The general public’s knowledge of cryptocurrency has increased significantly over the past year thanks to 2017’s 20-times multiplication of Bitcoin’s price. News media outlets seemingly published articles, broadcasts, and other pieces on Bitcoin, Ethereum, Ripple, and other cryptocurrencies every single day last year; talks have subsided slightly, though the concept, practice of, and interest in digital currency is still growing in popularity. Some early adopters of cryptocurrency have realized that tokens, coins, and digital mediums of exchange will certainly proliferate in coming years. Why not specialize in cryptocurrency management as a CPA or financial advisor?
To be technical, there is no such occupation as a “cryptocurrency CPA.” However, demand for such services will unarguably increase as years pass, so it only makes sense to become intimately familiar with cryptocurrencies used as investments. Here are the most important things you should know about becoming a CPA who is geared towards cryptocurrency.
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What a CPA Is
CPA stands for Certified Public Accountant, a professional designation awarded by each and every state in the U.S. that indicates proficiency in filing taxes, auditing businesses, and government agencies, creating financial statements for public companies, and bookkeeping.
Most CPAs don’t take on all four of these tasks; instead of being a proverbial jack of all trades, most Certified Public Accountants make their living by primarily working in tax, auditing, managerial, or financial accounting. However, some accountants with CPA designations work as financial advisors who also prepare taxes for individuals and couples.
Since questions about using cryptocurrencies as investments will most often come from individuals, married couples, and family units, people hoping to work most closely with cryptocurrency as an accountant should take on tax preparation and financial advisory services.
Earning the Title of CPA?
Each state has their own requirements for earning the credential of Certified Public Accountant. However, all of them require – as according to the American Institute of Certified Public Accountants (AICPA) – candidates to complete at least 150 credit hours’ worth of relevant college courses from one or more accredited institutions of higher education; work in the capacity of an accountant under the guidance of an already-established accountant who holds the active licensure of Certified Public Accountant; and pass all four parts of the Uniform CPA Exam – auditing and attestation, financial accounting and reporting, regulation, business environment and concepts – within a set time frame, usually 18 months.
Gaining Expertise Regarding Cryptocurrencies
As already established, there currently isn’t a true occupation referred to as a “cryptocurrency CPA.” However, accountants who manage investments; file personal tax returns; offer financial advisory services; and are experts in the purchase, trade, and management of cryptocurrencies as investments are – in effect – “cryptocurrency CPAs.”
People hoping to advise others financially about cryptocurrencies and manage personal portfolios of digital currencies, tokens, and coins should immerse themselves in the world of cryptocurrencies.
Future financial services professionals wanting to work with cryptocurrencies who hold the titles of Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) will unarguably be better served to manage investments than their CPA-only counterparts.
Consider managing your own portfolio of cryptocurrencies, keeping up with current events related to cryptocurrencies, and seeking other designations from appropriate agencies.
Some people enjoy helping others with tough financial issues the average person struggles with; people reading this article likely feel the same way – they also likely want to work in financial services, particularly with cryptocurrencies. Cryptocurrency is believed by some to be the future replacement of paper currency issued by central banks. As such, it only makes sense to express interest in becoming what could be known one day as a cryptocurrency CPA.
