So You Failed the CPA Exam… Who Cares?

It is a widely known fact within the accounting profession, that passing the CPA exam is no easy feat, it is a lesser known fact why that is. According to the American Institute of CPAs (AICPA), the passing rate in 2015 ranged from 46-56%, depending on the exam section. In fact, in 2013, 2014, and to-date in 2016, the passing rates have all been between 44-56%. While The AICPA remains hush-hush on their scoring policies, it doesn’t take a statistician, or an accountant for that matter, to figure out that they have set the curve so approximately only half of all the candidates taking the exam will pass. What if all of the world’s smartest accountants converged so that only the sharpest CPA candidates sat for the exam within the same testing window? Would the passing rate soar up to 80-90% in that quarter? Nope.  The AICPA has that bell curve so well managed and slick that even Taylor Swift’s PR team would have trouble helping her to stay on the right side of it.

I share this information not to stress CPA candidates out or to add to any anxiety you may be experiencing while studying, but to highlight the fact that people fail this exam… and that’s okay. 

Perhaps during your tenuous times of studying you have been tempted to visit the countless blogs and websites in which CPA candidates share their exam horror stories; the candidate that failed the exam 27 times, and needs to pass in this testing window or else he loses his other passed exams, and his wife will leave him. I beg you, please don’t visit those sites and fall down that rabbit hole.  While it may be nice to learn that you are not alone, and other people are struggling with the exam, hear this – the people around you are more likely to talk about their successes than their failures, so even though it may seem like you’re the only person in your class/department/group that failed…you’re not.

With a passing rate of about 50%, 4 separate exams, open and closed testing windows, and life outside of studying, CPA candidates have a lot going against them, and only about 20% of candidates pass all 4 parts on the first try.     

Let me be the first to raise my hand and say, I failed a section of the CPA exam. I ran the race. I did the review course. I approached it like the other sections I passed but, I still failed. As a friend once told me, “It has to be your test. Your day.” It just wasn’t my test, and it wasn’t my day. It happens. Chances are I will fail at 100 other things I try, too. The point is, failing is fine. Giving up is not.

Perhaps you’re reading this at work. Look to your left and look to your right. See those other accountants/auditors/managers around you? Guess what? Chances are they may have failed a section or two during their CPA exam pursuit too. And what’s more? They are still there. They got through it. Did it make them any less of the professional that they are today? Nope. Who cares? They got through it, and you will too.

So what’s it worth? If you’re interested in progressing your accounting career, the CPA license is “highly preferred.” If that term rings a bell for you, chances are you’ve read an accounting job posting with that term in the fine print. When a company is seeking a skilled accountant to join their team, they most likely are going to hire a CPA over a candidate without the license. While other factors such as company culture, personality, and a candidate’s career progression, will influence the hiring decision, if all of these factors are held equally, the CPA will receive the position over a non-CPA, every time.

Failing is fine, giving up is not.   

So strap on your studying boots, tie those laces a little tighter this time, and begin the march that somehow feels equally further and closer from where you started when you first began studying.  This time, placing grips on the bottom of your boots, so no matter how slick the AICPA’s bell curve is, you know your boots will help keep you on the top.

You’ve got this.