CPA is a professional license available to accountants that requires meeting additional education and experience requirements, along with passing the Uniform CPA Exam. CPAs also have the option to work independently, offering their services to businesses and individuals, or to join large accounting firms where they handle complex tax and audit cases. 1Most state boards of accountancy require 150 credit hours of post-secondary education in order to sit for the CPA exam. As this program is less than 150 credit hours, this program alone does not meet the minimum coursework requirements to sit for the CPA exam. Students interested in sitting for the CPA exam should check their state’s requirements.
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CPAs can also charge more for their services than accountants without a CPA license. Businesses are often willing to pay a premium for a CPA’s services due to the expanded responsibilities that CPAs can take on and their more rigorous training. Certain high-paying accounting fields, such as public auditing, also require CPA credentials.
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A CPA is also allowed to perform certain duties that regular accountants are not permitted to do. In cpa vs accountant this article, we’ll explore more about the differences between a CPA and an accountant, their career paths, what types of education and training they need, and which is better for your business. Many accounting positions, including bookkeeping, tax preparation, and financial analysis, do not require CPA certification.
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- Even outside public accounting, the license signals credibility and readiness for higher responsibility.
- You can work as an accountant with a bachelor’s degree in accounting or a related field, with no additional license required.
- To succeed in any corporate environment, accountants must have a variety of skills.
- Without it, a business can’t prepare proper reports or file taxes correctly.
- In addition to holding a bachelor’s degree, aspiring CPAs must complete 150 credit hours of college coursework, which often includes a graduate degree.
- CPAs are also required to participate in ongoing continuing professional education (CPE) to maintain their licensure.
These include auditing financial statements, representing clients before the Internal Revenue Service (IRS), and filing reports https://www.bookstime.com/ with the Securities and Exchange Commission (SEC). CPAs must pass the demanding four-part CPA exam, with all four parts being completed within a certain time period determined by state authorities. A CPA must also meet state-specific licensing requirements in experience and continuing education, as well as working for a period of time after passing their exam. This extra knowledge and official recognition is what distinguishes CPAs from standard accountants in the field. The day-to-day tasks and responsibilities of accountants and CPAs overlap in many ways, as shown in the chart above.
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- An accountant may not need formal certification though obtaining designations like the Certified Management Accountant (CMA) can boost career prospects.
- CPAs must pass the demanding four-part CPA exam, with all four parts being completed within a certain time period determined by state authorities.
- This extra coursework is often obtained through a master’s degree in accounting, business administration, or taxation.
- In some states, the requirements include being a United States citizen, a resident of the state, or both in order to take the exam.
In their projections, the BLS makes no distinction between Liability Accounts CPAs and non-certified accountants. By clicking submit, you give GCU consent to use automated technology to call and text you regarding educational services. Choose wisely, and don’t shy away from investing in the right financial expertise.
