 should be in ethics. Regulations like these underscore the importance of CPE, ensuring that accounting professionals uphold the highest standards of ethical and professional behavior.
But apart from these regulations, anyone that works in the accounting industry knows that it is encouraged to take all types of training, with and without CPE credits. From courses to conferences and webcasts on-demand.
How much does CPE cost?
As for the costs, it depends on various factors such as the course provider, the topic, the mode of delivery, and the duration of the course. However, many professional bodies and organizations provide cost-effective and even free CPE resources, making continual learning accessible to all accounting professionals.
For example, The American Institute of CPAs (AICPA) offers a variety of free courses and webcasts for those registered to the platform. You can filter them by “free CPE” and here are some interesting ones especially fit for accounting firms:
The AICPA platform is a great way to harvest high standards CPE credits for your team members, at a cost-effective price.
The Big 4 accounting firms usually offer some free training or insight mined by their ongoing surveys.
For instance, Deloitte has its famous Dbriefs webcasts where they share issues, new strategies, and important developments that may be affecting the industry.
EY offers a large number of free courses with CPE credits. Many of them can be webcast live or on-demand. One advantage of these courses is that they are very short and easy to browse.
The FAQ page will help you filter courses and learn how to acces them.
If you are managing an accounting or finance firm, you have already been in this platforms before for sure. But encourage your team to follow this insight notifications and news on a regular basis. Allow them to take the time to review and acces some of this webcast, even during working time.
Is there a shortage of accounting graduates?
While there is a consistent demand for accounting professionals, there has been a noted decline in the number of accounting graduates in recent years. Despite this decline, opportunities abound in the accounting field, making it a viable career choice. However, to be truly successful, these graduates need to differentiate themselves from their peers and stay updated with the latest in the industry. That's where CPE comes into play, offering them an avenue to continually enhance their skills and stay ahead of the curve.
Do bookkeepers require more education than accountants?
The answer is no. Generally, bookkeepers don't need as much formal education as accountants. However, it doesn't mean that they shouldn't pursue continuing education. With the evolving dynamics of financial transactions and the increasing complexity of bookkeeping tasks due to emerging technologies, bookkeepers can greatly benefit from CPE. In fact, many bookkeepers are now opting for it to better understand and manage the intricacies of modern financial landscapes.
Walking the path to CPE can open doors and opportunities to become more than just bookkeepers or accountants and start offering more challenging, added-value services. Many of the companies listed previously offer career development training if accountants want to go to the next step.
Do we really have the time?
The truth is, accounting is a year-round job. Outside of the tax season, accountants are busy preparing quarterly reports, managing payroll, advising on financial strategy, maintaining compliance with regulations, and auditing financial statements, to name a few.
This is why finding CPE-credited courses that are short and easy to squeeze inside an hour routine is so important. CPE is a valuable tool for us professionals to stay on top of these varied responsibilities and deliver our best performance throughout the year but making the time is difficult. That is why, most of the courses, especially free ones, are very short. They can go from one hour to a two-day weekend.
Yes, it may be exhausting, but preparing yourself and your employees for the new challenges of today can set your firm apart from the rest. The role of Continuing Professional Education (CPE) in accounting cannot be overstated. It's not just about fulfilling a professional obligation; it's about being a better accountant, bookkeeper, or financial manager. It's about delivering the best service to clients and maintaining the integrity of the financial industry. So, if you're an accounting firm manager or CEO, embrace the opportunities CPE offers, and push those around you to make the time.
Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
References:
Boyd, K. W. (2020, January 13). Best Free CPE for CPAs (Webcasts, Webinars, & More!). Accounting Institute of Success - CPA Exam Prep. https://www.ais-cpa.com/free-cpe-resources-for-cpas/
