As an aspiring accountant, passing the CPA exam may be your
largest obstacle. Statics show that only 30% of the students pass the
test the first time.
Fortunately, it is possible, and not uncommon, for an individual to retake the test. Whether this is your first time taking your CPA exam or not, it is extremely helpful to know common mistakes CPA's make so you will know how to prevent them.
Working Inconsistently
Even well organized and prepared students can become overwhelmed by the workload of the CPA exam. Feeling overwhelmed may affect an individual's ability to work and study consistently. It is important to be consistent in your effort, otherwise it is more likely make you will make errors on your test.
It is also important to organize your study materials. You will learn things faster if you focus on a single question at a time. You can even break down large questions into smaller and easier to answer sub-categories. Although this may seem like more work, it will help you become faster and finish quicker in the long run.
Tax Deductions
Generally, arranging expenses and assets are fairly easy. However, understanding tax deductions can be extremely difficult for most. A common mistake students make in CPA exams is when he/she places tax deductions in the wrong area. For instance, travel expenses can save 0% to 50 % of taxes, depending on the business expenses and the level of income. When you are doing tax deductions, it is important to remember to place them on the right forms and schedules.
Tax benefits
Another common error is tax benefits. Various types of tax benefits that you were not able to use in the previous year can sometimes be "carried over" into the next year. For instance, if there is a tax benefit that allows you to save over 40,000 USD on an alternative energy company, then you may want to carry those benefits into the next year if you cannot get them in this year. This mistake is often made and easy to look over.
Computational Errors
Perhaps the most common error accountants make, whether they are working for a high level business or just starting studying for an accounting degree. Even if the accountant knows all the formulas and rules, the final equation can be false if the accountant hits the wrong calculator buttons. Therefore, it is important to make sure your computations are correct. The best way to do this is by check and rechecking your answers.
http://ezinearticles.com/?How-To-Avoid-Some-Common-Mistakes-CPAs-Make&id=6948558Fortunately, it is possible, and not uncommon, for an individual to retake the test. Whether this is your first time taking your CPA exam or not, it is extremely helpful to know common mistakes CPA's make so you will know how to prevent them.
Working Inconsistently
Even well organized and prepared students can become overwhelmed by the workload of the CPA exam. Feeling overwhelmed may affect an individual's ability to work and study consistently. It is important to be consistent in your effort, otherwise it is more likely make you will make errors on your test.
It is also important to organize your study materials. You will learn things faster if you focus on a single question at a time. You can even break down large questions into smaller and easier to answer sub-categories. Although this may seem like more work, it will help you become faster and finish quicker in the long run.
Tax Deductions
Generally, arranging expenses and assets are fairly easy. However, understanding tax deductions can be extremely difficult for most. A common mistake students make in CPA exams is when he/she places tax deductions in the wrong area. For instance, travel expenses can save 0% to 50 % of taxes, depending on the business expenses and the level of income. When you are doing tax deductions, it is important to remember to place them on the right forms and schedules.
Tax benefits
Another common error is tax benefits. Various types of tax benefits that you were not able to use in the previous year can sometimes be "carried over" into the next year. For instance, if there is a tax benefit that allows you to save over 40,000 USD on an alternative energy company, then you may want to carry those benefits into the next year if you cannot get them in this year. This mistake is often made and easy to look over.
Computational Errors
Perhaps the most common error accountants make, whether they are working for a high level business or just starting studying for an accounting degree. Even if the accountant knows all the formulas and rules, the final equation can be false if the accountant hits the wrong calculator buttons. Therefore, it is important to make sure your computations are correct. The best way to do this is by check and rechecking your answers.
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